Europe -  Stockholm

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Stockholm, in the east of Sweden, is the country’s capital and largest city with a population of almost 1 million in 2023. 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.

Stockholm strives to be a place of development and growing opportunities for companies. The dominant sector in the city is business services, which includes finance, technology, science, and law. The biggest employers in Stockholm are private security company Securitas AB, telecommunications company Ericsson, fast fashion company H&M, trucks and buses manufacturer Scania, manufacturer of fabricated metal products Assa Abloy AB and household goods company Electrolux.

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.

Prior to the pandemic, rates were 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  experienced a rebound from the pandemic as business travellers returned to the destination. 2023 saw further recovery in occupancy, which reached the mid-60s. However, average rate and RevPAR still remained below the 2019 levels in real terms. The observed slow recovery of the market was amplified by the weakening of the Swedish krona over that period, which resulted in a dilution in rate recovery in euro terms.

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 just under 1,000 rooms, only 5% of the current room stock. Most of the projects in the pipeline are independent hotels, except for the 40-room Scandic Sondra Kajen, currently under construction and expected to open in June.

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). A further four hotels transacted during 2023. The main transactions included the sale of the 221-room Hotel Fridhemsplan in February for €35 million (approximately €160,000 per key), and the 155-room Hotel Terminus in December 2023 (price undisclosed).

Overall, hotel values in Stockholm decreased by 3.4% per key in 2023 in euro terms compared to 2022, whilst in local currency values increased by around 4.3%.

Change In Value For Market: (€Euro)

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: More than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
Managing Director
[email protected]
  • +44 0 2078787722 (w)
  • +44 0 7725781037 (m)
Julia Dzerkach
[email protected]
  • +44 0 2078787742 (w)
  • +44 0 7912240964 (m)
Clemence Sennavoine
Senior Associate
[email protected]
  • ++44 0 7736273439 (m)