NORDIC HOTEL REPORT FIRST QUARTER Q COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM

Transcription

1 NORDIC HOTEL REPORT FIRST QUARTER Q1 218 COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM 1

2 Q 1 H I G H L I G H T S Q 1 H I G H L I G H T S Performance results in the first quarter of 218 varied across the Nordic markets. The Copenhagen, Oslo and Stockholm markets all experienced declines compared to 217, stabilizing as more capacity is being added. Helsinki realized the most significant improvement in RevPAR. RevPAR development in Q1 218 compared to Q1 217: > Copenhagen -4.% > Oslo -1.2% > Stockholm -7.7% > Reykjavik 1.3% > Helsinki 12.1% 2

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 The Copenhagen hotel market experienced on average a decrease in all performance indicators in the first quarter of 218 compared to the same period the year before. The RevPAR decrease of 4% was mostly affected by occupancy, which fell by 3.8%. January experienced the least significant decline in occupancy but is still the month with the lowest occupancy rate of 63% on average. RevPAR decreased by 2.9% to DKK 49. February was by far the worst for development for RevPAR, which decreased by 11.2%. This was both due to significant decreases in occupancy (-6.%) and ADR (-5.6%). While the market indicators developed negatively in the first two months of the first quarter, March improved slightly with a RevPAR increase of 1.2% to DKK 672. This development was only driven by an increase in ADR; occupancy declined throughout the quarter. COPENHAGEN HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 63% % % % -3.8% ADR in DKK % RevPAR in DKK % ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (DKK) REVENUE PER AVAILABLE ROOM (DKK) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1,

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 first quarter of 218, Oslo experienced a decline of 1.2% in RevPAR. While ADR increased by 3.2% to NOK 127, it was not enough to balance the 4.3% decline in occupancy. January improved the most with an increase of 6.1% in RevPAR, which was driven by a strong 4.% increase in ADR and 2.1% in occupancy. The same tendency holds true for February, where occupancy increased by a mere.1% and ADR improved by 2.6%, leading to a 2.7% increase in RevPAR. March, on the other hand, is the reason that the first quarter s RevPAR results on average decreased. ADR improved by 3.6%, but occupancy significantly decreased by a total of 12.9%, dropping occupancy to 63.9% in March. Except for March, the first quarter of 218 was strong in Oslo. OSLO HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 6.2% % % % -4.3% ADR in NOK % RevPAR in NOK % ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (NOK) REVENUE PER AVAILABLE ROOM (NOK) 8% 1,2 8 7% 6% 5% 4% 3% 2% 1% % 1,

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 indicators were overall negative in the first quarter of 218. Stockholm experienced a 7.7% RevPAR drop to SEK 637. The drop was influenced by both occupancy (-5.3%) and ADR (-2.6%). While demand did grow by.9%, the was quickly outpaced by the 6.5% larger room capacity compared to 217. In January, occupancy decreased by 5.% and ADR by 1.4%. This lead to a drop of 6.4% to SEK 548 in RevPAR. This was the month least affected by the supply increase. February was impacted the most in the first quarter with a RevPAR decrease of 7.8%. This was a result of negative 5.5% development in occupancy and a 2.4% decrease in ADR. March similarly decreased by 4.6% in occupancy and 3.2% in ADR, settling on a RevPAR of SEK 692, which is -7.7% compared to 217 numbers. STOCKHOLM HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 51% % % % -5.3% ADR in SEK % RevPAR in SEK % ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (SEK) REVENUE PER AVAILABLE ROOM (SEK) 7% 6% 5% 1,4 1,2 1, % 3% 2% 1% %

