Danish-owned hotel chain Comwell Hotels has today published its ESG reporting and annual results for 2023. With a revenue of DKK 1,290.6 million, the chain can write it into history as the highest ever. As part of the annual report, Comwell also reports on 2023's ESG goals and activities, reflecting a strong focus on the journey towards more sustainable hotel operations across all hotels.
Comwell Hotels reports a profit before tax of DKK 34.2 million compared to DKK 72.5 million in 2022, according to the hotel chain's annual report published today. And with revenue increasing by +6% to DKK 1,290.6 million compared to DKK 1,216.6 million in 2022, the chain set a revenue record.
2023 presented challenging circumstances
"We are proud that we have achieved a revenue record in an otherwise difficult market," says Peter Schelde, CEO of Comwell Hotels, emphasising: "It shows the strength of our business strategy and the commitment and dedication of our employees. Navigating such complex times while working hard on our commitment to the journey towards a more sustainable hotel chain is crucial to our continued success."
On the earnings side, Comwell achieved a lower result in 2023 compared to the previous year. The result is negatively affected by changes in the hotel portfolio driven by the execution of Comwell's location strategy. This has had a negative impact on profit for the year totalling DKK 23.3 million before tax.
An eventful year in the sustainability journey
2023 was an eventful year for Comwell's sustainability efforts.
"During the year, we further focussed our efforts on training and upskilling our employees. This is a key part of our strategy to ensure both professional and personal development of our employees. It also helps to improve well-being when employees can feel that they are making progress. This is crucial in an industry where competition for qualified labour is fierce."
In 2023, Comwell also won two great awards; for the fifth consecutive year, the hotel chain received the European Sustainable Brand Index™ Award, which means that Danish consumers continue to perceive Comwell as the country's most sustainable hotel chain. Furthermore, Comwell was awarded the food waste award 'Stræberen'. An award founded by 'De Samvirkende Købmænd' (a Danish trade organisation for grocery-owned supermarkets), which honours people and companies that make a difference in the fight against food waste.
Major projects on the way
To further strengthen Comwell's position in the Danish hotel and conference market, the hotel chain has also launched a number of major projects in 2023.
On the first day of the year, Comwell took over the keys to Comwell Bygholm Park in Horsens, which, after a thorough renovation, is now part of Comwell's portfolio of hotels in East Jutland.
Furthermore, the hotel chain has started construction of a 15-storey hotel tower in Aarhus as an extension to Comwell Aarhus. The tower is expected to be completed in 2026 with a sky bar, additional restaurant facilities, roof terrace and meeting facilities. After the expansion, the Aarhus hotel will have a total of 401 rooms, suites and long-stay apartments.
In addition, Comwell unveiled the chain's latest hotel project; a completely renovated hotel in the heart of Kongens Lyngby, which - when completed in 2026 - will offer 216 rooms, suites and state-of-the-art meeting facilities on the 12th floor.
Expecting increased demand from global markets
Comwell expects a positive result for 2024.
"We expect a number of factors to lead to stagnating or declining economic activity in Europe, which will affect the economic development in the Danish market. On the positive side, we expect the global meetings and travel industry to be at a similar level to 2019 by the end of 2024," concludes Peter Schelde.
Facts and figures
Revenue: DKK 1,290.6 million compared to DKK 1,216.6 million in 2022
Profit before tax: DKK 34.2 million compared to DKK 72.5 million in 2022
Group equity: DKK 254.2 million with an equity ratio of 44.2
Occupancy in Denmark (Comwell): 66.3% in 2023 compared to 65.1% in 2022
Occupancy in Sweden (Comwell): 67.6% in 2023 compared to 65.8% in 2022
