For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2024
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2023
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2022
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2021
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2020
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2019
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2018
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2001
With almost 2 million inhabitants in 2023, Greater Copenhagen is Scandinavia’s largest metropolitan area. It has the highest number of international companies in the region and is home to the Nordic region’s largest international airport. The Copenhagen region accounts for approximately 40% of Denmark’s economic output and has experienced consistent, sustained growth in recent years. The city’s growth has been delivered at the same time as improving environmental performance and transitioning to a low-carbon economy, elements underpinned by a combination of the city’s eight green economy drivers: urban form, innovation, investment, skills and employment, enterprise, energy and resource effectiveness, low carbon and environmental quality. Copenhagen aims at being the first carbon-neutral capital in 2025. New city development projects are meant to be completed over the next ten years, such as Nordhavn, Paper Island, Kronløb Island and Jernbanebyen.
Up until the pandemic, Copenhagen experienced strong growth in performance, partly due to its growing reputation as one of Europe’s top MICE destinations with the Bella Centre, Scandinavia’s leading conference and trade show venue, a key driver of congress demand. Hotel occupancies, which tend to be tied to the performance and outlook of the Danish, European and global economies, remained above 80% between 2017 and 2019 and average rate grew in line with inflation. After the slowdown in 2020 and 2021, Copenhagen’s hotel market experienced a large increase in both occupancy and average rate in 2022, which resulted in RevPAR returning to pre-pandemic levels in nominal terms, albeit remaining some 20% below historical levels in 2019 prices. In 2023, the healthy continued recovery in both occupancy and average rate resulted in a strong increase of around 15% in RevPAR – however still remaining below the 2019 watermark in real terms.
There are 11 hotels in Copenhagen’s current hotel pipeline, representing an addition of around 1,800 rooms to the existing supply. The five-star Orestad Syd Hotel will account for 515 of them and is expected to open in May 2024. Another 128-room 25Hours hotel should also open in Copenhagen in July 2024, as part of the Paper Island mixed-use development.
The transaction volume in Copenhagen remained limited in 2022, with only two transactions recorded: the 110-room Hotel Kong Frederik (sold for €20 million in October 2022) and the previously mentioned 128-room 25Hours Hotel Paper Island, purchased by Union Investment for €53 million in August 2022. There was an increase in the number of transactions in Copenhagen in 2023, with four recorded sales, including the sale of the 268-room Hotel The Square in January for €74 million (€275,000 per key), and the sale of the 400-room Hotel Vesterbro in November for €94 million (234,000 per key).
Overall, our 2024 European Hotel Valuation Index indicates a value increase of 1.5% (1.7% in local currency) in Copenhagen in 2023 compared to 2022.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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