The Hotel Industry in Sunnfjord: Current Status and Future Outlook

The hotel industry in Sunnfjord is a small but dynamic sector with 8 registered companies. Most of the activities are located in Skei I Jølster, with less activity in Førde and Sande. The industry has experienced significant variations in sales and employees over time, with a marked increase in 2023 after a deep decline in 2020. This shows a vulnerability related to external factors such as pandemics and tourist downturns. Nevertheless, there is potential for growth, especially in Skei I Jølster where one of the largest companies, Grand Hotel Skei As, has higher income and operating profit compared to other areas.

Sales and employee development:

Sales have been highly uncertain, with a decline of 98.7% in 2020 and an increase of 1496.3% in 2021. Employee numbers have also shown large variations, with a significant increase from 16 to 66 employees between 2022 and 2023. This may be due to increased activity after the pandemic, but there is uncertainty about whether this growth will continue.

There are 8 companies registered in the hotel industry in Sunnfjord, all with the legal form AS. The most well-known companies include:

• Grand Hotel Skei As (Skei I Jølster): 51 employees, founded in 2025, high income and operating profit.
• Førde Hotel Drift As (Førde): 30 employees, founded in 2025.
• Elvehagen Hotell As (Sande I Sunnfjord): 26 employees, founded in 2022.
• Førde Pensjonat As (Førde): 6 employees, founded in 2020.
• Jølster Hotell As (Vassenden): 0 employees, but with negative operating profit.

Most companies have not reported bankruptcy, but some have low or negative EBITDA. This shows a potential risk for companies with low income and high operating costs.

The hotel industry is most concentrated in Skei I Jølster, with 2 companies and 56 employees. Førde and Sande I Sunnfjord have less activity, with 2 and 1 companies respectively. Financial data shows that Skei I Jølster has higher income and operating profit compared to other areas. Førde and Sande have lower or no reported income, which may be due to lower tourist activity or less development in these areas.

The hotel industry in Sunnfjord has proven to be vulnerable to external factors. In 2020, all companies in Førde and Sande had zero income, which may be due to the pandemic and reduced tourist activity. Jølster Hotell As had a negative operating profit of -121.0K in 2021, showing a potential risk for companies with low income. However, there has been a significant increase in employees from 16 to 66 between 2022 and 2023, which may indicate an improvement in operating profit after 2020.

Bankruptcy statistics show that no companies have been declared bankrupt, but there are several companies with low or negative EBITDA, which may be an indicator of economic challenges.

Outlook for Entrepreneurs

For entrepreneurs considering starting a hotel in Sunnfjord, it is important to be aware of both opportunities and challenges. Skei I Jølster shows potential with higher income and operating profit compared to other areas. However, there is significant variation in sales and employees over time, which can be a challenge for new companies. It is also important to be aware of competition from other accommodation options, such as camping and short-term cabins, which are represented in the broader accommodation sector. Entrepreneurs should carefully analyze market needs and competition before making decisions to establish themselves in the area.

The broader accommodation sector in Sunnfjord has shown a more stable development compared to the hotel industry. Sales have increased by 81.8% from 2016 to 2017 and have continued to grow over time, with a total sales of 208.4M in 2025. The number of employees has also shown a more stable growth, with an increase from 196 to 276 employees between 2016 and 2026. This shows that accommodation companies in Sunnfjord have a better ability to handle variations in sales and operating profit compared to the hotel industry.

Peer companies in the accommodation sector include camping and short-term cabin operations, such as Døskelandlia Camping and Jølstraholmen Camping As, which have higher sales and EBITDA compared to hotel operations. This may be an indicator that camping and short-term cabins are more attractive to tourists in the area, which entrepreneurs should consider.

The hotel industry in Sunnfjord has both opportunities and challenges. With a concentration of activity in Skei I Jølster and a more stable development in the broader accommodation sector, it may be possible to establish oneself in the area with the right strategy. Entrepreneurs should carefully analyze market needs, competition, and economic challenges before making decisions. SmartGrunder can help find suitable addresses and analyze business opportunities in Sunnfjord for hotel and accommodation companies.