Stockholm Hotel Report 2014

Stockholm Hotel Report 2014
PHOTO: OLA ERICSON
Stockholm – one of Europe’s most popular destinations
With nearly 11 million commercial guest nights annually, Stockholm is ranked as one of Europe’s top ten destinations1).
It is also one of Europe’s fastest growing cities, with a county population of 2.1 million residents, 897,700 of which
are in the city of Stockholm2).
Stockholm is the engine of Swedish tourism.
The number of guest nights is distributed
relatively evenly throughout the year, with peaks
in July and August. Half of tourists are business
travelers and half are private travelers. Swedish
tourists account for two thirds of all overnight
stays in Stockholm county. Most foreign visitors
are from Europe outside of the Nordic region.
The biggest international market is Germany,
followed by the UK and the US.
Hotels are the biggest and most popular form of
accommodation. 87 percent of all commercial
overnight stays are in hotels. Seven in ten guest
nights are in the city; the rest are in the county.
Over 60 percent of hotels in Stockholm are
deemed to be of four-star standard, but there is
still room for more. The selection of one or twostar hotels3) in the city of Stockholm is limited,
and presently represents only 5 percent of the
total room capacity. Many hotels in Stockholm
belong to the major Nordic hotel chains: Elite,
First, Choice or Scandic.
Room for additional mega hotels
in the city
City compact and boutique hotels
in the city
Bed capacity has increased in recent years,
and today 60 percent of the capacity is in the
city of Stockholm. In 2013, hotels reported
an occupancy rate of 67 percent in the city
and 59 percent in the county. This indicates
a periodic lack of capacity in the city and
demand for new hotel rooms.
Hotels with about 120 rooms currently
comprise the most common size of the new
hotel establishments in downtown. The need
for hotels to find a niche is growing, and we
are seeing two trends in Stockholm: more
hotels in the “city compact” segment and
more boutique hotels. Through its new brand,
HTL, Scandic is focusing on a slimmed down
service offering combined with a high trend
factor, digital service solutions and the best
central locations at half the price of a standard
hotel with full service. Motel L from Ligula
Hospitality is openings its first hotel in what
will be an entire chain in which fixed room
prices are offered. At the same time, several
new boutique hotels are opening in historic
settings in the city’s best locations, including
Miss Clara and Hotel Kungsträdgården.
Another 500 rooms will be required in the city
as early as 2016, and by 2020, 1,800 rooms
will still be needed if all planned and potential
projects are carried out.
40 planned hotels
There are plans for 40 new accommodation
facilities in Stockholm county, which will
increase capacity by 17 percent. Half of
these will be built in the city of Stockholm.
2014 has already seen an addition of about
5 percent, corresponding to 10 facilities with
a total of 951 rooms in the city of Stockholm.
This corresponds to around 23% of the total
planned hotel rooms in the county.
1) Source: European Cities Marketing Benchmarking Report 2012-2013
2) Source: Statistics Sweden
3) Source: Visita and HUI
Increased capacity in the county
Major capacity increases are taking place around
the cluster by Arlanda Airport (Sigtuna) and
in Solna. The hostel trend that is so apparent
in major cities all over Europe and the world
does not seem to have reached Stockholm yet.
It may also have been replaced by the “city
compact” trend. The hostel on Svartsö is the
only one planned.
Planned hotels in Stockholm county
Potential future projects
Facility
Municipality
Capacity*
Opening
Facility
Municipality
Capacity*
Hotel Kungsträdgården
Stockholm
105
2014
Hotel in Östberga, Particentralen 6
Stockholm
no data*
Miss Clara (opened April 2014)
Stockholm
92
2014
Hotel in Kista, Knarrarnäs
Stockholm
115*
Motel L, Hammarby Sjöstad (opens May 2014)
Stockholm
226
2014
Hotel Memory
Stockholm
150*
Scandic HTL, Kungsgatan (opens May 2014)
Stockholm
275
2014
Hotel Malmskillnadsgatan
Stockholm
100
Central Hotel
Stockholm
17*
2014
HTL
Stockholm
120*
Quality Hotel Globe
Stockholm
206*
2014
Hotel, Gallerian
Stockholm
500
Stallmästaregården
Stockholm
30*
2014
Hotell Södermalm
Stockholm
50
2015
Handens Hamburgebar,
new construction of hotel rooms
Haninge
22
Scandic HTL, Norra Bantorget
Stockholm
115
2015
Hotel Ibis
Sigtuna
40*
Fyrkanten 14
Stockholm
180
2015
Hotel in Hallunda, Living Hotel
Botkyrka
191
Villa Källhagen
Stockholm
14*
2015
Hotel in Måby
Sigtuna
250
Älvsjö Station
Stockholm
250
2016
Hotel in Sollentuna, Ritmallen
Sollentuna
80*
Scandic Continental
Stockholm
400*
2016
Hotel Scandic Foresta
Lidingö
14*
Huddinge Resort
Huddinge
400
Hålludden, Hotell Artipelag
Värmdö
150
Kyssinge Golf
Sigtuna
100
Norges Hus
Nacka
250
Park Inn Hotell, stage 1
Sigtuna
30*
Siggesta Träskhotell
Värmdö
150
Sotaren
Täby
10*
Södra Bergen
Norrtälje
Vår Gård Saltsjöbaden
Nacka
Total in city of Stockholm
1,960 rooms
Puman 1, Urban Hostel
Solna
80
2014
Laboratoriet 1
Solna
65
2016
The Winery Hotel
Solna
184
2016
Hotel in Ulriksdal, ESS Hotel
Solna
200
2016
Arlanda Holding
Sigtuna
150
2016
Linjen 2
Huddinge
80
2019
Total in Stockholm county
beyond city of Stockholm
759 rooms
Total
40
no data*
2,712 rooms
* An increase in capacity was reported for existing accommodation facilities.
