Located on the eastern coast of Zealand, Denmark’s largest island, Copenhagen is the country’s capital, most populous city and a major financial hub in Northern Europe. The city is home to approximately 670,000 residents within its 90 km², with a further 730,000 living in the wider urban area.
Urban design woven into the historic charm of one of Europe’s oldest capital cities makes Copenhagen an attractive destination for both leisure and business travellers. While its numerous theatres, museums and parks, as well as one of the world’s longest pedestrianised shopping areas, tick the leisure boxes, the city’s main convention centre, Bella Center, and several hotels with large conference facilities have also cemented it as one of the most important MICE destinations in Europe.
Copenhagen, as with the rest of Denmark, has a well-developed infrastructure, including an extensive road network, public transportation, an international airport and a major seaport. The Port of Copenhagen is the main cruise port of Northern Europe and was named ‘Europe’s Leading Cruise Port’ for the sixth time in 2025. It has been nominated again this year.
The opening of the Øresund Bridge (connecting Denmark and Sweden) in July 2000 put Copenhagen at the heart of an expanded metropolitan area that is the largest in Northern Europe. Today, developments are underway that will improve its connectivity even further: the Fehmarnbelt Tunnel, which, at 18 km, is set to be the world’s longest immersed tunnel, will connect the island of Lolland in Denmark and the island of Fehmarn in Germany. Anticipated to open in 2029, the tunnel will become the fastest route between Scandinavia and Central Europe, cutting the transit time between Hamburg and Copenhagen in half to just two-and-a-half hours. This, and other ongoing public investment projects, including the development of areas such as Ørestad and Nordhavn, are expected to strengthen regional economic growth and tourism.
Source: HVS Research
Economic Indicators – Denmark
Source: IMF
Tourism Demand
According to national statistics, bednights in Copenhagen have increased by more than 50% over the last decade, reaching a new record of over 12.5 million in 2025, reflecting a compound annual growth rate of 4.7% between 2016 and 2025. Traditionally, domestic demand accounts for over 40% of total overnight stays, with the USA (8%), Germany (6%) and the UK (6%) representing the main international source countries in 2025. Year-to-March 2026 figures surpassed both the same period last year and in 2019, indicating a strong start to the year.
Alongside the rise in bednights, Copenhagen Airport has played a key role in the city’s tourism momentum. In 2025, the airport recorded a historic 32.4 million passengers, surpassing pre-pandemic levels for the first time and marking a record-breaking year. Growth has continued so far in 2026, with the year-to-April seeing 9.9 million passengers passing through the airport, an 11% increase over the same period in 2025. Supporting continued growth in both visitor arrivals and overnight stays, Copenhagen Airport expanded its network with 31 new routes in its 2025 summer programme, followed by a further 20 new routes this year, including new connections to destinations such as Marseille and Bordeaux in France, and Halifax in Nova Scotia.
Accommodated Bednights (000s) – Sustained Growth
Source: Statistics Denmark – Region Hovedstaden
Hotel Performance
Post-pandemic recovery has been steady but slow for Copenhagen, with occupancy increasing significantly in 2022 but struggling to return to historical levels of around 78-79% since. However, performance figures for 2025 marked a significant milestone, with occupancy broadly returning to its pre-pandemic heights at around 77%. Meanwhile, average rate surpassed its 2019 levels nominally, but large decreases during the pandemic combined with somewhat high inflation has kept both average rate and RevPAR some 4-5% below 2019 in real terms. Despite these challenges, strong RevPAR growth in 2025 and a stable DKK:EUR exchange rate saw Copenhagen record the largest increase in hotel values in our 2026 European Hotel Valuation Index at 5.9%. Continuing strong demand and limited new supply on the horizon suggest good times ahead for the city’s hotels.
Performance Index – Average Rate and RevPAR Bridging the Gap to Pre-Pandemic Levels
Source: HVS Research
Hotel Supply
The pipeline in Copenhagen remains notably constrained, partly explained by restrictions on new supply in the market. In March 2026, Copenhagen introduced a temporary planning ban that halted several proposed hotel developments in the city centre while new regulations were prepared. The City Council then voted on 30 April 2026 to restrict new hotel development across much of the historic core, with the wider measures due to take effect once the necessary planning amendments are adopted. Focused on managing tourism growth and protecting residential uses in the city’s most visited areas, the temporary ban is expected to remain in place until around March 2027, when longer-term restrictions are anticipated to be implemented.
Following this announcement, some hotels were exempt from the temporary ban. At the time of writing, five properties are still scheduled to enter the market between 2026 and 2028. Among them, the Ruby Copenhagen will mark the brand’s Danish debut with a 219-room property, while the remaining openings come from established operators expanding their presence in the city, underscoring investor confidence in the market. The 44-room Henrik’s Hotel – Hildebrandt Hammer opened at the beginning of May and marks the family-run group’s fourth property in the market. In 2027, the Four Points Flex by Sheraton brand will open its fourth Copenhagen hotel, while Bob W is set to open its second property in the city, followed by a third in 2028.
Hotel Pipeline
Source: HVS Research
Investment Market
In terms of transaction activity, Copenhagen had a very subdued post-pandemic period which saw just two hotels change hands in 2021, two in 2022, four in 2023 and two in 2024. However, a total of six transactions in 2025 (one single asset transaction and five as part of portfolios) and a further two so far this year have put the city firmly back on the investment map. Notably, three of the hotels that transacted last year were part of a 28-property, Scandinavia-wide portfolio purchased by CapMan from Midstar AB, as indicated in the Hotel Transactions table below.
Hotel Transactions
Source: HVS Research
¹Part of a portfolio transaction; ²Forward-sale, scheduled to open in 2027
Outlook
Copenhagen started 2026 in a strong position, buoyed by robust RevPAR growth and the largest increase in hotel values in 2025 (see our 2026 European Hotel Valuation Index for more). And while an element of uncertainty is to be expected given the current geopolitical situation impacting much of the globe, there is much to be positive about. Major infrastructure projects such as the construction of the Fehmarnbelt Tunnel combined with numerous new routes from Copenhagen Airport will make Denmark more accessible than it’s ever been, while increasing airport arrivals (last month recorded the highest ever passenger numbers for an April) and a restricted pipeline are encouraging signs that the city has the fundamentals to endure these latest challenges and continue thriving.
Value Trends 2025 vs 2024
Source: HVS Research
Source: View the original article at HVS.
