MR 2018

63

Copenhagen Property Market Report 2018

Long lease agreements are driving yield compression

4.25%-5.00%

6.25%-8.00%

5.00%-6.50%

Source: Sadolin & Albæk.

Fixed lease - Long

Management contracts

Fixed lease - Short

Golden days in the Copenhagen hotel market

Annual net rent per room (DKK)

85.0%

1,200

Area

Low

High

1,000

80.0%

CBD, upscale

90,000

135,000

800

75.0%

CBD, regular

60,000

95,000

600

70.0%

400

Outside CBD, upscale

75,000

110,000

65.0%

200

Outside CBD, regular

45,000

75,000

0

60.0%

10 11

12

13 14 15

16 17

Note: The table reflects average rents per segment (fixed leases) and does not include outliers such as luxury hotels like Hotel d’Angleterre or extremely low-priced hostels.

ADR Regular (DKK) RevPAR Regular (DKK)

ADR Upscale (DKK) RevPAR Upscale (DKK)

Occupancy rate Regular (r. axis)

Occupancy rate Upscale (r. axis)

Source: Sadolin & Albæk

Source: Benchmarking Alliance Note: The ”Upscale” category includes 4- and 5-star hotels, discounting outliers such as Hotel d’Angleterre and Nyhavn 71. ”Regular” denotes 2-or 3-star hotels.

Shifting markets – tourism growth driven by long-distance travellers

Prospects of sustained hotel demand

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000

600,000

500,000

400,000

300,000

200,000

100,000

0

09 10 11

12 13 14 15 16

09 10 11

12 13 14 15 16 E17 E18 E19

Sweden

Norway

Germany

USA

Leisure Business

Source: Statistics Denmark Note: Hotel demand (bednights) by origins, Copenhagen proper.

Note: Bednight growth, Copenhagen proper, including forecast. Sources: Statistics Denmark and Sadolin & Albæk