HOTEL MARKET PERFORMANCE - Q4 2019
Of the Nordic capitals, Helsinki has experienced the largest performance increase driven by an incredible strong October and supported by strong growth in November. The growth results were achieved despite of a decline in performance in December. Overall the occupancy level remained rather stable for the quarter, with a small drop of 0.7% to 72%. The ADR level improved by 6.9% to EUR 125, resulting in RevPAR improving by 6.1% to EUR 90.
In October, both an increase of 4.8% in occupancy to 79% and a significant rise in ADR by 15.1% to EUR 127, led RevPAR to improve significantly by 20.6% to EUR 100.
Although in November occupancy decreased by 1.5% to 77.3%, the increase in ADR by 10.8% to EUR 133 resulted in a RevPAR improvement of 9.1% to reach EUR 103.
In December, however, performance ceased to improve. Instead, occupancy decreased by 6.5% to 59.7% and ADR dropped by 7.7% to EUR 110, resulting in a significant RevPAR decrease of 13.7% to attain merely EUR 66.
Source: Benchmarking Alliance
|ADR in EUR||137||133||110||125|
|RevPAR in EUR||100||103||66||90|
Helsinki Hotel Investment Guide 2019
We have together with Helsinki Business Hub prepared a thorough investment guide for the Helsinki hotel market.
"The Greater Helsinki region is among the top cities in Europe in terms of tourism growth, and the most popular conference city in the Nordics. If you are a hotelier looking to grow, look no further. We’ll help you connect to the local ecosystem and find the perfect property."
What used to be a hidden gem is now a bustling hub of international tourists and business visitors. The Greater Helsinki region is attracting visitors at a staggering rate: the number of overnight stays has grown 28% in the past 5 years. The occupancy rate of hotel rooms in Helsinki is also one of the highest among Europe’s capitals (73% in 2018). To cater all the visitors, there is an eminent need for new hotels, especially in the budget and luxury range.
Helsinki is committed to developing the travel industry, especially focusing on sustainability and digitalization. This has earned Helsinki the title of the Capital of Sustainable Tourism 2019.
Read the entire publication here: https://www.helsinkibusinesshub.fi/hotels/READ ARTICLE
Large-scale hotel expansion under Northern Lights
The global hotel industry continues to show interest and optimism toward growth and performance of hotels in the Nordic region.
COPENHAGEN, Denmark—There is continued optimism about the growth and performance potential of the Nordics, as demonstrated through a survey of the delegates who attended the 9th annual NHC-Conference held in Copenhagen earlier this year.
Read the entire article here: http://hotelnewsnow.com/Articles/291995/Large-scale-hotel-expansion-under-Northern-Lights