Although the Norwegian summer season has not been as good this year as in 2018, the market for commercial real estate has improved. Newsec recorded a volume in the first half of 2019 of approximately NOK 43 billion distributed over 127 transactions. This is up from NOK 37 billion as of the first half of 2018, with 151 transactions. There have been several large transactions in this half, including the sale of DNB's head office in Bjørvika, Raufoss Industrial Park and Kongsberg Teknologipark. For the next six months, Newsec believes the market will be characterized by several large residential projects. In this issue of the market letter, we will take a quick look at the trends in the residential segment, and briefly explain the process of selling NRK Marienlyst. Furthermore, since the beginning of June, there has been a focus on the new guidelines related to the AIF Act, and how this will affect commercial property; as well, we will briefly summarise our experiences concerning this.

Newsec and Hadrian are exclusive advisors to NRK for the sale of their headquarters at Marienlyst.

Transaction market 2019

Q2 became a very active quarter with a high transaction volume, and we have recorded transactions for a total of NOK 27.4 billion. This is the strongest second quarter we have had since 2015. Although we believe the market will continue to be strong in the next six months, the end of the Q2 presented some potential obstacles.

The syndicates have clearly been the most active buyers in recent years. In total, they make up 33% of the transaction volume for the first half of 2019. New guidelines related to the AIF Act have therefore been a hot topic of discussion after the Financial Supervisory Authority sent out a circular to the market in early June. In short, this will entail an increase in formal requirements for the syndicates going forward. The FSA writes in its circular that, as it interprets, project financing companies (SPV’s) should often be considered as alternative investment funds and therefore are subject to the AIF Act. If the SPV is subject to the act, this triggers a series of formal requirements such as, inter alia, prospectus and approval by the FSA for each project, which in turn results in increased costs and a potential time constrains, implicitly giving lower returns for investors.

The circular probably comes as a result of the less professional players that have appeared on this market in recent years, and we feel that the large and more professional players are well prepared to deal with these new regulations and requirements. Nevertheless, this will potentially cause some of the liquidity in the market to be reduced in the short term, namely, during the time it takes for the market to find the correct interpretation of the circular and the right recipe for relating to it.

The office segment is still very active, particularly in Oslo. The market overall foresees increase in rent levels in the coming, with the top rent now being around NOK 5,500/sqm in CBD. However, it is not only in central Oslo that large transactions have been carried out during the first half of the year. Skanska has sold Workplace Oo in Nydalen to DNB Scandinavian Property Fund for NOK 1.325 billion, a property measuring approximately 24,000 sqm, and has tenants such as the Directorate of Health, Sagene District Council and Opera Software. Estimated net yield is probably below 4% for this new construction.

Despite a historically weak Norwegian currency, which should otherwise attract international capital, falling interest rates globally and in our neighbouring countries have meant that the yield gap is perceived as being more attractive elsewhere - our neighbouring countries included. International investors have therefore been by far the largest net seller during the first half of the year. Distributed across 20 transactions, non-domestic players have sold property for NOK 12.7 billion and bought for NOK 2.4 billion. We expect this trend to continue throughout the year.

Retail has been somewhat softer in recent times. Among other things, it was recently announced that half of the 20 largest shopping centres in Norway had falling turnover in the first half of the year, and several parties with whom we have spoken say that there has been a repricing of commercial properties in the market. This can be seen in Newsec's yield table where retail is the only segment that has experienced yield increases lately. Now that the owners and players in retail are taking on the current market challenges within the retail segment, we expect that we again will see sales of larger retail properties during the autumn, but now at prices reflecting the underlying uncertainty and risks associated with the retail segment.

