Quarterly market performance report - Q2 2020
Being heavily dependent on international travelers, the Reykjavik hotel market has suffered significantly from the pandemic. Occupancy for Q2 2020 dropped to unprecedented levels, driving the nearly 100% plunge in RevPAR. Occupancy declined by 95.5% to 3.1%, while RevPAR followed with a 97.4% decrease to ISK 371.
ADR for Q2 2020, decreased by 42.8% compared to Q2 2019, from ISK 20,751 to ISK 11,874.
April hotel performance in Reykjavik was the worst in Q2 2020. Occupancy nosedived by 97.7% to only 1.3%. ADR decreased by 34.7% to ISK 10,885, resulting in a RevPAR drop of 98.5% to ISK 144.
In May hotel performance in Reykjavik only improved slightly. Occupancy dropped by 96.6% to 2.4%, while ADR decreased by 46.0% to ISK 10,497. As a result, RevPAR declined by 98.2% to ISK 252.
June hotel performance saw barely any improvement to May, even with restrictions easing up. Occupancy declined by 92.9% to 5.7%. ADR decreased as well by 48.8% to ISK 12,709. Concludingly, RevPAR decreased by 96.4% to ISK 720. Q2 2020 was, without a doubt, the worst quarter to date for all markets.
|ADR in ISK||10885||10497||12709||11874|
|RevPAR in ISK||144||252||720||371|
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