Source: Byggfakta, Stockholm Business Region Development, Sweco, Visita, Annordia etc.
2 3 PHOTO: ERIK G SVENSSON
Hotel cluster in Stockholm
The report is divided into three cluster areas: downtown, outlying areas of the city of Stockholm, and the rest of the county.
Commercial accommodation facilities
Downtown
Norrmalm
Hotel
Hostel
Kommerciella boendeanläggningar
Stockholm county
309
83
of which are in the
city of Stockholm
350
160
34
Cottage
Camping site
Total
7
35
434
0
5
199
2,488 rooms
589 beds
VG:
3,288 rooms
65 beds
CBD:
4,303 rooms
1,323 rooms
120 beds
734 beds
300
Kungsholmen
1,082 rooms
200
577 beds
150
100
Hotell
Hotel
Vandrarhem
Hostel
Stugby
Cottage
Campingplats
Camping site
Antal i in
Number
■ Stockholm
Stockholmscounty
län
■ of
varav
Stockholms
which
are in the stad
city of Stockholm
Södermalm
Number of hotel rooms (per day)
The city is growing
In the city of Stockholm outside
of downtown, there are currently
4,473 hotel rooms, 195 hostel
beds and 615 camping sites.
Of the total accommodation
capacity in Stockholm, 23% of
hotel rooms are in the outlying
areas of the municipality.
Accommodation capacity is primarily
concentrated in the areas around Stockholm
International Fair (Älvsjö), Globen (Årsta),
and the business clusters in Kista and Bromma.
Stockholm is one of Europe’s fastest growing cities. Around 900,000 people currently
live in the city, and 15,000 more arrive each year. Stockholm is developing around
15 big infrastructure projects with new residential areas and workplaces.
Accommodation facilities
in Sigtuna, Södertälje
and Solna are primarily
geared toward business
travelers, while the
facilities in Norrtälje,
Värmdö, Nacka and
Haninge are geared
toward the conference
market and private travelers.
2011
2012
2013
14,900
15,400
16,000
18,900
19,000
19,350
2,754
3,803
3,791
4,063
4,314
4,464
4,527
1,225 beds
Hotel guest nights (thousand, per year)
3,895
5,533
5,738
6,070
6,375
6,633
6,771
66%
70%
67%
69%
68%
66%
67%
Occupancy hotel rooms
RevPAR hotel rooms
Number of beds hostels/cottages
Guest nights hostels/cottages (thousand)
20
15
10
SEK 703 SEK 805 SEK 723 SEK 775 SEK 782 SEK 739 SEK 755
1,500
2,300
2,600
2,700
3,000
3,200
3,400
300
541
545
527
527
573
574
159
179
173
176
172
166
Guest nights camping* (thousand)
5
0
Stockholm county
20,900
24,600
25,000
26,100
29,800
30,500
32,000
Sold hotel rooms (thousand, per year)
4,376
5,565
5,368
5,832
6,175
6,308
6,482
Hotel guest nights (thousand, per year)
5,956
7,901
7,924
8,517
8,926
9,211
9,536
57%
62%
59%
61%
61%
59%
59%
RevPAR hotel rooms
Accommodation capacity in the
county is biggest in Norrtälje,
followed by Sigtuna, Värmdö,
Södertälje, Solna, Nacka
and Haninge. Together,
these seven municipalities
represent 25 percent of the
accommodation capacity
in the county.
2010
11,400
Occupancy hotel rooms
Some municipalities in the county dominate
Stockholm county currently has 32,000 hotel
rooms distributed over 400 facilities. Among
hotels, the concentration of existing hotel rooms
is highest in three and four-star hotels.
