The hotel will be expanded by 20 rooms, adding a total area of 660 sqm. The new rooms will maintain a modern design, making them suitable for both business clients and tourists seeking a comfortable stay.
„We estimate that for most of the year – around 10 months – the occupancy rate at Urbihop Hotel is 85% or higher. In recent years, we have also seen growing demand for large events not only in the city but also at the SEB Arena, where our hotel and restaurant are located. The positive trends indicate that demand for accommodation services in this complex will continue to grow,“ says Agnė Lingytė-Grybauskienė, Director of the Darnu Group Hotel Company, commenting on the development motives.
According to the Director, the hotel's success is strongly influenced by the surrounding sports infrastructure. Guests arriving for international tournaments and other events at the Arena prefer to stay at the on-site hotel. As the representative of Darnu Group points out, the increase in customer flows was especially noticeable after the reconstruction of the Arena in the autumn of 2022.
Strong performance
Hotel occupancy in Vilnius remained stable last year, averaging around 68%, based on data from the first three quarters. Meanwhile, the Artagonist and Urbihop hotels managed by Darnu Group reported results above the Vilnius city average.
The average occupancy rate at Urbihop Hotel was 86%, with turnover increasing by just over 3%. Lingytė-Grybauskienė calculates that half of the hotel's income came from accommodation services, with the other half generated by conference and catering services. The results were significantly boosted by the aforementioned sporting events, with over 60 taking place at the SEB Arena alone during the year.
Artagonist, operating in the premium hotel segment, achieved 79% occupancy last year and maintained its turnover figures from 2023. According to a representative of Darnu Group, the hotel's growth trend was affected by a drop in the average room rate on the market, which had increased in 2023 due to exclusive events that helped generate higher revenues despite lower occupancy.
According to the company's data, both hotels generated revenues exceeding EUR 4 million in 2024.
Sector outlook: rising prices and growing tourist flows
According to Lingytė-Grybauskienė, some factors that significantly impacted the performance of the hotel segment in 2024 will remain relevant this year.
„To absorb the increase in maintenance costs following the abolition of the VAT reduction, many hotel restaurants had to raise their prices by 10–15%. The increase in the minimum wage at the start of the year also contributed to higher sector costs. It will also boost the expenditure figures this year. However, even though the accommodation sector may be forced to raise prices as a result, it will do so in a moderate manner,“ said Lingytė-Grybauskienė.
In such a fragile market situation, she explained, it is crucial to restore tourism flows to 2019 levels. International visitors are the largest revenue-generating segment for the sector, as they come to the country for overnight stays and typically spend more than Lithuanians.
Overall, tourism trends are favourable for both Lithuania and Vilnius. Lonely Planet has ranked the country as the second-best tourist destination for 2025. What is more, the Michelin Guide Lithuania 2024, announced last year, is helping to attract gastronomic tourists.
„There is a growing trend of travellers seeking authentic experiences, eager to discover uncharted lands untouched by mass tourism. While Spain was rocked by protests against over-tourism and additional taxes and bans were being imposed, Euronews compiled a list of alternative destinations, encouraging travellers to visit Vilnius instead of Barcelona or Amsterdam. I predict that 2025 will be a favorable year for the hotel segment due to the increasing visibility of Vilnius and Lithuania,“ says the representative of Darnu Group.