Positive development of the key indicators but weaker outlook for the hotel industry.

In general, the main key indicators for the hotel market in Sweden had a slightly positive development during the first quarter of 2025, compared to the first quarter in 2024. However, the hotel companies expect weaker future demand and room rates, and the current view on profitability worsened between the fourth quarter 2024 and the first quarter 2025. One reason for the lower expectations is the economic downturn and relatively high inflation, which together are decreasing growth in demand for hotel rooms in Sweden, while also driving up costs and reducing profitability. Staff shortage in the hotel industry remains virtually nonexistent and the number of employees is not expected to change over the next 3 months.

During the first quarter – typically the weakest for the hotel industry at the national level – the ADR and the total hotel accommodation revenue in Sweden increased by 3.0 and 4.3 percent respectively, compared to the first quarter of 2024. The number of rooms sold increased by 1.3 percent, while the occupancy rate decreased by 0.4 percentage points.

The report is in Swedish, please download here:
Hotellmarknadens konjunkturbarometer Maj 2025.pdf