Stockholm Hotel Report 2020 Cover photo: Hotel Frantz, Mathias Nordgren Photo on this page: Invest Stockholm, Jeppe Wikström Foreword

This report was finalised before the global spread of the coronavirus (Covid-19). The consequences of the spread, combined with the restric- tions and recommendations from authorities and governments aiming to reduce the spread of infection, have had dramatic consequences for both travellers and hotels. Demand for hotel rooms in Stockholm and throug- hout Sweden has fallen sharply during March. Today, there is great uncertainty regarding the effects the coronavirus will have on global travel. Historically, the demand of hotel rooms has quickly recovered after various types of crises. Overall, however, there is a significant risk that the growth up to 2024 will not be as good as forecasted in this report

Omslagsfoto: XXXXXXX

Photo: Invest Stockholm, Henrik Trygg Summary

• There is a strong demand for hotel rooms in Stockholm County and the growth rate in occupied rooms has increased over the last 10 years. • Despite a strong expansion of the hotel room capacity during 2017, the occupancy rate in the county has stabilized at record levels. • The potential growth in occupied rooms is increasing at a high rate, which means that the occupancy rate, average price and RevPAR in Stockholm City are forecasted to have a strong development until 2024. • Annordia's assessment is that there is a potential demand that could carry an additional 2,000 rooms, apart from the already planned rooms, by 2024 with an occupancy rate in Stockholm city of approx- imately 71 percent. • Leisure guests have accounted for 70 percent of the growth in occupied rooms over the past decade. In the City of Stockholm, leisure guests now occupy a majority of all hotel rooms. • Nordic operators such as Scandic and Nordic Choice Hotels dominate the county's room supply. • Average daily rates and RevPAR have developed weaker than in the rest of the country, which is partly due to the large expansion of hotel room capacity. • There is a limited pipeline of hotel projects in central Stockholm in the coming five-year period, while the growth in hotel room supply will be relatively large in the county outside of the city. • The relatively weak supply growth in the city is partly due to the fact that it is currently more profitable to invest in offices, for example, be-

Photo: Bank Hotel, Danger Österlin cause of historically high office rents.

6 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 7 Contents

12 14 32 38

1. Introduction 2. Supply 5. Forecast 2020-2024 6. Stockholm Business Alliance

12 More people are traveling 14 Weak growth in central Stockholm 32 Introduction 38 SBA municipalities in a context

12 Background 16 Hotels develop more distinct concepts 32 The potential growth in demand 39 Planned changes to supply

17 Geographic distribution 33 Stockholm is relatively cheap

18 Hotel classification 34 Rising occupancy rates

18 Breakdown by price range 35 Strong growth in ADR and RevPAR

35 Existing conditions for hotel investments

20 28 42 46

3. Demand 4. Future supply 7. Hostels, holiday villages and 8. P2P rentals campsites 20 Strong hotel market in Stockholm 28 Limited pipeline in central Stockholm 46 Professionalisation of the services 42 Supply 21 High growth in occupied rooms 28 New actors in the county 47 Supply and demand in central Stockholm 42 Guest nights and room revenue 23 Continuously high occupancy rates 29 Continued growth in Solna and Sigtuna 48 Rates and revenue 44 Foreign guests 23 Varied growth in ADR 29 Planned changes to supply 48 P2P rental and the hotel market 45 Average rate 24 Weak growth in RevPAR 45 Closing comment 24 Unchanged seasonality

27 Stable share of foreign guests

50 52

9. Largest operators in the Definitions county 52 Hotel classification 50 Nordic operators dominate

50 Biggest brands Photo: Miss Clara, Beatrice Graalheim 10 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 11 1.

Introduction

THE DEMAND FOR HOTEL ROOMS HAS INCREASED RAPIDLY IN STOCKHOLM, SWEDEN AND EUROPE FOR A LONG TIME. IN STOCKHOLM, THE NUMBER OF ROOMS SOLD HAS RISEN FROM 4,200 PER DAY 1980 TO 16,700 PER DAY 2019.

More people are traveling The increased demand for hotel rooms is a conse- The number of arrivals of foreign tourists to Swedish quence of increased travel both internationally and airports amounted to 4.9 million in 2018, an increase nationally. A large part of people who are traveling of 135 percent over the past 10 years. There is also a have to sleep somewhere and often it is in a hotel. For big potential for continued growth. A simple calcula- example, the number of guest nights at hotels in the tion shows that if the countries in Europe which EU totaled over two billion in 2019, which was just in 2018 had a lower level of per capita GDP, was at over 500 million more than ten years before. the same level as Sweden, the number of hotel guest The two most important factors behind the strong nights in the EU would be over a billion more. growth in travel and demand for hotel rooms are the increased trade and wealth. More trade within and Background between countries increases the need for business This report is produced in light of Stockholm's strong meetings, which in turn increases the number of busi- growth as a tourist destination and the increased de- ness travelers with demand for hotel rooms. The fact mand for accommodation. Every two years, Invest that international trade gives rise to business travel can Stockholm publishes a comprehensive account of be illustrated with the number of arrivals of foreign all existing and planned accommodation options in business travelers to Swedish airports, which was Stockholm city and county. about 2.4 million in 2018. This report also provides a forecast of hotel Increased wealth gives rise to more leisure travel, room demand between the years 2020-2024 in the especially by tourists. The relationship between the City of Stockholm, as well as an overview of the 56 level of GDP per capita and the number of guest municipalities within the Stockholm Business Alli- nights in hotels per capita in Europe is very strong. ance (SBA).

This report is produced by Annordia on behalf of Invest Stockholm. Invest Stockholm is the City of Stockholm's invest- ment promotion agency whose main task is to contribute to increased sustainable growth by attracting investments and establishments to the Stockholm region. Invest Stockholm is also marketing Stockholm as an attractive city under the brand Stockholm - the Capital of Scandinavia, and provide services to the business community. The services aim to improve the conditions of running, starting and establishing companies in Stockholm and the region.

Photo: Invest Stockholm, Jeppe Wikström Photo: Invest Stockholm, Jeppe Wikström

12 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 13 2. Rooftop bars have become more common in the design of new hotels during the last years. The trend can be partly attributed to the increasing market share of the leisure segment, and that Supply it gives hotels an edge compared to established competitors.

THE STRONGER POSITION OF THE LEISURE SEGMENT ON Photo: Winery Hotel STOCKHOLM’S HOTEL MARKET DURING THE PAST YEARS IS REFLECTED IN THE RECENTLY OPENED HOTELS, WHERE INCREASED EFFORTS ARE MADE TO PROVIDE A SPECIAL GUEST EXPERIENCE. 40% OF THE COUNTY'S CAPACITY INCREASE DURING THE LAST TWO YEARS HAS BEEN IN THE LONG STAY SEGMENT. ABOUT 65 PERCENT OF THE Weak growth in central Stockholm There are currently 177 hotels and almost 23,700 during the forecast period. In 2019, five new hotels ROOMS HAVE BEEN ADDED IN THE COUNTY OUTSIDE OF THE CITY. rooms in the City of Stockholm. The corresponding opened in the City of Stockholm, with a total of figures for Stockholm County excluding the city are about 500 rooms. The most recently opened hotels 169 hotels and about 15,100 rooms. In total, the room are Blique by Nobis, The Sparrow Hotel (formerly T2.1: HOTELS THAT HAVE OPENED IN THE COUNTY DURING 2018-2019 capacity in the county amounts to approximately Hotel Drottning Kristina), Hotel Frantz (formerly 38,700 rooms distributed across 346 hotels. The supply Hotel Anno 1647), Hotel Gamla Stan and the win- HOTEL MONTH ROOMS SEGMENT MUNICIPALITY in the City of Stockholm has increased by approxima- dowless hotel Zzz Dreamscape Hotel, see table T2.1. tely 7,000 hotel rooms since 2010, corresponding to an The year before, Bank Hotel opened in premises pre- STOCKHOLM HOTEL APARTMENTS BROMMA FEB 2018 53 LONG STAY STOCKHOLM

average annual increase of approximately 3.8 percent. viously occupied by a bank on Arsenalgatan in central HOTEL POINT JUL 2018 40 SELECT SERVICE STOCKHOLM The previous decade, between 2000 and 2009, the ci- Stockholm. Bank Hotel and Zzz Dreamscape Hotel BANK HOTEL AUG 2018 115 FULL SERVICE STOCKHOLM ty's supply increase was approximately 4,700 rooms, are the only two hotels that have opened within the equivalent to an annual increase of about 3.7 percent. CBD (Central Business District) in the past two years. APARTDIRECT GRÖNDAL OCT 2018 24 LONG STAY STOCKHOLM Thus, the growth rate in room supply in the City The limited increase in capacity can be partly attri- COMFORT HOTEL KISTA NOV 2018 194 SELECT SERVICE STOCKHOLM

of Stockholm has remained stable for a long period. buted to the high office rents in Stockholm's inner BEST WESTERN PLUS GROW HOTEL NOV 2018 176 FULL SERVICE SOLNA

In the last two years, the capacity increase in city, with record levels touching 10,000 SEK per squ- STOCKHOLM HOTEL APARTMENTS SOLLENTUNA DEC 2018 60 LONG STAY SOLLENTUNA the City of Stockholm has been low compared to are meter. This has caused difficulties for hotels to THE STUDIO HOTEL DEC 2018 160 LONG STAY STOCKHOLM the record year 2017, when more than 1,800 rooms compete for vacant premises when different uses were added to the city's supply. It is also shown in are compared to each other. ZLEEP HOTEL UPPLANDS VÄSBY JAN 2019 152 LIMITED SERVICE UPPLANDS-VÄSBY Diagram D2.1 how the city's room supply relative HOOM HOME & HOTEL VEDDESTA JAN 2019 153 LONG STAY JÄRFÄLLA

to the county excluding the city increased sharply THE SPARROW HOTEL (EX. DROTTNING KRISTINA) FEB 2019 88 FULL SERVICE STOCKHOLM in 2017. Since then, the growth rate in available HOTEL GAMLA STAN APR 2019 81 SELECT SERVICE STOCKHOLM rooms has been higher in the county excluding the D2.1: GROWTH IN AVAILABLE ROOMS 2010-2019 CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY city which is a trend that is expected to continue BLIQUE BY NOBIS MAY 2019 249 FULL SERVICE STOCKHOLM 160 RAMILTON APARTMENTS HOTEL DANDERYD MAY 2019 70 LONG STAY DANDERYD

150 ARKADEN LONGSTAY HOTEL JUN 2019 47 LONG STAY SIGTUNA

140 APARTDIRECT SUNDBYBERG JUN 2019 36 LONG STAY SUNDBYBERG

130 EKEBYHOV HOTELL JUL 2019 60 LONG STAY EKERÖ

38,749 120 HOTEL FRANTZ (EX. HOTELL ANNO 1647) OCT 2019 48 FULL SERVICE STOCKHOLM TOTAL NUMBER OF HOTEL ROOMS IN ndex 100=2010 I 110 ZZZ DREAMSCAPE HOTEL OCT 2019 17 LIMITED SERVICE STOCKHOLM THE COUNTY, DISTRIBUTED ACROSS 346 HOTELS, AS PER 31 DECEMBER 2019. 100 Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research 90 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

