How the hotel industry is changing in Sweden - What you need to know

The hotel industry in Sweden 2026: Trends and prospects

The Swedish hotel industry has an exciting future ahead of it in 2026. After a few tough years of pandemic and uncertainty, the hotel market has shown impressive adaptability and resilience. The industry has now recovered to record levels - according to the Stockholm Chamber of Commerce, the number of guest nights in Sweden during the summer of 2025 was the highest in at least a decade, with an increase of 5.6% compared to the previous summer and a occupancy rate of 72%. This positive momentum creates a favourable outlook for 2026. In this article we take a closer look at current trends in the hotel industry and the future prospects of the industry. For hotel entrepreneurs, it's more important than ever to stay on top of developments - and to utilise the right digital tools, such as a modern reservation system for hotels, to stay one step ahead.

Continued market growth and forecasts

There are strong indications that the hotel market in Sweden will continue to grow, albeit at a slightly slower pace than during the recovery phase. Industry analysts previously estimated that the market value of the Swedish hotel sector would reach just over USD 6 billion in 2025, with an annual growth rate of around 4% until 2029. Recent developments suggest that we are in line with these forecasts, and the market could well exceed USD 7 billion before the end of the decade. Increased demand from both domestic and international travellers is driving this growth, as is a general improvement in the economy. Hotel companies' own confidence has strengthened; the National Institute of Economic Research reports that accommodation companies' expectations have become increasingly positive in the autumn of 2025, with good booking conditions ahead of the year-end Visita. Overall, there is cautious optimism in the industry for 2026.

Demand, seasonality and new travel patterns

Demand for hotel accommodation is strong and has broadened across the seasons. The summer months remain the peak season - as mentioned, the summer of 2025 saw record-breaking figures in both major cities and smaller towns. For example, Stockholm rented out over 1.4 million hotel rooms in June-July 2025 (+5.8% compared to 2024), and similar increases were seen nationally. For the summer of 2026, the trend of high occupancy rates is expected to continue, boosted by the return of more international events and an increased interest in holidaying in Sweden. At the same time, we see that Swedes' booking behaviour has changed - many are booking their stay later and later in the trip. According to the industry organisation Visita, the booking situation on 1 July 2024 was around 4% below last year, indicating that guests are waiting longer before booking Visita (Tourism news). This behaviour, influenced by weather forecasts and economic factors, requires hotels to have flexible rates and conditions for late bookings - but it also means that demand can surprise positively with a flood of 'last-minute' guests during good weather or incentives.

Another clear trend is that travelling has become more motivational. Swedes have started to "celebrate themselves" and take every opportunity to travel, instead of waiting for major holidays. Both SCB and travel operators such as Booking.com have noticed that after the pandemic we spend more money on experiences than on gadgets In 2026, we see travelling to treat yourself to something extra increase significantly. It could be to celebrate a tax refund, a personal milestone or just to reward yourself with a weekend break. This "why not?" attitude means that demand is spread across the year and not just concentrated at traditional holiday times. For hotels, it is an opportunity to attract guests all year round by creating package deals and themed holidays that respond to guests' desire for unique experiences.

Regional development: metropolitan areas and regions

The recovery in the hotel industry is being felt throughout the country, but the trend varies slightly between regions. The metropolitan regions of Stockholm, Gothenburg and Malmö have seen strong growth in 2024-2025. In October 2025, the number of occupied hotel rooms in Sweden increased by just over 6% compared with the same month the previous year, according to Visita. Gothenburg and Stockholm led the way with increases of around 8-91 thousand tonnes, while Malmö increased by around 51 thousand tonnes. Visita (Tourism news). The return of business and conference tourism is contributing to weekday occupancy in major cities, while leisure travel remains strong. Outside the big cities, demand has also picked up - in 2025, demand in smaller destinations increased by around 5%, driven by nature tourism, new destinations and the swim holiday trend.