2009
Sold hotel rooms (thousand, per year)
Half of the capacity is in Stockholm CBD
The highest percentage of total accommodation capacity in the downtown area
is in the Central Business District (CBD), which consists of business hotels that
are located along Vasagatan and around Stockholm Central Station, the rest of
Norrmalm, Gamla Stan and around Stureplan on Östermalm. The CBD represents
half of the bed capacity in the downtown area, distributed between Vasagatan (VG)
with 21% and the rest of the CBD with 27%.
Rest of county
2008
2,403 rooms
Number of hotel rooms (per day)
Outlying areas to
the city of Stockholm
2002
City of Stockholm
60 camping
sites
50
4 Distributionav
of hotellrum
hotel rooms
Fördelning
efter antal stjärnor
based on number of
stars
Stockholms
stad och län
in Stockholm city and county
Key financial indicators
250
0
Östermalm
Number of beds hostels/cottages
Guest nights hostels/cottages (thousand)
5★
4★
3★
2★
1★
Number
of hoteli rooms
in thousands
Antal hotellrum
tusental
■ Visita
■ HUI
HUI
SEK 599 SEK 685 SEK 611 SEK 663 SEK 678 SEK 642 SEK 641
3,800
4,400
4,800
4,900
6,500
6,500
6,900
589
803
824
812
820
855
821
644
625
682
659
610
587
Guest nights camping* (thousand)
* only reported from 2008 due to a new calculation method from and including 2008.
Source: Statistics Sweden and Swedish Agency for Economic and Regional Growth.
Guest nights: Doubled in relation to GDP
Growth in Stockholm has been lengthy and strong in the last 30 years. Between 1980 and 2013,
the number of commercial guest nights in Stockholm has increased by 4 percent. In that same
period, Sweden on the whole has had an average GDP growth of 2.1 percent. The development of
the number of guest nights has exploded in the last ten years. Between 2002 and 2013, guest nights
in Stockholm have increased by an impressive 75 percent in the city and 58 percent in the county.
Slightly less than half of accommodation
facilities have opted out of the official
classification system. Of the 19,350 total hotel
rooms in Stockholm, one third participate in
the classification system. To be able to judge
the standard of accommodation facilities in
Stockholm, HUI Research has carried out its
own assessment of the facilities that are not part
of the official classification system.
Source: Visita and HUI Research
HUI Research has made an assessment of the hotels
that are not part of the official star classification system.
5 PHOTO: HENRIK TRYGG
Future hotel needs in Stockholm 2014–2020
According to HUI Research, the number of guest nights will increase by 22 percent up to and including 2020.
This corresponds to an annual growth rate of 3.4 percent in the county and 4 percent in the city between 2014
and 2020. The number of occupied hotel rooms is expected to grow by 25 percent in the county in the same period,
which corresponds to an annual increase of 3.8 percent. Growth in the city is expected to be 4.2 percent.
Factors that affect the forecast
Continued demand until 2020
The labor market in Stockholm is strong.
The number of employed residents continues
to grow, while the number of available jobs
is increasing. Unemployment in Stockholm
county is the lowest in the entire country
by 6.9 percent (January 2013). Unemployment
in the country is expected to be just under
8 percent in the beginning of the period and
to fall somewhat in 2015.1)
Stockholm county: HUI assumes that demand
Other factors include the growth of new
businesses and population growth, as well
as the global economic turmoil. The city of
Stockholm is growing by 159,000 residents to
1,041,000, and the county population in 2022
is expected to reach 2,498,0002).
The forecast for demand of commercial beds and
rooms is based primarily on historical growth
rates and expected GDP development. HUI
has based future GDP development on the
long-term forecast by the National Institute
of Economic Research (last updated in March
2014). HUI has also considered known
investments that are expected to impact the
hospitality industry. Examples include the
additions of new arenas and new facilities
(Friends Arena, Tele2 Arena, Nobel Center),
which are primarily geared toward the private
travel market. In 2014 and 2015, Stockholm
will have two new major conference facilities,
which are expected to generate between 40,000
and 50,000 guest nights. Collaborative projects
in the hospitality industry, such as the airline
collaboration Connect Sweden, and the
“Stockholm Strategy 2020” project, also affect
the forecast.
for commercial accommodation options will
follow the same growth rate as it has for the
last 10 years, except for hostels, cottages and
camping. The total number of commercial
guest nights at hotels, hostels, cottages and
camping sites is forecast to have an average
annual growth of 3.4 percent. The number of
guest nights at hotels is expected to rise annually
by 3.8 percent on average. Hostel, cottage and
camping accommodations are not predicted to
have any significant growth in the coming years.
Private rentals, known as peer-to-peer property
rentals in accommodations, continue to take
market share, primarily from the low price hotel
and hostel segment, which is believed to affect
demand for hostel beds.
Stockholm county will handle the anticipated
guest night growth with the existing and
planned projects. If the planned and potential
projects are carried out according to schedule,
the occupancy rate in Stockholm county will
be close to 62 percent by the end of the forecast
period.
