Industry · municipality
The Hotel Industry in Narvik: Economic Development, Companies, and Future Outlook
A detailed analysis of the hotel industry in Narvik municipality based on current data and market statistics
Executive Summary
The hotel industry in Narvik has shown both strengths and challenges in recent years. With 22 registered companies in the municipality, including well-known names such as Grand Royal Hotel and Scandic Narvik, the industry is an important part of the local economy. Although EBITDA margins have been negative for several companies, there has been a significant increase in sales and number of employees since 2020. The broad accommodation industry in Narvik, which includes camping and cabins, shows stronger growth, which could provide opportunities for collaboration and diversification.
Economic Overview
Economic Development Trends
Sales:
- 2025: NOK 119.6 million (increase of 13.0% from 2024)
- 2024: NOK 105.8 million (increase of 19.9% from 2023)
- 2023: NOK 88.2 million (decrease of 6.2% from 2022)
Employees:
- 2026: 337 employees (increase of 16.2% from 2025)
- 2025: 290 employees (increase of 2.1% from 2024)
- 2024: 284 employees (increase of 1.1% from 2023)
Key Figures
- Average EBITDA margin: -6% (2025)
- Average sales growth: 13.0% (2024–2025)
- Average number of employees per company: 16.5 (2025)
Companies in the Industry
Key Companies in the Industry
| Company | Address | Number of Employees | EBITDA (2025) | Notes |
|---|---|---|---|---|
| Grand Royal Hotel As | Kongens gate 64, Narvik | 83 | NOK 4.4M | Largest sales figures in the industry |
| Narvikfjellet As | Skistua 57, Narvik | 100 | NOK -9.7M | New company (2019) with high growth |
| Scandic Narvik | Kongens gate 33, Narvik | 61 | NOK 0 | Inactive company |
| Bjerkvik Hotell As | Trollvikveien 18, Bjerkvik | 21 | NOK -3.1M | High sales growth (94%) |
| Narvik Hotel Wivel As | Kongens gate 36, Narvik | 30 | NOK 390K | Highest EBITDA margin (13%) |
Organizational Forms
- 11 companies are registered as AS (78% of all companies)
- No companies are registered as ANO or property associations
Business Geography
Distribution of Activity in the Municipality
| Location | Number of Companies | Number of Employees | Sales (2025) | EBITDA Margin |
|---|---|---|---|---|
| Narvik | 8 | 321 | NOK 103.4M | -6% |
| Bjerkvik | 1 | 21 | NOK 18.9M | -16% |
| Kjøpsvik | 2 | 8 | NOK 4.2M | -48% |
Observations:
- Narvik dominates with 8 companies and 321 employees (80% of the total number of employees)
- Bjerkvik has the highest sales growth (94%) but the lowest EBITDA margin (-16%)
- Kjøpsvik has the most negative EBITDA margins (-48%) and the lowest sales
Business Dynamism
Operational Efficiency and Bankruptcies
- Bankruptcies: No bankruptcies registered for the hotel industry in Narvik (2025)
- EBITDA Margins:
- 6% (Grand Royal Hotel)
- -48% (Narvikfjellet As)
- -52% (Stetind Hotelldrift)
- Biggest Challenges:
- Kjøpsvik has the most negative EBITDA margins (-48%)
- Stetind Hotelldrift has the lowest sales (NOK 4.0M) and lowest EBITDA margin (-25%)
- Strengths:
- Grand Royal Hotel has the highest sales (NOK 71.7M) and positive EBITDA (6%)
Future Outlook
Future Outlook for Entrepreneurs
The hotel industry in Narvik shows potential for growth, especially with:
- Sales increase of 13.0% from 2024 to 2025
- Employee increase of 16.2% from 2025 to 2026
- Larger accommodation industry (45 companies) that can provide collaboration opportunities
Recommendations for Entrepreneurs:
- Focus on cost control to improve EBITDA margins
- Develop unique offerings in Kjøpsvik and Bjerkvik where competition is less
- Develop collaboration with the camping and cabin industry in the accommodation sector