City of Stockholm County excl. city

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

14 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 15 Last year, seven hotels opened in the county exclu- ce, many hotels in Stockholm have also made efforts GEOGRAPHIC DISTRIBUTION OF HOTELS ding the city, with a total of almost 500 rooms. It is to invite the general public and have thus become noteworthy that five of the hotels are long-stay hotels important hubs for both planned and informal me- where all units have a kitchen or a kitchenette. The etings. As the social areas become more attractive, supply of long-stay hotels has increased steadily for a new possibilities have also emerged regarding the JÄRFÄLLA RINKEBY- long time, and in the last two years almost 40 percent KISTA of the total capacity increase in the county has been

in the long-stay segment. SPÅNGA- In addition to long stays, other types of housing TENSTA in the same segment have also increased, where cor- 47% OF THE ROOM SUPPLY IN THE CITY porate housing and block rentals of private housing VÄLLINGBY-HÄSSELBY OF STOCKHOLM IS LOCATED IN THE for companies have become more common. These NORRMALM CITY DISTRICT. SOLNA apartments are not classified as hotels by Statistics LIDINGÖ Sweden and thus they are not visible in the accom-

modation statistics regarding supply and demand. For NORRMALM example, Företagsbostäder has significantly increased design of the guest rooms. For example, there are ÖSTERMALM its portfolio of apartments in recent years. During the several new hotels in central Stockholm where all or BROMMA KUNGSHOLMEN same period, the number of applications to the rent many of the rooms are windowless. Instead these tribunal to block rent apartments has increased from hotels offer spacious and well-designed public areas. SÖDERMALM 59 units in 2015 to 101 last year. The trend with an Examples of these are Haymarket by Scandic where NACKA increased supply of long-stay hotels and corporate 75 out of 405 rooms lack windows, and Hotel With HÄGERSTEN- housing may be partly attributed to the fact that com- Urban Deli which has 106 windowless rooms. Today, LILJEHOLMEN panies in Stockholm County have a hard time finding the hotel's public areas serve as a living room for the accommodation for employees on temporary assign- guests where you can create social hubs for those who SKÄRHOLMEN ÄLVSJÖ ments. At the same time, major ongoing infrastructu- want to work and for those who want to relax. Thus, ENSKEDE- SKARPNÄCK ÅRSTA- re projects such as the E4 Stockholm Bypass project the hotel is not only a place to stay, but also an impor- VANTÖR are increasing the demand for temporary housing. tant meeting place. HUDDINGE FARSTA BOTKYRKA Hotels develop more distinct concepts T2.2: GEOGRAPHICAL DISTRIBUTION In a large hotel market such as Stockholm, it becomes HOTELS AND ROOMS PER CITY DISTRICT increasingly important for a hotel to find its niche Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research

and stand out from the crowd. Historically, busi- CITY DISTRICT HOTELS ROOMS % OF ROOMS ness guests have accounted for the majority of hotel room demand, but in recent years a structural shift NORRMALM 67 11,193 47.3% in hotel room demand, which is described in more SÖDERMALM 40 3,606 15.2% Geographic distribution

detail in the next chapter, has increased the propor- ÖSTERMALM 19 2,131 9.0% About 60 percent of all hotel rooms in the county and accounts for about 15 percent. Norrmalm inclu-

tion of hotel rooms occupied by the leisure segment. KISTA-RINKEBY 11 1,600 6.8% are located in the City of Stockholm. Sigtuna and des most of Stockholm's inner city, such as the fi- Several lifestyle hotels have emerged because of this Solna account for a significant part of the capacity nancial district, several large shopping streets and the shift, primarily in central Stockholm, where ope- BROMMA 13 1,472 6.2% in the county excluding the city. This is partly due to Central station with the hotel cluster on Vasagatan. rators are investing heavily in the guest experience. KUNGSHOLMEN 5 1,243 5.3% the fact that Stockholm Arlanda Airport is situated It is therefore natural that the district has the largest

The concepts have thus become even more impor- ENSKEDE-ÅRSTA-VANTÖR 6 869 3.7% in Sigtuna municipality, while Solna is home to the concentration of hotels. Outside the city centre, hotel

tant and distinct, and they often permeate the entire ÄLVSJÖ 6 754 3.2% new high-intensity business district of Arenastaden clusters have also been formed near Bromma Airport hotel. Operators who stick their neck out and crea- which also accommodates Friends Arena and West- as well as major visitor drivers such as Stockholms- HÄGERSTEN-LILJEHOLMEN 4 388 1.6% te unique experiences can be seen among the whole field Mall of Scandinavia. For example, hotels in the mässan and the IT-cluster in Kista. spectrum, where Upscale hotels such as Bank Hotel, SKÄRHOLMEN 2 226 1.0% Arlanda area account for about 15 percent of the to- In recent years, many hotels in the long-stay seg- At Six and Haymarket by Scandic as well as Mids- HÄSSELBY-VÄLLINGBY 2 92 0.4% tal room supply in the county excluding the city. The ment have been established in Kista. Several of the

cale hotels like And Hotel and Hobo stand out. Se- SPÅNGA-TENSTA 1 52 0.2% urban development projects in Solna, as well as im- international IT companies with headquarters in the veral of the hotels with distinct concepts that have proved communications to central Stockholm, have area often have consultants on temporary assignme- FARSTA 1 42 0.2% opened in recent years are included in Scandic’s and also been contributing factors to the municipality's nts who need housing for an extended period. The Nordic Choice Hotel’s portfolios but are run under SKARPNÄCK - - - increasing hotel supply in recent years. Within the current housing shortage in the county makes it dif-

independent brands. TOTAL 177 23,668 City of Stockholm, the Norrmalm district accounts ficult to find accommodation for employees, where- As the food and beverage offerings have become for about 47 percent of the total room supply, while upon long-stay hotels have emerged as an alternative Source: Swedish Agency for Economic and Regional Growth/Statistics a more important part of the hotel guest experien- Sweden, Annordia Research Södermalm (including Gamla Stan) is in second place for businesses.

16 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 17 T2.3: HOTELS BY STAR RATING CITY OF STOCKHOLM, THE COUNTY EXCLUDING THE CITY AND STOCKHOLM COUNTY

CITY OF STOCKHOLM THE COUNTY EXCL. THE CITY STOCKHOLM COUNTY

STAR RATING HOTELS ROOMS % ROOMS HOTELS ROOMS % ROOMS HOTELS ROOMS % ROOMS

5 STARS 8 1,590 6.8% 1 26 0.2% 9 1,616 4.2%

4 STARS 67 12,435 52.6% 50 6,008 40.0% 117 18,443 47.6%

3 STARS 79 8,703 36.9% 95 8,242 54.9% 174 16,946 43.7%

2 STARS 23 939 3.7% 23 805 4.9% 46 1,744 4.5%

1 STAR ------

TOTAL 177 23,668 169 15,081 346 38,749

Source: Hotelstars Union, Visita, Hotels.com, Booking.com, Annordia Research

Hotel classification Breakdown by price range Hotelstars Union is a European-wide organization In large hotel markets such as Stockholm County and that determines the classification standard for hotels the City of Stockholm, there are many different types in the member states. In Sweden, Visita, through its of hotels that offer varying levels of guest service. subsidiary Sveklass, is responsible for the hotel classifi- This means that there is a large spread in the prices Photo: At Six, Andy Liffner cation. However, the classification is voluntary, which that the hotels can charge for their rooms. is the reason why most of the hotels in Sweden are In table T2.4, the number of hotels and hotel hotels. Diagram D2.2 shows a breakdown of hotels ding SEK 1,200. All five-star hotels are placed in the not included in this classification. For example, none rooms in the City of Stockholm and the county ex- in terms of star rating and ADR. The diagram also two highest price ranges. In the highest range there is of Scandic’s nor Nordic Choice Hotels are classified. cluding the city have been divided into six different includes an additional price range with hotels that also, somewhat surprisingly, one three star-rated hotel. To enable comparisons, Annordia has obtained ra- ranges of ADR. Within the city, almost two-thirds charged an ADR above SEK 1,800. The ten hotels in However, the star classification is not the sole factor tings from online travel agencies such as Hotels.com, of the room capacity had an ADR between SEK 800 the highest price range recorded an average ADR of explaining a hotel’s price level. For example, the rela- Booking.com and Tripadvisor, and has made its own and SEK 1,399 in 2019. The proportion of rooms at as much as SEK 2,480 in 2019. As one would expect, tively large differences in some of the star categories assessment in cases where the hotel lacks an official hotels within that same price range is a few percenta- there is a correlation between the price level and the are explained by the hotel's location. ranking. Almost half of the room capacity in the coun- ge points higher in the county excluding the city. The number of stars. That is, the quality level correspon- ty is found in four-star hotels, see Table T2.3. This is proportion of rooms available at ”economy hotels” is ding to the star rating is reflected in the ADR. Gene- partly because four-star hotels have traditionally been also higher in the county excluding the city. Just below rally, hotels positioned in the lower price ranges are standard for business travelers in Sweden. A relatively 23 percent of the market’s room capacity is in hotels classified with two and three stars. Three-star hotels A THREE STAR-RATED HOTEL WAS RECORDED IN small portion of capacity is found in two-star hotels, that charged an ADR below SEK 800 last year. The dominate all price ranges up to SEK 1,200, which is THE HIGHEST INTERVAL OF AVERAGE DAILY RATES, which account for just below five percent of the total corresponding proportion in the City of Stockholm close to the overall ADR in the City of Stockholm. ABOVE 1,800 SEK, DURING 2019. supply in the county. Noteworthy is that there are no was recorded at 12 percent. Four-star hotels are spread over all ranges except the hotels that have been classified as one star and that the- For the City of Stockholm, the different price lowest, with a vast majority in the price ranges excee- re is only one 5-star hotel in the county outside the city. ranges have been combined with star ratings of the

D2.2: HOTELS BY STAR RATING AND ADR SHARE OF HOTELS PER PRICE INTERVAL, CITY OF STOCKHOLM T2.4: HOTELS BY AVERAGE DAILY RATE DURING 20191 CITY OF STOCKHOLMS AND THE COUNTY EXCL. THE CITY 100% 16.2% 16.7% CITY OF STOCKHOLM THE COUNTY EXCL. THE CITY 90% 33.3% 80% ADR, SEK HOTELS ROOMS % ROOMS HOTELS ROOMS % ROOMS 70% 73.3% 70.0% 0 - 799 32 2,853 12.0% 38 3,418 22.6% 60% 80.0% 48% 62.2% 50% 100.0% 800 - 999 39 4,935 20.8% 47 4,286 28.3% OF THE HOTEL 40% 53.3% 83.3% 1,000 - 1,199 45 5,323 22.5% 45 4,083 27.0% ROOMS IN 30% STOCKHOLM COUNTY 1,200 - 1,399 30 4,745 20.0% 19 1,775 11.7% 20% ARE IN FOUR STAR 20.0% 26.7% 21.6% 16.7% 1,400 - 1,599 15 3,125 13.2% 14 1,274 8.4% RATED HOTELS. 10% 13.3% 10.0% 0% 3.3% 1,600 - 16 2,701 11.4% 7 314 2.1% 0 - 799 800 - 999 1,000 - 1,199 1,200 - 1,399 1,400 - 1,599 1,600 - 1,799 1,800 -

TOTALT 177 23,682 170 15,150 2 stars 3 stars 4 stars 5 stars

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research. Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research 1The table also contains properties that have closed or changed business orientation during the year.

18 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 19 3.

Demand

THE DEMAND FOR HOTEL ROOMS IN STOCKHOLM COUNTY HAS GROWN STEADILY DURING 2018 AND 2019. THE OCCUPANCY RATE HAS REMAINED STABLE OVER THE LAST FIVE YEARS AS SUPPLY AND DEMAND INCREASED AT THE SAME RATE. HOWEVER, A FALLING AVERAGE DAILY RATE (ADR) IN 2019 LED TO A MARGINAL DECLINE IN REVPAR.

