NORDIC HOTEL REPORT THIRD QUARTER Q COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM

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1 NORDIC HOTEL REPORT THIRD QUARTER Q3 216 COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM COPENHAGEN HELSINKI OSLO REYKJAVIK STOCKHOLM 1

2 Q 3 H I G H L I G H T S Q 3 H I G H L I G H T S Except for Stockholm, all the Nordic capitals have experienced significant RevPAR improvements in the third quarter of 216. Copenhagen experienced the largest RevPAR growth, almost only driven by ADR. RevPAR development in Q3 216 compared to Q3 215: > Copenhagen +17.9% > Oslo +9.8% > Stockholm -.6% > Reykjavik +15.2% RevPAR development in Q2 216 compared to Q2 215: > Helsinki +15.6% Photo by Henrik Trygg/mediabank.visitstockholm.com 2

3 M A R K E T I N D I C A T O R S - C O P E N H A G E N C O P E N H A G E N In the third quarter of 216, Copenhagen experienced significant RevPAR growth, primarily carried by large ADR increases. RevPAR went up 17.9% to DKK 956. Except July, which was impacted by the summer holidays, rates were above DKK 1,. Still, in July, RevPAR increased with 15.1% to DKK 872, mainly driven by ADR. Occupancy remained stable at 9%. The RevPAR improvements continued in August, where demand was supported by business travelers who had returned from holidays. RevPAR increased with 13.5% to DKK 966. The largest RevPAR increase was found in September, where a 22.5% ADR and a 2.3% occupancy increase boosted RevPAR with 25.3%. This significant improvement was supported by strong business and leisure demand, combined with large congresses. The biggest congress in Copenhagen in September was the ESCRS congress with nearly 2, participants, adding significant pressure on the market. COPENHAGEN HOTEL MARKET Q3 216 July Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 9.% % % % 1.7 ADR in DKK RevPAR in DKK ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (DKK) REVENUE PER AVAILABLE ROOM (DKK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1,2 1, ,2 1,

4 M A R K E T I N D I C A T O R S - O S L O O S L O After slow growth in the second quarter of RevPAR being up 4.4% compared to July 216, Oslo picked up with a 9.8% RevPAR 215. growth to NOK 751 in the third quarter. This improvement in Oslo has primarily been driven In August, demand had returned after the by increases in occupancy, supported by ADR holidays. In fact, August 216, performed growth. considerably above August 215. Occupancy improved with 9.1% to 84.7% and ADR July is a notorious slow month in Oslo increased with 4.9% to NOK 973, resulting in a constrained by the missing demand from RevPAR growth of 14.5% to NOK 825. business travelers. This shows in the key figures, where occupancy is below 7% and September also finished with a strong ADR below NOK 8. Nevertheless, RevPAR rise of 9.2% to NOK 883. Thus, improvements to both parameters resulted in achieving the highest RevPAR of the quarter. OCCUPANCY OSLO HOTEL MARKET Q3 216 July Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 69.2% % % % 6.2 ADR in NOK RevPAR in NOK ADR in RevPAR in AVERAGE DAILY RATE (NOK) REVENUE PER AVAILABLE ROOM (NOK) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1,2 1, ,

5 M A R K E T I N D I C A T O R S - S T O C K H O L M S T O C K H O L M Overall, key indicators remained stable in the third quarter of 216 in Stockholm. RevPAR declined with minor.6% to SEK 949. The quarterly average remained stable, due to improvements in July and August, despite a decline in September. In July, occupancy decreased with 3.1% to 77%, while ADR increased with 6% to SEK 111. Despite this improvement in ADR, July was still the worst performing month, in terms of price, throughout the year. August, showed the largest RevPAR growth of the quarter, brought up by a 7.3% growth in ADR and a minor.6% rise in occupancy, to a RevPAR of SEK 97, which is 8% above same month last year. In September, Stockholm experienced a RevPAR set-back of 9.2%. However, this can be explained as a simple correction, as the market improved with 3% in September 215, hence comparing to 214, RevPAR in September 216 is till 18% ahead. STOCKHOLM HOTEL MARKET Q3 216 July Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 77% %.6 84% % -1.5 ADR in SEK RevPAR in SEK ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (SEK) REVENUE PER AVAILABLE ROOM (SEK) 9% 1,6 1,4 8% 1,4 1,2 1, ,2 1, % 5

