NORDIC HOTEL REPORT THIRD QUARTER Q COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM

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1 NORDIC HOTEL REPORT THIRD QUARTER Q3 217 COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM Q

2 Q 3 H I G H L I G H T S NOBIS HOTEL COPENHAGEN Q 3 H I G H L I G H T S In the third quarter of 217 all capitals have experienced a positive RevPAR development. The hotel market in Oslo experienced the most significant improvement with 11.9% RevPAR growth, mostly driven by the increase in ADR. RevPAR development in Q3 217 compared to Q3 216: > Copenhagen +1.7% > Oslo +11.9% > Stockholm +3.1% > Reykjavik +2.6% RevPAR development in Q2 217 compared to Q2 216: > Helsinki +8.9% Photo by Henrik Trygg/mediabank.visitstockholm.com Q

3 M A R K E T I N D I C A T O R S - C O P E N H A G E N C O P E N H A G E N In the third quarter, Copenhagen experienced a moderate RevPAR improvement of 1.7% to DKK 963. This growth is carried by the ADR growth of 3.7% to DKK 179 and a decrease in occupancy of -1.9% to 89.3%. In July, RevPAR has slightly decreased by -2.7% to DKK 838 which is driven by a decrease in occupancy of -3.3% to 87% and a very slight increase in ADR of.6% to DKK 963. August was the best performing month of the quarter having an increase in ADR of 8.8% to DKK 1119 and a small decrease in occupancy to 92.3%. This resulted ina RevPAR increase of8.2% todkk 133. In September, RevPAR decreased by -.8% to DKK 12 compared to the same period last year. This decrease was both driven by the occupancy decrease of -1.9% to 88.5% and a growth in ADR to DKK 1153 by 1.2%. COPENHAGEN HOTEL MARKET Q3 217 Jul. Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 87.% % % % -1.9 ADR in DKK RevPAR in DKK ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (DKK) REVENUE PER AVAILABLE ROOM (DKK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Apr. May Jun. Q2 1'4 1'2 1' Apr. May Jun. Q2 1'4 1'2 1' Q

4 M A R K E T I N D I C A T O R S - O S L O O S L O In the third quarter, Oslo s occupancy increased by 2.8% to 8.8% and ADR by 8.8% to NOK 14, resulting in a significant RevPAR increase of 11.9% to NOK 841. This strong RevPAR growth is driven by the fact that 2 hotels are closed for renovations during 217. Compared to the other months in the quarter, July was performing worst, however, still showing a strong growth in RevPAR of 11.4% to NOK 851. This growth was mainly driven by the increase in ADR to NOK 851 by 7.2% and an increase in occupancy by 3.9% to 71.9%. August experienced a significant increase in ADR of 9.4% to NOK 164 and an increase in occupancy to 86.9% by 2.5%. This resulted in a significant growth of RevPAR compared to the same period last year of 12.1% to NOK924. In September, ADR increased by 9.7% to NOK 1183 and occupancy by 2.4% to 83.9% resulting in a big RevPAR growth to NOK 992 of 12.2%. September has thus been the best performing month of the quarter. OSLO HOTEL MARKET Q3 217 Jul. Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 71.9% % % % 2.8 ADR in NOK RevPAR in NOK ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (NOK) REVENUE PER AVAILABLE ROOM (NOK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1'4 1'2 1' '2 1' Q

5 M A R K E T I N D I C A T O R S - S T O C K H O L M S T O C K H O L M The Stockholm hotel market experienced a moderate increase in all performance indicators compared to the same period last year. Occupancy has increased by 1.5% to 71%, ADR by 1.6% to SEK 1144, resulting in a RevPAR growth to SEK 87 by 3.1%. The market experienced a decrease in RevPAR of -5.4% to SEK 585 carried by both occupancy with a decrease of -1.4% to 57% and an ADR decrease of -4.1% to SEK 118. July has thus been the worst performing month of the quarter. In August, the market performed best compared to the same period last year, with a significant growth in RevPAR of 1.4% to SEK This growth was both carried by an increase in ADR of 6.3% to SEK 1236 and growth in occupancy of 3.9% to 78%. September saw a very slight price increase of.2% to SEK 114. Occupancy increased a little more by 1.1% to 76%, resulting in a RevPAR growth of 1.3% to SEK 867. STOCKHOLM HOTEL MARKET Q3 217 Jul. Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 57% % % % 1.5 ADR in SEK RevPAR in SEK ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (SEK) REVENUE PER AVAILABLE ROOM (SEK) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1'4 1'2 1' '2 1' Q

