HOTEL MARKET PERFORMANCE - Q3 2019
Reykjavik experienced an overall decrease in performance although recording occupancy levels above 80%. Compared to 2018, occupancy dropped with 4% and ADR with 5.9% to ISK 24,136. This led to a RevPAR decline of 9,7% to ISK 20,173. Compared to the same quarter in 2018, Q3 recorded a significantly lower performance due to both the lower ADR and occupancy levels.
In July, although lowering prices by 4,1% to ISK 25,809, the occupancy rate decrease with 5,2% to 82,1%, resulting in a RevPAR drop of 9,1% to ISK 21,196. In August, the occupancy rate decreased by 2,7% to 86,6%, the highest recorded level in the quarter. Combined with the 5,6% drop in ADR, to ISK 24,712, RevPAR changed by -8,1% to ISK 21,405. The performance drop in Reykjavik's hotel market continued in September, where ADR decreased by 8,3% to ISK 21,813 and occupancy with 4,3% to 81,9% in occupancy. September saw the most significant drop in performance in the quarter, as RevPAR felt by 12,2% to ISK 17,867.
Data source: Benchmarking Alliance
|ADR in ISK||25809||24712||21813||24136|
|RevPAR in ISK||21196||21435||17867||20173|
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