Photo: Invest Stockholm, Tove Freij

Strong hotel market in Stockholm High growth in occupied rooms The hotel market in Stockholm County accounts for and Communication, Business services, Banking and Growth in the hotel market in Stockholm County has observed period. From a historical perspective, the about 40 percent of the total room revenue in the Insurance. Many large international companies also been very strong over the last 10-year period, see dia- growth rate over the past decade has been exception- Swedish hotel market. This means that the Stockholm have their headquarters in Stockholm. In addition to gram D3.1. Throughout the county, the number of oc- ally high, as it has been noted well above the historical hotel market is significant relative to both the coun- the business community´s direct contribution to ho- cupied hotel rooms has increased by over three million, growth trend. In addition, the percentage growth of ty´s share of Sweden´s population and the Swedish tel demand, Stockholmsmässan, the Nordic region´s which corresponds to an increase of almost 55 percent occupied hotel rooms in Stockholm County was ap- economy, as the county accounts for only about 23 largest exhibition centre, attracts guests every year proximately 60 percent higher than in the rest of Swe- percent of the nation´s population and about one- through the many fairs and congresses it accommo- den during the period. Solna and Sigtuna municipalities third of the nation´s economy. dates. Stockholm is a strong event region, with large accounted for two-thirds of the growth in the county THE GRADUAL WEAKENING OF THE SWEDISH There are several important explanations to why arenas such as Friends Arena, Tele2 Arena and the excluding the city. In Solna, for example, the new city KRONA DURING THE PERIOD 2013 AND ONWARDS the Stockholm hotel market is large in relation to Ericsson Globe. Stockholm is also an increasingly HAS BENEFITED STOCKHOLM'S HOTEL MARKET. district Arenastaden has taken shape during the past its population. One explanation is that the Swedish popular tourist destination. With its proximity to water decade. In Sigtuna, a large part of the growth is ex- government, the Swedish Parliament, the ministries and the Stockholm archipelago, the county attracts plained by the increased airline passenger traffic to and and many large government agencies are located in many domestic as well as foreign visitors. The hospi- from Arlanda. Stockholm, which drives many visitors to the region. tality industry also benefits from the fact that Stock- between 2010 and 2019. Percentage increase has been Leisure guests have accounted for a clear majority In addition, the county´s business structure is largely holm Arlanda Airport is located in the county and stronger in the county excluding the city. However, in of the increase in occupied rooms in Stockholm made up of sectors that normally have a high demand accounts for almost 70 percent of all international absolute terms, the City of Stockholm accounted for County, as more than 70 percent of the growth can for hotel rooms, such as companies in Information arrivals by air to Sweden. 65 percent of total growth in the county during the be attributed to the segment. However, the leisure seg-

D3.1: OCCUPIED HOTEL ROOMS PER YEAR 2010-2019 D3.2: SHARE OF GUESTS PER GUEST GROUP, 2010 AND 2019 CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY, MILLIONS CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY, PERCENT

100 90 30 80 37 39 51 70

60 7 33 50 20 4 Procent 40

30 57 44 20 37 40 10 0 2010 2019 2010 2019

City of Stockholm County excl. City

Business guests Conference guests Leisure guests

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

20 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 21 creased in the short-term perspective. The low inter- During the last 10-year period, however, the occupan- The tourism intensity, number of occupied rooms per capita, in est rates have also contributed to the rapid increase in cy rate has improved significantly for the hotel mar- the City of Stockholm was 6.3 in 2019. This is high compared value of household assets, both housing and financial ket in the county excluding the city, from 48 percent to Oslo and Helsinki, which recorded 5.3 and 4.3 occupied assets. This has substantially increased households´ in 2010 to 56 percent in 2019. The occupancy rate rooms per capita, respectively. Copenhagen had the highest wealth in relation to disposable income. All in all, this also improved in the City of Stockholm during the tourist intensity of the Nordic capitals with 8.2 occupied rooms development has contributed to the strong growth in period, albeit not as much. Between 1980 and 2014, per capita. demand for hotel rooms from Swedish leisure guests. the annual occupancy rate in the City of Stockholm had only exceeded 70 percent six times. Over the past Continuously high occupancy rates five years, it has exceeded 70 percent every year. The

Photo: Invest Stockholm, Jeppe Wikström The strong growth in demand has driven up the occu- improved occupancy rate in the county can be partly pancy rate in the county during the last 10-year period, explained by the growth in demand from the leisure despite the strong growth in supply of hotel rooms. segment, which has resulted in a more evenly distribu- The level of occupancy differs between the City of ted occupancy rate over the year as well as weekdays. ment´s share of growth was bigger in the city than in to 1,55 over the past 10-year period, while the propor- Stockholm and the rest of the county, see diagram the county excluding the city. In the City of Stockholm, tion of rooms occupied from Friday to Sunday has in- D3.3. In 2019, the occupancy rate in the City of Stock- Varied growth in ADR leisure guests accounted for just over 80 percent of the creased from 38 to 41 percent. holm was almost 72 percent, while in the county ex- The ADR is significantly higher in the City of Stock- growth, while in the rest of the county, the segment There are several different factors behind the strong cluding the city it was recorded at 56 percent. However, holm than in the rest of the county, see diagram D3.4. accounted for about 55 percent. The effect of this de- growth in demand for hotel rooms from leisure guests. the difference is also great between the municipalities As the diagram shows, the difference has increased velopment is that the guest structure of the hotels in First, it is a general trend that leisure travel is increasing over the past 10-year period. In 2010, the difference Stockholm County has changed during the period. Di- rapidly in both the rest of the country and internation- was about SEK 100 and last year the difference had agram D3.2 shows the distribution of occupied hotel ally. Second, the gradual weakening of the Swedish cur- increased to almost SEK 250. The ADR in the City rooms between business, conference and leisure guests rency from 2013 and onwards has favoured this devel- of Stockholm was among the highest of all municipal- at the hotels in the City of Stockholm and the rest of opment. Until the turn of the year 2019, the Swedish 1,237 SEK ities in Sweden in 2019, while the ADR in the county the county. In the City of Stockholm, the proportion krona has lost almost 20 percent in value relative to the WAS THE AVERAGE DAILY RATE IN THE excluding the city was below the national average. As of rooms occupied by leisure guests has increased from Euro, almost 15 percent to the British Pound and just CITY OF STOCKHOLM DURING 2019 can be seen in the diagram, the ADR in the county 37 percent in 2010 to 51 percent in 2019. In the county over 30 percent to the US dollar. The weakening of the excluding the city was actually slightly lower in 2019 excluding the city, the proportion of rooms occupied Swedish krona has made it cheaper for both foreign than in 2010. An important explanation for this is that by leisure guests has gone from 30 to 40 percent. Two and Swedish tourists to visit Stockholm. Third, the low the proportion of occupied rooms connected to con- consequences of this development are that the average Swedish interest rates from 2012 onwards may have of Stockholm County excluding the city. One of the ferences in the county excluding the city has decreased. number of guests per occupied hotel room has grad- had a positive effect. This has led Swedish households´ reasons for the lower occupancy rate is that a large The ADR in conjunction with conferences is normally ually increased, and that the share of rooms occupied lending to continue to increase rapidly, at the same time share of the county´s conference centres are located at a relatively high level. When rooms are instead occu- on weekends has also increased. In the City of Stock- as households´ interest rate expenditures in relation to outside of the city. It is a hotel type that generally has pied by leisure guests, which are generally more price holm, where the leisure segment accounted for most household disposable income have fallen sharply. This a lower occupancy rate than other types of hotels due sensitive, ADR has declined. of the growth in occupied rooms, the average number means that the cost for households to increase their to a strong seasonality and an uneven distribution of Diagram D3.5 highlights the development of the of guests per occupied room has increased from 1,45 debt, in form of higher interest expenses, has not in- occupancy over the week. ADR of hotel rooms in the City of Stockholm and

D3.3: OCCUPANCY LEVEL 2010-2019 D3.4: AVERAGE DAILY RATE 2010-2019 D3.5: GROWTH IN AVERAGE DAILY RATE 2010-2019 CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY

80 1,300 116

75 1,250 112

70 1,200 108 0 51% 65 1,150 104 OF ALL OCCUPIED ROOMS IN THE CITY

60 K 1,100 SE OF STOCKHOLM DURING 2019 WERE Percent 100 55 1,050 SOLD TO LEISURE GUESTS. Index 100=201 96 50 1,000

45 950 92

40 900 88 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

City of Stockholm County excl. city City of Stockholm County excl. city City of Stockholm County excl. city

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

22 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 23 the county excluding the city by showing the percent- the last 10-year period, see diagram D3.7. This can be distribution of occupied rooms between the months commodate many more guests during peak days. The age change. The diagram shows that the ADR has explained by a slightly higher growth in ADR in the of the year has remained largely unchanged over the potential for the hotel market in the City of Stock- increased over the entire period in the City of Stock- City of Stockholm than in the county excluding the past 10 years, with only marginal levelling between holm, given its unchanged capacity, thus lies in at- holm, albeit it has somewhat declined over the last two city. In 2009, the RevPAR was recorded 59 percent the strongest and weakest months. As for variations tracting guests during the parts of the week and the years. As noted above, the ADR in the county exclud- higher in Stockholm city and by 2019 the difference in the occupancy rate over the days of the week it year where demand is lower. ing the city is actually lower in 2019 compared to 2010. had increased marginally to 60 percent. In 2009, 80 can be noted that Sundays are by far the weakest days As the leisure segment gains a larger market share, Compared to the rest of the country, ADR in percent of the difference was explained by higher for hotels, see diagram D3.9. Tuesdays and Wednes- variations begin to level off somewhat. However, the Stockholm County has developed weaker over the past occupancy rates and 20 percent by higher ADR. days, which are normally strong days for the business winter months are still relatively weak in the city. There decade. The ADR in the country has increased by 14 The growth in RevPAR has been weak in Stock- segment, are the days of highest occupancy. During are several explanations for this. For example, the ac- percent during the period, which can be compared holm County compared to the rest of the country, the strongest periods in 2019, week 19-24 and week tivity in the business segment is low during Christmas with about 11 percent in the City of Stockholm and where RevPAR increased by 33 percent between 2010 33-39, the occupancy rate on Tuesdays and Wednes- and New Year´s holidays, which affect occupancy in less than 1 percent in the county excluding the city. and 2019. The corresponding increase was about 15 days reached above 90 percent on 21 days out of 26 December and January. Another explanation may be percent in the City of Stockholm and 14 percent in possible. Consequently, there are limitations on the that it is not as attractive to travel during the autumn Weak growth in RevPAR the county excluding the city, respectively. Thus, occupancy rate in the City of Stockholm to rise much and winter months as it is during the summer. In There is a big difference in the level of RevPAR be- the percentage increase was more than twice as high higher than in 2019, as the hotels are not able to ac- January and December 2019, the number of foreign tween the hotel market in the City of Stockholm and in the rest of Sweden compared to both the City of in the county excluding the city, see diagram D3.6. In Stockholm and the county excluding the city. D3.8: SHARE OF OCCUPIED ROOMS PER MONTH D3.9: OCCUPANCY RATE PER WEEKDAY 2019 2019, the RevPAR in Stockholm was recorded at SEK The weak RevPAR development in Stockholm CITY OF STOCKHOLM AVERAGE VALUE IN PERCENT, CITY OF STOCKHOLM

890, while in the county excluding the city it was just County is probably a consequence of the strong build- 90

over SEK 550. The level in the City of Stockholm was up in hotel room capacity. The increased capacity has 81 79 SEK 330 higher, corresponding to just over 60 per- enabled a strong development of occupied hotel 80 75 cent. The higher RevPAR is attributed to the signifi- rooms but also increased competition, which has led 71 71 72 cantly higher occupancy rate and ADR. The difference to a relatively weak development of both the ADR 70 in RevPAR can be explained to 54 percent by the fact and RevPAR.

that the city has a higher occupancy rate and 46 per- 60 ccupancy rate, %

cent by the higher ADR. As previously mentioned, the Unchanged seasonality O 48 level of RevPAR is significantly higher in the City of The occupancy in Stockholm´s hotel market varies 50 Stockholm than in the county excluding the city and during the months of the year but is usually strong-

the difference has also increased marginally during est from May to November, see diagram D3.8. The 40 Mon Tue Wed Thu Fri Sat Sun

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden THE WEAK GROWTH IN REVPAR DURING THE PERIOD FROM 2010 T0 2019 IS MOST LIKELY A CONSEQUENCE OF A RAPID INCREASE IN THE SUPPLY OF HOTEL ROOMS IN STOCKHOLM COUNTY. T3.1: OCCUPANCY, AVERAGE DAILY RATE AND REVPAR 2010-2019 CITY OF STOCKHOLM, THE COUNTY EXCL. THE CITY AND STOCKHOLM COUNTY