6 M A R K E T I N D I C A T O R S - R E Y K J A V I K R E Y K J A V I K The third quarter of 217 in the Icelandic capital was characterised by a slight RevPAR growth of 2.6% to ISK 22,66, carried by an ADR growth of 3.7% to ISK 25,342 and slowed down by a slight decrease in occupancy of -1.1% to 89%. In August, the Icelandic capital experienced a moderate RevPAR growth of 2.7% to ISK 23,771. This growth was mainly driven by the increase in ADR to ISK 26,126 by 2.6% and a slight increase in occupancy to 91% by.1%. REYKJAVIK HOTEL MARKET Q3 217 Jul. Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 9% %.1 86% % -1.1 ADR in ISK 25' ' ' ' RevPAR in ISK 23' ' ' ' In July, the Reykjavik hotel market experienced the smallest increase in RevPAR of the quarter of 1.4% to ISK 23,456. This increase was driven by a growth in ADR of 3.3% to ISK 25,922 and a slight decrease in occupancy to 9% by -1.9%. September was the best performing month of the quarter with an increase in ADR of 5.3% to ISK 23,856 and a slight decrease in occupancy of -1.4% to 86%, resulting in a RevPAR growth of 3.9% to ISK 2,523. ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (ISK) REVENUE PER AVAILABLE ROOM (ISK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 3' 25' 2' 15' 1' 5' 25' 2' 15' 1' 5' Q

7 M A R K E T I N D I C A T O R S - H E L S I N K I H E L S I N K I The second quarter in Helsinki developed positively with a big RevPAR increase for the entire quarter of 8.9% to EUR 85, compared to the same period last year. This growth was only driven by an increase in ADR of 9.8% to EUR 114 and slowed down by a decrease in occupancy of -.9% to 75%. In April, occupancy decreased by -4.5%% to 65% and slightly decreased in ADR by -.2% to EUR 97. April therefore experienced a moderate decrease in RevPAR of -4.8% to EUR 63 and was therefore the worst performing month of the quarter. In May, ADR grew by 6.7 % to EUR 111 and slightly increased in occupancy to 77% by 2.5% which resulted in a considerable growth of RevPAR of 9.4% to EUR 85. In June, growth was the highest having an immense RevPAR increase of 18.3% to EUR 17. This significant growth was driven by an increase in ADR of 18.9% to EUR 13 and slowed down by a decrease in occupancy by -.5% to 82%. HELSINKI HOTEL MARKET Q2 217 Apr. Δ (%) May Δ (%) Jun. Δ (%) Q2 Δ (%) Occupancy (%) 65% % % % -.9 ADR in RevPAR in Source: Statistics Finland Data used to analyse the hotel market in Helsinki is provided by Statistics Finland and is approximately 3 months delayed. OCCUPANCY AVERAGE DAILY RATE (EUR ) REVENUE PER AVAILABLE ROOM (EUR ) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Apr. May Jun. Q Apr. May Jun. Q Apr. May Jun. Q2 Q

8 N E W D E V E L O P M E N T S C O P E N H A G E N C O P E N H A G E N In the first quarter of 217, the confirmed pipeline in Copenhagen is currently at around 6,6 rooms. Scandic has signed a long-term agreement with construction company Skanska to operate a 357- room hotel in the new Scanport area just north of Kastrup Airport. The Scanport area will be developed significantly over the next few years and several companies have already announced that they will move their headquarters there from 218. The area will be easily accessible via the highway and a nearby train station. NEW DEVELOPMENTS IN COPENHAGEN Hotel Room No. Opening Year Stay - Fortkaj Aarhusgadekvarteret Sander (redevelopment to boutique hotel) Total for NIMB (Tivoli Corner) 21 room extension 218 Charlottehaven 37 appartment extension 218 Moxy Scandic Meatpacking Brøchner Hotels - Herman K Bremerholm Arp-Hansen Wake-up Kalvebodbrygge Total for Scandic Falconer CitizenM - Dagmarhus Zleep Copenhagen Arena Arp-Hansen Wakeup Borgergade 22 room extension 219 Brøchner Hotels - Hotel Ottilia - Carlsbergbyen Total for Nordic Choice Hotels - Tietgensgade Comfort Copenhagen Airport Hotel 5 22 Scandic Scanport Total for Scandic Spectrum - Kalvebodbrygge Total for Cabinn - Kalvebod Brygge 12 TBA Grand Total 5589 Source: NHC Data SCANDIC SCANPORT MOXY Q

