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Nordic Hotels feature Better Results

Hotels in Nordic countries (Sweden, Denmark, Iceland, Finland, and Norway) show really improved performance and increased demand comparing to September 2010. Such information has been recently posted by STR Global. September was also the best month of 2011 in terms of profit for hotels in these countries.

Hotels in Reykjavik show best results with the occupancy 20.4% higher in September 2011 comparing to the same month of 2010. The reason for this is in the decreased number of tourists last year due to the Eyjafjallajökull volcano. By the way, hotels in Reykjavik are also the cheapest ones among the biggest cities of the Northern Europe. Here the average daily rate estimates €87.24 (US$123.53). Hotels in Copenhagen occupy the second place with the improvement in demand of 10%. Hotels in Oslo had 9.6% tourists more in September. Stockholm accommodations featured the lowest growth in the number of tourists – 2.2%.

Market is a complicated instrument and any demand must be supported by supply. However, not everywhere this is successful. For example, the growth of supply in Stockholm exceeded the demand. The supply growth estimated 3.6% and demand – the abovementioned 2.2%. This has caused the fall in occupancy of 1.4%. However, this fact doesn’t prevent Stockholm accommodations of featuring the highest ADR in the Northern Europe - €127.68. Swedish hotel market keeps expanding and currently over 800 guestrooms to be added to Stockholm market in the nearest future. 1400 more guestrooms will be added in the rest of Sweden. In Norway approximately 900 guestrooms will be added in Oslo and extra 2,300 rooms – in other cities and towns of the country. By the way, hotels in Iceland have no reason for worries as no major openings are planned for this country at the moment.

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