6 M A R K E T I N D I C A T O R S - R E Y K J A V I K R E Y K J A V I K The third quarter in Reykjavik was characterised by improvements across the board. Overall, the RevPAR level in Q3 improved with 15.2% to ISK 22,139, compared to the same period in 215. Looking at how the RevPAR level developed through the quarter, it is clear that the market differentiates from the other Nordic markets. July and August performed above September, indicating a high demand from leisure guests. In July, RevPAR increased with 7.4% to ISK 23,131 driven by a 5.2% rise in ADR and a 2.1% increase in occupancy. The improvements continued in August, where RevPAR went up 12.1%, also driven by ADR and supported by occupancy. September was the month with the highest improvements. Occupancy grew 13.5% and ADR increased with 14.1%, resulting in RevPAR going up 29.5%. REYKJAVIK HOTEL MARKET Q3 216 July Δ (%) Aug. Δ (%) Sep. Δ (%) Q3 Δ (%) Occupancy (%) 92% % % % 6.3 ADR in ISK 25, , , , RevPAR in ISK 23, , , , ADR in RevPAR in OCCUPANCY AVERAGE DAILY RATE (ISK) REVENUE PER AVAILABLE ROOM (ISK) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 3, 25, 2, 15, 1, 5, 25, 2, 15, 1, 5, 6

7 M A R K E T I N D I C A T O R S - H E L S I N K I H E L S I N K I Like Copenhagen and Stockholm, Helsinki also experienced significant RevPAR improvements in the second quarter of 216. Driven by growth in both occupancy and ADR, RevPAR increased with 15.6% compared to Q2 in 215, reaching EUR 78. supported by a 4.6% ADR rise to EUR 97. In May, RevPAR improved with 12.1% to EUR 78. This growth was driven by both occupancy and ADR, which increased 6.7% and 5.1% respectively. HELSINKI HOTEL MARKET Q2 216 Apr. Δ (%) May Δ (%) June Δ (%) Q2 Δ (%) Occupancy (%) 68% % % 5. 75% 9.8 ADR in RevPAR in Source: Statistics Finland Coming from a relatively low point, the market experienced a significant 25.9% RevPAR growth in April. The improvement was mainly carried by a 2.3% growth in occupancy to 68% and June was the best performing month in the second quarter, with the highest occupancy and ADR. RevPAR improved with 11.7% driven by both parameters, to EUR 9. Data used to analyse the hotel market in Helsinki is provided by Statistics Finland and is approximately 3 months delayed. OCCUPANCY AVERAGE DAILY RATE (EUR ) REVENUE PER AVAILABLE ROOM (EUR ) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Apr. May June Q Apr. May June Q Apr. May June Q2 7

