The City of Copenhagen has imposed a temporary ban under section 14 of the Danish Planning Act, affecting several hotel projects in Central Copenhagen. This measure aims to safeguard Copenhagen’s architectural heritage, preserve the residential function of buildings and mitigate overtourism. Following the initial decision, certain projects were exempted from the ban. However, eight hotel projects remain subject to the ban and have effectively been put on hold pending further planning initiatives and information.
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Under section 14 of the Danish Planning Act, the municipal council has the power to temporarily ban the commencement of any activities on a property, such as construction, changes of use or the establishment of businesses or facilities, that may be prevented by a local plan. A ban imposed under this provision may not exceed a duration of one year, during which time the municipal council must work towards adopting a new local plan setting out new terms for the local plan area.
In practice, this provision acts as an emergency brake, enabling municipalities to pause developments while they assess the future planning framework and land use. The ban cannot be applied to projects or situations that have already been lawfully established or that have a valid building permit. The same applies if the applicant has had legitimate expectations of obtaining a building permit, or if the municipality has issued a binding advance approval.
The recent section 14 ban applied to both hotel conversions and new hotel developments in Central Copenhagen. In preparation for the municipal committee meeting held on 16 March 2026, the Climate, Environmental and Technical Administration identified 13 hotel projects as candidates for inclusion in the section 14 ban. At that meeting, the municipal committee decided to cover eight projects with the ban and exempt four projects (one application had been withdrawn in the meantime).
The main reasons for granting exemptions from the ban were the identified need for hotel capacity in certain areas, taking into account urban suitability, geographic prioritisation, coherent planning considerations, investment certainty and consideration for residents.
The ban currently entails a de facto standstill for the eight hotel projects, as they must await either the ban’s expiration in March 2027 or the adoption of new local plans defining the projects’ permitted future uses.
The municipality’s invocation of section 14 in this context has attracted criticism from industry stakeholders and politicians alike.
The ban was introduced without prior dialogue with the market players, despite investments having been made on the basis of existing local plans. As subsequent planning changes may affect ongoing projects and previously committed capital, the municipal intervention may be perceived as a significant obstacle by investors and developers, potentially jeopardising the viability of the investments and the continued development of the buildings and areas subject to the ban.
A particular point of criticism is the use of section 14 as a broad, temporary measure, which creates unnecessary uncertainty regarding the stability and predictability of the planning framework. Politicians from both Denmark’s Liberal Party and Liberal Alliance have argued that the application of section 14 should be regarded as an absolute emergency brake, rather than a tool deployed at political discretion. This firm stance likely reflects the circumstances in which the ban was introduced. It was initially proposed by Line Barfod (Red-Green Alliance), the left-wing Mayor for Climate, Environment and Technical Affairs, who requested that the administration prepare a submission on the possibility of imposing section 14 bans on several hotel development projects in Central Copenhagen at committee meetings in December 2025.
A further critique of the use of a section 14 ban is the perception that investors cannot rely on the local plan governing the property. It is not contended that the municipality should be precluded from adopting new local plans that restrict or exclude hotel use, nor from imposing a section 14 ban where necessary. Rather it is argued that any such expected changes must be clearly communicated to property owners and developers at an early stage, prior to the application of a section 14 ban.
It remains to be seen how the City of Copenhagen will follow up on the ban.
One possibility is the adoption of new local plans that restrict hotel developments in Central Copenhagen, which could shift investor focus towards alternative asset classes. Another possibility is that the ban will expire without significant regulatory changes, allowing projects to proceed.
In either case, the City of Copenhagen will need to clarify its planning approach before the ban expires in March 2027.
Using temporary planning instruments, such as a section 14 ban, may have significant implications for ongoing and planned developments.
Gorrissen Federspiel’s Real Estate team advises Danish and international investors and developers on planning law, including risk assessments, local plan processes and strategic engagement with public authorities. We are available to answer any questions you may have and assist with any projects related to the above.