The hotel industry is still doing well ahead of the summer with higher revenues in May compared to before the pandemic, but levels fell slightly in Stockholm, according to new figures from the Stockholm Chamber of Commerce.
Revenues for Sweden's hotels were 5 percent higher during May than the corresponding period in 2019. For hotels in Stockholm, revenues were 7 percent lower than the May figures in 2019. Corresponding levels for hotels outside Stockholm were up 15 percent compared to the same month in 2019.
–It is positive that hotels are still doing well after a long desert trek. The hotel industry is now back to normal levels and it is good for the entire economy as the industry is an important entry-level industry for the unemployed, says Stefan Westerberg, chief economist at the Stockholm Chamber of Commerce.
The country's total accommodation revenue was SEK 2,325 million in May 2022. This compares to only SEK 674 million in May 2021 and just SEK 354 million in the same period in 2020. The hotel industry's total occupancy rate was 71 percent in May 2022, 1.5 percentage points higher than May 2019. Hotels in Stockholm received a total of SEK 909 million in accommodation, compared to SEK 178 million in May 2021. This is an increase of 410 percent. For hotels outside Stockholm, accommodation revenue amounted to SEK 1,417 million in May 2022, compared to SEK 496 million in the corresponding month last year.
–The country's hotels are doing well and gathering strength for the summer. Revenues are increasing as a result of a larger proportion of rented rooms and higher room rates. The fact that hotels dipped in Stockholm is partly a result of the lack of foreign tourists on whom the capital's hotels are more dependent, says Stefan Westerberg.
Sentiment indicators point to a better than normal economic situation for hotels. The hotel barometer indicator from the National Institute of Economic Research for May 2022 was 120, where 100 indicates the value at a historical normal level. Other indicators show a significant preponderance of hotel companies reporting increased demand now (net value of 88 in May 2022) and in the future (net value of 69 in May 2022). However, hotels also report increased costs (net value of 90 in May 2022) and lower profitability (net value of -32 in Q1 2022).
–+The current situation is good, but it is worrying that costs have increased and profitability has decreased. There are many clouds of worry, including the continued spread of infection in certain parts of the world, a shortage of personnel, high and rising cost pressure in the form of, for example, higher energy prices and food prices, and on top of this, lower margins for households through increased accommodation costs. These factors could put hotels at a disadvantage in the future, says Stefan Westerberg.