CITY OF STOCKHOLM THE COUNTY EXCL. THE CITY STOCKHOLM COUNTY

D3.6: REVPAR 2010-2019 D3.7: GROWTH IN REVPAR 2010-2019 YEAR OCC., % ADR, SEK REVPAR, SEK OCC., % ADR, SEK REVPAR, SEK OCC., % ADR, SEK REVPAR, SEK CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY CITY OF STOCKHOLM AND THE COUNTY EXCL. THE CITY

2010 69.4 1,117 775 48.2 1,009 486 61.2 1,085 663 1,000 125 2011 68.3 1,144 782 49.1 1,029 505 61.1 1,110 678 900 120 2012 66.2 1,116 739 47.1 1,012 477 59.2 1,085 642 115 800 2013 67.4 1,125 757 46.4 990 460 59.3 1,084 643 110

K 700 2014 68.6 1,127 774 49.0 946 464 61.0 1,070 653

SE 105 2015 72.0 1,153 831 54.4 958 65.2 1,091 712 600 521 Index 100=2010 100 2016 73.2 1,215 890 55.1 991 546 66.2 1,143 757 500 95 2017 71.3 1,233 879 55.3 986 545 65.3 1,154 753 400 90 2018 71.2 1,227 874 56.1 1,023 574 65.6 1,163 762 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 71.8 1,237 888 55.7 995 554 65.7 1,159 762 City of Stockholm County excl. city City of Stockholm County excl. city

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

24 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 25 arrivals to Arlanda was approximately 300,000 fewer of visitors from countries outside Europe, there are per month than during the summer period. good conditions for continued growth. The ADR during the year largely follows the cor- Statistics Sweden reports guests with ”nationality responding variations for occupied rooms. To offset unknown” as if the guests came from outside Europe. the seasonal effect and to maximize revenue, the hotels Due to this, the segment has grown considerably ac- apply flexible pricing, which means that prices are ad- cording to the statistics, as the number of guests re- justed continuously depending on demand and on the ported with unknown nationality has increased rapidly. guest´s price sensitivity. In 2019, however, the number of guest nights where information is missing in the reporting of nationality Stable share of foreign guests has fallen sharply, which is positive. However, it was The proportion of foreign guest nights in the rapid- discovered that many of the guests previously repor- ly growing hotel market in the City of Stockholm has ted as foreign guest nights were in fact Swedish guests. been relatively stable over time. Since 1980, the pro- This means that the reported proportion of foreign portion has varied between about 40 and 45 percent. guest nights fell sharply in 2019, although it is largely During the period, the absolute number of foreign because reporting is now more accurate than before. guest nights at Stockholm´s hotels has increased from The number of foreign guest nights for 2019 and the just under one million to around four million, which coming years must, against this background, be inter- corresponds to an increase of just over 300 percent. It preted with great caution. is also among the foreign guests that the great future growth potential exists. Although Stockholm is a large domestic hotel market on a per capita basis, it is rela- tively small in terms of international guest nights. For- FOREIGN GUEST NIGHTS HAVE CONSTITUTED eign guest nights have accounted for two-thirds of the THE MAJORITY OF THE GROWTH IN THE HOTEL growth in the European hotel market over the past 10 MARKET IN EUROPE SINCE 2010. years and is expected to continue to account for most of the growth. In addition, with an increasing number

T3.2: GUEST NIGHTS BY NATIONALITY, ALL TYPES OF ACCOMMODATION STOCKHOLM COUNTY

NATIONALITY 2010 2019 GROWTH, % CAGR, %

Photo: Nobis Hotel Stockholm, Beatrice Graalheim SWEDEN 6,685,526 9,930,645 49% 4.5%

OUTSIDE OF SWEDEN 3,362,596 5,293,916 57% 5.2%

TOTAL 10,048,122 15,224,561 52% 4.7%

10 LARGEST VISITOR COUNTRIES TO STOCKHOLM COUNTY (ALL TYPES OF ACCOMMODATION)

1 GERMANY 468,672 637,347 36% 3.5%

2 USA 248,691 577,063 132% 9.8% 15,200,000 3 UNITED KINGDOM 308,390 433,411 41% 3.9% THE TOTAL NUMBER OF GUEST NIGHTS IN 4 NORWAY 229,785 251,472 9% 1.0%

STOCKHOLM COUNTY DURING 2019 IN ALL TYPES 5 FINLAND 188,119 237,427 26% 2.6% OF COMMERCIAL ACCOMMODATION, INCLUDING 6 FRANCE 159,450 212,199 33% 3.2% HOSTELS, HOLIDAY HOMES AND CAMPSITES. HOTELS CONSTITUTE APPROXIMATELY 13.7 MILLION 7 INDIA 28,257 169,440 500% 22.0% OF THE GUEST NIGHTS. 8 DENMARK 164,442 167,458 2% 0.2%

9 CHINA 54,459 164,898 203% 13.1%

10 THE NETHERLANDS 119,112 163,038 37% 3.5%

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

26 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 27 4.

Future supply

THE FUTURE SUPPLY GROWTH IN THE COUNTY IS EXPECTED TO CONTINUE AT A RELATIVELY HIGH RATE. THERE ARE JUST UNDER 4,300 CONFIRMED HOTEL ROOMS IN THE PIPELINE FOR THE COMING FIVE-YEAR PERIOD, AS WELL AS A NUMBER OF UNCERTAIN PROJECTS THAT CAN FURTHER INCREASE THE ROOM SUPPLY.

Limited pipeline in central Stockholm The addition of hotel rooms is set to continue at a Beach House in Lidingö Municipality during the fall relatively high rate in Stockholm County. In the city, of 2020 in Blue Hotel's former premises. They already Illustration: Gasklocka 1, Sweco Architects. however, a relatively weak supply growth is expected have nine hotels in the Nordic region, but this will be between 2020 and 2024. Of the almost 4,300 rooms their first in the Stockholm area. An international brand that are expected to be completed in the county, almost that soon enters the Stockholm market is AC Hotels central Stockholm during late 2020. The second largest in Sigtuna Municipality. The expansion of the hotel 1,200 are in Stockholm City, see diagram D4.1. Only by Marriott. Two hotels with the brand are planned for operator in the county, Nordic Choice Hotels, plan for and the new exhibition center significantly increase half of these rooms are located in the inner city. The the coming five-year period, one in Kista and one in approximately 1,600 new rooms spread over its various the supply of hotel rooms and conference capacity relatively weak growth is partly a consequence of high Ulriksdal. Both hotels will be operated by Vi Invest. brands. Thus, they account for about 40 percent of the near Stockholm Arlanda Airport. In Arenastaden office rents in Stockholm's inner city, which has been It is noteworthy that the region's largest operator, county’s total capacity increase. in Solna, no less than six new openings and a major highlighted earlier in the report. Scandic, is not included in the list of planned deve- extension of Quality Hotel Friends are in progress. The planned changes to the room supply outside lopment projects in the coming years. Continued growth in Solna and Sigtuna Thus, Solna is increasing its capacity from today's app- the city center are mainly concentrated to the districts Although no new Scandic locations are set to open, The majority of the supply growth in the coming years roximately 2,100 rooms to 3,200 rooms by 2022. of Kista, Hässelby and Bromma. In addition to the the chain recently announced its new concept Scandic is expected to take place in Solna and Sigtuna. There confirmed openings, there is also the possibility that Go with intentions to rebrand two existing hotels in are plans for approximately 1,080 and 1,060 new hotel Planned changes to supply the county's hotel market will be added to up to 2,800 rooms in the municipalities, respectively. Thus, these In tables T4.1 and T4.2 on the next page, the con- rooms through planned but currently unconfirmed two municipalities together account for about 55 per- firmed new hotel openings and expansions in the city projects, see diagram D4.2. cent of the confirmed capacity increase in Stockholm and the county outside of the city are listed. See also County. diagram D4.1 and D4.2 below. A confirmed project New actors in the county 4,300 Both municipalities carry out large urban devel- means that there is a signed agreement between the CONFIRMED NEW ROOMS ARE Among the upcoming hotel developments in Stockholm opment projects that will contribute to the devel- property owner and a hotel operator, or that Annordia EXPECTED TO BE ADDED TO THE COUNTY'S are a few operators who are set to open their first hotel opment of the hospitality industry in each area. For has gained information indicating that the project HOTEL MARKET BY 2024. in the region. For example, ESS Group which is behind example, Quality Hotel Arlanda XPO, formerly Qu- may be regarded as confirmed and that it can be carried the popular Steam Hotel in Västerås, will open Ellery ality Hotel Arlanda, is set to expand with 190 rooms out during the forecast period.

D4.1: CONFIRMED CHANGES TO SUPPLY 2020-2024 D4.2: UNCONFIRMED CHANGES TO SUPPLY 2020-2024 NUMBER OF ROOMS IN THE CITY OF STOCKHOLM AND THE COUNTY EXCLUDING THE CITY NUMBER OF ROOMS IN THE CITY OF STOCKHOLM AND THE COUNTY EXCLUDING THE CITY

Source: Annordia Research Source: Annordia Research

28 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 29 T4.1: CONFIRMED CHANGES TO SUPPLY 2020-2024 CONFIRMED CHANGES IN HOTEL ROOM SUPPLY 2020-2024 THE CITY OF STOCKHOLM NUMBER OF ROOMS PER MUNICIPALITY IN STOCKHOLM COUNTY

OPENING HOTEL TYPE ROOMS CITY DISTRICT

2020 OPTIMA APARTMENTS NEW HOTEL 18 SK

2020 HOTEL VILLA DAGMAR NEW HOTEL 70 Ö

2020 LIVINGTON HOTEL NEW HOTEL 98 HV

2020 BEST WESTERN AT 108 NEW HOTEL 95 N

2021 AC HOTEL BY MARRIOTT, KISTA NEW HOTEL 225 KR

2021 OSCAR DEN I:S MINNE, ”STIFTELSEN” NEW HOTEL 56 S

2022 BIZ APARTMENT BROMMA NEW HOTEL 175 B

2022 FIRST HOTEL NORRTULL EXPANSION 34 N SIGTUNA 2022 CONFIDENTIAL EXPANSION 30 - 1,063 ROOMS 2023 CONFIDENTIAL EXPANSION 150 -

2023 CONFIDENTIAL EXPANSION 57 -

2023 STOCKHOLM CLASSIC HOTEL EXPANSION 20 S

2023 GASKLOCKA 1 NEW HOTEL 160 Ö

TOTAL 1,188

UPPLANDS VÄSBY 150 SOLNA ROOMS 1,078 T4.2: CONFIRMED CHANGES TO SUPPLY 2020-2024 ROOMS STOCKHOLM COUNTY EXCLUDING THE CITY LIDINGÖ 120 ROOMS OPENING HOTEL TYPE ROOMS MUNICIPALITY

2020 FORENOM APARTHOTEL ARLANDA NEW HOTEL 120 SIGTUNA

2020 COMFORT HOTEL ARLANDA NEW HOTEL 503 SIGTUNA STOCKHOLM 1,188 2020 AC HOTEL BY MARRIOTT STOCKHOLM ULRIKSDAL NEW HOTEL 223 SOLNA ROOMS NACKA 236 ROOMS 2020 CLARION COLLECTION HOTEL TAPETFABRIKEN NEW HOTEL 236 NACKA

2020 WIK NEW HOTEL 150 UPPLANDS VÄSBY

2020 HOTEL GIÒ, BW SIGNATURE COLLECTION NEW HOTEL 180 SOLNA

2020 ELITE HOTEL SÖDERTÄLJE NEW HOTEL 160 SÖDERTÄLJE

2020 ELLERY BEACH HOUSE (EX. BLUE HOTEL) NEW HOTEL 120 LIDINGÖ HUDDINGE 93 2021 QUALITY HOTEL FRIENDS EXPANSION 251 SOLNA ROOMS SÖDERTÄLJE 347 2021 QUALITY HOTEL ARLANDA XPO EXPANSION 190 SIGTUNA ROOMS

2021 COMFORT HOTEL ARENASTADEN NEW HOTEL 336 SOLNA

2021 CHOICE LONG STAY NEW HOTEL 88 SOLNA

2021 LONGSTAY BY SCANDINAVIAN XPO NEW HOTEL 50 SIGTUNA

2022 AB PROPERTIES IN KUNGENS KURVA NEW HOTEL 93 HUDDINGE

2022 VI INVEST IN ROSERSBERG NEW HOTEL 200 SIGTUNA

2023 CLARION HOTEL VID MARENPLAN NEW HOTEL 187 SÖDERTÄLJE

TOTAL 3,087

Source: Annordia Research *Stockholm's inner city is divided into the districts of Kungsholmen (K), Norrmalm (N), Östermalm (Ö) and Södermalm (S). In addition to the division of central Stockholm, two more hotel clusters have been defined: Central Business District (CBD) and Vasagatan (VG). CBD houses parts of Norrmalm and Östermalm through Olof Palmes gata and Birger Jarlsgatan, respectively. Vasagatan runs through CBD and mainly comprises a cluster of large business hotels. Supply changes are also planned for in the suburban districts Kista-Rinkeby (KR), Hässelby-Vällingby (HV), Bromma (B) and Skärholmen (SK). Source: Annordia Research

30 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 31 5.

