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Sadolin & Albæk market update
15-06-2010: Copenhagen hotel market report 2010
Recent years’ international real economic crisis in tandem with exceptional supply growth has resulted in a historically weak Copenhagen hotel market. In absolute figures, the number of bed nights has declined, translating into a steep drop in room occupancy rates. In addition, the combination of an unprecedented capacity expansion and declining occupancy rates has served to reduce earnings in this segment (measured by the RevPAR of the hotels) by as much as 15% from 2008 to date.
Although the harsh economic winds over Denmark are expected to abate in the next 18 to 24 months, Sadolin & Albæk predicts that 2010 will be a difficult year for the Copenhagen hotel market, with 2011 only marking a slight improvement. In many ways it is therefore possible to draw a parallel to the oversupply of hotel rooms in Copenhagen around the turn of the millennium.
Our latest analysis of supply and demand for hotel accommodation shows that occupancy rates will come under renewed pressure in the years ahead due to the continued growth in room supply. Longer term we believe however that Copenhagen, thanks to its increased and updated capacity, has the potential of positioning the city as one of the foremost hotel and conference cities in the world.
This 2010 hotel market report update by Sadolin & Albæk offers an overview of the Greater Copenhagen hotel property market, including occupier and investment market information. Additionally it offers a long-term outlook on demand as well as supply in this particular market segment. The report was released in June 2010.
Reproduction or citation only with express acknowledgement of source.
Copenhagen hotel market report 2010:
 Copenhagen hotel market report 2010
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