Corporate demand drives Gothenburg hotel market

New projects include new 29-floor tower at Gothia Towers due in 2014

Gothenburg, together with its surrounding area, is one of Northern Europe’s fastest growing regions. Likewise, the city’s hotel market saw continued growth in occupancy and rates between 2005 and 2008. After the global economic crisis, renewed growth in occupancy and ADR in 2010 was driven mainly by upscale hotels. Future supply will add some pressure on ADR, but “the prospects are very positive for demand in Gothenburg”, according to HotelNewsNow.
Several players have detected to need for further capacity, particularly to meet corporate demand. New projects include the 500-room Clarion Hotel Post in a former post office on Drottningtorget, due to open in January; the 266-room Radisson Blu Riverside Hotel Gothenburg by the Lindholmen Science Park, due to open at the start of 2013; and a third tower at Gothia Towers with 29 floors and 478 rooms. This third tower at Gothia Towers will make the Swedish Exhibition & Congress Centre the biggest fully integrated hotel, exhibition and conference facility in Europe, a project scheduled for completion in January 2015.
HotelNewsNow
[pictured: Gothia Towers; copyright Gothia Towers]