Forecast 2020-2024

ACCORDING TO ANNORDIA’S FORECAST, THE NUMBER OF OCCUPIED HOTEL ROOMS IN THE CITY OF STOCKHOLM IS EXPECTED TO INCREASE BY Photo: Invest Stockholm, Helén Pe AN AVERAGE OF 2.0 PERCENT PER ANNUM OVER THE NEXT FIVE-YEAR PERIOD. DUE TO A LIMITED EXPECTED GROWTH IN SUPPLY, THE CITY’S OCCUPANCY ly strong. The strong growth can be partly attributed almost as strong in Stockholm as it is for the entire RATE IS FORECASTED TO RISE TO ABOUT 73 PERCENT BY 2024. to the favourable conditions for increased travel in country. This is because the City of Stockholm repre- the leisure segment, such as a weak Swedish krona sents a large part of both the Swedish economy and and extremely low interest rates. During the 2010s, the Swedish hotel market. An estimate of the long- Introduction leisure guests accounted for just over 80 percent of term relationship between the economic growth in As a basis for the assessment of the forecasted growth to several different factors. Intensified trade, both the total growth in occupied hotel rooms. As a re- the country and the growth in occupied hotel rooms in demand between 2020 and 2024, Annordia has nationally and internationally, has increased the need sult, the leisure segment's share of occupied rooms in the City of Stockholm indicates that an increase taken into account the underlying growth trend in for business meetings and business trips. At the same increased from 37 percent to 51 percent over the past in GDP (volume) of one percent corresponds to an the city’s hotel market, the projected position in the time, increased wealth has given individuals a higher 10 years. Given that the Swedish krona is expected to increase of occupied hotel rooms in the city of about economic cycle and the expected development of purchasing power, which has enabled increased travel strengthen compared to major currencies in the com- two percent. The National Institute of Economic the exchange rate during the forecast period. Based in the leisure segment. The average annual growth in ing years, while interest rates are expected to rise, the Research has forecasted an annual average GDP on these components, a potential growth in demand underlying growth in demand is predicted to decline growth of 1.6 percent per year until 2024. Projected has been estimated. The overall assessment also pays to around three percent per year. In absolute terms, GDP growth thus indicates a growth in occupied hotel respect to the structural shift that has taken place in an annual growth of three percent means an average rooms averaging just over three percent per year from the hotel market in recent years, which is that leisure 3.7% of approximately 200,000 more occupied rooms per 2020 to 2024. guests now account for the majority of the growth in THE AVERAGE ANNUAL GROWTH IN year during the forecast period. The growth potential occupied hotel rooms. However, in order to realize OCCUPIED ROOMS 1980-2019. in absolute terms is thus expected to remain at a his- Stockholm is relatively cheap the potential growth in demand, the supply of hotel torically high level. The general cost situation has an influence on how rooms has to be adapted to the increased demand. Historically, the relationship between economic tourists choose travel destinations, which in turn af- If the occupancy rate for 2019 is deemed to be in an occupied hotel rooms in the City of Stockholm was growth and demand for hotel rooms in Sweden has fects the local demand for hotel rooms. However, approximate long-term balance, an increased demand 3.7 percent during the period 1980 to 2019. In the past been significant. During years of high/low economic it is of less importance to business travellers, who must therefore be met by an increased supply at the decade, however, the average annual growth rate in- growth, high/low growth has been recorded in occu- normally can choose neither destination nor time of corresponding rate. creased to 4.8 percent. In absolute terms, the average pied hotel rooms. The relationship between econom- travel. Major changes in the exchange rate have signif- increase was 117,000 occupied hotel rooms per year ic growth and the growth of occupied hotel rooms is icance for the relative cost situation and thus also for The potential growth in demand between 1980 and 2019. Over the past ten-year peri- As a result of increased travel over the past 50 years, od, average growth was 230,000 rooms per year, which D5.1: GROWTH IN GDP AND OCCUPIED ROOMS 2006–2024 the need for new hotels in the City of Stockholm has is close to twice the average over the past 40 years. PERCENTAGE CHANGE PER ANNUM increased continuously. The increased travel is due In recent years, demand growth has been exceptional-

The forecast is made in order to assess the future need for new hotel capacity in the City of Stockholm. In a first step, the potential growth in occupied hotel rooms during the period is assessed. This assessment takes into account the underlying trend in demand in the hotel market in Stockholm, the economic situation and the expected exchange rate development during the forecast period. This is then compared to the investments in new hotel rooms during the forecast period for which information is currently available. This, in turn, provides a basis for an assessment of the effect on the occupancy rate, average daily rate and RevPAR during the period. Finally, an assumption is made of level of occupancy that is in long-term balance, which gives an indication of the scope for

possible further investments in new hotel rooms. Photo: Invest Stockholm, Henrik Trygg Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research

32 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 33 the leisure guests' choice of destination. The Swedish holm of about 4,000 hotel rooms. According to in- this background, the ADR in the City of Stockholm krona's relative value against major currencies from formation currently available, and reported in Chap- is assumed to have a positive development during the areas with many visitors to Sweden, such as the Euro- 200,000 ter 4, the supply in the city is estimated to increase forecast period. The average growth rate is estimated zone, the US and the UK, has weakened sharply since THE POTENTIAL GROWTH IN OCCUPIED ROOMS by approximately 2,000 new hotel rooms by 2024, of at three percent per year, which corresponds to an in- 2012. The krona's value in relation to the Euro has PER YEAR BETWEEN 2020 AND 2024. which approximately 1,200 rooms are confirmed sup- crease in ADR from SEK 1,237 in 2019 to SEK 1,443 weakened by almost 20 percent, to the US dollar by ply changes. Thus, the estimated increase in capacity in 2024. The higher occupancy rate and the rising about 30 percent and to the British pound by almost is, at best, only half of the growth in supply required ADR result in a forecasted RevPAR growth of, on av- 15 percent. This has made it cheaper for tourists from to meet the estimated potential increase in demand erage, 3.3 percent per annum. According to this fore- these currency areas to visit Sweden and Stockholm. Rising occupancy rates until 2024. Since supply is expected to increase at a cast, RevPAR in the City of Stockholm is expected to During the period 2012 to 2019, there is a clear cor- The occupancy rate on an annual basis in the City of lower rate than demand, the occupancy rate is fore- increase from SEK 888 in 2019 to SEK 1,047 in 2024. relation between changes in the exchange rate against Stockholm is currently at almost 72 percent, which casted to rise to around 73 percent in the coming the Swedish krona and the development of guest is historically high. During the period 1980-2014, the five-year period. Therefore, according to the forecast, Existing conditions for hotel investments nights in Swedish hotels from the corresponding annual occupancy rate was only recorded above 70 occupied hotel rooms are only expected to be able to In conclusion, the potential growth in occupied hotel currency areas. The weakening of the Swedish krona percent in Stockholm six of those years. Over the increase by 640,000 rooms by 2024, which means that rooms will not be fully met in the City of Stockholm has also favoured domestic tourism as it has become past five years, the occupancy rate has consistently just over 60 percent of the estimated potential de- during the forecast period, given the known invest- more expensive for Swedes to travel abroad. Accord- been noted above 70 percent, which indicates that the mand growth will have been met. Parts of the poten- ments in new hotel rooms. Assuming an occupancy ing to the National Institute of Economic Research's level of occupancy has stabilized at a higher level. An rate in the long-term balance of 71 percent, approxi- forecast of the Swedish krona until 2024, the krona’s occupancy rate of about 71 percent is deemed to be mately 2,000 additional hotel rooms will be needed in value is expected to gradually improve relative to the a level in long-term balance. One reason why the oc- the city by 2024 to maintain that level. However, that previously mentioned currencies during the period. cupancy rate has been established at a higher level is ACCORDING TO ANNORDIA'S FORECAST, AN is a simple calculation based on a number of general ADDITIONAL 2,000 HOTEL ROOMS ARE NEEDED IN A strengthening of five percent is forecasted relative the increased demand from the leisure segment. This assumptions. For further investments in hotel rooms THE CITY OF STOCKHOLM, BEYOND THE PLANNED to the British pound and about ten percent relative has, among other things, led to an increase in demand to be realized, they must be attractive from a profit- HOTEL OPENINGS, TO MAINTAIN AN OCCUPANCY to the Euro and the US dollar. However, despite the on weekends, which has driven up occupancy rates LEVEL AROUND 71 PERCENT. ability perspective for potential investors. In addition strengthening of its value, the Swedish krona is ex- mainly on Saturday and Sunday, thus resulting in a to having access to properties that can be converted, pected to remain relatively weak from a historical higher average occupancy rate throughout the week. or land to build on, investments in new hotels must, point of view. Therefore, it is assumed that the krona Occupied hotel rooms in the City of Stockholm for example, be more profitable than alternative uses will not have a negative effect on hotel room demand are estimated to potentially increase by 200,000 per tial demand that is not met in the City of Stockholm or offer other values for the investor. during the period. year over the next five-year period, which would cor- is instead likely to spill over to hotels in neighbouring At present, for example, office rents in central Given the estimated growth trend, the expected respond to a total increase of approximately one mil- municipalities within the county. Stockholm are higher than a hotel generally can bear. economic situation and the forecasted exchange rate lion more occupied hotel rooms on an annual basis in One consequence of this is that hotel investments development, the potential annual growth in demand 2024 compared to 2019. Maintaining an occupancy Strong growth in ADR and RevPAR are, to a greater extent, taking place in other expan- is estimated to be around 200,000 occupied hotel rate in the city close to 71 percent would then require an The ADR in the City of Stockholm has increased by sive municipalities in the county such as Solna and rooms between 2020 and 2024. This corresponds to increase in supply of approximately 1.4 million availa- just under one percent between 2018 and 2019. This Sigtuna. However, the strong growth in RevPAR in an average annual growth rate of about three percent ble hotel rooms 2024 (on an annual basis). This cor- is due to a combination of a sharp increase in number the City of Stockholm until 2024 is expected to make during the forecast period. responds to a capacity increase in the City of Stock- of hotel rooms during 2017 and 2018 that increased investments in hotel rooms in the city more attractive competition for guests, and that the proportion of towards the end of the forecast period than at pres- hotel rooms occupied by leisure guests has increased ent. In addition, the growth in visitors to Stockholm

D5.2: CHANGE IN GUEST NIGHTS AND EXCHANGE RATES 2012-2019 rapidly. The occupancy rate in the City of Stockholm is expected to continue at a high rate even after the SWEDISH KRONA AND CURRENCIES FROM ZONES WITH MANY GUEST NIGHTS IN SWEDEN is expected to remain high going forward. Against forecast period.