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 In the first quarter of 218, RevPAR grew a modest 1.3% in Reykjavik compared to 217. The market is stabilizing after last year s extreme 25.3% RevPAR growth in the first quarter. While occupancy decreased by 4.5%, ADR is up 6.1% compared to 217. Still, occupancy remains high at 89% in the first quarter. January had the most negative effect on the overall market in the first quarter with a 3.1% decline in RevPar. This was driven by a 8.4% stagnation in occupancy but improved by a 5.8% increase in ADR. In February, the hotels realized a strong RevPAR increase of 8.6%. While occupancy also decreased slightly in February, ADR grew significantly with 1%, resulting in ISK 16,987. Similar to the first two months, occupancy decreased and ADR increased slightly in March, resulting in a -1.3% development in RevPAR. REYKJAVIK HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 76% % % % -4.5 ADR in ISK 15, , , , RevPAR in ISK 11, , , , ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (ISK) REVENUE PER AVAILABLE ROOM (ISK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 18, 16, 14, 12, 1, 8, 6, 4, 2, 18, 16, 14, 12, 1, 8, 6, 4, 2,

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 Helsinki s hotel market experienced very positive developments in the first quarter of 218. RevPAR increased by 12.1% to 72. While ADR only contributed with a.5% improvement, occupancy rose by a total of 11.5%. Both January and February proved positive as the RevPAR increased by 17.7% and 18.8%, respectively. ADR grew by a decent %, so the impressive RevPAR development was mostly driven by the strong increase in occupancy. Compared to the first two months of the year, March only improved by a moderate 2.2% in RevPAR. Occupancy continued to grow (by 5.6%) but ADR decreased by 3.2% to 19. HELSINKI HOTEL MARKET Q1 218 Jan. Δ (%) Feb. Δ (%) Mar. Δ (%) Q1 Δ (%) Occupancy (%) 65% % % % 11.5 ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (EUR) REVENUE PER AVAILABLE ROOM (EUR) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% %

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 218, ATP Ejendomme and BC Hospitality Group announced a 4- room Hilton project in Copenhagen, which they hope to open in 22. Also Arp-Hansen announced the extension of one of its Wakeup hotels with an additional 25 rooms. All the confirmed projects in the pipeline for 219 are underway, but the pipeline for is less certain with a total of more than 4, rooms. NEW DEVELOPMENTS IN COPENHAGEN Hotel Room No. Opening Year Charlottehaven Scandic Meatpacking Brøchner Hotels - Herman K Total for Arp-Hansen - Wakeup Kalvebod Brygge Moxy Sydhavnen CitizenM Dagmarhus Scandic Falconer Brøchner Hotels - Carlsbergbyen Zleep Hotel Copenhagen Arena Guldsmeden Bryggen Total for Nordic Choice Hotels - Tietgensgade Nordic Choice Hotels - Comfort Hotel Airport 5 22 Cabinn Hotel Kalvebod Brygge Scandic Scanport (Copenhagen Airport) Hilton Copenhagen City 4 22 Comwell Hotel Nordhavn Arp-Hansen Wakeup Borgergade Scandic Spectrum (Kalvebod Brygge) Total for Grand total 6598 Source: NHC Data HILTON COPENHAGEN CITY COMFORT HOTEL COPENHAGEN AIRPORT 8

9 N E W D E V E L O P M E N T S O S L O O S L O In the first quarter of 218, three hotels have added new capacity to the Oslo market: Scandic Lillestrøm, Thon Hotel Europa, and Quality Airport Hotel Gardermoen. Just one more hotel is scheduled to open in Oslo this year. The pipeline is dominated by the usual suspects; local brands and operators will thus continue to dominate the market. In the first quarter, The Well Resort and an extension of Comfort Hotel Xpress were announced to open in 219, adding another 268 rooms to the pipeline. CLARION HOTEL BJØRVIKA NEW DEVELOPMENTS IN OSLO Hotel Room No. Opening Year Thon Hotel Linne Total for Nordic Choice - Amerikalinjen Clarion Hotel Bjørvika by HAV Eiendom Clarion Hotel The Hub Thon Hotel Storo The Well Resort Comfort Hotel Xpress Total for Nordic Choice - Sommerogaten Økern Portal Scandic Helsfyr 199 TBA Radisson Blu Hotel Oslo Plaza 335 TBA Total for 22 -> 184 Grand total 2368 Source: NHC Data SCANDIC PORTALEN 9