International travel to Sweden is also increasing, but there is more potential here. Our Nordic neighbours have seen even stronger growth in foreign visitors than Sweden in recent years. An explanation that Visita highlights is that, for example, Arlanda's flight connections have lost competitiveness and that neighbouring countries are investing more in international marketing of their destinations. If Sweden increases its investment in marketing abroad and improves its accessibility, we could see a much larger flow of international guests in the future. At the same time, the weak Swedish krona continues to give foreign visitors more value for money, which in 2025 helped to attract more tourists from the United States and Europe, among others.

Economic factors influence development

The macroeconomic environment plays a major role for the hotel industry. Looking ahead to 2026, there are signs that inflation is gradually slowing and stabilising, while real incomes are starting to recover. Swedish households have been squeezed by high interest rates and rising living costs, but economists believe that interest rates could ease somewhat in the second half of 2026 if inflation falls towards the Riksbank's target. Such an easing would give households more room to consume, favouring travel and hotel stays. Businesses have also adjusted to the new cost environment, with many corporate customers resuming their travel plans after a couple of years of austerity.

On the positive side, the labour market in the hospitality sector is strengthening in line with increased demand - employment in the hotel and restaurant sector has risen in 2024 and is expected to increase further if the trend continues. At the same time, there is a continued need to keep costs under control. Energy costs and food prices have risen, affecting hotel margins. A challenge ahead will be to balance necessary price increases with guests' value-for-money expectations. The industry may need to focus on energy efficiency and smart cost management (e.g. optimising staff scheduling and purchasing) to maintain profitability in a time of higher spending. Despite these challenges, the outlook for 2026 is generally positive - the demand is there, and the economic headwinds look set to ease.

Challenges and strategies for adaptation

Although the trends point in the right direction, the hotel industry faces a number of challenges that require strategic adaptation. To continue to grow and be competitive, hotels need to focus on certain key areas in 2026.

The conference and business segment is making a comeback

The business travel and conference segment has not fully recovered to pre-pandemic levels, although there has been a clear improvement in 2025. Many companies have introduced hybrid working models and tighter travel budgets, resulting in a decline in conference nights in the past (in 2024, the segment was around 12% below normal). However, there are now signs of an increase in business travel even during weekdays. The challenge for hotels is to meet the changing needs of business travellers and meeting participants:

• Developing hybrid meeting concepts: Invest in modern meeting technology to offer seamless hybrid meetings where some participants are on-site and others participate digitally. High-quality audio and video equipment, stable connectivity and interactive meeting tools are essential to attract conferences in the new era.
• Adapting conference spaces for smaller groups: Smaller, more intimate meetings have become more common. Hotels may need to divide large conference rooms into flexible smaller units, invest in modular furniture and create inspiring environments suitable for workshops and creative meetings. Personalised service and tailor-made arrangements are appreciated by smaller groups and can increase customer satisfaction.
• Focus on day conferences and local events: More companies are opting for shorter meeting formats without overnight stays. By offering attractive half- and full-day packages that include lunches, refreshments and activities, hotels can attract local companies to mid-week conferences. This helps to fill conference capacity even during traditionally quieter periods.
• Package solutions for business customers: To stand out from the competition, hotels can create holistic concepts for business groups - for example, conference packages that combine meetings with team-building activities, spa or gastronomic experiences. Offering added value beyond the meeting itself makes the conference more attractive and memorable.

