The Hotel Industry in Sogndal: Current Status and Future Outlook

The hotel industry in Sogndal has proven to be a stable and growth-oriented sector over the past few years, with a combination of established businesses and growing demand for accommodation services in the region. In 2025, the industry had 12 registered companies with a total of 265 employees and an annual revenue of 216.4 million NOK. This development has been particularly evident after 2020, when the industry experienced a strong decline due to the pandemic, but has since grown by 2.4% in 2025. The broader accommodation sector in the municipality, which includes camping and short-term cabins, has also shown positive development, with 41 companies and an annual revenue of 227.3 million NOK in 2025. This shows that Sogndal has a strong position within tourism and accommodation, which can be an advantage for new players in the sector.

Annual Revenue and Employees

Yearly Development

• Annual Revenue: Largest decline in 2020 (-45.9%), but a strong recovery in 2022 (+54.2%) and 2024 (+18.1%).
• Employees: Largest decline in 2020 (-25.7%), but strong growth in 2022 (+36.8%) and 2023 (+14.7%).

Financial Key Figures

• EBITDA Margin: Average 11%, with variations between 6% and 23%.
• Cross-over Ratio: Average 91%, with highest values in Leikanger (87%) and Fjærland (92%).
• Operating Margin: Average 7%, with highest values in Leikanger (21%) and lowest in Fjærland (3%).

In Sogndal, there are 12 companies registered in the hotel industry, with the dominant organizational form being AS (9 companies) and one ENK. The most well-known companies include:

• Quality Hotel Sogndal (Gravensteinsgata 5, Sogndal): 121 employees, 104.4M in sales revenue, 7.3M in EBITDA.
• Kviknes Hotel As (Kviknevegen 8, Balestrand): 99 employees, 71.2M in sales revenue, 9.0M in EBITDA.
• Leikanger Hotell As (Strandavegen 1, Leikanger): 32 employees, 14.9M in sales revenue, 3.5M in EBITDA.
• Hofslund Fjordhotel As (Fjørevegen 37, Sogndal): 26 employees, 11.4M in sales revenue, 1.4M in EBITDA.

Organizational Form Statistics:

Bankruptcy Safety: None of the registered companies are registered as bankrupt, which indicates a stable industry.

The hotel industry is distributed across several districts and towns in Sogndal, with the following distribution:

Key Figures per Town/Location:

• Sogndal: Highest number of employees (167) and sales revenue (128.6M), with an EBITDA margin of 8%.
• Balestrand: Highest EBITDA margin (12%) and highest operating margin (7%).
• Leikanger: Highest EBITDA margin (23%) and highest operating margin (21%).
• Fjærland: Lowest sales revenue (481.0K) and lowest EBITDA (41.0K), with a negative revenue growth of -47%.

The hotel industry in Sogndal has proven to be relatively stable, with no registered bankruptcies related to the sector. However, there are some companies that have shown weak financial results:

• Huseby Hotelldrift As (Fjærlandsfjorden 258, Fjærland): 0 employees, 0 in sales revenue and EBITDA.
• Rødseter As (Supphellevegen 279, Fjærland): 5 employees, 481.0K in sales revenue, but a negative revenue growth of -47%.
• Jesl As (Gravensteinsgata 5, Sogndal): 0 employees, 0 in sales revenue and EBITDA, but a negative operating margin of -314.0K.

General Trends:

• Growth: Largest growth in 2022 (+54.2%) and 2024 (+18.1%), but also a significant decline in 2020 (-45.9%).
• Stability: Most companies have shown stable or positive development over the past few years, with exceptions for the mentioned companies.

Outlook for Entrepreneurs

The hotel industry in Sogndal shows potential for growth and development, especially after the strong decline in 2020. With an average EBITDA margin of 11% and high sales growth in 2024 and 2025, it can be an attractive sector for new players. However, it is important to be aware of the weak companies in Fjærland, which may indicate local challenges. Entrepreneurs should consider locating in towns with higher sales revenue and stable growth, such as Sogndal and Balestrand. This can provide better opportunities to achieve profitability and market share.

The broader accommodation sector in Sogndal, which includes camping and short-term cabins, has shown stronger growth than the hotel industry. In 2025, the accommodation sector had 41 companies with an annual revenue of 227.3 million NOK, compared to 216.4 million NOK for the hotel industry. This shows that the accommodation sector has a larger market share and a more diversified structure. Key figures for the accommodation sector include:

• Annual Revenue: 227.3M in 2025, with a growth of 1.9% compared to 2024.
• Employees: 356 employees in 2026, with a growth of 13.7% compared to 2025.

Peer Companies in the Accommodation Sector:

Conclusion: The accommodation sector has stronger growth and a more diversified structure than the hotel industry, which can be an advantage for new players seeking to expand their market share.

The hotel industry in Sogndal shows a positive development with strong growth in sales revenue and employees after the pandemic. With an average EBITDA margin of 11% and high sales growth in 2024 and 2025, it can be an attractive sector for new players. However, it is important to be aware of the weak companies in Fjærland, which may indicate local challenges. Entrepreneurs should consider locating in towns with higher sales revenue and stable growth, such as Sogndal and Balestrand. This can provide better opportunities to achieve profitability and market share. SmartGrunder can help entrepreneurs find suitable addresses in Sogndal for this industry, based on data and analysis.