Europe -  Copenhagen

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Greater Copenhagen is Scandinavia’s largest metropolitan area, with 1.9 million inhabitants. It has the highest number of international companies in the region and is home to Northern Europe’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 resource and effectiveness, low carbon and environmental quality. A number of significant public investments in Greater Copenhagen are to be developed over the next ten years, including Ørestad, Carlsberg City District and Nordhavn.

The Copenhagen hotel market is generally tied to the performance and outlook of the Danish, European and global economies. As with the rest of the world, hotel demand plummeted in March 2020 following the outbreak of the COVID-19 pandemic, resulting in RevPAR declining by around three quarters of its 2019 level in 2020 and, despite a recovery, still indexing at less than 65% in 2021, compared to 2019. Prior to the pandemic, Copenhagen experienced strong growth in performance, partly due to its growing reputation as one of Europe’s top MICE destination with the Bella Centre, Scandinavia’s leading conference and trade show venue, a key driver of congress. Hotel occupancies remained above 80% between 2017 and 2019 and average rate grew in line with inflation. Continued interest from international investors and global operators has resulted in a substantial hotel pipeline with 11 hotels (2,700 rooms) due to open in the next two years, representing a sizeable 13% of current supply. Although performance was flat in 2021, we remain optimistic and expect Copenhagen to strongly recover from the pandemic as the city is catching-up with other major European capitals in terms of hotel supply quality and international momentum for both leisure and business tourism.

In terms of transactions, the 288-room First Hotel Skt. Petri was sold in January 2021 for a reported amount of €202 million (€702,000 per key) and the 400-room Hotel Vesterbro was sold in September 2021 for an estimated €82 million (€205,000 per key). Overall, the market recorded a value increase of 3.2% in 2021 compared to 2020, reaching 91% of the 2019 value, in euro terms.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA

[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković

[email protected]
  • +44 20 7878-7724 (w)
  • +44 7 593572865 (m)
Mathilde De Bona

[email protected]