The Swedish hotel market continued to show strong key figures during the fourth quarter of 2022. For instance, the average ADR (Average daily rate) increased by approximately 13 percent from the fourth quarter of 2021 to the fourth quarter of 2022.

4 out of 10 hotel companies stated that they expect increased prices for their services in 3 months’ time and around 3 out of 10 companies considered that they had good profitability. Despite this, indicators point to the fact that demand for hotel services may slow down in the future. For instance, around 4 out of 10 hotel companies expect a reduced demand for hotel services in 6 months’ time. The indicators in the economic barometer however justify that the expectations of higher prices in the future are primarily a result of high inflation, not increased demand. This is supported by the current macroeconomic climate which, through high inflation, increased interest rates and high electricity prices, limits the financial margins of both households and companies.

The extensive personnel shortage that has characterized the last few quarters has now been met. In Q2, 9 out of 10 companies reported a staff shortage, which was corrected with a wave of new hires. This resulted in only 2 out of 10 companies reporting a staff shortage in Q4.

The report is in Swedish, please download here:
Hotellmarknadens Konjunkturbarometer Februari 2023.pdf