Question mark hangs over Nordic hotel business

European hospitality results for 2011 are positive but concern remains

A question mark stands above the hotel industry’s positive indicators for 2011. It refers to the prolongation of the slump observed in the hotel business at the end of 2011. In Scandinavia this should be of some concern, according to European Cities Marketing.
The degradation of national economies, concern about the impact of debt, and austerity measures are having a clear effect on areas in Europe where occupancy rates and average daily rates fell into the red in December. Past experience says that the midscale and upscale segments react more visibly to changes in economic climate. And in cities where the weight of these categories dominates (Scandinavia, Central Europe, Spain, Italy), the stabilising effect of the economy hotel segment is often impotent.
Last year closed with positive indicators for the hotel business throughout the European Union, with an average of 5.6% growth in RevPAR as a result of increased occupancy combined with growth in average daily rates. Yet the dynamic that was seen until spring 2011 slowed in the last quarter.
[pictured: Queen room, Scandic Frimurarehotellet, Linköping, Sweden; photographer Åke E:son Lindman; courtesy Scandic Hotels]


Check Also

Scandic Eden, Nokia, Scandic, Capman, hotels, lease, extend, new hotel, Pasila, digital, stay, Messukeskus, expo, near

Scandic signs up for new hotel in Helsinki

The hotel chain, which is rapidly expanding its presence in Finland, has also extended its lease on other properties.

landvetter, Gothenburg, scandic, hotel, airport, property, sale, sell, Midstar

Swedavia raises cash with Gothenburg hotel property sale

The sale of the Scandic at Gothenburg Landvetter Airport will raise €13.65 million for future reinvestment.

Ann Hellenius, scandic, government, management, appointments, Niklas Angergård, commercial officer, Jan Lundborg, executive committee

Scandic appoints experts in digitalization, branding

The Nordic hotel giant reveals three appointments to strengthen its Executive Committee, two of them old hands at SAS.

Scandic, Finland, Restel, Cumulus, rebranding, marketing, name, biggest, hotels, chain

Scandic completes Cumulus rebranding

On buying Restel’s hotel operations in December, Scandic became the market leader in Finland.

Scandic, straws, plastic, waste, oceans, hotels, lids, cocktail sticks, ban, sustainability

Scandic declares war on straws and cocktail sticks

The Nordic hotel company says it will be taking 1.3 million straws and 120,000 cocktail sticks out of circulation.

Scandic, hotel, new, Voss, Bergen, mountains, Norway, Dark architects, MICE, conference, leisure, tourism, travel, domestic

Scandic unveils plans for mountain hotel

The chain will open a new property in the fast-growing market of Voss, Norway, for leisure and conferences.