For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2023
|
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
2015
|
2014
|
2013
|
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
Stockholm, in the east of Sweden, is the country’s capital and largest city. It is the economic, financial and business centre of Sweden, as well as a leading regional player, particularly in the emerging Baltic markets and within the EU. Although Sweden opted out of the European Monetary Union (euro), Stockholm’s main trading partners are all European. The offices around Hamngatan and Sergelstorg control one of the most powerful economies in Europe. As such, the city ranks as a leading financial centre in the Nordic countries with a prevalence in areas such as innovation, technology, availability of capital and quality of life.
The service sector is dominant in the city and, as such, professional, scientific and technical companies account for around a quarter of the private businesses in the Greater Stockholm area, employing more than 13,000 people. The biggest employers in Stockholm are private security company Securitas AB, telecommunications company Ericsson, fast fashion company H&M, household goods company Electrolux, construction company Skanska, and car and engine manufacturer Volvo. Other leading employers include the three main banks – SEB, Swedbank and Handelsbanken – and construction company NCC.
Stockholm is attractive as both a tourist destination and a city for business. However, Stockholm is commercial in nature: it is broadly recognised that business travellers accounted for 60% of the total demand in the city before the COVID-19 pandemic. Nevertheless, the number of nights from leisure visitors has increased significantly in the past few years, whilst guest nights from business travellers have risen more slowly.
Stockholm’s hotel market experienced a substantial increase in supply from 2017 to 2019 with more than 3,500 rooms added to the market, resulting in a slight occupancy decrease from the mid-70s to around 70%. The city’s current hotel pipeline is, however, quite modest, with projects representing 2.75% of the current room stock. Prior to the pandemic, rates were also decreasing in euro terms, despite the solid growth in both business and leisure demand, as a result of the weakening of the Swedish krona. Although Sweden mostly remained open throughout the pandemic, hoteliers experienced a significant decline in demand in Stockholm broadly in line with other Nordic capitals. In 2022, the Stockholm market continued to experience a rebound from the pandemic as business travellers returned to the destination.
After a record of total investments within the market in 2021, the market continued to be active in 2022, recording six hotel transactions. The Stockholm market remains attractive for international investors thanks to the Swedish krona’s attractive exchange rates, allowing investors the opportunity to enter the market at a discounted rate. The market’s transactions for 2022 included the 137-room Hotel Grand Saltsjobaden that sold in May 2022 for an undisclosed price, the 175-room Nordic Light Hotel that transacted in October 2022 for €91 million, the 200-room Kaseren 1 sold in November 2022 for €63 million, the 153-room Hoom Home & Hotell sold in February 2022 (undisclosed price), the 170-room Scandic Taby transacted in March 2022 (undisclosed price) and the 130-room Hotel Diplomat was sold in November 2022 (undisclosed price). Overall, hotel values in Stockholm had a modest uptick of 1% 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.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
|
|
|
ADR Change
|
|
|
Market Demand Change
|
|
|
Hotel Occupancy Increase/Decrease
|
|
|
RevPAR Change
|
0.0%
|
0.0%
|
Market Supply Growth
|