The Finnish Property Market 2012 - KTI

5.5 Hotels
Stock
There are 742 hotel / lodging units in Finland, comprising ca.
49,000 rooms, with a total capacity of ca. 106,000 beds. In
Helsinki, there are 53 major hotels.
Players
The two biggest hotel property owners in Finland include
CapMan’s hotel fund, who owns 39 hotel properties in
Finland, and Norgani Hotels – part of the Swedish Pandox –
with a portfolio of 15 hotels and one conference centre. Most
of the biggest institutions also hold some hotel properties in
their portfolios. Some operators, S-Group in particular, also
own some hotel properties.
S-Group is the biggest hotel operator in Finland with 56
hotels across the country. Restel, who operates hotels under
the brands Cumulus, Rantasipi and Holiday Inn, for instance,
currently has 47 hotels in their chains. Other major hotel
operators include Finlandia Hotels, Scandic Hotels and Best
Western.
Rental agreements in hotel properties are typically
long, triple net agreements. The operator is responsible for
all maintenance and operational costs. In some properties in
city centres where there are a significant amount of other
space, for example, in retail use, responsibilities between the
landlord and tenant might be differently allocated.
Hotels market in 2012
In 2010, the average occupancy rate of hotels amounted
to 51.3%, with the average room price of ca. 86 euros.
Compared to 2010, the turnover of hotel services increased
by ca. 4.5% during the first three quarters of 2011, mainly
due to increased demand from foreigners’s side. Despite the
increase, the sales did not reach the level of 2009. Demand
for hotel accommodation is expected to decrease due to the
negative economic situation.
According to the KTI Index, hotel properties delivered
a total return of 7.3% in 2011. Capital values increased by
1.0%, and net income amounted to 6.2%.
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The Finnish Property Market 2012
Photo: NCC / Sini Pennanen