A segment that is booming is residential development. However, as several industries expects have pointed out over a long period of time, regulation and zoning of new units in Oslo are completed at a very slow pace. The plots that are sold tend to achieve fantastic prices per buildable square meter, and Newsec has observed many new record levels during the past year. To a certain extent this has also been the scenario in Bærum also, primarily at the central hubs near public transport. These factors result in developers moving out of the from Oslo to the surrounding areas, and there is a tremendous interest in residential development projects in the Greater Oslo region. Ski has long proven to be one of the most attractive areas for developers. Here, all the major developers have positioned themselves for large development projects for many years, and several transactions have been registered here during the first half of this year. Newsec also sees other locations that are emerging as favourites among the developers in locations that we have observed and been involved in for several transactions, more specifically Ås and Lørenskog. It does not appear that interest for residential projects will diminish in the near future.

As many of the regulated/zoned, established residential areas have gradually been sold off, a new trend has taken hold: Many of the traditional housing developers are increasingly focusing on buying “cash flow properties” with conversion to residential at the end of the current leases. Here we see several models, including the famed "Koksa model" where Trond Mohn bought the Fornebu City Centre together with Selvaag Bolig. We also see that organisations are setting up so that they can administer and manage such properties internally. Many of the players also take greater risks in relation to future regulation than we have previously observed, and this is a trend we believe will strengthen and propagate in the years to come.

When summarising 2019 in about 6 months’ time, the upcoming sale of NRK at Marienlyst will be one of the trendsetting processes. The sale of the iconic property has already received significant attention - where a number of well-known players have flagged their interest for the massive development project through the media.

Before the summer holidays, the Planning and Building Agency (PBE) adopted the planning program for Marienlyst, and with that, Ellen de Vibe said farewell as agency director after 20 years in the position as head of PBE. A general meeting of NRK was also held, during which it was decided that the sales process could start this autumn. The plan proposes a future building complex of up to 167,000 sqm, of which up to 107,400 sqm is proposed as housing. The broadcasting house is partially protected by the National Antiquarian, and will be transformed within the framework such protection allows.

The sales process is planned to be formally initiated sometime in mid-September, and interest is strong. The media has outlined a gross property value in the range of NOK 3.5-4 billion, with both Norwegian and international capital among the stakeholders of the 84-acre site.

Newsec feels that the market is still strong, and this is a trend we expect to continue through 2019. With a turbulent stock market, property is seen as a stable and attractive asset class. Although there may have been some less structured, broad sales processes through the first half of the year, the market finds creative solutions, and many transactions go off-market.

Newsec has adviced Svill on the sale of Rådhusgata 4 in Kvadraturen. HCH Eiendom is the new owner.


Newsec has made the following forecast for the remainder of 2019:

  • Total volume of NOK 85 billion in 2019, due to the positive development on the market and the continued high level of interest from the syndicate environment.
  • Low interest rates, and a simultaneous fall in bank loan margins.
  • Newsec believes the prime yield will remain stable in 2019, then gently rise to 3.90% - 4.20% in 2021, depending on rental price growth in central areas.
  • Bank financing is available in most segments, but we increasingly see that most industrial players must also contend with around 60-65% LTV (loan-to-value) requirements.
  • The bond market is gaining greater market share with more active players. In particular, pure real estate companies have used bond financing to a greater extent in 2018, a trend we have seen increase in 2019.
  • Housing prices are stabilising in Oslo and the rest of the country.
  • Continued willingness to buy for housing projects, at all regulatory stages. We see that areas outside Oslo with strong population growth are in greater demand, such as Ski and Ås. These areas now appear to be more stable than the Oslo market.
  • Logistics property remains very attractive and is one of the few segments that has experienced yield compression lately.
  • Retail commerce is again somewhat liquid as the market has undergone a revival.
  • Interest in real estate in secondary and tertiary markets will be higher and drive prices up. Oslo is too expensive for many foreign players due to hedging costs. Hedging is now particularly expensive due to the volatile Norwegian krone, driven by international turmoil. International players would rather look toward added value in Oslo and opportunistic cases in e.g. Stavanger.