T5.1: FORECAST FOR THE HOTEL MARKET IN THE CITY OF STOCKHOLM 2019-2024

2019 2024 %-CHANGE CAGR (%)

AVAILABLE ROOMS, MILLIONS 8.5 9.2 8.6 1.7

OCCUPIED ROOMS, MILLIONS 6.1 6.7 10.5 2.0

OCCUPANCY RATE, % 71.8 73.0 1.7 0.3

ADR, SEK 1,237 1,434 15.9 3.0

REVPAR, SEK 888 1,047 17.9 3.3

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research

34 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 35 Photo: Blique by Nobis, Beatrice Graalheim 36 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 37 the SBA municipalities outside Stockholm County RevPAR is Västerås, where growth has been particu- 6. have boasted a stronger growth in average daily rates larly strong since 2017. This coincides with the open- than both the city and county as well as the rest of ing Comfort Hotel, as well as the popular destination Sweden. All in all, the growth in RevPAR has been hotel Steam Hotel. higher in the SBA municipalities outside of Stock- Stockholm Business Alliance holm, both the city and the county, during the past Planned changes to supply decade. The growth has been about 3.8 percent on In the coming five-year period, the SBA municipalities average per year, which is in line with the national outside Stockholm County are expected to note a STOCKHOLM BUSINESS ALLIANCE (SBA) IS A PARTNERSHIP BETWEEN average during the same period. Among the SBA capacity increase of approximately 1,000 new hotel 56 MUNICIPALITIES IN 8 COUNTIES WHOSE MISSION IS TO ATTRACT municipalities that have noted the highest growth in rooms from confirmed projects, see Table T6.3. In FOREIGN INVESTMENTS TO THE REGION AND MARKET IT UNDER THE MESSAGE STOCKHOLM - THE CAPITAL OF SCANDINAVIA. T6.1: HOTEL MARKET STATISTICS REGARDING SBA MUNICIPALITIES IN STOCKHOLM COUNTY, 2019

MUNICIPALITY HOTELS1 AVAIL. ROOMS2 OCC. ROOMS3 OCCUPANCY, %4 ADR, SEK5 REVPAR, SEK6

BOTKYRKA 3 - - - - - The SBA municipalities in a context DANDERYD 3 - - - - - In December 2019, the municipalities of Stockholm age annual growth of 4.0 percent during the period. Business Alliance (SBA) had a total of about 600 hotels The growth in the City of Stockholm has been higher JÄRFÄLLA 3 - - - - - and almost 54,000 hotel rooms. The number of hotels during the period, with an average of 4.8 percent per NYKVARN 3 - - - - -

and hotel rooms located in SBA member municipal- year, while growth in the county outside the city has SALEM 1 - - - - - ities outside Stockholm County amounts to 253 and been slightly weaker than the SBA municipalities with SUNDBYBERG 3 - - - - - 14,917, respectively. 3.5 percent per year. During the same period, however, The entire SBA region accounts for approximately TYRESÖ 0 - - - - - half of Sweden’s total room revenue, of which the D6.1: SHARE OF SWEDISH HOTEL REVENUE TÄBY 3 - - - - - SBA MUNICIPALITIES AND THE REST OF SWEDEN City of Stockholm constitutes a large part. The mu- UPPLANDS VÄSBY 3 - - - - - nicipalities in SBA outside Stockholm County make 100% VALLENTUNA 2 - - - - -

up about a tenth of the nation's room revenue. The90% VAXHOLM 2 - - - - - proportion has increased somewhat over the past 1080% 51,8% 50,4% 49,6% MUN. WITH LESS THAN FIVE HOTELS7 26 898,073 458,582 51.1 906 462 years, as shown in diagram D6.1. There is, however,70%

great variation between the hotel markets within SBA,60% EKERÖ 5 78,205 20,024 25.6 1,156 296 due to differences in factors such as business struc- 50% HANINGE 8 139,907 59,855 41.0 1,105 453 10,0% 10,1% 10,5% ture and size. In the markets studied, the average daily40% 10,8% 11,2% 11,0% HUDDINGE 6 267,871 152,702 57.0 754 430 rates range from SEK 754 to SEK 1,386 and the oc-30% cupancy rate lies in the span between 25.6 and 71.820% LIDINGÖ 10 289,724 114,226 39.4 1,062 419 27,5% 28,3% 28,9% percent, see tables T6.1 and T6.2. 10% NACKA 10 403,554 235,971 58.5 1,252 732 Over the past 10 years, the number of occupied0% 2010 2015 2019 NORRTÄLJE 15 207,936 88,442 42.5 975 415 rooms in the SBA municipalities with more than five 1) NYNÄSHAMN 5 96,268 49,548 51.5 856 441 hotels, and thus have reported accommodation sta- City of Stockhol m County excl. city SBA-municipalities Rest of Sweden SIGTUNA 23 981,381 670,344 68.3 1,045 714 tistics, has increased by an average of 3.7 percent per Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden. 1) year. This was slightly lower than the national aver- SBA municipalities outside of the county with more than five hotels. SOLLENTUNA 9 276,240 169,864 61.5 812 500

SOLNA 15 759,608 512,648 67.5 982 662

STOCKHOLM 177 8,466,487 6,077,856 71.8 1,237 888

MUNICIPALITIES IN STOCKHOLM BUSINESS ALLIANCE SÖDERTÄLJE 11 298,827 173,357 58.0 929 539

Stockholm County: Stockholm, Danderyd, Lidingö, Södermanland County: Eskilstuna, Nyköping, Oxelösund, UPPLANDS-BRO 8 158,107 44,856 28.4 1,210 343 Sollentuna, Solna, Sundbyberg, Täby, Upplands-Bro, Gnesta, Trosa, Katrineholm, Flen och Strängnäs. VÄRMDÖ 13 244,962 94,462 38.6 1,159 447 Upplands Väsby, Sigtuna, Vallentuna, Ekerö, Nacka, Västmanland County: Västerås, Hallstahammar, Arboga, ÖSTERÅKER 5 121,088 41,535 34.3 1,066 366 Värmdö, Haninge, Tyresö, Nynäshamn, Huddinge, Kungsör, Sala och Köping.

Botkyrka, Nykvarn, Södertälje, Norrtälje, Järfälla, Örebro County: Örebro och Karlskoga. TOTAL 346 13,688,238 8,964,272 65.7 1,156 762 Österåker, Vaxholm och Salem. Gävleborg County: Gävle och Sandviken. Uppsala County: Uppsala, Knivsta, Heby, Håbo, Dalarna County: Avesta, Ludvika och Smedjebacken. Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research. 1) Number of hotels, 2Available rooms, 3Occupied rooms, 4Occupancy rate, 5Average daily rate, 6RevPAR, 7According to the Swedish Agency for Economic and Enköping, Östhammar och Tierp. Östergötland County: Norrköping och Linköping. Regional Growth/Statistics Sweden's rules on privacy, hotel market statistics can only be reported for markets containing at least five hotels. In order to obtain statistics for the municipalities that have fewer than five hotels, the municipalities have been merged into a common market.

38 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 39 IN 2019, ANNORDIA EXAMINED THE CONDITIONS FOR ADDITIONAL HOTEL ROOMS IN 13 OF SBA'S MEMBER MUNICIPALITIES. THE ANALYSES SHOWED THAT CONDITIONS FOR INCREASED ROOM CAPACITY EXIST IN ENKÖPING, GÄVLE, NYKÖPING, NYNÄSHAMN, SANDVIKEN, TÄBY, UPPSALA AND VÄSTERÅS.

T6.2: HOTEL MARKET STATISTICS REGARDING SBA MUNICIPALITIES OUTSIDE STOCKHOLM COUNTY, 2019

MUNICIPALITY HOTELS1 AVAIL. ROOMS2 OCC. ROOMS3 OCCUPANCY, %4 ADR, SEK5 REVPAR, SEK6

ARBOGA 4 - - - - -

GNESTA 1 - - - - -

HALLSTAHAMMAR 3 - - - - -

HEBY 0 - - - - -

HÅBO 4 - - - - -

KNIVSTA 4 - - - - -

KUNGSÖR 1 - - - - -

OXELÖSUND 2 - - - - -

SALA 3 - - - - -

SMEDJEBACKEN 4 - - - - -

TIERP 3 - - - - - Photo: Steam Hotel, ESS Group

MUN. WITH LESS THAN FIVE HOTELS7 29 392,369 136,907 34.9 1,099 384

AVESTA 5 56,395 23,330 41.4 886 366 addition to the confirmed new hotel rooms in the an expansion of 116 rooms. In Uppsala, the new ho- ENKÖPING 7 126,097 47,524 37.7 993 374 region, about 1,000 rooms are also in early planning tel Botanika is set to open in spring 2020. The hotel ESKILSTUNA 13 276,934 144,050 52.0 817 425 stages. The majority of confirmed supply increases is expected to launch with a concept that caters to

FLEN 10 94,165 25,407 27.0 789 213 are located in Norrköping and Linköping, see table millennials, offering large social spaces and tradition- T6.3. For example, two large increases in capacity al hotel rooms mixed with a hostel section and long GÄVLE 16 373,773 234,875 62.8 918 577 are expected to take place in Norrköping during the stay units. The hotel, along with Hoom Home Hotel KARLSKOGA 7 82,571 31,522 38.2 978 373 years 2022 to 2023. On the one hand, a new hotel will be welcomed additions to the municipality’s hotel KATRINEHOLM 11 93,859 34,022 36.2 849 308 will open in the Rodga block near the central station, market, which has the lowest number of hotel rooms

KÖPING 5 80,522 29,573 36.7 868 319 and on the other, Scandic Norrköping Nord plans for per capita in the entire SBA.

LINKÖPING 23 663,526 389,353 58.7 874 513

LUDVIKA 5 68,881 34,686 50.4 964 485 T6.3: CONFIRMED CHANGES TO THE HOTEL ROOM SUPPLY 2020-2024 NORRKÖPING 23 545,054 306,353 56.2 1,016 571 MUNICIPALITIES IN SBA OUTSIDE OF STOCKHOLM COUNTY

NYKÖPING 10 293,303 154,154 52.6 760 399 OPENING HOTEL TYPE ROOMS MUNICIPALITY

SANDVIKEN 6 122,804 55,823 45.5 981 446 2020 SKY HOTEL APARTMENTS CITY EXPANSION 54 LINKÖPING 1,000 STRÄNGNÄS 7 62,091 28,991 46.7 948 442 2020 BEST WESTERN AND HOTEL NEW HOTEL 150 LINKÖPING HOTEL ROOMS TROSA 7 47,504 23,255 49.0 1,386 678 ARE PLANNED IN 2020 BOTANIKA (F.D. FIRST HOTEL LINNÉ) NEW HOTEL 116 UPPSALA THE SBA MEMBER UPPSALA 21 612,823 368,547 60.1 951 572 2021 SCANDIC ÖREBRO CENTRAL NEW HOTEL 160 ÖREBRO MUNICIPALITIES VÄSTERÅS 19 521,284 342,356 65.7 976 641 2022 KVARTERET RODGA (WINN) NEW HOTEL 210 NORRKÖPING OUTSIDE OF THE ÖREBRO 22 547,775 359,804 65.7 912 599 COUNTY. 2023 SCANDIC NORRKÖPING NORD EXPANSION 116 NORRKÖPING ÖSTHAMMAR 7 62,279 23,186 37.2 1,025 381 2023 HOTELL VID ROSVALLA ARENOR NEW HOTEL 100 NYKÖPING

TOTAL 253 5,124,009 2,793,718 54.5 934 510 N.A. HOOM HOME HOTEL UPPSALA NEW HOTEL 97 UPPSALA Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research. 1) Number of hotels, 2Available rooms, 3Occupied rooms, 4Occupancy rate, 5Average daily rate, 6RevPAR, 7According to the Swedish Agency for Economic and TOTAL 1,003 Regional Growth/Statistics Sweden's rules on privacy, hotel market statistics can only be reported for markets containing at least five hotels. In order to obtain Source: Annordia Research statistics for the municipalities that havefewer than five hotels, the municipalities have been merged into a common market.