Skills supply and human resources

Staff shortages and skills shortages continue to be one of the industry's biggest challenges. Many hotels are struggling to find and retain trained staff in reception, cleaning, kitchen and management. To meet the growing demand for services, the industry must work actively to attract and develop employees:

• Continuous professional development: Hotels that invest in the training of their staff are better equipped to deliver high quality. In-house training programmes, partnerships with vocational colleges and e-learning courses in areas such as guest service, languages, leadership and new technologies can enhance skills. A culture of learning and career opportunities also increases staff motivation and loyalty.
• Attracting and retaining talent: To compete for labour, hotels need to offer attractive conditions. Competitive salaries are one part of this, but soft values also play a role: clear career paths, a good working environment, staff benefits and opportunities to grow within the company. By profiling themselves as a positive and stimulating workplace, hotels can reduce staff turnover.
• Digitalisation and automation of routine tasks: Modern technological solutions can streamline some tasks, relieving the burden on staff. For example, self-service check-in, mobile keys and AI-driven customer service can free up time for staff to focus on more value-adding tasks such as providing personalised service to guests. Increased automation in booking systems and checkout also reduces the risk of errors and stress for staff.
• Sustainable workforce planning: To avoid attrition and high absenteeism, hotels need to work strategically on scheduling. Optimising staffing according to occupancy, avoiding unnecessary overtime and offering flexible working hours can ensure staff well-being. The balance between flexibility for the employee and the needs of the business is important - happy staff make happy guests.

Long-term trends shaping the hotel industry

Beyond short-term economic fluctuations, we see a number of long-term trends that are expected to characterise the development of the hotel industry in the coming years. To remain relevant and competitive, hotels need to adapt to these changes in guest preferences and behaviours.

Sustainable and climate-smart travel becomes the norm

Sustainability is no longer a niche issue, but is becoming a basic requirement in the industry. Travellers, especially younger generations and climate-conscious business travellers, are increasingly demanding environmentally friendly options. A global survey by Booking.com showed that 76% of travellers want to travel more sustainably. Hotels that take the lead in sustainability can therefore gain market share. In practical terms, this means investing in energy efficiency (e.g. smart heating, cooling and lighting systems), reducing food waste, recycling and circular flows, and offering guests greener choices during their stay. Certifications such as Green Key and The Swan or organic labels, such as REQUIREMENTS-Labelled food is becoming increasingly important as a competitive advantage and proof of credibility. Sustainability is also about social responsibility - for example, working with local suppliers, getting involved in community projects and ensuring fair conditions throughout the value chain. By integrating sustainability into their business model, hotels are better equipped for the future while attracting the growing group of guests who prioritise the environment.

Digitalisation, automation and AI

The role of technology in the hotel experience continues to grow. Guests have become accustomed to digital convenience and now expect seamless technological solutions throughout their stay. Already today, many hotels offer mobile check-in and check-out, digital keys and chatbots for simple customer service questions. In 2026 and beyond, we can expect even more automation. Artificial intelligence (AI) will start to be used to predict occupancy and optimise pricing, or to make personalised recommendations to guests based on data. A modern booking and PMS systems that integrate AI can, for example, adjust room rates in real time based on demand (dynamic pricing) and customer segments - something the airline industry used to be particularly good at. Automation also reduces the administrative burden on staff, as systems can handle routine tasks such as booking confirmations, payment processing and reporting.

At the same time, physical and digital services are becoming more interconnected. Many hotels are introducing smart room features: guests can control lighting, temperature and entertainment via voice assistants or apps. IoT (internet of things) enables different devices in the hotel to communicate - from sensors that notify when a conference coffee needs refilling, to connected thermostats that save energy when the room is empty. We also see examples of hotels bringing in new technologies such as AR (augmented reality) and VR to enhance the experience, for example through virtual tours of the hotel or destination. However, technology should not replace human contact, but free up time for staff to deliver more warmth and care to guests. The most successful hotels of the future are likely to be those that smartly integrate new technologies to increase efficiency and improve the guest experience.

Hyper-personalisation of the guest experience

Today's travellers value a personalised and tailored experience. With an ever-increasing amount of data available - from booking history and loyalty programmes to preferences expressed on social media - hotels have the opportunity to better tailor their offer to each guest. The trend is towards hyper-personalisation, where everything from welcome messages to room amenities and offers during the stay can be personalised. For example, hotels can use guest data to prepare a room with a favourite pillow or a welcome package based on previous bookings, or send targeted offers (such as a spa package to a previous spa user). In restaurants, it is becoming more common to remember allergies and dietary preferences. This level of personalisation gives the guest a sense of being seen and valued, which enhances the experience and loyalty.