Newsec is letting-adviser to Vika Eiendomsforvaltning for Klingenberggata 7

Office Q2 2019

As usual, office is the largest segment and as of the first half of the year, this represents approx. 50% of the total transaction volume. At the time of writing, 52 transactions have been registered with a total volume of NOK 22.2 billion. The biggest transaction of the year was revealed just before Easter. DNB Liv buys DNB Midtbygget from SBB, a property they sold in 2015 to Meteva (Mr. Trond Mohn). At that time, the property was sold to optimise the capital structure of DNB, as the interpretation of the Solvency II regulations then suggested that it would provide for a lower level of capital tie-up in order to grant loans to commercial real estate instead of owning the property directly. This interpretation turned out not to be correct, and thus the transaction is a good example of the fact that life insurance companies once again choose to own property directly. We expect to see increased activity from life insurance companies in 2019. The net purchase price for the DNB Midtbygget property is announced to be NOK 4.488 billion; however, yield on gross property value will be decisive, and it will probably not be far from the current prime yield of 3.75%.

In four separate transactions, Arctic Securities has acquired most of Kongsberg Technology Park. The largest was Blackstone's assets, which consist of three modern office buildings, where we find Kongsberg Group and TechnipFMC as tenants. Furthermore, Oslo Pensjonsforsikring and a former Arctic Securities syndicate have sold off their office buildings, while H.I.G. Capital has sold off several combination properties.

In Nydalen, a new yield record was probably set when Skanska sold Workplace Oo to DNB Scandinavian Property Fund. Workplace Oo was completed in 2018 and houses tenants such as the Directorate of Health, Sagene District, Opera and Evolve in its 24,000 sqm office property. Adjusted for VAT compensation and investment rents, the yield is low, likely just below 4%.

Tristan Capital Partners has sold Grensen 5-7 in Oslo to a syndicate set up by Clarksons Platou Real Estate for NOK 900 million. Tristan bought the property from Genesta back in 2015 for NOK 630 million. In the course of its ownership, Tristan has renegotiated four of the tenants’ lease contracts and secured a new lease contract. The building sold at a net yield of around 4.7%.

We believe 2019 will be a good year for the office segment. Yield pressure from interest rate hikes is weak, as the market will likely not allow for higher interest rates. At the same time, we observe several examples of office transactions being supported by the expectation of a continued rise in office rents; this is most evident in the Oslo market. A good example is the sale of Fridtjof Nansens Plass 8 just before Christmas last year. With considerable subletting in the building, yields were sharp at 2.8%. Through renovation, there is an expectation of increasing the market rent to NOK 3,300/sqm, implying a net yield of 4% adjusted for market rent.

Newsec has adviced Tellus Eiendom on the sale of Ryensvingen 1 to Vika Project Finance.

Retail Q2 2019

The retail trading segment has shown good momentum through the second quarter of 2019 and is now at a historical average. There are mostly big box properties and grocery anchored properties being sold, and the volume is pushed upward by a few large transactions. Nevertheless, Newsec observes that investors are in general sceptical toward the segment. Sales are often triggered by strategic decisions to focus on other segments, and sales prices often fall below seller's expectations. There is a large volume of retail assets for sale, mainly shopping centres of normal and secondary locations and qualities, which have also experienced a rise in yield lately. There is also negative pressure on the prime yield, even for the best corner premises at Karl Johan, where players push the rent down or move out. The prime trading yield is now up from 3.75% to 4%.

Despite the challenges in retail, it is so far evident that big box-like properties, with strong grocery anchored stores as main tenants, are still considered liquid. The biggest transaction so far this year involved the remainder of a retail owned by Tristan Capital Partners. The portfolio consists of 4 commercial parks (Stoa West, Breiviksenteret in Ålesund, Tune Handelspark and Grenland Handelspark) and two plots. Ragde Eiendom acquired the entire portfolio for EUR 160 million (NOK 1.5 billion). With over 8 years remaining on the lease and Coop as the main tenant, the portfolio is sold at levels as expected from a big box portfolio.

In Bjørvika, Carucel Eiendom acquired a third of the Madison Realty’s assets, which a short time before acquired Bjørvika’s ground floor space in a large transaction. Carucel acquires on the same terms and conditions on which Madison acquired.

