Outlying hotels struggling

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Norway’s economy remains strong and the cruise business is booming, but tourist hotels in outlying areas of the country are struggling to stay in business, according to a new report from hotel industry experts Horwath Consulting.

Horwath noted that hotels in Norwegian cities and around airports are doing well, based on accounts shared by around 200 of Norway 1,100 hotels. But hotels in the mountains and rural areas reported negative results and retained only 0.7 percent of revenues.

The era of heading for a high-country hotel for holidays seems to be over, with many Norwegians owning their own cabins and many foreigners finding Norway’s prices rather high. Several hotels have gone bankrupt, reports newspaper Dagens Næringsliv (DN), and others are for sale including the legendary Dr Holms Hotel in Geilo.

“What we’re seeing now is the strongest trend shift I’ve seen in at least 10 years,” Torgeir Silseth of Nordic Choice Hotels told DN. “The classic rural and mountain hotels have simply lost their attraction, both for holidaymakers and for courses and conferences.”

Some of the stately, historic hotels will likely retain visitors but Silseth predicts more hotels will close. “Of course it’s sad, but there’s no point fighting a market that wants to stay in cabins or condominiums in the mountains, and head to Gardermoen (Oslo’s airport area) for conferences,” he said.

Views and News staff