- Develop digital solutions to increase accessibility and streamline operations
Outlook for the Accommodation Industry
Comparison with the Accommodation Industry
Accommodation Industry in Narvik (2025):
- 45 companies (23 more than the hotel industry)
- Sales: NOK 131.1M (13.0% increase from 2024)
- Employees: 370 (17.1% increase from 2025 to 2026)
Peer Companies in the Accommodation Industry:
| Company | Industry | Sales (2025) | EBITDA (2025) |
|---|---|---|---|
| Narvikfjellet Feriepark As | Camping | NOK 0 | NOK 4.8M |
| Ballangen Camping Drift As | Camping | NOK 10.8M | NOK 2.2M |
| Norges Arktiske Studentsamskipnad | Other Accommodation | NOK 5.4M | NOK 2.0M |
Conclusion:
- The accommodation industry has higher growth and more companies
- The hotel industry can leverage collaboration potential with the camping and cabin industry
- EBITDA margins in the accommodation industry are generally better (e.g., NOK 2.2M for Ballangen Camping)
Other companies in overnatting (not in hotel)
| Company | Industry | Address | Sales | Employees | EBITDA |
|---|---|---|---|---|---|
| Narvikfjellet Feriepark As | camping | Skistua 7, 8515 Narvik | NOK 0 | 0 | NOK 4.8M |
| Narvikfjellet Feriepark As | camping | Skistua 7, 8515 Narvik | NOK 0 | 0 | NOK 4.8M |
| Ballangen Camping Drift As | camping | Stor-Ballangen-E6 160, 8540 | NOK 10.8M | 15 | NOK 2.2M |
| Norges Arktiske Studentsamskipnad Bolig Og Eiendom Narvik | other accommodation | Lodve Langes gate 2, 8514 Narvik | NOK 5.4M | 7 | NOK 2.0M |
| Efjord Sjøhus As | short stay cabins | Håkonseth, 8540 Ballangen | NOK 2.2M | 5 | NOK 1.4M |
| Victoria Apartments As | hostel | Dronningens gate 58, 8514 Narvik | NOK 3.2M | 0 | NOK 938.0K |
| Narvik Adventures As | short stay cabins | c/o Ballangen Camping|Stor-Ballangen-E6 160, 8540 | NOK 4.2M | 9 | NOK 129.0K |
| Dnt Narvik Cunojávrihytta | camping | 0, 8523 Skjomen | NOK 0 | 0 | NOK 0 |
| Dnt Narvik Gautelishytta | camping | 0, 8523 Skjomen | NOK 0 | 0 | NOK 0 |
| Dnt Narvik Hunddalshytta | camping | 0, 8522 Beisfjord | NOK 0 | 0 | NOK 0 |
| Dnt Narvik Paurohytta | camping | 0, 8590 Kjøpsvik | NOK 0 | 0 | NOK 0 |
| Dnt Narvik Skoaddejávre | camping | 0, 8523 Skjomen | NOK 0 | 0 | NOK 0 |
| Dnt Narvik Vokterboligen | camping | 0, 8517 Narvik | NOK 0 | 0 | NOK 0 |
| Engen Gård Og Pensjonat As | short stay cabins | Skjomnesveien 15, 8521 Ankenes | NOK 0 | 0 | NOK 0 |
| Engen Gård Og Pensjonat As | short stay cabins | Skjomnesveien 15, 8521 Ankenes | NOK 0 | 0 | NOK 0 |
| Hærsletta Camping | camping | Nygård 404, 8519 Narvik | NOK 0 | 0 | NOK 0 |
| Kjøpsvik Stay As | short stay cabins | Pæsaveien 8, 8590 Kjøpsvik | NOK 0 | 0 | NOK 0 |
| Lossihytta | camping | Skjomen, 8523 | NOK 0 | 0 | NOK 0 |
| Nordic Bliss As | short stay cabins | Dreggveien 1, 8520 Ankenes | NOK 0 | 4 | NOK 0 |
| Pettersen Service Og Utleie | short stay cabins | Pæsaveien 8, 8590 Kjøpsvik | NOK 0 | 0 | NOK 0 |
| Sitashytta | camping | Ballangen, 8540 | NOK 0 | 0 | NOK 0 |
| Øyjord Camping Harry Andreassen | camping | Øyjord|Snauvollen 13, 8519 Narvik | NOK 0 | 0 | NOK 0 |
| Lofoten Og Senja Rorbuer As | short stay cabins | Kongens gate 66, 8514 Narvik | NOK 2.0M | 0 | NOK -435.0K |
Conclusion
The hotel industry in Narvik shows both opportunities and challenges. With growth in sales and number of employees, as well as a broad accommodation industry that can provide collaboration opportunities, there is potential for growth. Entrepreneurs should focus on cost control, unique offerings, and collaboration with other sectors in the accommodation industry. SmartGrunder can help find optimal addresses and strategies to leverage local conditions in Narvik.