Report
Hotels: Solid fundamentals and a promising start to 2025
May 15, 2025 2 Minute Read
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The Nordic hotel market has entered 2025 with renewed momentum, defying the traditionally slow winter season. While the early months are typically muted, this year has seen robust YoY growth in key performance indicators across much of the region. As detailed in our latest CBRE Hotel Market Snapshot, the drivers behind this growth are varied and nuanced - requiring a closer look beyond the surface numbers.
One of the standout trends is the exceptional performance of hotels north of the Arctic Circle. In Norway, for instance, Tromsø’s RevPAR has nearly doubled that of central Oslo, driven in part by a surge in foreign visitors - up 16% in Norway and 11% in Finland. Meanwhile, resort hotels are reporting strong on-the-books figures for the upcoming summer, reinforcing a positive outlook for the rest of the year.
On the investment front, activity has surged. Nordic hotel investments reached an estimated €1.1 billion from January to April 2025 - a 385% increase from the same period last year. This spike is largely attributed to CapMan’s acquisition of the Midstar portfolio, the largest hotel transaction in the region’s history.
Despite global uncertainties, the fundamentals in the Nordics remain strong. Hotel development pipelines are still thin, demand is growing, and financing conditions are improving. While some investment processes have been delayed due to market jitters, the region’s resilience and long-term potential continue to attract attention.