9 N E W D E V E L O P M E N T S O S L O O S L O Oslo s current pipeline contains about 2,4 hotel rooms. The newest hotel on the pipeline is the Nordic Choice at Sommerogaten. Petter A. Stordalen is planning to build a concept hotel similar to The Thief at Tjuvholmen in Oslo. THON HOTEL LINNE NEW DEVELOPMENTS IN OSLO Hotel Room No. Opening Year Best Western Oslo Airport 7 room extension 217 Total for Thon Hotel Linne 15 room extension 218 Thon Hotel Storo Scandic Portalen (Lillestrøm) Quality Airport Hotel Gardermoen 129 room extention 218 Total for Clarion Hotel Bjørvika by HAV Eiendom Amerikalinjen 124 room conversion 219 Clarion Royal Hotel Royal Christiania 352 room extension 219 Total for Nordic Choice - Sommerogaten Total for Scandic Helsfyr 17 room extension TBA Radisson Blu Hotel Oslo Plaza 335 room extension TBA Grand Total 2388 Source: NHC Data Q

10 N E W D E V E L O P M E N T S - S T O C K H O L M S T O C K H O L M BEST WESTERN SOLNA In Stockholm, the total pipeline accounts for 2,8 rooms. This December Forenom is opening a new apartment hotel at Flemingsbergdalen. Located in the southwestern part of Stockholm it only takes 15 minutes to reach the apartment from the central station of Stockholm. NEW DEVELOPMENTS IN STOCKHOLM Hotel Room No. Opening Year Elite Hagastaden - Hagaplan Bank Hotel Forenom- Flemingsbergdalen Total for Quality Hotel Friends 2 extension 218 Nobis Gävlegatan Best Western Solna (Humlegården Grow) Radisson Blu Strand Hotel 18 room extension and refurb. 218 Comfort Hotel Kista Kista Hotel Apartments Hotel Diplomat Östermalmshallen Total for Comfort Hotel Arlanda Zleep Hotel Upplands Väsby Total for Hotell Tapetfabriken 152 TBA Ulriksdal Hotelproject Solna 213 TBA Vasakronan Hotel Project (SEB HQ) 25 TBA Grand Total 2813 Source: NHC Data FORENOM FLEMINGSBERGDALEN Q

11 N E W D E V E L O P M E N T S - R E Y K J A V I K R E Y K J A V I K ICELANDAIR PARLIAMENT - CURIO In Reykjavik there are approximately 1,77 rooms in the current confirmed pipeline. Hilton Worldwide has reached an agreement with longstanding partner Icelandair Hotels to bring Curio - a Collection by Hilton to Reykjavik with two new city centre hotels, both opening in the period of NEW DEVELOPMENTS IN REYKJAVIK Hotel Room No. Opening Year Grensásvegur Total for Laugavegur Reykjavik Consulate Hotel (Curio- A collection by Hilton) Total for Marriott Edition Reykjavik Icelandair Parliament (Curio- A collection by Hilton) Lækjargata (Islandshótel) Total for Tryggvagata 17 TBA Suðurlandsbraut TBA Laugavegur TBA Grensásvegur 1 3 TBA Hlíðarendi 36 TBA GRENSÁVEGUR Grand Hotel (Islandshótel) (extension) 1 TBA Vegamótastígur TBA Grand Total 1772 Source: NHC Data Q