8 N E W D E V E L O P M E N T S C O P E N H A G E N A&O COPENHAGEN TAGENSVEJ C O P E N H A G E N Copenhagen s hotel pipeline continues to expand, now accounting for approximately 3,8 rooms. In 217, it is expected that between 1, and 1,5 new rooms will open. It should be noted that several projects, not mentioned here, are rumored around the city. Recently announced, is the German A&O hostel concept entry to the Danish market. A&O Copenhagen will open in between the neighborhoods of Nørrebro and Nord Vest. The 27 room hostel will have 67 beds and large lobby areas including a library for students. NEW DEVELOPMENTS IN COPENHAGEN Hotel Room No. Opening Year Nobis Hotel - Niels Brocks Gade Arp-Hansen Hostel - Nyropsgade Stay - Fortkaj Aarhusgadekvarteret Sander (redevelopment to boutique hotel) Moxy A&O Copenhagen - Tagensvej Cabinn Metro 53 room extension * Charlottehaven 37 appartment extension 218 Scandic Meatpacking Scandic Falconer 134 room extension 218 Brøchner Hotels - Bremerholm The Hotel and Restaurant School TBA Radisson Blu Scandinavia 26 room extension TBA Cabinn - Kalvebod Brygge 12 TBA Avenue Hotel 12 room extension TBA Hotel Skt. Petri 3 room extension TBA NIMB (Tivoli Corner) 17 room extension TBA Source: NHC Data STAY FORTKAJ AARHUSGADEKVARTERET 8

9 N E W D E V E L O P M E N T S O S L O O S L O NORDIC CHOICE JERNBANETORGET 2 There are currently approximately 1,9 rooms in pipeline in Oslo. During the third quarter, two new projects have been announced and both will be operated by Nordic Choice Hotels. They recently announced a new 253-room hotel in Bjørkvika. The property is owned by the property company HAV Eiendom, and will in addition to 253 rooms, include a gym, a spa and 1,5 square meter conference space. The total investment from HAV Eiendom and Nordic Choice Hotels amounts to NOK 6 million. The hotel is expected to open in 219. Furthermore, Nordic Choice Hotels has signed a lease with SpareBank 1 Gruppen on the property located on Jernbanetorget 2. Nordic Choice Hotels intends to develop an independent luxury hotel, like The Theif. The hotel will have 134 rooms and is expected to open in 219. NEW DEVELOPMENTS IN OSLO Hotel Room No. Opening Year Moxy by Marriott Thon Hotel Linne 15 room extension 217 Nordic Choice - Jernbanetorget Best Western Oslo Airport 7 room extension 218 Scandic Portalen (Lillestrøm) Clarion Hotel Bjørvika by HAV Eiendom Scandic Helsfyr 17 room extension TBA Clarion Royal Hotel Royal Christiania 352 room extension TBA Radisson Blu Hotel Oslo Plaza 335 room extension TBA Source: NHC Data 9

10 N E W D E V E L O P M E N T S - S T O C K H O L M HOTEL DIPLOMAT - ÖSTERMALMSHALLAN S T O C K H O L M In Stockholm the total pipeline accounts for 3,36 rooms. It includes city center hotels and hotels in districts, such as Kista, Solna, Arlanda and Rotebro. NEW DEVELOPMENTS IN STOCKHOLM Hotel Room No. Opening Year Arlanda Holding StayAt - Helgafjäll 2, Kista Motel L Älvsjö Part Time Homes (Rotebro) Sleeping Fox Stockholm City Elite Hotels - Hagaplan Scandic Sergel Plaza 17 room extension 217 Bank Hotel At Six (Nordic Choice Hotels) Hobo (Nordic Choice Hotels) Forenon - Flemmingsberg Huddinge Comfort Hotel Kista Bizapartment Hammarby Sjöstad Nobis Gävlegatan Arlanda Hotel Best Western Solna (Humlegården Grow) Radisson Blu Strand Hotel 18 room extension and refurb. 218 Hotel Diplomat (Östermalmshallen) Ulriksdal Hotelproject Solna 213 TBA Source: NHC Data SCANDIC HAYMARKET 1

11 N E W D E V E L O P M E N T S - R E Y K J A V I K ISLANDHOTEL IN LÆKJARGATA R E Y K J A V I K In Reykjavik there are currently approximately 1,2 rooms in the confirmed pipeline. NEW DEVELOPMENTS IN REYKJAVIK Hotel Room No. Opening Year Grensásvegur Center Hotel Miðgarður (Center Hotels ) 1 room extention 217 Consulate, Curio Collection by Hilton Parliament, Curio Collection by Hilton Islandshotel in Lækjargata The Reykjavik EDITION Tryggvagata 17 TBA Suðurlandsbraut TBA Laugavegur TBA Grand Hotel 1 room extention n/a Source: NHC Data SUÐURLANDSBRAUT 18 11

