For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
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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2017
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2016
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2015
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2014
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2013
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2012
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2011
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2010
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2009
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2008
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2007
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2006
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2005
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2004
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2003
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2002
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2001
With 1.9 million inhabitants, Greater Copenhagen is Scandinavia’s largest metropolitan area. 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. Prior to 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 remained above 80% between 2017 and 2019 and average rate grew in line with inflation. As with the rest of the world, hotel demand plummeted in March 2020, and RevPAR was still indexing at less than 65% in 2021, compared to 2019. In 2022, Copenhagen’s hotel market experienced a large increase in both occupancy and average rate, which resulted in RevPAR returning to pre-pandemic levels in nominal terms, albeit remaining some 20% below historical levels in 2019 prices.
The five-star, 515-room Ørestad Syd Hotel is the only project in Copenhagen’s current hotel pipeline. It is currently under construction and is expected to open in June 2023.
The transaction volume in Copenhagen remained limited in 2022, with only two transactions recorded. The most recent hotel transaction, in October 2022, was the sale of the 110-room Hotel Kong Frederik, for €20 million (or €182,000 per room). The other transaction was that of the 128-room Hotel Papiroen which is part of the Paper Island mixed-use development. The hotel was purchased by Union Investment for €53 million (or €414,000 per room) in August 2022.
Overall, our 2023 European Hotel Valuation Index indicates a value increase of 2.5% (also around 2.5% in local currency) per key in Copenhagen in 2022 compared to 2021.
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.
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