Scandic Hotels Group AB expects hot summer that together with weak krone might help fill empty hotel rooms, Bloomberg reports.

Opening of many new large hotels in Stockholm resulted in capacity surplus on Swedish capital market. For Scandic that is the largest hotel operator in Nordic region it resulted in the pressure on earnings. However, now situation looks more optimistic. Excess capacities will be filled this year, company thinks.

This can already be seen in numbers. While revenue per room on Stockholm market slumped by 7,7% in the first quarter, during first five months this decline slowed to 3,5%. The picture will only get better during the year, market participants are confident.

Swedish krone fell compared to major currencies after country’s central bank announced that it is not in a hurry to lift key interest rates. As a result, it is now more expensive for Swedish citizens to travel abroad and less expensive for foreigners to come to Sweden. Both facts along with unusually sunny weather will result in filling hotels of Stockholm.