Europe -  Stockholm, Sweden

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Stockholm 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 telecommunications company Ericsson, household goods company Electrolux, construction company Skanska, car and engine manufacturer Volvo and electricity provider Vattenfall. 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 account for 60% of the total demand in the city. Nevertheless, the number of nights from leisure visitors has increased significantly in the past few years, whilst guest nights from business travellers has risen more slowly.

Prior to the pandemic, RevPAR levels remained broadly stable, affording Stockholm its long track record and solid growth in both business and leisure demand. Unfortunately, as with the rest of the world, COVID-19 brought an abrupt halt to these gains. Although Sweden mostly remained open throughout the pandemic, hoteliers experienced a significant demand decline in Stockholm broadly in line with other Nordic capitals.

While the top-line performance trends were broadly in line with other European capital cities in 2020, Sweden’s furlough subsidies and other state aid measures have been far more favourable compared to other European countries, meaning hoteliers could, to a certain degree, mitigate the cash flow losses.

In terms of transactions, the most prominent were the 273-room Grand Hotel Stockholm at €351 million (€1,300,000 per key) in April 2021 and Clarion Hotel Amaranten at €145 million (€314,000 per key) in July 2020.

Overall, hotel values declined by 12% in 2020 compared to 2019 and compares to the European average decline of 15.3%.

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: Less than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)