Accommodation Business Swimming Against Market Tide Dramatically Increased Sales Revenue and Profit

According to its annual financial report, Stay Larsen, one of Estonia's largest accommodation service providers, saw its sales revenue grow by 21% in 2025, and net profit increased more than threefold despite the accommodation market crisis, reaching 9.8 million euros.

According to Larsen founder Janek Busch, Estonia's tourism sector is still in deep crisis, but the company's sales revenue grew by nearly a fifth regardless. "The accommodation sector indicators remained below pre-pandemic levels last year, and the number of tourists practically did not grow. However, the number of nights sold in our properties increased by nearly 70%. Larsen gained an advantage over the market through a flexible hybrid model, where accommodation units suit both two nights for a tourist, a few weeks for a business client, three months for a foreign worker, as well as longer-term for a resident," explained Busch.

According to Statistics Estonia, tourists spent 6.72 million nights in Estonian accommodation companies in 2025, or approximately 1% more than a year earlier. The number of nights spent by foreign tourists increased by 4% year-on-year, while the number of nights spent by domestic tourists decreased by 2%. In Larsen's properties, the number of nights sold increased by 69.4% compared to 2024.

According to the annual financial report, Stay Larsen group's sales revenue grew by 21% in 2025 to 4.8 million euros and net profit reached 9.8 million euros. A year earlier, the group's sales revenue was 4 million euros and net profit was 2.9 million euros. The growth in net profit was influenced by the improvement of the company's financial results as well as the increase in the value of real estate investments.

Larsen investor and board member Andres Linnasaar highlighted management's contribution to improving the company's profitability. "Larsen's hybrid model, flexible operations, and efficient internal processes have enabled the company to grow even in difficult market conditions. This is a significant achievement in such a competitive and economically dependent accommodation sector," said Linnasaar.

Larsen's 2025 core operations results were supported by a strong summer season, during which the share of short-term accommodation increased, and a price increase that took place in the second half of the year. Net profit was also positively affected by the decline in Euribor, which resulted in a reduction in the group's interest expense compared to the previous year.

Larsen's portfolio today includes over 600 studio-style accommodation units with kitchenettes in Tallinn. By the end of this year, Larsen will complete a new concept lifestyle accommodation building on Väike-Ameerika Street, which will increase the number of studios managed by Larsen to nearly 800. Over 12 million euros will be invested in the new building.

Larsen is one of Estonia's largest accommodation companies, whose services are aimed at both short-term and longer stays. Larsen's portfolio today includes five buildings in Tallinn, with a total of over 600 studio-style accommodation units with kitchenettes.