hotels, market, hostel, Arp-Hansen, growth, guests, overnights, business, hospitality, Aarhus, Horesta, Denmark, segment
Clarion Hotel Copenhagen Airport

Low growth in overnights worries Danish hotels

The country’s hotel association is expressing concern, especially as thousands of new rooms are coming online.

Sluggish growth in hotel overnights across Denmark, up by only 1.4% in the first half of the year, is prompting worries in the hotel sector – especially as supply will swell by another 8,500 new rooms by 2021 in Copenhagen alone, Standby.dk reports.

“By 2021, we will see an increase of new hotel rooms in Copenhagen by about 50% compared to the current number,” says Jens Zimmer Christensen, chairman of the association Horesta. “In addition, there are about 1,000 new hotel rooms in Aarhus.”

New figures from Statistics Denmark show that the number of overnight stays in the country’s hotels in the first half of 2018 rose almost 100,000. That’s 1.4% growth for the country and 1.9% for the capital. Growth for the previous three years was over 5%.

“The numbers are worrying but there is no need to panic,” Christensen assures. “But for things to go up, the growth must increase. Among other things, it is important to market Denmark even better.”

He adds: “A prerequisite for success is that the industry has competent operators and actors who know what they are doing. For example, VisitDenmark has again cut its budget. I don’t want to say we’re going backwards – but other countries are moving forwards.”

He stresses that “it is worrying that we’re currently losing market share to Sweden and Norway, where in the first half of this year overnights grew by about 4%.”

Budget-room boom
Despite the poor growth in hotel accommodation stays this year, the number of overnights at Danish hostels is booming, skyrocketing by 25.7% among foreign guests compared to the same period last year.

Helping to create growth in the hostel segment is Copenhagen’s biggest hotel chain, Arp-Hansen, which opened its first hostel, Steel House Copenhagen, with 1,150 beds in 253 rooms last year.

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