NORDIC HOTEL REPORT Q COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM

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1 NORDIC HOTEL REPORT Q2 218 COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM 1

2 Q 2 H I G H L I G H T S NHC-CONFERENCE 218 AWARD WINNER Q 2 H I G H L I G H T S Performance results in the second quarter of 218 were mostly positive compared to 217. Copenhagen, Oslo and Stockholm all improved RevPAR while Helsinki and Reykjavik both realized decreasing results. RevPAR development in Q2 218 compared to Q2 217: > Copenhagen +5.3% > Oslo +9.2% > Stockholm +3.9% > Reykjavik -5.2% > Helsinki -1.2% 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 Overall market performance for hotels in Copenhagen was positive in the second quarter of 218. Driven mostly by an increase in ADR, RevPAR improved by 5.3% compared to Q2 in 217. Occupancy stabilized at a.2% increase as supply and demand grew at the same rate (1.6% and 1.8%, respectively). Of the three months, April was the only one to experience a decline in RevPAR (-1.1%). Occupancy increased by a mere.8% to 78.8%, but ADR dropped 1.9% to DKK 94. In May, however, Copenhagen s hotel market improved dramatically compared to May in 217. While occupancy only increased by 1%, the hotels were able to charge an ADR of DKK 1,275 (+12.7%). Occupancy decreased by.8% in June, but ADR was 2.4% higher, leading to a small 1.6% improvement in RevPAR. COPENHAGEN HOTEL MARKET Q2 218 April Δ (%) May Δ (%) June Δ (%) Q2 Δ (%) Occupancy (%) 79%,8 89% 1, 91% -,8 86%,2% ADR in DKK 94-1, , , ,1% RevPAR in DKK 713-1, , , ,3% ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (DKK) REVENUE PER AVAILABLE ROOM (DKK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1,4 1,2 1, ,4 1,2 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 Unlike the first quarter of 218, Oslo s hotel market experienced very positive improvements in the second quarter. RevPAR increased by 9.2% compared to Q Both higher ADR (+5.7%) and occupancy (+3.3%) positively affected RevPAR to reach NOK 886. Oslo sold 4.6% more rooms than last year while supply only grew by 1.2%, contributing to the city s occupancy rate of 73.8% in the second quarter of 218. April was by far the month with the most positive development in the second quarter. RevPAR increased 23.7%, mostly due to the 15.7% higher room sales. April s occupancy rate reached 66.2% while ADR increased by 7.7% to NOK 1,77. May was the only month that declined from 217 results. RevPAR fell 4.2% to NOK 848, mostly due to a 3.9% decrease in occupancy, which was driven by both less demand (-2.8%) and more supply (+1.1%). Finally, June experienced a very positive development with a 13.1% increase in RevPAR, which was mostly caused by 11% higher ADR to NOK 1,292. OSLO HOTEL MARKET Q2 218 April Δ (%) May Δ (%) June Δ (%) Q2 Δ (%) Occupancy (%) 66% 14,8 7% -3,9 85% 1,9 74% 3,3% ADR in NOK 177 7, , , 121 5,7% RevPAR in NOK , , , ,2% ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (NOK) REVENUE PER AVAILABLE ROOM (NOK) 9% 1,4 1,2 8% 7% 6% 5% 4% 3% 2% 1% % 1,2 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 are overall positive in the second quarter of 218. RevPAR grew by 3.9% to SEK 962, carried by a 4.2% increase in ADR. Occupancy decreased slightly by.3% to 72%. This is a sign of market stabilization as demand and supply grow at nearly the same rate (3.8% and 4.1%, respectively). RevPAR in April grew by an incredible 19.2% to SEK 839, because of higher ADR (+11.1%) and occupancy (+7.3%). In May, occupancy decreased by 5.7% to 74% and ADR by 2.5% to SEK 1,344. This lead to a drop of 8.1% to SEK 1,in RevPAR. The Stockholm hotel market improved its RevPAR by 6.6% to SEK 1,5 in June. This was a result of a 7.5% increase in ADR and a minor decrease in occupancy of.9%. STOCKHOLM HOTEL MARKET Q2 218 April Δ (%) May Δ (%) June Δ (%) Q2 Δ (%) Occupancy (%) 67% 7,3 74% -5,7 74% -,9 72% -,3% ADR in SEK , , , ,2% RevPAR