Industry · municipality
The Hotel Industry in Lillesand: Current Status and Outlook
Economic Overview, Companies, and Development Trends in Lillesand
Brief Overview of the Hotel Industry in Lillesand
The hotel industry in Lillesand consists of four registered companies, with a combined wage cost of 8.7 million NOK and a negative operating result of 1.6 million NOK in 2023. The most significant player is Lillesand Hotel Norge As, which operates with 37 employees and has a negative EBITDA of 1.4 million NOK. The industry has been marked by a sharp decline in sales and employees after 2022, with a total sales decline of 38.1% from 2022 to 2023. This indicates a highly dynamic and unpredictable industry in the municipality.
Economic Overview of the Hotel Industry
Sales and Employee Development
Sales for the hotel industry in Lillesand peaked in 2022 at 32.1 million NOK, but fell sharply to 19.9 million NOK in 2023. This decline is one of the most significant in the entire period (2016–2025), with an annual decline of 38.1%. Employee numbers have also been unstable, decreasing from 114 employees in 2021 to 59 employees in 2026. This shows a very strong dynamism in the industry, with large variations from year to year.
Economic Indicators
The industry has a negative EBITDA margin of -8% and a negative operating result of -9% in 2023. The most significant player, Lillesand Hotel Norge As, has a negative operating result of -1.6 million NOK and a negative EBITDA of -1.4 million NOK. This indicates that the hotel industry in Lillesand has been marked by economic challenges in recent years.
Companies in the Hotel Industry
Registered Companies in the Industry
The following companies are registered in the hotel industry in Lillesand:
| Company | Address | Organizational Form | Employees | Sales (2023) | EBITDA (2023) |
|---|---|---|---|---|---|
| Lillesand Hotel Norge As | Strandgata 3, Lillesand | AS | 37 | 16.0M NOK | -1.4M NOK |
| Vertikalen As | Gaupemyrheia 2, Lillesand | AS | 27 | 0 NOK | 0 NOK |
| Lillesand Hotel Norge Holding As | Strandgata 3, Lillesand | AS | 0 | 0 NOK | 0 NOK |
| Lillesand Hotell Norge Eiendom As | Strandgata 3, Lillesand | AS | 0 | 0 NOK | 618.0K NOK |
Organizational Forms
All companies in the industry are registered as AS (limited liability companies). No companies are registered as sole proprietorships or other organizational forms.
Business Geography in Lillesand
Distribution of Activity in the Municipality
The hotel industry in Lillesand is concentrated in the Lillesand area, with the following statistics:
- Number of companies: 2
- Number of employees: 64
- Operating income: 16.0M NOK
- Sales: 16.0M NOK
- Wage cost: 8.7M NOK
- Operating result: -1.6M NOK
- EBITDA: -1.4M NOK
- Gross profit: 13.2M NOK
- Total equity: -128.0K NOK
- Total debt: 5.5M NOK
- Sales growth: -9%
- EBITDA margin: -8%
- Gross profit margin: 82%
- Operating margin: -9%
This shows that activity in the industry is concentrated in a single district, with a very negative economic development in 2023.
Operational Dynamics and Bankruptcy Statistics
None of the four companies in the industry are registered as bankrupt, but several of them have negative economic indicators. Lillesand Hotel Norge As has a negative operating result of -1.6 million NOK and a negative EBITDA of -1.4 million NOK. Lillesand Hotell Norge Eiendom As has a positive EBITDA of 618.0K NOK, but no sales in 2023. This indicates that the hotel industry in Lillesand has been marked by large variations in economic performance, with some companies achieving positive results and others facing serious challenges.
Outlook for Founding New Companies
The hotel industry in Lillesand has been marked by a sharp decline in sales and employees after 2022, with a total sales decline of 38.1% from 2022 to 2023. This indicates a highly dynamic and unpredictable industry in the municipality. Founding new companies in this industry should be considered with great caution, given the negative economic indicators and the unstable development in the industry. It may be beneficial to look at competing sectors within accommodation, such as camping and short-term cabins, which have proven to be more stable in Lillesand.
Outlook for Accommodation Companies in Lillesand
The broader accommodation company group in Lillesand has 13 companies, compared to the four companies in the hotel industry. Sales for accommodation companies peaked in 2022 at 47.6 million NOK, but fell to 31.8 million NOK in 2023. This shows that accommodation companies have been marked by a very sharp decline in sales after 2022, but have a more stable development compared to the hotel industry.
Competing Companies in Accommodation
The following companies are registered in the accommodation company group in Lillesand, but not in the hotel industry:
| Company | Address | Industry | Sales (2023) | EBITDA (2023) | Employees (2023) |
|---|---|---|---|---|---|
| Tingsaker Camping As | Tingsakerbakken 2, 4790 Lillesand | Camping | 1.2M NOK | 2.1M NOK | 4 |
| Skottevik Feriesenter As | Skottevik, 4770 Høvåg | Camping | 13.6M NOK | -489.0K NOK | 33 |
| Hauge Appartement | Storgata 6, 4790 Lillesand | Short-term cabins | 0 NOK | 0 NOK | 0 |
This shows that accommodation companies in Lillesand have a more diversified structure, with both camping and short-term cabins as important sectors. This can be an advantage for founding new companies in these sectors.
Other companies in overnatting (not in hotel)
| Company | Industry | Address | Sales | Employees | EBITDA |
|---|---|---|---|---|---|
| Tingsaker Camping As | camping | Tingsakerbakken 2, 4790 Lillesand | NOK 1.2M | 4 | NOK 2.1M |
| Skottevik Feriesenter Eiendom As | camping | Skottevik, 4770 Høvåg | NOK 0 | 0 | NOK 1.9M |
| Hauge Appartement | short stay cabins | Storgata 6, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Justøyfamiliens Bibelcamping | camping | Tangvigveien 61, 4780 Brekkestø | NOK 0 | 0 | NOK 0 |
| Møglebo Ans | short stay cabins | Møglestu, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Ramstad Utleie | camping | Østregate 6A, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Ramstad Utleie | camping | Østregate 6A, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Skjærgårdsleiren | camping | Tingsaker, 4790 Lillesand | NOK 0 | 0 | NOK 0 |
| Skottevik Feriesenter As | camping | 0, 4770 Høvåg | NOK 13.6M | 33 | NOK -489.0K |
Conclusion and Future Opportunities
The hotel industry in Lillesand has been marked by a very sharp decline in sales and employees after 2022, with a total sales decline of 38.1% from 2022 to 2023. This indicates a highly dynamic and unpredictable industry in the municipality. Founding new companies in this industry should be considered with great caution, given the negative economic indicators and the unstable development in the industry. It may be beneficial to look at competing sectors within accommodation, such as camping and short-term cabins, which have proven to be more stable in Lillesand. SmartGrunder can help entrepreneurs find suitable addresses in Lillesand for this industry, with a focus on development opportunities and natural conditions.