Hotel

The hotel market in Norway has had an impressive year in 2024, driven by high demand, record-high room prices, and a weak exchange rate that has attracted more international tourists. According to Benchmarking Alliance, RevPAR is up 12 percent compared to 2023.

General Overview

The hotel market in Norway has seen strong growth in 2024, fueled by rising prices and solid demand. Inflation, a weak currency, and limited new hotel construction in recent years have contributed to record-high room prices. As a result, RevPAR has reached historically high levels, exceeding NOK 1,000, according to data from Benchmarking Alliance.

Average occupancy pre-pandemic / Average occupancy LTM

The weak krone has made Norway more attractive to international tourists. While general Norwegian prices were 43 percent above the EU average in 2022, the gap has reduced to around 24 percent in 2024, according to Eurostat. This price advantage has led to an increase in the share of foreign hotel guests, which has risen to approximately 30 percent in 2024, the highest level since 2016, according to SSB. Factors related to climate and sustainability could also positively impact Norway as a destination. Recent summer heatwaves in Europe have made the Nordic countries appear as a desirable holiday alternative, a trend that is likely to become more pronounced in the years to come.

Increase in RevPAR Norway and Oslo 2019 vs. 2024

Occupancy per room, percent – Oslo vs. Norway

Transaction Market

According to JLL, the transaction volume for hotels has increased by approximately 14 percent globally from 2023. Liquidity has been strongest in Asia and Europe, driven by a rise in high-value transactions. In Norway, there has also been solid interest in central and attractive hotel properties, with significant transactions such as the Radisson Blu Hotel Tromsø and Scandic Ørnen in Bergen. The hotel investment volume in 2024 is estimated at NOK 3 billion, a 23 percent decrease compared to 2023. Despite this decline, the volume remains in line with the average for the past five years.

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Revenue per room in NOK (RevPAR) – Oslo vs. Norway

Outlook

The weak krone and the "coolcation" trend contribute to increased expectations for continued growth in foreign tourist arrivals to Norway. The strong performance of the hotel market, combined with an anticipated improvement in the financing market, sets the stage for increased transaction activity in the hotel sector in 2025