in SEK ,2 1-8,1 15 6, ,9% ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (SEK) REVENUE PER AVAILABLE ROOM (SEK) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1,6 1,4 1,2 1, ,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 second quarter of 218, RevPAR declined by 5.2% to ISK 15,732 in Reykjavik. Occupancy stagnated by 5.3% because supply increased (+.2%) while demand decreased (-5.1%). However, ADR for sold rooms remained at the same level as last year. In terms of RevPAR development, both April and May developed poorly and were the main contributors to the overall negative development of the quarter. RevPAR decreased by 9.5% to ISK 1,95 in April and by 8.5% to ISK 13,76 in May. In April, the leading factor was occupancy, which fell by 6.9% to 69.5%. In May, both ADR (-4.1%) and the occupancy rate s (-3.3%) stagnation strongly affected RevPAR. In June, the hotel market in Reykjavik remained at the same level as in 217 in terms of RevPAR. This was a result of a 2.5% increase in ADR and a 2.1% decrease inoccupancy to85.1%. REYKJAVIK HOTEL MARKET Q2 218 April Δ (%) May Δ (%) June Δ (%) Q2 Δ (%) Occupancy (%) 7% -9,1 69% -4,5 85% -2,4 74% -5,3 ADR in ISK , , , ,1 RevPAR in ISK , , , ,2 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,

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 declined slightly in terms of RevPAR in the second quarter of 218 compared to 217. The 1.2% decrease in RevPAR was driven by lower daily rates as occupancy remained stable. The occupancy rate was able to maintain its 71% level as sold and available rooms equally grew by 1.7%. While the overall market performance did not live up to quite the same standards as 217, this was neither due to April nor May. In April, RevPAR went up 12.4% to 73, mainly due to a 9.6% increase in demand (and 9.9% increase in occupancy). In May, RevPAR also increased strongly at a 6.5% rate. Here, occupancy remained stable as it decreased by a mere.3% while ADR grew by a total of 6.8% to 13. It was the hotel market s performance in June that caused the second quarter to develop poorly compared to 217. RevPAR decreased by 15.3%, because of lower ADR (-8.4%) and occupancy rate (-7.5%). Of the three months, June was also the only one in which demand decreased (by 5.3%) all the while supply increased (by 2.4%). HELSINKI HOTEL MARKET Q2 218 April Δ (%) May Δ (%) June Δ (%) Q2 Δ (%) Occupancy (%) 66% 9,9 74% -,3 73% -7,5 71%, ADR in 11 2,3 13 6, , ,2 RevPAR in 73 12,4 96 6,5 1-15,3 9-1,2 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 BRØCHNER HOTELS HERMAN K In the second quarter of 218, a new luxury hotel opened in Copenhagen; Brøchner Hotels Herman K. Plans for the Comfort Hotel Airport to open in 22 have expanded to encompass an additional 119 rooms. The Wakeup Borgergade hotel (221) have added an extra 2 rooms to its extension project. By Q2 next year, at least five more projects are expected to have entered the market; Wakeup, Moxy, Ottilia, citizenm, and Scandic Kødbyen. In total, these hotels will add nearly 1,6 rooms to the current supply. NEW DEVELOPMENTS IN COPENHAGEN Hotel Room No. Opening Year Scandic Kødbyen Total for Go Hotel Copenhagen Wakeup Kalvebod Brygge (Arp-Hansen) Moxy Sydhavnen citizenm Dagmarhus Scandic Falconer Ottilia (Brøchner) Cabinn Hotel Kalvebod Brygge Guldsmeden Bryggen Total for Zleep Hotel Copenhagen Arena Centralpostbygningen (Nordic Choice Hotels) Comfort Hotel Airport Scandic Scanport (Copenhagen Airport) Comwell Hotel Nordhavn Hilton Copenhagen City 4 22 Total for Wakeup Borgergade (Arp-Hansen) Scandic Spectrum (Kalvebod Brygge) Total for Grand total 6754 Source: NHC Data SCANDIC KØDBYEN 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 NORDIC CHOICE AMERIKALINJEN No new hotels have opened in Oslo in Q2 but 621 rooms are still expected to open during the year. In 219, more than half of new capacity is made up of Clarion Hotel The Hub. The hotel will be expanded by 268 