The majority of all hotels are renovated, and several hotels are expanded. Zleep reopens historic hotel in Roskilde, and the chain’s first franchise agreement is made in Kalundborg.
At the turn of the year, Zleep Hotels opens in Kolding, and during the summer, a new hotel in Kastrup is ready after a complete renovation. The hotel chain now counts seven hotels in Denmark.
The hotel previously known as Hotel Merkur is thoroughly renovated and opened as Zleep Hotel Aarhus. This is the beginning of Zleep’s new interior design and visual identity.
The financial crisis hits us hard, but we fight through and keep all agreements. The organization is restructured to ensure the future, which entails that two hotels are closed while two new ones open.
Like in the rest of the world, things are moving at a fast pace in Zleep Hotels. The chain opens four new hotels, one of which is a franchise agreement in Hamburg.
After a successful beginning in 2003, yet another Zleep hotel opens the following year. This time it is in Ishøj, perfectly located by highways exits, the S-train station, and a view of Ishøj harbor.
The first Zleep hotel is opened on September 3rd, 2003 with the wish of offering low room rates, a great bed to sleep in, a TV with many channels and free WiFi access.
In the 1990s, many new hotel brands were developed in Europe and the USA. Particularly in the USA, special attention was devoted to the creation of the so called “budget hotels” or “limited service hotels”. These brands focused primarily on the core need of the journey, namely sleep. The hotel’s most important function was to provide a safe and sound place to stay overnight – with a well-known brand offering low price rates and good quality.
We started Zleep Hotels in 2003 with these same basic ideas; low room rates, a quality bed to sleep in, a TV with many channels, free WiFi, private bathroom and a great cup of coffee for breakfast. We opened our first hotel on September 3rd, 2003. The hotel was converted from a nursing home, located in Tårnby near Copenhagen Airport with 93 rooms available. This hotel quickly proved that Denmark and the Nordic countries are an extremely viable market for the “limited service hotels” concept. The hotel served as proof that affordable hotel rooms do not necessarily have to be ugly. The hotel was expanded and renovated after just three years of operation.
The Brand Proves its Strength
(2004 – 2010)
From the starting point in Tårnby, it was always our goal to expand with additional hotels in both Denmark and the rest of Northern Europe. In the following year of 2004, Zleep Hotel Ishøj was added to the portfolio. The hotel was previously operated by the Municipality of Ishøj with conference facilities typical of a traditional middleclass hotel. After a small renovation of the rooms, the hotel was opened – exclusively focusing on room sales and breakfast.
In the period until 2010, Zleep worked with several business models but primarily with leases, management contracts and a few hotel real estate investments. We launched our brand in six different locations, including a hotel in Hamburg in 2007.
Survival through the Financial Crisis
(2009 – 2013)
In the period of 2009 and onwards, the financial crisis exploded, real estate investments were put to a stop, and banks froze much or their lending. This limited the opportunities for our growth, with investors unable to find adequate sources of finance. The hotel industry was viewed as a less than attractive segment for bank lending, an attitude which largely persists to this day. Despite the crisis, however, we were still able to comply with our contractual agreements, and our portfolio of hotels was further strengthened and improved. Today, we are in better shape and more dynamic than at any time in our history. Zleep Hotels is able to document strong operating figures, high earnings for the owners of the properties as well as a stable growth and reliable development at each hotel. Zleep delivers record high GOP and RevPAR* figures compared to the sector average.
Age of Renovation
(2014 – today)
2014 was another key milestone for Zleep Hotels. Zleep entered a new phase in its expansion by taking over and renovating hotels in both Aarhus and Kastrup. The development continued in 2015 and 2016 with more renovation projects, hotel openings and Zleep’s first franchise agreement in Denmark. Due to these renovation activities it was important to ensure consistency between the product quality and the communication of the brand. To this end a new logo, visual identity and website were developed for Zleep in 2016. Given the ambitious plans for the coming years and the addition of many more Zleep hotels to its portfolio, the future will surely be as exciting as the previous!
*GOP is short for Gross Operating Profit, which is the surplus profit after all operational costs have been deducted. RevPAR is short for Revenue Per Actual Room and is calculated by multiplying the hotels’ daily average rate and their occupancy rate.