Colliers Denmark Market Report 2025

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HOTEL - COLLIERS MARKET REPORT 2025

Conversion wave in Copenhagen?

HOTEL INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

Despite record-high hotel overnights for the third year in a row, Copenhagen enters 2025 with more empty rooms than before the COVID-19 pandemic. This is due to a significant expansion of hotel capacity. Between July 2019 and July 2024, 7,755 new hotel rooms were added in Copenhagen, corresponding to a capacity increase of almost 35%, which is still being absorbed by the market. At the time of writing, we are aware of 3,080 new Copenhagen hotel rooms scheduled for completion by year-end 2029. Of the projected hotel rooms, about 20% are expected to be hotel apartments. A similar propor tion of the projected hotel rooms will come from the con version of old Copenhagen office buildings into hotels. In central Copenhagen locations, we see that vacant office properties are more likely candidates for hotel conver sion rather than continued office use. Based on the current pipeline of new Copenhagen hotel rooms, we expect that the strong demand for hotel accommodation will quickly absorb the addi tional capacity and that occupancy rates in Copenhagen

Herman K, Copenhagen K

will stabilise at the elevated level seen before the COVID 19 outbreak. However, we expect to see more conversion projects in the coming years, which are not reflected in our pipeline figures. In consequence, we believe that the number of new hotel rooms as of year-end 2029 will be higher than the projected 3,080 rooms of which we are currently aware.

Copenhagen occupancy rates moving back up towards pre-pandemic levels

2,500

100%

2,000

80%

1,500

60%

40%

1,000

500

20%

0%

0

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E25 E26 E27 E28 E29 New hotel rooms Occupancy rates, OCC (r.a.)

Note: Annual change in the number of hotel rooms from July to July, Copenhagen proper. We advise caution when interpreting the projected number of hotel rooms by year-end 2029: The data present a snapshot of the current situation, which can change quickly. The projected occupancy rate from 2025 to 2029 is based on a combination of the projected change in the number of hotel rooms during the period and the compound annual growth rate (CAGR) in the number of hotel rooms sold from 2010 to 2024 in Copenhagen proper. Source: Benchmarking Alliance, Statistics Denmark, Byggefakta, Colliers