Coop continues its strategy of selling off its properties and has two of this year's five largest transactions to date. Together with Dolphin Eiendom, they have sold the Jærhagan shopping centre to an NRP syndicate. With Coop Obs! Bygg and Coop Mega being the largest tenants with approx. 15% of the area, the property is a hybrid between a pure shopping centre and big box. In addition, the latest expansion ensures that activities other than shopping can be accommodated (e.g. restaurants), which has allowed for sales at normal levels. Coop has also sold Askim Industrial Park to Clarksons Platou. The price has not yet been confirmed, but will be between NOK 450-500 million. Askim Industrial Park has stores such as Jula, Power and Europris, Sport Outlet, as well as Coop's low-cost chain Extra. In addition, there are plans for a hotel on the site that the buyer hopes will increase the attractiveness of the business park.

AKA, which owns grocery stores across the country, has now increased its portfolio by 20 properties. Ragde and Breidablikk Eiendom sold the entire portfolio, where most of the properties are located in the north, including 16 properties with REMA 1000 (groceries) as tenant and the remaining with Europris, Kiwi, Biltema and JYSK. AKA's portfolio now consists of 226 properties where almost 80% of rental income comes from grocery tenants.

The retail segment is still struggling, especially with regards to shopping centres. For 2018, the total growth in turnover was about 1%, and given that growth in private consumption in Norway is around 2.5-3% it is evident that shopping centres are losing ground. E-commerce, cross-border trade and changing customer preferences represent a major threat. E-commerce still accounts for just under 5% of total retail sales but grows by as much as 16-17% annually against the normal retailer's 3-4%. Therefore, one cannot ignore the fact that digitalisation is challenging the traditional pattern of retail trade; more technological developments will change the way consumers shop in the future. It was also recently announced that the online giant Amazon is establishing itself in Sweden and it is probably not long before the player also comes to Norway. We believe that both stores and property owners must change how they think. The stores should change so that they still capture the interest of consumers, and owners should change the design of premises and improve on new industry standards with regard to contracts. Newsec believes we will see shorter contracts, but with more option periods, more fixed rental rates and fewer turnover-based rental agreements, a greater degree of turnkey premises and occasionally with inventory included.

Newsec sold Eiker Senter in Hokksund to Tellus Eiendom on behalf of Kildare Partners.

Logistics Q2 2019

The segment has experienced a very strong development in recent years, both in terms of volume and number of transactions. 2018 was the first year in which the segment surpassed the retail segment in terms of share of total transaction volume and number of transactions. As of the first half of 2019, the segments are equal. Newsec believes logistics will be very attractive in the future due to the development in the retail segment - increased e-commerce will require more logistics assets. However, the logistics market is relatively segregated and the winner in the future will be logistics in the form of a distribution hub and not warehouses associated with a point of sale. In addition, there is a lack of good, strategic land plots around Oslo, and we can see that the land price has doubled in recent years. There is a lot of activity from syndicates in this segment.

We have since the last report reduced prime yield from 5% to 4.75% for this segment. It is worth noting that the assets must meet four requirements in order to obtain the best pricing. Firstly, the location must be very good, preferably in eastern part of Oslo, along E16 up towards Gardermoen, E6 towards Sweden or E18 towards Drammen. If it is located elsewhere, yields will rapidly be pushed upwards. Secondly, the lease agreement must be for around 10 years. If you have a prime location and a longer contract, the pricing can be better than the prime yield. Thirdly, the property must be of a very good and modern standard. Finally, the tenant must be a strong covenant with sound financials. If all these boxes are not checked, the pricing will immediately be over 4.75%.

This year's third largest transaction is found in this segment, namely, an NRP syndicate buying Raufoss Industrial Park for a property value of around NOK 1,800 million, which is NOK 500 million higher than what the seller had to pay for the property in 2016. Njord Securities has syndicated two properties on Laksevåg outside Bergen. Sjøkrigsskoleveien 15 and Nygårdsvikveien 41 were priced at a relatively sharp 5.4%, but have both vacant space and development opportunities, which can provide significant value for investors in the long term.

