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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2003
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2002
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2001
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 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 has 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 hotel pipeline is, however, quite modest, with projects representing 3.2% 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. COVID-19 brought an abrupt drop in performance. Although Sweden mostly remained open throughout the pandemic, hoteliers experienced a significant demand decline in Stockholm broadly in line with other Nordic capitals.
In terms of transactions, Stockholm was exceptionally active in 2021, with a record total investment volume of €597 million or €449,000 per key, distorted by the prominent sale of the 248-room Grand Hotel Stockholm sold in June 2021 to the Swedish asset management firm FAM AB for approximatively €355 million or €1.3 million per room. Other transactions include the 70-room Villa Dagmar sold by the Stockholm municipality in August 2021 for approximatively €52 million or €739,000 per room, and the 182-room Akka 10 hotel sold in April 2021 for approximatively €29 million or €161,000 per room. Overall, hotel values increased by 5.2% in 2021 compared to 2020, in line with the European average recovery in value.
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:
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Hotel Occupancy Increase/Decrease
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