For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2025
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2001
Stockholm, in the east of Sweden, is the country’s capital and largest city, with a population nearing 1 million in 2024. Spanning 14 islands, the city boasts a vibrant and resilient tourism sector that has shown strong recovery following the global disruptions caused by the COVID-19 pandemic. In 2024, Stockholm County recorded 15.3 million overnight stays, matching the peak level achieved in 2019 – a testament to the city’s enduring appeal as a leading European destination.
The market is predominantly driven by domestic tourism, with Swedish residents accounting for the majority of overnight stays. Nonetheless, international visitation remains a key pillar of demand, with the USA, Germany, and the UK consistently ranking as the top source markets. Tourism plays a vital role in Stockholm’s economy, contributing meaningfully to Sweden’s overall tourism revenue and supporting employment across the hospitality, food service and cultural sectors.
While opportunities for further growth remain, the market faces several challenges, including seasonality and competition from other Scandinavian and European capitals.
Prior to the pandemic, hotel rates in Stockholm were declining in euro terms, despite steady demand growth from both business and leisure segments, largely due to the depreciation of the Swedish krona. We note that rates in local currency remained largely flat.
Although Sweden largely remained open during the pandemic, demand in Stockholm declined in line with trends observed across other Nordic capitals. Recovery began in 2022, led by the return of business travel, and continued into 2023, with occupancy levels rebounding to percentages in the mid-60s. However, both average rate and RevPAR remained below 2019 levels in real terms, in both local currency and euro terms, with the depreciation of the Swedish krona further diluting performance when measured in euro. In 2024, occupancy plateaued, but average rates continued to grow, supported by the recovery of the meetings and events segment. Overall, 2024 RevPAR was 15.0% below 2019 in real euro terms and 8.0% in real local currency prices. This discrepancy can be attributed to the depreciation of the Swedish krona against the euro between 2019 and 2024.
Stockholm’s hotel development pipeline has remained limited in recent years, with a compound annual growth rate (CAGR) of just 0.2% between 2019 and 2024. The current pipeline is similarly constrained, comprising only five projects totalling 1,000 rooms – roughly 4.5% of existing supply. Three of these projects are in the planning phase and one is under construction. All are independent hotels, with three scheduled to open in 2026, one in 2027 and one in 2028.
In terms of transaction activity, the market has seen moderate deal flow in recent years. Six hotel transactions were recorded in 2022, followed by four in 2023. Activity slowed slightly in 2024, with just two notable transactions: the 532-room Clarion Hotel Stockholm, acquired by NREP in July for approximately SKr1.5 billion (€139 million), equating to SKr2.8 million (€260,000) per room, and the 102-room Barnhusväderkvarnen 22, acquired by Folksam for an undisclosed amount in December. The relatively weak Swedish krona continues to attract international investors, offering opportunities to enter the market at a discount.
According to our 2025 European Hotel Valuation Index, overall, hotel values in Stockholm increased by 2.5% per key in 2024 compared to 2023.
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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