Greater Copenhagen is Scandinavia's largest metropolitan area, with 3.9 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 10 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. The economic slowdown appears to have been overcome, and consistent growth is forecast for the next few years, which should benefit the city’s hotels. The long-term pipeline for Copenhagen includes a broad range of properties, from budget to luxury, alongside extended-stay, hostel and lifestyle concepts. More than 70% of the current Copenhagen hotel market supply is three- to five-star properties; however, low-cost/budget (typically two-star) hotels have entered the market successfully, winning valuable market share, and more are planned to open in the next few years.

The city of Copenhagen has seen strong growth in performance in recent years, 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. Hotel occupancies have remained stable at slightly below 80% over the past three years and average rate growth has been in line with inflation.

The Greater Copenhagen area has a substantial pipeline for the next three years with over 6,000 rooms expected (some 30% of current supply). However, given the strong demand growth, recording a 6.8% compound annual growth rate between 2011 and 2016 (2017 numbers were not yet available), the outlook for future tourism trends in the city is positive.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market: (€Euro)

Copenhagen RevPAR Change (€Euro)

Copenhagen RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA [email protected] +44 20 7878 7722 (w)
	Simon Hulten [email protected] +44 020 7878-7775 (w)