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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.

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

Change In Value For Market: (€Euro)

Stockholm RevPAR Change (€Euro)

Stockholm RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 2078787722 (w) +44 0 7725781037 (m)