CBRE Nordics Hotel Market Snapshot January 2025

Nordic hotel investment reached €648 million in 2024, reflecting a robust 27% year-over-year increase. Among the most significant hotel transactions during the year was Nrep's acquisition of one of Stockholm's largest hotels, the Clarion Hotel Stockholm. Additionally, Nrep secured a prime hotel asset in Oslo—the Comfort Hotel Karl Johan. Other noteworthy transactions included Pandox’s purchase of the Radisson Blu Hotel Tromsø and Balder’s acquisition of Clarion Hotel Karlatornet in Gothenburg. It is positive to note the return of institutional capital to the hotel segment, highlighted by Folksam's acquisition of Villa Dahlia in Stockholm, where CBRE acted as the vendor’s broker on behalf of Vernum Fastigheter.

The market sentiment remains cautiously optimistic entering 2025, with a steady number of investors looking to allocate capital into the European hotel markets. We anticipate an increase in investment activity throughout the year, particularly in the latter half, as inflation continues to stabilize, and central banks maintain favorable interest rates. A significant amount of capital is expected to be directed towards value-add strategies, while core capital remains somewhat more conservative. We foresee assets with vacant possession and short remaining lease terms to be highly sought after by investors pursuing repositioning strategies.