Industry · municipality
The Hotel Industry in Kragerø: Current Status and Outlook
Analysis of Economic Trends, Businesses, and Development Opportunities in the Hotel Sector in Kragerø
Brief Overview of the Hotel Industry in Kragerø
The hotel industry in Kragerø has experienced significant fluctuations in recent years. In 2023, sales dropped sharply to 12.9 million NOK compared to 2022 (38.3 million NOK), and the number of employees fell from 200 to 78. There are now four registered hotel businesses in the municipality, with a total wage cost of 4.7 million NOK. However, the broader accommodation sector (including camping and cabins) has shown better development, with sales increasing from 113 million NOK in 2023 to 134 million NOK in 2025. This indicates that the hotel industry plays a special role in the municipality but must compete with other forms of accommodation.
Economic Trends in the Hotel Industry
Economic Trends
- Sales: The hotel industry reached a peak in 2021 with 45.8 million NOK, but fell to 12.9 million NOK in 2023 (a decline of 66.4%). In 2024, there was a slight increase to 13.4 million NOK.
- Employees: The number of employees increased sharply from 65 in 2025 to 69 in 2026, but experienced a dramatic decline from 200 in 2022 to 78 in 2023.
- EBITDA: The EBITDA margin has been negative for several years, with a margin of 0% in both 2023 and 2024.
- Debt: Total debt for hotel operations in the municipality stands at 3.0 million NOK, while equity is 1.8 million NOK.
Registered Companies in the Hotel Industry
Registered Companies
- Kragerø Sportell Og Apartments As (Lovisenbergveien 20): AS-form, 27 employees, operates with an operating result of -559,000 NOK and EBITDA of 107,000 NOK.
- Portør Pensjonat As (Portørveien 170): AS-form, 35 employees, but has 0 sales and is registered as non-bankrupt.
- Victoria Hotel Kragerø As (P.A.Heuchs gate 31): AS-form, 14 employees, with 0 sales and 0 EBITDA.
- Kragerø Hotell As (P.A.Heuchs gate 16): AS-form, 7 employees, with 0 sales and 0 EBITDA.
All companies are registered as AS, and there are no companies in other organizational forms in the municipality.
Geographic Distribution of the Business
Geographic Distribution
- Kragerø: 3 companies, 48 employees, operating income of 13.6 million NOK, sales of 13.2 million NOK, and EBITDA of 107,000 NOK.
- Stabbestad: 1 company (Portør Pensjonat), 35 employees, but with 0 sales and 0 EBITDA.
Kragerø dominates the hotel industry with 3 of the 4 companies, while Stabbestad has a smaller operation with lower economic results.
Operational Dynamics and Stability
Operational Dynamics
- Bankruptcy Safety: Only one company (Portør Pensjonat) is registered as non-bankrupt, despite having 0 sales and 0 EBITDA.
- Operating Result: Kragerø Sportell had a negative operating result of -559,000 NOK in 2023, while the other companies had 0 sales and 0 operating result.
- Employees: A sharp decline from 200 in 2022 to 78 in 2023, but a slight increase to 74 in 2024.
The industry has been marked by significant variations, especially after the pandemic, and there is a clear need for economic stabilization.
Outlook for Entrepreneurs in the Hotel Industry
Outlook for Entrepreneurs
The hotel industry in Kragerø shows both challenges and opportunities. The sharp decline in sales and number of employees after 2022 indicates a weakness in the sector, but there are also opportunities in a future tourism economy. Kragerø's geographical advantages and culture can benefit new hotel businesses that adapt to modern tourist needs. However, it is important to be aware of the economic challenges, such as low EBITDA margins and high debt levels in some companies.
Outlook for the Accommodation Sector
The broader accommodation sector (including camping, cabins, and hotels) has shown better development than the hotel industry alone. In 2025, the accommodation sector achieved a sales increase to 134 million NOK, while the hotel industry had only 12.8 million NOK. The accommodation sector also had a higher number of employees (226 in 2026) compared to the hotel industry (69 in 2026).
Peer Companies in the Accommodation Sector
| Name | Address | Sales | EBITDA | Number of Employees |
|---|---|---|---|---|
| Kragerø Resort Drift As | Stabbestadveien 1 | 117.7 million NOK | 7.5 million NOK | 148 |
| Jomfruland Camping As | Jomfruland | 3.3 million NOK | 1.6 million NOK | 1 |
| Lovisenberg Campingdrift As | Lovisenbergveien | 1.3 million NOK | 426,000 NOK | 20 |
These companies show that the accommodation sector has both large and small businesses, particularly in camping and cabins.
Other companies in overnatting (not in hotel)
| Company | Industry | Address | Sales | Employees | EBITDA |
|---|---|---|---|---|---|
| Kragerø Resort Drift As | resort / hotel | Stabbestadveien 1, 3788 | NOK 117.7M | 148 | NOK 7.5M |
| Jomfruland Camping As | camping | Jomfruland, 3781 | NOK 3.3M | 1 | NOK 1.6M |
| Lovisenberg Campingdrift As | camping | Lovisenbergveien, 3770 Kragerø | NOK 1.3M | 20 | NOK 426.0K |
| Dnt Telemark Øitangen | camping | Hovedveien 168, 3781 Jomfruland | NOK 0 | 0 | NOK 0 |
| Eidkilen As | camping | Krikkenveien 45, 3780 Skåtøy | NOK 0 | 19 | NOK 0 |
| Kragerøfjorden As | camping | Ørvikveien 291, 3788 Stabbestad | NOK 0 | 0 | NOK 0 |
| Kragerøfjorden Camping As | camping | Ørvikveien 291, 3788 Stabbestad | NOK 0 | 0 | NOK 0 |
| Kragerøfjorden Camping As | camping | Ørvikveien 291, 3788 Stabbestad | NOK 0 | 0 | NOK 0 |
| Mikrohyttene As | camping | Fredheimsveien 13, 3766 Sannidal | NOK 0 | 0 | NOK 0 |
| Mikrohyttene As | camping | Fredheimsveien 13, 3766 Sannidal | NOK 0 | 0 | NOK 0 |
| Mikrohyttene Lene Fjelde | short stay cabins | Fredheimsveien 13, 3766 Sannidal | NOK 0 | 0 | NOK 0 |
| Sondres Enkeltmannsforetak Sondre Nordengen | short stay cabins | Oterøy 15, 3783 Kragerø Skjærgård | NOK 0 | 0 | NOK 0 |
| Tangane Camping Dagfinn Steinbru | camping | Støleveien 11, 3788 Stabbestad | NOK 0 | 2 | NOK 0 |
| Åsmundhavn Feriehytter Anne Brit Åsmundhavn | short stay cabins | Valbergveien 7, 3770 Kragerø | NOK 0 | 0 | NOK 0 |
| Portør Hytteutleie As | short stay cabins | Nordre Portør 11, 3788 Stabbestad | NOK 1.5M | 10 | NOK -52.0K |
| Gundersen Gård Camping As | camping | Saltverksmyrveien 7, 3781 Jomfruland | NOK 944.0K | 0 | NOK -122.0K |
Conclusion and Future Security
The hotel industry in Kragerø has both challenges and opportunities. With a sharp decline in sales and number of employees after 2022, it is important to be aware of the economic challenges. However, the accommodation sector shows better development, and there are opportunities for new businesses that adapt to modern tourist needs. SmartGrunder can help entrepreneurs find good locations in Kragerø for hotel operations, based on both economic and geographic conditions.