The group has started work on a new hotel in Kiruna, to replace the existing one as the city moves to a new location.
Scandic Hotels says it has signed a deal to establish a new hotel in Kiruna’s “new city centre” being developed as the northern Swedish city shifts away from its old downtown area.
Kiruna is transforming its urban landscape and developing a new centre about three kilometres from the existing downtown area.
The reason for this is that mining iron ore – the basis on which the city has been built – will jeopardize the existing city centre in the future due to mining-related subsidence.
Moving the town is a process that began in 2014 based on plans first drawn up in 2007, and it will be an ongoing development to continue for decades to come.
The new hotel property will be owned by Swedish mining company LKAB and will be built by the construction group Skanska.
Kiruna’s first skybar
It will be Kiruna’s largest, with 230 rooms, conference and meeting facilities, a restaurant and Kiruna’s first skybar. The structure is expected to be finished at the end of 2021, when it will replace Scandic’s existing operations in what is now the Scandic Ferrum.
Scandic explains that it has been in an ongoing dialogue with Skanska for the last few years, now resulting in an agreement for a new hotel in ‘district 10’ of Kiruna’s new city centre.
“We are extremely happy to be involved in founding and developing Kiruna’s new city centre. Just as with the existing hotel, the new hotel will be a meeting place for travellers and local guests alike. We’ll also be able to offer something unique and out of the ordinary with the sky bar we have planned,” says Peter Jangbratt, managing director of Scandic Hotels Sweden.