In this segment we also find parts of Kongsberg Technology Park that Arctic Securities has acquired through four separate transactions. H.I.G. Capital sold its industrial and combination buildings leased to Kongsberg Gruppen & Terotech, GNK Aerospace and Siemens. An Arctic syndicate, Oslo Pensjonsforsikring and Blackstone also sold their office buildings in three separate transactions. Arctic has also been active in Drammen. The industrial property at Holmen is leased to Prysmian Group Norway, which produces cable solutions for industry, oil and gas, energy and telecommunications. The building has a total area of 40,000 sqm and with a plot of 53 acres. This area by Drammenselva will be developed in the future.

Newsec congratulates Plantasjon with their new main warehouse at Vålerveien 165 in Moss.

Residential Q2 2019

The transaction volume for residential has been stable at around NOK 2.5 billion per year in recent years. So far in 2019, sales have been strong, and the volume has increased significantly compared to the previous 2 quarters - all top 5 transactions are now over NOK 100 million. Among other things, a residential portfolio has been sold in Oslo. With 5 buildings (Arendalsgata 12, Maridalsveien 144 & 188, Christian Michelsen gate 9 and Etterstadgata 20) and a total annual rental income of NOK 29 million, this is one of the largest residential portfolios sold in Oslo. The value is probably around NOK 700 million, which gives a yield of around 4%. Bonanva has sold 94 apartments at Sandsli in Bergen for NOK 202 million. Moreover, several transactions have been conducted in Oslo, in which Ullevålsveien 12 is one of several buildings that Tellus wants to sell.

The maximum loan-to-value ratio for mortgages in secondary housing in Oslo as per regulations, where 40% equity is required, no longer seems to put a significant damper on the investor's appetite for acquiring residential assets. Prices continue to rise, despite recent increases in interest rates and the many completions expected in the coming years. Should the market temporarily weaken, The Ministry of Treasury has the opportunity to ease the mortgage loan regulations. A small wild card ahead is the debt register that came out just before the summer. This will immediately reveal all credit card debt and consumer loans, which were previously only visible on tax returns in the following year.

The graphs below reflect quarterly changes from Statistics Norway. Price changes in the last four quarters are now positive for all involved, except for Trondheim, which is experiencing a slight dip this quarter. Norway as a whole has increased by 2% over the past year. We see the same picture from Q1 to Q2 - only Trondheim is experiencing a decline. All in all, the figures show growth for all of Norway around 1% from Q1 to Q2 2019.

According to property price statistics from Eiendom Norge, house prices fell by 1.1% in July 2019. Adjusted for seasonal variations, prices fell by 0.7%. Home prices are now 1.6% higher than they were a year ago. The decline in July is as normal as historically experienced, as many homes are not traded during the holidays. After a levelling trend during the autumn of last year and a December that was stronger than normal, a moderate upward trend in housing prices can now be seen. Although prices fell in July, there was significant activity with 8.9% more sales compared to the corresponding month of 2018. A good balance between supply and demand has also been observed. It is a positive sign that the rise in residential prices in Norway closely matched wage growth for 2018 as a whole. This will help build financial stability now that house prices are not beyond the means of the average Norwegian. There have been major regional differences in price developments in July, where 12-month growth spikes by + 4.5% in Bodø and -0.8% in Drammen have been experienced.

Hotel Q2 2019

There has been low activity in the transaction market for hotel properties so far this year with only five transactions. Scandic Syv Søstre was sold to Ragde Eiendom and Breidablikk Eiendom at the end of the first quarter. The previous owner went bankrupt in January and Helgeland Sparebank took over the bankruptcy estate. The new owners are hoping to get the business up and running as soon as possible.

The hotel market is an industry with high seasonal variations. As a result, Newsec choose to use 12-month rolling averages for the key figures in our analysis. In this issue of the market report, we look at the development within the market from June 2014 to June 2019, with a subsequent three-year forecast for each city.

