Summary

The Swedish hotel market is relatively mature and is majorly dominated by domestic chain brands. The demand for hotels is increasing with the steady growing number of travelers from both the domestic and international as well. Increasing interest in travel across all age groups, rising affordable travel opportunities, and the disposal incomes are the major drivers that are driving tourism. Sweden has recorded 5.5 growth rate in arrivals to the country in 2018. The key players in the hospitality industry been adopting different strategies in order to attract dynamic customers by offering mobile solutions right from booking the room to offering different payment methods, easy self-check-in, and check-out facilities, customizing their stays, etc. The lodging industry is majorly dominated by upper and upper-midscale segment which accounts for more than 51% of total chain hotel rooms in the country.

Key Market Trends

Increasing Number of Foreign Visitors Are Driving the Market

In Sweden, Stockholm County accounts for almost 1/3 of all hotel stays booked by foreign visitors and more than 1/5 of all overnight hotel stays. According to Statistics Sweden, more than 14 million nights spent by guests was observed in 2018 in different forms of commercial lodging in Stockholm County alone which is an increase of 4% since 2017 and accounted for a growth of 33% from the past five years. Also, a recent trend of increasing visitors from non-European countries has been observed in the county. For instance visitors from India, China and the USA recorded 93, 83 and 71% of overall change since 2013 respectively.

Dynamic Occupancy Rate is challenging the Overall Revenue Growth of the Market

Though the number of different establishments that offer accommodation to visitors is increasing in the country the dynamic occupancy rate is expected to challenge the overall revenues. The midscale, upper and upper-upscale segments occupy a great share of the chain hotels in most of the regions. Stockholm holds a high number of hotels in the region with more than 170 hotels in the city followed by around 90 in Gothenburg.

Competitive Landscape

According to Horwath HTL, Sweden recorded 21% Chain hotel penetration and 51% chain room penetration in 2018. Leases are the most popular model with almost all of Scandic Hotels properties are being leased. The domestic brands' Best Western, Nordic Choice, and Scandic Hotels are the top 3 chain hotel brands in the country and account for more than 60% of total rooms. Best Western and Nordic Hotels have the largest number of hotels whereas Scandic Hotels being the largest provider of chain hotel rooms with more than 17,000 among 85 hotels.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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