40 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 41 7. The hybrid hotel Generator, which has both private rooms and dormitories for between four and six people, hovers in the borderland between hotels and hostels. Hybrid hotels Hostels, holiday villages have become increasingly common in recent years with the emergence of the leisure and campsites segment. Generator Stockholm is classified as a hostel by Statistics Sweden and is thus HOSTELS, HOLIDAY VILLAGES AND CAMPSITES ARE PART OF THE excluded from the accommodation statistics for hotels in the City of Stockholm. COMMERCIAL ACCOMMODATION MARKET IN STOCKHOLM COUNTY. THESE FACILITIES ACCOMMODATE JUST OVER 1.5 MILLION OVERNIGHT STAYS ANNUALLY, WHICH CORRESPONDS TO JUST UNDER 10 PERCENT Photo: Tengbom, Morgan Norman OF ALL GUEST NIGHTS IN THE COUNTY.

Supply By the end of 2019, Stockholm County had a total VAT). Of the total number of guest nights in 2019, marginal in the context. The growth in guest nights tire period, the number of guest nights at campsites is of 459 commercial accommodation facilities, i.e. ho- hotels accounted for 13.7 million, equivalent to 90 for the different types of accommodation shows var- seven percent higher in 2019 compared to 2010. The tels, hostels, holiday villages and campsites. The total percent of all guest nights in the county. At the same ying trends. Guest nights in hotels have increased by number of guest nights in the county's holiday vil- capacity of commercial accommodation, excluding time, the hotels accounted for as much as 97 percent 60 percent in the last 10 years, which corresponds lages has decreased by 40 percent, corresponding to campsites, in the county comprises approximately of the total room revenue. to just over five million more guest nights in 2019 35,000 guest nights over the past 10 years. The num- 80,300 beds. For campsites, the capacity is based on The number of guest nights at hostels and camp- compared to 2010, see diagram D7.1. The number of ber of holiday villages has also decreased from seven camping pitches and cottages. The hotels, with a total sites was approximately the same in 2019 - 732,000 guest nights at hostels and campsites has been rela- to five during the period. of almost 73,500 beds, accounted for over 91 percent and 729,000, respectively. The hostels’ room reve- tively stable over the entire period. For hostels, guest of all beds in commercial accommodation. Hostels nue amounted to 228 million, while the campsites’ nights rose by a total of 20 percent between 2010 and accounted for 8 percent of the beds, while the holiday amounted to 77 million. However, the comparison 2017, and then fell sharply the following two years. villages accounted for about 1 percent. should be interpreted with some caution as guest The guest nights at hostels in 2019 was thus back nights and room revenue are not fully comparable be- at the same level as in 2010. The guest nights at the Guest nights and room revenue tween hostels and campsites. Holiday villages account campsites have also had years of both positive and 97% THE HOTEL'S SHARE OF THE TOTAL The total market for commercial guest nights amount- for a marginal share of the commercial guest nights in negative development during the period. In 2019, the ROOM REVENUE IN STOCKHOLM ed to approximately 15.2 million in Stockholm Coun- Stockholm County. In 2019, they accounted for just number of guest nights at campsites increased by al- COUNTY 2019. ty during 2019, including accommodation at camp- over 50,000 guest nights, corresponding to about 0.3 most nine percent compared to 2018, corresponding sites. In total, the room revenue associated with these percent of the total guest nights. As a result, the room to about 60,000 more guest nights. Seen over the en- guest nights totalled SEK 11.7 billion (excluding revenue of approximately SEK 17 million was also

D7.1: GROWTH IN COMMERCIAL GUEST NIGHTS PER ACCOMMODATION TYPE D7.2: SHARE OF GUEST NIGHTS PER TYPE OF ACCOMMODATION STOCKHOLM COUNTY, 2010-2019 STOCKHOLM COUNTY, 2010-2019

180

160

140 0

120 100=201

x 100 de In 80

60

40 2010 2011 2012 2013 2014 2015 2016 20172 018 2019

Hotels Holiday villages Hostels Campsites

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden, Annordia Research

42 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 43 The ship Af Chapman, originally built in Whitehaven in England in 1888, has been used as a hostel since 1949 and has long been a well-known landmark at Skeppsholmen. The City of Stockholm has been the owner of the 75 meter full rig since 1947.

Photo: Invest Stockholm, Henrik Trygg

The strong growth in guest nights at hotels has result- have been established in Stockholm, combined with ed in a significant increase of the hotels’ share of total the fact that primarily foreign guests book accommo- guest nights in the county over the past 10 years, see dation via Airbnb, the P2P rentals can be assumed D7.2. In 2010, the proportion was 85 percent and by to be a stronger competitor for hostels than for ho- 2019 it had increased to 90 percent. In the same pe- tels. The hotels had the second highest proportion of riod, the hostels’ share of guest nights has decreased foreign guest nights, which constituted 34 percent of Photo: Invest Stockholm, Tove Freij from over seven percent to just below five percent. the total volume. Almost 30 percent of the camping The campsites have had a similar development as the guest nights are attributed to foreign guests. Staying hostels, and also reduced their share of guest nights in a holiday village in Stockholm County, however, Average rate in the county from under seven percent to nearly five appears to be an almost entirely Swedish phenomena, The price that guests pay per guest night differs sig- and room revenue are not fully comparable between percent. In 2010, the holiday villages' share of guest as only three percent of guest nights reportedly were nificantly between the different types of accommo- campsites and other types of accommodation. nights accounted for about one percent, but in 2019 from international guests in 2019. dation, see D7.4. In 2019, the average rate per guest the proportion had dropped to 0.3 percent. night (not to be confused with ADR, which is the Closing comment average daily rate per occupied room) was just over In summary, the market for commercial accommo- Foreign guests SEK 750 for the hotels in Stockholm County. It was dation in Stockholm County is dominated by hotels, The proportion of Swedish and foreign guests differs just over 130 percent higher than the average rate both in terms of the number of guest nights and to- noticeably between the different types of accommo- 53% per guest night at the holiday villages in Stockholm tal revenue. In addition, the dominance has increased WAS THE SHARE OF FOREIGN GUEST dation, see D7.3. In 2019, hostels had the highest pro- County and 140 percent higher than at the hostels. over the past 10 years as the growth in guest nights NIGHTS IN THE COUNTY'S portion of foreign guest nights constituting 53 per- Camping sites had by far the lowest average rate per and revenue in the hotel market has been strong while HOSTELS DURING 2019. cent of the total volume. As guest nights at hostels guest night. It was recorded just over SEK 100 in corresponding growth for the other types of accom- have decreased while peer-to-peer services like Airbnb 2019. However, as previously mentioned, guest nights modation has been weak or even negative.

D7.3: SHARE OF SWEDISH AND INTERNATIONAL GUEST NIGHTS D7.4: AVERAGE DAILY RATE PER GUEST NIGHT PER TYPE OF ACCOMMODATION IN STOCKHOLM COUNTY, 2019 PER TYPE OF ACCOMMODATION IN STOCKHOLM COUNTY, 2019

800 759

700

600

500

400 325 311 300

200 106 100

0 Hotels Holiday villages Hostels Campsites

Hotels Holiday village s Hostels Campsites

Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Swedish Agency for Economic and Regional Growth/Statistics Sweden

44 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 45 8. More and more hotels, hostels and professional hosts such as Forenom mediate apartments and rooms through Airbnb. It rai- ses the question whether the service should in some respects be classified as a P2P broker or an OTA like for example Hotels. P2P rentals com and Booking.

HOSTELS, HOLIDAY VILLAGES AND CAMPSITES ARE PART OF THE COMMERCIAL ACCOMMODATION MARKET IN STOCKHOLM COUNTY. Photo: Forenom THESE FACILITIES HAD JUST OVER 1.5 MILLION OVERNIGHT STAYS IN 2019, WHICH CORRESPONDS TO JUST BELOW 10 PERCENT use them as marketing platforms. A prominent ex- ble items and days, via P2P services in Stockholm's OF ALL GUEST NIGHTS IN THE COUNTY. ample is Forenom, one of the Nordic region's largest inner city have declined in recent years. In 2018 they companies in the long-stay segment, which in 2017 amounted to approximately 538,000, which is a de- partnered with Airbnb and advertises the majority crease of about four percent compared to 2016, see Professionalisation of the services of its rooms and apartments through the platform. diagram D8.3. Between November 2017 and Novem- P2P rentals (peer-to-peer) of housing grew rapidly the market is largely made up of professional actors who Thus, Airbnb has scaled up quickly by also acting as ber 2019, the number of possible bookings decreased during the 2010s with services such as Airbnb. The acquire apartments and rent them out in a hotel-like an agent between companies and private individuals, by close to five percent, while the number of rooms company was founded in 2008 and is today the world's manner. so-called business-to-consumer (B2C). This means booked through P2P services increased by five per- largest P2P broker for private rental of accommoda- The number of bookings per object increased that there is a small overlap between the hotel statis- cent during the same period. During January- No- tion. Airbnb offers over 7 million rental units in more during the period and amounted to 16.5 bookings per tics of Statistics Sweden and statistics of P2P servic- vember 2019, about 390,000 rooms were booked in than 100,000 cities (as of 2020), which means that object and month in 2019, which further emphasises es. Thus, a direct comparison of data from the two Stockholm's inner city, which represents an increase the offered room supply is nearly four times greater this. Several companies that conduct traditional hotel sources will not be accurate. of about five percent compared to the corresponding than that of the world's largest hotel chain, Marriott operations also list their rooms on P2P services and period in 2018. The decline in supply combined with International. Supply and demand in central Stockholm an increased number of bookings has led the occu- Initially, the P2P services started as a way for indi- The first P2P-listed object in Stockholm is located pancy rate to increase from about 72 percent in 2017 viduals to rent out their apartments while on vacation, in Vasastan and was booked in the summer of 2010. to 79 percent in 2019. for example. In Sweden, P2P brokerage falls within During the past decade, P2P rental has grown steadily Properties that are mediated through Airbnb are the scope of normal second-hand rental. During the 7,000,000 in Stockholm and is an established alternative to ho- relatively few in comparison to hotels. Of all occupied period December 2016 to November 2019, the P2P THE APPROXIMATE NUMBER OF LISTINGS tels, hostels and other accommodation services today. hotel rooms and properties booked through Airbnb ON THE AIRBNB WEBSITE. units in Stockholm's inner city was booked about 15.5 However, according to data from AirDNA, the num- during January to November 2019, P2P-mediated times on average per month. This is an indication that ber of possible bookings, i.e. the number of availa- properties accounted for approximately 6.5 percent.