HUI Research assumes
that demand for commercial accommodation
options will follow the same growth rate as it
has for the last five years. The total number
of commercial guest nights in the city of
Stockholm is forecast to grow annually by
an average of 4 percent. The hotels in the
city have had an average annual guest night
growth of 4.1 percent in the last five years.
Hostels and cottages have shown a 1.2 percent
average annual guest night growth in the same
period. Camping has grown by +0.9 percent
annually since 2008. Commercial guest nights
at hotels, hostels, cottages and camping in the
municipality have grown by 3.8 percent on
average per year.
City of Stockholm:
HUI expects continued growth for the
commercial accommodation options in the
municipality and anticipates an overall annual
growth of 4.2 percent until 2020 in the hotel
category, and of 1.2 percent in the hostel,
cottage and camping category over the next
seven years. For the city of Stockholm, HUI
has calculated a potential capacity need based
on the anticipated requirement for hotels in
the city and planned hotel establishments.
It would appear that if a few more new hotel
projects are not added, a capacity gap will arise
corresponding to about 500 hotel rooms already
in 2016. Planning of new establishments should
take place as early as 2014, as it typically takes
several years to get from planned establishment
to completed hotel.
Hotel development forecast
2014
2015
2016
2017
2018
2019
2020
City of Stockholm
Commercial guest nights forecast
Hotel guest nights (thousand, per year)
7,100
7,400
7,800
8,100
8,400
8,700
9,000
Expected development of hotels
4.40%
4.80%
4.80%
4.40%
4.00%
3.70%
3.70%
Guest nights hostels/cottages/camping (thousand)
750
760
770
775
785
795
805
Expected development hostels/cottages/camping
1.20%
1.20%
1.20%
1.20%
1.20%
1.20%
1.20%
Total (thousand)
7,850
8,160
8,570
8,875
9,185
9,495
9,630
19,350
20,300
20,700
21,300
21,900
22,000
22,200
4,800
5,000
5,200
5,400
5,600
5,800
5,900
66%
67%
68%
69%
70%
72%
73%
Capacity need
19,150
20,200
21,100
21,900
22,600
23,200
23,900
Capacity gap2)
200
100
-500
-600
-700
-1,200
-1,800
Hotel guest nights (thousand, per year)
9,900
10,300
10,800
11,200
11,600
12,000
12,400
Expected development of hotels
4.20%
4.40%
4.20%
4.00%
3.60%
3.20%
3.20%
Guest nights hostels/cottages/camping (thousand)
1,400
1,400
1,400
1,400
1,400
1,400
1,400
0%
0%
0%
0%
0%
0%
0%
11,300
11,700
12,200
12,600
13,000
13,400
13,800
32,000
33,000
33,400
34,600
35,700
36,200
36,800
6,700
7,000
7,300
7,600
7,900
8,100
8,400
57%
58%
59%
59%
60%
61%
62%
Sold hotel rooms and capacity need forecast
Capacity hotel room (per day)1)
Sold hotel rooms (thousand, per year)
Occupancy rate
Stockholm county
Commercial guest nights forecast
Expected development hostels/cottages/camping
Total (thousand)
Sold hotel rooms and capacity need forecast
Capacity hotel room (per day)1)
Sold hotel rooms (thousand, per year)
Occupancy rate
1) HUI has added planned capacity for each year. The uncertain projects have been distributed evenly over the years from 2015 to 2020.
2) C
apacity gap means the difference between existing capacity and capacity need. A positive value indicates that the existing capacity is sufficient to meet demand,
while a negative value indicates a capacity shortage.
The forecast includes both planned and potential projects.
1) h
ttp://www.tmr.sll.se/Global/Dokument/Statistik/Befolkningsprognoser/2013-07.pdf
2) h
ttp://www.arbetsformedlingen.se/Om-oss/Statistik-prognoser/Prognoser/Prognoser/Riket/12-12-2013-116-000-fler-jobb-%E2%80%94-arbetslosheten-minskar.html
6 7 COVER PHOTO: OLA ERICSON
Stockholm Hotel Report 2014
In “Stockholm Hotel Report 2014 – a survey and forecast of the hotel situation in Stockholm county”,
Stockholm Business Region presents a summary statement for existing and planned accommodations
in Stockholm county and a forecast for required hotel rooms from 2014 to 2020. The hotel report was
produced by HUI Research as commissioned by Stockholm Business Region. A more detailed report
can be downloaded from press.stockholmbusinessregion.se.
Feel free to contact Tora Holm, Stockholm Business Region Development, [email protected],
+46 704 728 027.
Stockholm Business Region
P.O. Box 16282
SE-103 25 Stockholm, Sweden
Phone +46 8 508 280 00
www.visitstockholm.com
investstockholm.com
stockholmbusinessregion.se