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 In Stockholm, the total pipeline is almost 24 rooms, 11 of which are set to open in 218. The additional capacity is set to slow down in the following years as a result of the large number of development projects in recent years. The market is stabilizing as demand needs to catch up to all the new supply. NOBIS GÄVLEGATAN NEW DEVELOPMENTS IN STOCKHOLM Hotel Room No. Opening Year Bank Hotel Quality Hotel Friends Nobis Gävlegatan Comfort Hotel Kista Kista Hotel Apartments Best Western Solna (Humlegården Grow) Radisson Blu Strand Hotel Total for Comfort Hotel Arlanda Hotel Diplomat Östermalmshallen Zleep Hotel Upplands Väsby Total for Hotel Tapetfabriken 152 TBA Ulriksdal hotel project Solna 213 TBA Vasakronan hotel project (SEB HQ) 25 TBA Grand total 2386 Source: NHC Data BEST WESTERN SOLNA 1

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 In Reykjavik, there are nearly 22 rooms in the confirmed pipeline. Most recently, Radisson RED announced its first property in Reykjavik to be opened in 22. Reykjavik Konsulat Hotel, part of the Curio Collection by Hilton, opened with 75 rooms in the first quarter of 218. Supply is only expected to grow with one more hotel in 218. ICELANDAIR PARLIAMENT - CURIO NEW DEVELOPMENTS IN REYKJAVIK Hotel Room No. Opening Year Grensásvegur Total for Vegamótastígur Tryggvagata Suðurlandsbraut Laugavegur Total for Marriott Edition Reykjavik Icelandair Parliament (Curio - a collection by Hilton) Lækjargata (Islandshótel) Radisson RED Reykjavik Total for Grensásvegur 1 3 TBA Hlíðarendi 36 TBA Grand Hotel (Islandshótel) 1 TBA Hallarmúli 15 TBA Grand total 217 Source: NHC Data GRENSÁSVEGUR 11

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 Four new properties have been confirmed to open as hotels, but when is yet to be announced for all of them. In total, 126 rooms are confirmed projects but expected opening year is TBA. Helsinki will steadily add more capacity annually. Currently, the numbers are 85 rooms a year on average between 218 and 22. 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 Spa Flamingo Total for Sokotel - Tripla Pasila Scandic - Helsinki Central Railway Station Total for AB Invest AS - Hakaniemi Hotel 4 TBA Hotel Kruununhaka 118 TBA Primehotels - Jätkäsaari 35 TBA Vastint - Moxy Jätkäsaari 192 TBA Siltasaarenportti - Hakaniemi 2 TBA Grand total 3676 Source: NHC Data HAKANIEMI HOTEL (AB INVEST) WOOD CITY JÄTKÄSAARI 12

13 C O M P A R I S O N C I T Y C O M P A R I S O N The first quarter of 218 showed varying trends in the Nordics. While the Oslo, Stockholm, and Copenhagen markets decreased compared to 217, both Helsinki and Reykjavik developed for the better. In Reykjavik, the hotels achieved the highest RevPAR rate for the quarter with 112, followed by Copenhagen at 76. Helsinki increase in RevPAR secured a higher rate than both Oslo and Stockholm ISK/EUR ADR rates are relatively similar in the first quarter, ranging between 19 and 111 among Copenhagen, Stockholm, Oslo, and Helsinki. Reykjavik s ADR rate reached 132, despite a drop in January due to a decrease in the exchange value Danish krone Swedish krona Norwegian krone US dollar Icelandic Krona OCCUPANCY AVERAGE DAILY RATE ( ) REVENUE PER AVAILABLE ROOM ( ) 1% 75% 5% 25% % Copenhagen Stockholm Oslo Reykjavik Helsinki Copenhagen Stockholm Oslo Reykjavik Helsinki Copenhagen Stockholm Oslo Reykjavik Helsinki 13

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 Sweden Norway Finland Iceland Nørre Voldgade 16 Birger Jarlsgatan 18 Ivan Bjørndals Gate 27 Vuoritie 6B Laufásvegur Copenhagen K Stockholm 472 Oslo 288 Veikkola 11 Reykjavik Denmark Sweden Norway Finland Iceland Prepared by: NHC: info@nordichotelconsulting.com