D8.1: BOOKED NIGHTS AND UNIQUE OBJECTS D8.3: AVAILABLE BOOKINGS FOR P2P PROPERTIES AND AVAILABLE ROOMS IN HOTELS1 CENTRAL STOCKHOLM DURING JAN 2019-NOV 2019 INDEXED ROLLING 12 MONTH AVERAGE (INDEX 100=DEC 2017)

Source: AirDNA 1P2P-bookings only in Kungsholmen, Södermalm, Norrmalm and Östermalm districts while hotels are calculated for the entire city. Source: AirDNA, Swedish Agency for Economic and Regional Growth/Statistics Sweden

46 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 47 age rate paid by consumers of P2P services, including cleaning fees. The rates include VAT paid by both the lessee and the lessor on the part of the price relating to the P2P company's service charge, that is, the agent fee linked to the service. Between 2017 and 2019 (January to November) the ADR increased by an average of 2.8 percent per year to just over SEK 1,040 in 2019, see diagram D8.2. The price of P2P accommodation in Stock- holm's inner city has been recorded at an average of 27 percent below the hotel ADR in the City of Stock- holm (including VAT), during the three-year period. Since 2017, the difference in ADR of P2P housing has increased slightly faster than the hotel ADR and was recorded 25 percent below the hotel market in 2019 (January to November). The growth in the ADR Photo: Invest Stockholm, Tove Freij can be partly explained by the fact that the supply has been consolidated to the most sought-after objects, The supply of P2P housing is primarily concen- where rates are generally higher. trated to the Södermalm and Kungsholmen districts with about 44 and 21 percent of the total bookings P2P rental and the hotel market during the last three years. Compared to the total Despite the strong growth of the P2P services during Photo: Airbnb housing stock, the proportion of units available for the past decade, the segment is not considered to pose rent is very limited. In 2018, the average number of a real threat to the hotel market in Stockholm. This is available units per day was approximately 0.7 percent mainly motivated by the fact that the number of P2P ulations. HSB, the country's largest housing coopera- housing costs. If services such as Airbnb and Homea- of the total number of apartments in Stockholm's objects is very small in relation to the Stockholm hotel tive, recently demanded a rewrite of The Rent Act to way were to be regulated in Europe, they are likely to inner city. Since other forms of accommodation are market's total room supply. Also, the supply is stead- limit the valid reasons for subletting a condominium lose market shares, even though they only make up a also provided in addition to private homes, the actual ily decreasing, at least in Stockholm’s inner city. The apartment. They point out, for example, that repeated fairly small part of the market today. proportion is estimated to be somewhat lower. Rent Act and current rules on second-hand letting also subletting needs to be restricted to safeguard the idea However, P2P services can to some extent be seen oblige the lessor to have an approval from a third par- of cooperative housing which is the common practice as a complement to the hotel market in the leisure Rates and revenue ty, which is a natural obstacle to the segment's growth. on the Swedish housing market. segment for limited periods of the year. For example, The ADR, according to AirDNA, refers to the aver- Voices have also been raised for tougher Airbnb reg- In 2019, ten major European tourist cities, includ- when the occupancy rates are unusually high and the ing Barcelona and Amsterdam, together requested as- traditional supply is not sufficient and for group book- sistance from the EU to regulate rental services such ings where hotel rooms are not enough. For the corpo- as Airbnb. The request highlighted that parts of the rate market, there are certain factors that prevent P2P D8.3: KEY FIGURES FOR P2P-MEDIATED PROPERTIES COMPARED TO HOTELS 12 MONTH ROLLING AVERAGE, DEC 2017-NOV 2019 housing stock intended for permanent housing has apartments from competing with the hotel market on become purely short-term rentals for tourists, which similar terms, partly due to the lack of a basic service means that homes disappear from the traditional offering. If P2P services are increasingly used to me- housing market. This leads to a mismatch between diate professional operators' objects, they can also be supply and demand which in turn leads to increased seen as competitors to the hotel's OTA channels.

T8.1: KEY FIGURES FOR P2P-MEDIATED PROPERTIES IN CENTRAL STOCKHOLM JANUARY-NOVEMBER 2017, 2018 OCH 2019

YTD 2017 %-CHANGE YTD 2018 %-CHANGE YTD 2019 1,044 SEK WAS THE ADR FOR AVAILABLE BOOKINGS 519,990 -3.9% 499,601 -0.7% 495,999 PROPERTIES BOOKED

BOOKED PROPERTIES 373,360 -0.1% 372,939 4.9% 391,063 THROUGH AIRBNB IN CENTRAL STOCKHOM OCCUPANCY RATE, % 71.8 4.0% 74.6 5.6% 78.8 DURING 2019. AVERAGE DAILY RATE, SEK 987 0.1% 988 5.7% 1,044

Source: AirDNA, Swedish Agency for Economic and Regional Growth/Statistics Sweden Source: Airdna, Swedish Agency for Economic and Regional Growth/Statistics Sweden

48 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 49 9.

Largest operators in the county

THE HOTEL MARKET IN STOCKHOLM COUNTY IS DOMINATED BY SWEDISH AND NORDIC OPERATORS. SCANDIC AND NORDIC CHOICE ALONE ACCOUNT FOR ABOUT 30 PERCENT OF ALL HOTEL ROOMS IN THE COUNTY.

Nordic operators dominate The ten largest operators run about a quarter of all in Solna and Sigtuna. As Vi Invest will open three new Photo: Stallmästaregården hotels in the county, and more than half of all hotel hotels in the county, the group is expected to enter the rooms, see Table T9.2. The majority of the largest op- list of the county's largest operators. Since Vi Invest erators' hotels are in the three- and four-star segments. will open hotels as franchises under the AC Hotels by with, for example, Nordic Choice Hotels, which op- found a bit further down the list. The Best Western Scandic Hotels alone holds just under a fifth of the Marriott brand, Marriott will increase its presence in erates most of its hotels under three separate brands. portfolio includes several brands, such as Best Wes- county's room supply and about a quarter of all rooms the county during the coming years. Clarion Hotel is the largest brand within the group tern, Best Western Plus and BW Premier Collection. in the City of Stockholm, although the chain's supply with some 80 hotels in the Nordic and Baltic coun- The Best Western hotels in the county are run by decreased in 2019 when Hotel Hasselbacken was ac- Biggest brands tries (including the Clarion Collection), followed by almost 20 different operators. Best Western is the quired by Pop House Sweden. At present, only one of The two largest brands in Stockholm County, in terms approximately 60 Quality Hotels and 40 with the largest non-Nordic brand in the county. Other non- the largest operators in the county is non-Nordic, al- of number of rooms, belong to Scandic Hotels and Comfort Hotel brand. Nordic brands represented in the county are, for ex- though it can be argued that Radisson, with roots in the Nordic Choice Hotels, who also dominate the coun- Third on the list is Radisson Blu, which is part ample, Courtyard by Marriott, Hilton and Sheraton. SAS group, has a clear connection to Sweden. ty´s room supply, see tables T9.1 and T9.2. Under the of the now Belgium-based Radisson Hospitality. Although the presence of international brands in the The largest operators have been quite restrained Scandic brand, however, there is a great variation in Best Western, which is a collection of several pri- county is limited, interest to enter the Stockholm in terms of capacity expansion in Stockholm County terms of location, quality level and service offering. It vately owned hotels run by individual franchisees, is market is increasing. during the past two years. In 2018, a Comfort Hotel can therefore be argued that the comparison is unfair

T9.2: 10 LARGEST OPERATORS BASED ON THE NUMBER OF ROOMS THE TABLE IS BASED ON HOTELS RUN BY THE RESPECTIVE OPERATOR. HOTELS UNDER LICENSED NAMES T9.1: 10 LARGEST BRANDS OR FRANCHISE AGREEMENTS ARE EXCLUDED FROM THE LIST OF THE NUMBER OF HOTELS IN STOCKHOLM COUNTY. BY MOST ROOMS IN STOCKHOLM COUNTY 85,000 NO. BRAND HOTELS ROOMS THE CITY COUNTY EXCL. THE COUNTY NO. OPERATOR HOTELS ROOMS HOTELS ROOMS HOTELS ROOMS THE APPROXIMATE NUMBER OF HOTEL ROOMS IN 1 SCANDIC1 28 6,945 RADISSON HOSPITALITY'S PORTFOLIO. 2 CLARION HOTEL2 4 1,981 1 SCANDIC HOTELS 19 5,140 9 1,857 28 6,997

3 RADISSON BLU 5 1,668 2 NORDIC CHOICE HOTELS 11 3,749 6 1,570 17 5,319

4 QUALITY HOTEL 6 1,602 3 RADISSON HOSPITALITY 3 1,043 2 602 5 1,645 (Nordic Choice Hotels) was opened in Kista, last year 5 ELITE HOTELS 7 1,251 4 LIGULA HOSPITALITY GROUP 8 1,088 1 178 9 1,266 Blique by Nobis (Nobis Hospitality Group) opened in Vasastaden and in early 2020 both a Comfort and a 6 BEST WESTERN 10 1,195 5 ELITE HOTELS 6 1,065 1 186 7 1,251 Forenom hotel opened near Arlanda. They were the 7 FIRST HOTELS 8 1,007 6 NOBIS HOSPITALITY GROUP 4 620 2 207 6 827

only openings of the county's ten largest operators 8 BEST WESTERN PLUS 4 646 7 FORENOM1 3 432 1 205 4 637 during 2018-2020 and thus the ranking of largest op- 9 FORENOM 4 637 8 STOCKHOLM MEETING SELECTION 3 147 5 376 8 523 erators is relatively unchanged since the Hotel Report 2018. 10 BW PREMIER COLLECTION 4 484 9 JT GRUPPEN 3 342 1 140 4 482 10 WINN HOTEL GROUP - - 3 475 3 475 As previously mentioned in Chapter 3, Scandic Ho- Source: Swedish Agency for Economic and Regional Growth/Statistics tels' room capacity in Stockholm County is expected to Sweden, Annordia Research 1Downtown Camper by Scandic and Haymarket by Scandic are regarded as Source: Annordia Research remain relatively unchanged in the next few years, while part of the Scandic brand in the summary above. 1The portfolio contains hotel rooms and apartments mediated through services such as Airbnb. Nordic Choice Hotels is planning a strong expansion 2Excluding Clarion Collection branded hotels.

50 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 51 Definitions

HOTEL CLASSIFICATION Invest Stockholm

OVERVIEW EXAMPLE CRITERIAS - 5 STARS Invest Stockholm is the City of Stockholm's invest- Hotel classification is used to guide and facilitate • Front desk staffed around the clock ment promotion agency whose main task is to contri- guests when choosing a hotel. Usually, stars are used • Suites bute to increased sustainable growth by attracting to signal the quality level of a hotel. They are normal- • Extra toiletries in the room investments and establishments to the Stockholm re- ly reported on a five-level scale (1-5 stars), where one • Lunch and dinner seven days a week gion. Invest Stockholm is also marketing Stockholm star is the lowest level and five is the highest level. • Exclusive decor as an attractive city under the brand Stockholm - the This is the rating system which has been utilized in Capital of Scandinavia, and provide services to the the report. EXAMPLE CRITERIAS - 4 STARS business community. The services aim to improve the • Reception staffed 18 hours conditions of running, starting and establishing com- The number of stars is assessed based on criteria that • The hotel is staffed around the clock panies in Stockholm and the region. evaluate areas such as reception services, hotel rooms • Dinner six days a week (beds, bathrooms, etc.), food and beverage, meeting • Room service Contact us facilities and recreation. There are also a range of • High quality interior [email protected] different types of quality criteria. This can be about www.investstockholm.com complaint handling, website functions, ecolabelling EXAMPLE CRITERIAS - 3 STARS etc. • Reception staffed at least 14 hours • One seat per bed in the rooms Connect with Invest Stockholm on social media The classification of stars in this report is based on a • Internet connection in room Twitter: @investstockholm number of sources. The main source has been Hotel- • Rooms are equipped with private bath/wc Linkedin: Invest Stockholm stars Union, which is a European-wide organization • TV adapted to room size Facebook: InvestStockholm that determines the classification standard for hotels in the member states. In Sweden, Visita, through its EXAMPLE CRITERIAS - 2 STARS Address subsidiary Sveklass, is responsible for the hotel classi- • Breakfast buffet or equivalent Invest Stockholm fication. However, most of the hotels in Sweden are • 1 towel per person P.O. Box 16282 not included in this classification, for example, there • Soap in the shower SE-103 25 Stockholm, Sweden are no hotels from Scandic Hotels and Nordic Choi- • Reading lamp by bed Phone + 46 8 508 280 00 ce Hotels. To enable meaningful comparisons, An- • Coat rack nordia has obtained ratings, where it is missing from Hotelstars Union, from online travel agencies such as EXAMPLE CRITERIAS - 1 STAR About the author Hotels.com, Booking and Tripadvisor, and has made • Single bed with min. dimensions 80 x 190 cm its own assessment in cases where the hotel lacks an • Daily cleaning of rooms Annordia is a full-service advisor for investments in official rating. • Reception accessible around the clock hotel properties. As a full-service advisor, Annordia assists its clients through every phase of the invest- ment cycle – from market analysis and concept deve- lopment to operator search and lease and transaction advisory.

Annordia can be reached on [email protected]. Read more on www.annordia.com.

52 STOCKHOLM HOTEL REPORT 2020 STOCKHOLM HOTEL REPORT 2020 53 Photo: Hobo Hotel Invest Stockholm P.O. Box 16282 SE-103 25 Stockholm, Sweden Phone + 46 8 508 280 00 [email protected] www.investstockholm.com