rooms while the existing 542 rooms are being renovated. The hotel is expected to open in March. One new hotel project was announced during the second quarter; Nordic Choice Hotels will be opening 217 rooms in HasleLinje in 22. NEW DEVELOPMENTS IN OSLO Hotel Room No. Opening Year Best Western Oslo Airport Norsund Gruppen (Rådhusplassen) Thon Hotel Storo Thon Hotel Linne Total for Amerikalinjen Clarion Hotel Bjørvika Clarion Hotel The Hub Comfort Hotel Xpress Total for The Well Resort Hasle Linje Nordic Choice - Sommerogaten Økern Portal Scandic Helsfyr 199 TBA Radisson Blu Hotel Oslo Plaza 335 TBA Total for 22 -> 1516 Grand total 3392 Source: NHC Data NORDIC CHOICE HASLE LINJE 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 NOBIS GÄVLEGATAN In Stockholm, it was announced that Nordic Choice will be expanding Quality Hotel Friends with 251 rooms by 22. Also Zleep Hotels project in Upplands Väsby has updated its room count and increased it by 12%. Another 1, rooms are being added to the market during the second half of 218. Most of these are new builds. NEW DEVELOPMENTS IN STOCKHOLM Hotel Room No. Opening Year Bank Hotel Nobis Gävlegatan Comfort Hotel Kista Best Western Solna (Grow Hotel) Connect Hotel City Hotel Zzz Kista Hotel Apartments Bromma Longstay - Mornington Total for Comfort Hotel Arlanda Hotel Diplomat Östermalmshallen Zleep Hotel Upplands Väsby Hotell Östermalmshallen Cityfast Total for Quality Hotel Friends Clarion Collection Tapetfabriken Kom Hotell TBA 22 Total for Ulriksdal hotel project Solna 213 TBA Vasakronan hotel project (SEB HQ) 25 TBA Grand total 2784 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 LAUGAVEGUR 176 In Reykjavik, there are nearly 2,2 rooms in the pipeline. More developments are finalized year for year, but 42% of the projects in the pipeline below have yet to announce an opening year. Radisson RED, Hilton s Curio collection, and Marriott Edition are among the international brands that are opening in the Icelandic capital. 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 LÆKJARGATA (ISLANDSHÓTEL) 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 ST. GEORGE During the second quarter of 218, two hotels have opened in Helsinki: the 15-room St. George and the 148-room Scandic Airport. During the second quarter, Scandic also completed its rebranding of the Restel hotels throughout Finland. The Helsinki hotel market will experience a larger influx of rooms in 22 compared to new capacity in 218 and 219 combined. Exactly like in Reykjavik, 42% of the pipeline in Helsinki has yet to confirm an opening year. NEW DEVELOPMENTS IN HELSINKI Hotel Room No. Opening Year Lapland Hotel Bulevardi Hotel Hellsten Jätkäsaari Total for 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 2978 Source: NHC Data SCANDIC AIRPORT 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 second quarter of 218 showed varying trends in the Nordics again. The hotel markets in Oslo, Stockholm and Copenhagen, which all decreased in value in the first quarter, performed stronger in the second quarter compared to 217. Reykjavik and Helsinki experienced the opposite: positive development in the first quarter of 218; negative in the second quarter. Reykjavik s hotel market was able to achieve the highest ADR for the quarter ( 169), but while its RevPAR reached 126, Copenhagen s hotels had a RevPAR of 136. Oslo, Stockholm and Helsinki s RevPAR results were within the range of Copenhagen realized such high RevPAR results due to its 86% occupancy rate in the second quarter. The remaining capital cities , 18, 16, 14, 12, 1, 8, 6, 4, 2,, ISK/EUR in the Nordics had occupancy rates between 71% and 74%. 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: R E Y K J A V I K 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. O S L O S T O C K H O L M H E L S I N K I 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 C O P E N H A G E N Prepared by: NHC: info@nordichotelconsulting.com