Nordic Hotel Market Surges in Summer 2025 as International Demand Flows Back

The summer of 2025 has proven exceptional for Nordic hotels, with operators and property owners benefiting from double-digit RevPAR growth, stronger ADR, and higher occupancy across Denmark, Norway, Sweden and Finland. A new CBRE Nordics Hotel Market Snapshot covering the period from May to August highlights the extent of the rebound, underlining both the resilience of demand and the renewed appetite among investors.

A key driver has been the sharp increase in international arrivals, particularly from the United States. CBRE reports that U.S. visitors spent 61 percent more hotel nights in the Nordics compared with 2019, making them the single most important long-haul market in the region. By contrast, Chinese demand was still down nearly 40 percent, while Russian demand in Finland has all but disappeared. The overall picture nevertheless shows strong growth from European feeder markets alongside the American surge, fuelling ADR gains and higher profitability for hoteliers.

Performance indicators confirm the positive trend. In Denmark, all major cities reported both occupancy and ADR growth, with Copenhagen leading the region in RevPAR despite a notable rise in supply. Odense and Aarhus also posted strong results compared with pre-pandemic levels. In Finland, Turku and Tampere surpassed their 2019 benchmarks, while Helsinki lagged due to an expanded hotel pipeline, though occupancy gains show demand is keeping pace. Norway recorded some of the strongest improvements: Oslo’s RevPAR was up more than 16 percent year-on-year, Bergen reached an all-time high of NOK 1,498, and Trondheim nearly doubled its RevPAR compared with 2019. Sweden’s cities added to the positive narrative, with Stockholm edging higher thanks to increased occupancy, Gothenburg benefiting from a full events calendar, and Uppsala showing the strongest growth compared with 2019.

The investment side of the market also experienced a sharp upswing. CBRE calculates that hotel transactions in the Nordics reached €1.49 billion between January and August 2025, a 368 percent increase compared with the same period in 2024. Much of this was driven by CapMan’s acquisition of the Midstar portfolio, but even without this deal, volumes were significantly higher than last year. Other notable transactions include a 50 percent stake in Scandic Tromsø’s new flagship hotel, the €43 million purchase of Støtvig Hotel in Norway, Singapore-based M&L Group’s acquisition of Hotel Maria in Helsinki, and Sport Impact of Belgium buying into Hamn i Senja. In Copenhagen, Slättö converted a vacant office building into a planned Bob W hotel, underlining the trend toward hybrid, tech-driven concepts.

For landlords, the Nordic model of leasing hotels to operators is proving advantageous, since lease payments are tied to revenue and benefit directly from higher occupancy and room rates. This has strengthened investor interest, with private equity and international buyers increasingly drawn to the combination of stable cash flows and operational exposure. Core investors are also returning, particularly in Denmark, where lower interest rates improve risk-adjusted returns.

CBRE expects momentum to continue, though not at the breakneck pace of the past year. With U.S. demand likely to remain strong and Asian travel still well below potential, there is scope for further growth once long-haul routes fully normalize. For now, the Nordics are one of Europe’s standout hotel regions, with a buoyant summer season behind them and a market that investors clearly regard as a safe bet.

Source: CBRE