Technical solutions such as CRM systems linked to the booking platform facilitate the collection and use of guest data. At the same time, privacy management requirements are increasing - hotels must comply with the GDPR and be transparent about how customer information is used. Those that manage to navigate this and offer genuine added value through personalisation will be rewarded with repeat guests and positive reviews. In an age of choice, that personal touch can be what sets a hotel apart.

Bleisure and new concepts for flexible stays

The line between business travel and leisure is becoming increasingly blurred. The phenomenon of 'bleisure' - combining business and leisure - is here to stay. Many travellers are extending their business trips by a few days to discover the destination, or taking their family on a work trip. This trend is particularly strong among younger business travellers; a global survey by Hotels.com found that around one in five people in the Gen Z/Millennial segment see a business trip as the perfect opportunity to add entertainment days and even change hotels for new experiences. The hotel industry is responding by developing new concepts that appeal to this customer group. We see examples of:

• Co-working and 'workation': Hotels that create inspiring work environments in the lobby or offer special packages for guests who want to work remotely during their stay. Good wifi, quiet zones, coffee and perhaps access to meeting rooms become key selling points for these guests.
• Long-stay and flexible accommodation: Demand for longer stays and apart-hotel-like amenities is increasing. Some hotels are investing in rooms with kitchenettes and laundry facilities, or offering discounted weekly rates, to attract guests staying longer than a few days - such as digital nomads or project consultants.
• Thematic experiences and unique accommodation: In the search for uniqueness, some travellers are opting out of standard hotel experiences. The trend for historic and iconic accommodation is also evident in Sweden - from converted prisons and heritage buildings to glamping and design hotels, it gives guests a story to take home. Hotels getting stuck in a single concept can be a disadvantage; those that dare to develop new themes, pop-up concepts or collaborations (e.g. hotel + culture + local food) can win new customer segments.

Development of services and upselling

Finally, we see hotels broadening their service portfolio to increase revenue and provide a holistic guest experience. Hotel restaurants and bars have become destinations in their own right, open to locals as well, and are focusing on high quality to drive revenue. Spas, gyms and wellness services are a growing area - wellness tourism is a global trend and many hotels are investing in offering on-site fitness, yoga, treatments and other health initiatives. Experiential upselling is also on the rise: partnering with local guide companies to sell excursions, cultural experiences or sports activities directly through the hotel. Digital technology comes into play here too, with the possibility to recommend and book additional services during the stay via the hotel's app or guest portal. All of this allows the hotel to increase guest satisfaction - providing them with everything they need during their stay - while making a positive contribution to the bottom line.

Conclusion: towards a brighter future for the hotel industry

To summarise, the Swedish hotel industry is stronger than it has been for a long time and is looking ahead with confidence. After a successful recovery in 2024-2025, 2026 is expected to be the year when the industry consolidates its growth. With continued growth in guest nights, increasingly diversified demand and stabilising economic conditions, the outlook looks promising. Hotels that embrace sustainability, invest in digital innovation and, most importantly, put the guest's personalised experience at the centre will be the most successful. The industry is dynamic, but all signs point to the future of the hospitality industry being full of opportunities for those prepared to adapt and innovate.

The challenge for hotel owners and managers is to put these insights into practice. By keeping up with the trends above and investing in the right solutions, you can take your hotel to the next level. This is where Lyra can be a partner on the journey - we at Lyra offers a complete platform of tools for the hotels of the future, from smart booking management to dynamic pricing and guest services. With the right support and systems, you can streamline operations, increase guest satisfaction, and free up time to create those unique experiences that keep guests coming back. The hotel industry in 2026 is full of potential, and together we can make it happen.