12 N E W D E V E L O P M E N T S - H E L S I N K I HOTEL ST. GEORGE H E L S I N K I In Helsinki there are currently 1,6 room in pipeline, no new projects have been announced since the second quarter. NEW DEVELOPMENTS IN HELSINKI Hotel Room No. Opening Year Clarion Jätkäsaari Clarion Airport Haven 6 room extention 216 Maxim St. George Scandic Marski 6 room extention 217 Tripla Pasila (Full service hotel) Tripla Pasila (Limited service hotel) Spa Hotel Flamingo 219 room extention TBA Source: NHC Data CLARION JÄTKÄSAARI 12

13 ISK/EUR C O M P A R I S O N C I T Y C O M P A R I S O N In the third quarter of 216, the Icelandic capital Reykjavik achieved the highest RevPAR of EUR 172. The second highest RevPAR was achieved by Copenhagen with EUR 128, followed by Stockholm with EUR 99 and Oslo reaching EUR 81. In terms of occupancy, both Reykjavik and Copenhagen achieved around 9%. Stockholm and Oslo both reached around 8%. The overall occupancy levels in Stockholm and Oslo were especially impacted by lower demand in July, as both destinations normally attract high volumes of business travellers Exchange rates Danish krone Swedish krona Norwegian krone US dollar Icelandic Krona In terms of ADR, all four capitals obtained above EUR 1 in all months, except for Oslo in July, where ADR was EUR 87. Please note that Helsinki has been excluded from this comparison, as the data provided is approximately 3 months delayed OCCUPANCY AVERAGE DAILY RATE (EUR ) REVENUE PER AVAILABLE ROOM (EUR ) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Copenhagen Stockholm Oslo Reykjavik Copenhagen Stockholm Oslo Reykjavik Copenhagen Stockholm Oslo Reykjavik 13

14 N O R D I C H O T E L C O N S U L T I N G ABOUT NHC NHC was founded in 24 and is the leading specialized hotel consultancy in Scandinavia, with offices in Denmark, Norway, Sweden and Iceland. NHC has since 24 carried out a range of assignments including feasibility studies, appraisals, operator searches, contract negotiations, investment and transaction advisory and more in the Nordics and Europe. In 21, an Asset Management division was created in order to respond to an increasing demand and in 211 the Investment Advisory division was established. For additional information on NHC, please refer to our website: ABOUT BENCHMARKING ALLIANCE Benchmarking Alliance is the leading provider of hotel, conference, F&B and spa benchmarking as well as hospitality market data for the Nordic hospitality industry. The company was created in 21 by a team with broad background in hotels, real estate and IT. COPYRIGHT This report is the property of NHC and may not be reproduced in parts or whole prior to the written consent of NHC. DISCLAIMER NHC does not guarantee the accuracy of the data presented in this report and cannot be held liable here for any analysis, opinions or decisions derived from reading this report as it is solely at the responsibility of the reader to draw up conclusions. NHC cannot be held liable for any outcome of analysis, opinions and decisions formed based on the information presented in this report. NHC would like to inform the reader that the data from Benchmarking Alliance is collected in different ways and sometimes the figures can include provisions. This means that slight deviations in net ADR and RevPar can occur. Denmark Denmark Norway Sweden Reykjavik Nørre Voldgade 16 Råhøj Alle 7 A Skoleveien 2 Wallingatan 33 Laufásvegur Copenhagen K 827 Højbjerg - Århus N-14 Ski Stockholm 11 Rejkjavik Denmark Denmark Norway Sweden Iceland Prepared by: Emil Lindvang Bentsen eb@nordichotelconsulting.com