Measured in RevPAR, the twelve-month statistics for the hotel market as of June 2019 show only marginal changes in Oslo, Bergen and Trondheim, with major changes in Tromsø and Stavanger. Growth in Oslo has begun to slow down with pressure on the occupancy rate after Clarion The Hub and Amerikalinjen opened its doors. RevPAR is being saved by a larger increase in room rates. RevPAR in Trondheim ended at NOK 605, down 0.3%, and continues to be ahead of Bergen, where RevPAR ended at NOK 588 down 0.2%. Tromsø has had a fantastic winter season in 2018/19 with 9.7% growth in RevPAR, ending at NOK 705. Stavanger is in a positive trend, with RevPAR up 6.6% to NOK 509.


The positive development in Oslo has begun to slow down during the first half of 2019 with pressure on the occupancy rate after Clarion The Hub and Amerikalinjen opened its doors in March. The effect of these openings is not yet fully reflected in the twelve-month statistics, and additional 1,300 new rooms are entering the market over the next few years.

Room capacity in Oslo increased by 2.7% from June 2018 to June 2019, corresponding to an increase of 344 rooms. During the same period, the number of rooms sold increased by a modest 0.8%. Due to the low growth in the number of rooms sold and the growth in room capacity, the occupancy rate decreased by 1.9%. Despite the decline, the occupancy nevertheless ended at a strong 70.9%. At the same time, overall room revenue in Oslo increased by 3.4%, corresponding to NOK 126 million. Along with the marginal growth in number of rooms sold during the same period, the growth in room revenue indicates that the hotels have not only managed to maintain room rates but also to increase them. Overall, the average room rate in Oslo ended at NOK 1,065, up 2.6%. The fall in occupancy rate were offset by the increase in room rate, increasing RevPAR by a marginal 0.7% to NOK 755.

However, dark clouds are looming on the horizon as 1,300 new rooms are entering the market over the next three years. In addition, more rooms could come if Merkantilbygg is allowed to convert the student housing complex at Bjerke into a hotel. However, most of these rooms fall under the high-price segment in the downtown areas of Oslo, meaning the room rate is unlikely to be significantly affected. On the other hand, the high availability of rooms will probably be reflected in the occupancy rate, with hotels in the peripheral zone being the most affected as competition from central hotels increases.

New rooms

2019: Clarion Hotel Bjørvika (255 rooms), Citybox Oslo (+128 rooms)

2020: Hasleline Hotel (217 rooms), Comfort Hotel Grand Central (+24 rooms)

2021: Sommerro (252 rooms), Økern Portal Hotel (220 rooms)

Uncertain: Radisson Blu Plaza (+348 rooms), Refstadveien 50 (~250 rooms) 


The hotel market in Bergen has picked up slightly since the first quarter of 2019 but is still struggling with the high room capacity. It may seem that the bottom has now been reached; however, the opening of Moxy Hotel Bergen and the Pallas Eiendom’s project in the centre with 190 and 85 rooms in 2020, respectively, could prove challenging for the market. In addition, BHG Eiendom plans to establish a hotel at Rosenkrantzgaten 3, but it is uncertain if they will be granted permission and how large the project might be in terms of rooms.

The reopening of Hotel Norge by Scandic is now fully included in the twelve-month statistic, and Bergen's room capacity has now increased by 5.1%, corresponding to 306 more rooms compared to June last year. During the same period, the number of rooms sold increased by a solid 6.6%, giving a modest growth in the occupancy rate of 1.4% up to 61.0%. Room revenue increased by a total of 4.9%, 1.7% less than rooms sold, causing the average room rate to fall 1.6% to NOK 965. With a marginally greater decrease in room rates than growth in occupancy, RevPAR ended down 0.2% to NOK 588.

If growth in number of rooms sold continues, Bergen will have absorbed the new room capacity within one year, provided that no additional room capacity is added. The further development in the room rate, on the other hand, is more difficult to predict as it can change relatively quickly. If one assumes further price competition, one will probably see a more normalised room rate when the market reaches an occupancy rate close to 65%.