12 N E W D E V E L O P M E N T S - H E L S I N K I H E L S I N K I SOKOTEL TRIPLA PASILA In Helsinki, there are currently 2,87 rooms in pipeline. Helsinki- Vantaa airport region together with Aviapolis business park is one of the fastest developing commercial areas within the Helsinki Metropolitan Area. As a response to increasing demand for internationally branded overnight accommodation, J-Trading is developing a 2-room mid-market to full-service hotel concept at an accessible and visible location just off the junction 45 of the E18. NEW DEVELOPMENTS IN HELSINKI Hotel Room No. Opening Year St. George Scandic Airport Lapland Hotel Bulevardi Hotel Hellsten Jätkäsaari Total for Hotel Kalasatama Kuriiritie Hotel (Helsinki Airport) Unioninkatu Wood City Jätkäsaari Total for Sokotel - Tripla Pasila (Full service hotel) Scandic - Helsinki Central Railway Station Total for AB Invest AS - Hakaniemi Hotel 4 TBA Spa Flamingo 219 room extension TBA Grand Total 2866 Source: NHC Data ST. GEORGE Q

13 ISK/EUR C O M P A R I S O N C I T Y C O M P A R I S O N In the third quarter of 217, Copenhagen and Reykjavik ended up with the highest occupancy average of 89%. Reykjavik has, however, been the leader in terms of having the highest rates. Copenhagen, Stockholm, Oslo and Reykjavik have all peaked in occupancy in August. The ADR for Copenhagen and Oslo was peaking in September, whereas Reykjavik s ADR was peaking in July and Stockholm s ADR peaked in August. This lead to a RevPAR peak in June for Copenhagen, Reykjavik and Oslo and a RevPAR peak in May for Stockholm. In Reykjavik, the hotels achieved the highest RevPAR rate for the quarter of EUR 178, followed by Copenhagen with EUR 129. In Oslo and Stockholm the RevPAR level for the second quarter was EUR 9 and EUR 85 respectively Reykjavik, was constantly leading with the highest rates followed by Copenhagen. The ADR in Stockholm was EUR 85, in Copenhagen Danish krone Swedish krona Norwegian krone EUR 129, Oslo EUR 9 and Reykjavik EUR 178. US dollar Icelandic Krona Please note that Helsinki has been excluded from this comparison, as the data provided is approximately 3 months delayed OCCUPANCY AVERAGE DAILY RATE (EUR ) REVENUE PER AVAILABLE ROOM (EUR ) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Copenhagen Stockholm Oslo Reykjavik Copenhagen Stockholm Oslo Reykjavik Copenhagen Stockholm Oslo Reykjavik Q

14 N O R D I C H O T E L C O N S U L T I N G ABOUT NHC NHC was founded in 24 and is the leading specialized hotel consultancy in Scandinavia, with offices in Denmark, Norway, Sweden and Iceland. NHC has since 24 carried out a range of assignments including feasibility studies, appraisals, operator searches, contract negotiations, investment and transaction advisory and more in the Nordics and Europe. In 21, an Asset Management division was created in order to respond to an increasing demand and in 211 the Investment Advisory division was established. For additional information on NHC, please refer to our website: ABOUT BENCHMARKING ALLIANCE Benchmarking Alliance is the leading provider of hotel, conference, F&B and spa benchmarking as well as hospitality market data for the Nordic hospitality industry. The company was created in 21 by a team with broad background in hotels, real estate and IT. COPYRIGHT This report is the property of NHC and may not be reproduced in parts or whole prior to the written consent of NHC. DISCLAIMER NHC does not guarantee the accuracy of the data presented in this report and cannot be held liable here for any analysis, opinions or decisions derived from reading this report as it is solely at the responsibility of the reader to draw up conclusions. NHC cannot be held liable for any outcome of analysis, opinions and decisions formed based on the information presented in this report. NHC would like to inform the reader that the data from Benchmarking Alliance is collected in different ways and sometimes the figures can include provisions. This means that slight deviations in net ADR and RevPAR can occur. Denmark Denmark Norway Sweden Finland Iceland Nørre Voldgade 16 Råhøj Alle 7 A Ivan Bjørndals Gate 27 Birger Jarlsgatan 18 Vuoritie 6B Laufásvegur Copenhagen K 827 Højbjerg - Århus 472 Oslo Stockholm 288 Veikkola 11 Reykjavik Denmark Denmark Norway Sweden Finland Iceland Prepared by: Gabriela Birrer gb@nordichotelconsulting.com