Colliers Denmark Market Report 2024

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HOTEL - COLLIERS MARKET REPORT 2024

Industry optimism despite potential challenges In general, there is optimism in the industry. For example, a member survey from the industry association HORESTA in October showed that most hotels predict a good 2024 with increased revenue and an improved bottom line com pared to 2023. At Colliers, we are a little more subdued or cautious in our assessment, and three factors in particular could have an impact on the hotel industry: • Is the urge to travel that built up during the pandemic with closed borders being used up, causing tourism to slow down? • The demand for hotel accommodation is highly cyclical and the eurozone economy is stagnating. The German economy in particular has slowed, and two other impor tant neighbouring countries, Norway and Sweden, are still struggling with a weakened currency. If parts of Europe go into recession, it will, all other things being equal, weaken the demand for hotel rooms. • At the same time, the US economy is performing bet ter than feared by mid-2023, and if the trend contin ues, we could see more tourists from the US.

Just as foreigners are once again flocking to Denmark, Danes have started travelling abroad. For example, travel companies had significantly higher sales in the summer of 2023 than the previous summer. The growth in interna tional travel has affected Danish hotels across the board – with Copenhagen and tourist resorts by the North Sea as exceptions with more Danish guests. In 2023, the over all number of Danish bednights failed to match the record year 2022 but remained significantly above the level in 2019 (before the coronavirus outbreak). Foreign guests are expected to account for approx. 9 million bednights in 2023, marking a historical high. The increase reflects the fact that tourism has grown, especially in the capital city. However, there are no fewer business travellers and con gress attendees, even though Microsoft Teams and other digital meetings during the coronavirus pandemic led many to believe that this could be the end of conferences and face-to-face meetings. However, they have remained, and although growth has not been as high as for tourists, the number of overnight business visitors has been increasing over the past 10 years, with 2023 being a new record year.

The number of international bednights set a new record in 2023

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2

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15 14 Domestic guests

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E23

Foreign guests

Note: Number of overnight stays (million) in Denmark by country of origin of hotel guests. 2023 figures estimated based on realised bednight figures January through October along with estimates for November and December. Source: Statistics Denmark, Colliers