New rooms

2020: Moxy Hotel Bergen (190), Pallas Real Estate (85 rooms)

Uncertain: Rosenkrantzgaten 3


The hotel market in Tromsø continues to grow. The winter season is still driven by northern-lights tourism, and the positive trend across all key figures continues in 2019. Due to the increased tourist traffic at Tromsø Airport, Avinor has decided to expand the airport. The sketch phase of the project has been completed and the project has entered the pre-projection phase. The project is expected to have a duration from contract signing in mid-2018 to 2021/22.

Room capacity in Tromsø fell by 1.4% from June 2018 to June 2019, equal to 33 fewer rooms. During the same period, number of rooms sold increased by 3.4%, which led to an 4.9% increase in occupancy rate to 71.6% and is now above Oslo. With the growth in number of rooms sold, the overall room revenue in Tromsø increased by a solid 8.1%, and the room rate ended at NOK 985 up 4.6%. With a combined increase in both occupancy and room rate, RevPAR increased 9.7% to NOK 705.

Tromsø is still showing positive development, and the key figures per single month so far this year are extremely good, with an occupancy rate of 92.1% and RevPAR of NOK 1,236 in February. With such high occupancy rates, there are likely several days with no available rooms and the market is thus ripe for new hotels. Several hotels are currently planned but not yet established. The hotel market will probably experience a fall in occupancy when the new hotels open. Among known projects, we can mention:

Vervet Hotel: The zoning plan was approved unanimously by the municipal council earlier this year. The planned hotel has recently held an architect competition and the winning proposal proposes a 15,000 sqm hotel with 300 rooms and a 1,000 sqm conference hall.

Workinntunet Hotel: Daimyo Eiendom is still working on the project at Langnes where 125 to 200 rooms are planned.

Austad Quarter: The zoning plan is open for public inspection.

Mack-east: Planning program is open for public inspection.

Airport/Terminal Hotel: Avinor is in the process of planning a hotel in connection with the expansion of Tromsø airport.


The hotel market in Stavanger is showing continuous improvement after the market reached a low point in 2016. Newsec has not registered any new projects in the municipality other than that Hotel Alstor is likely to be demolished and replaced by 85 new apartments and a grocery store. Scandic will take over the operation of Radisson Blu Royal Stavanger from October 2019, and the hotel will be renamed Scandic Royal Stavanger.

Room capacity in Stavanger increased by 4.6% from June 2018 to June 2019, corresponding to an increase of 137 hotel rooms in total. During the same period, number of rooms sold increased by 5.3%, resulting in an occupancy rate of 55.1% - up 0.7% from the previous period. With the growth in number of rooms sold, the overall room revenue in Stavanger increased by 11.5%. Stavanger can therefore boast a price increase of 5.8%, up to NOK 924. With a combined increase in occupancy and room rate, RevPAR increased by 6.6% to NOK 509. It seems that the trend in Stavanger is positive. Provided that there are no dramatic changes in the oil sector, Stavanger is likely to experience further growth.

New rooms

2021: Hotel Alstor (-80)


The hotel market in Trondheim has seen a strong development over the past year. However, we see a slightly weaker development in the key figures as of June 2019. Britannia opened on 1 April this year, but the effect of the opening is not yet fully reflected in the twelve-month statistics. It will be interesting to follow the development in Trondheim after Britannia is fully in the market and Quality Hotel Panorama and Scandic Nyhavna opens with a total of 625 rooms in the coming years.

Room capacity in Trondheim fell by 0.4% from June 2018 to June 2019, corresponding to a decrease of 13 hotel rooms. During the same period, the number of rooms sold decreased by 3.1%, resulting in the occupancy rate closing at 66.3% - down 2.7% from the previous period. With the negative growth in the number of rooms sold, the overall room turnover in Tromsø decreased by 0.8%. The room rate ended at NOK 913 up 2.4% from the previous period, due to a larger fall in number of rooms sold than in the room revenue. With a marginally larger fall in occupancy rates than room rate, RevPAR went down by 0.3% to NOK 605.

New rooms

2020: Quality Hotel Panorama (200 rooms)

2022: Scandic Nyhavna (425 rooms)