Stockholm in need of more hotels
Despite a substantial increase in the number of hotel rooms in Stockholm last year, the demand for more hotels in the Swedish capital continues to develop. Changed travel habits, a growing middle class in Asia and cheaper flights have contributed to the increase in the proportion of private hotel guests, which is now almost as big as the business segment.
Haymarket City Scandic, Hotel At Six, Hobo Hotel, Downtown Camper City Scandic and Bank Hotel are some of the recent additions to the Stockholm hotel map. 1840 rooms were added to Stockholm City only last year. Even so, there is a need for more hotels.
“We see a huge increase in visitors from India, China and the United States, partly due to a growing middle class in Asia, but also thanks to the many new direct flights to Stockholm, which has made it easier for international visitors to come here. Over the last six years over 40 new European and 20 new intercontinental direct flights established in Stockholm,” says Anna Gissler, CEO of Stockholm Business Region.
Foreign guests are important to the hotel industry. The percentage of visitors from India and China has risen 411% and 214% since 2008. The US has also increased significantly, by 110%.
The Hotel Report 2018 shows that demand will continue to develop at a healthy pace and that there is scope for an additional 1,000 new rooms in the city up until 2022. This is in addition to the 5,100 hotel rooms already planned for in the county as well as the 1,600 rooms that are planned but currently assessed to be uncertain during the next five-year period.
“With the hotel report, we want to provide key figures and forecasts to facilitate for potential investors to evaluate Stockholm’s hotel market. With 14 million commercial guest nights and Stockholm being one of Europe’s fastest growing regions, we are an attractive place to look into. Interest from foreign players is already strong, not only because of the growth rate, but also thanks to Stockholm’s position as a creative city with progressive values and innovative tech companies,” says Tora Holm, Business Development Manager at Invest Stockholm.
The number of guest nights booked via Airbnb increased by more than 20 percent in 2017 compared to 2016. However, they only represent about four percent of the total number of guest nights in hotels in Stockholm. Together, the 10 largest operators in Stockholm County run one-quarter of the county’s hotels, corresponding to over half of all rooms. In addition, one-third of the supply of rooms belongs to the two largest operators.
“In order for Stockholm to continue to be one of the world’s most attractive cities, we would like to see more international players on the market and a larger spread within the various segments,” concludes Tora Holm, Business Development Manager, Invest Stockholm.