The hotel chain, which is rapidly expanding its presence in Finland, has also extended its lease on other properties.
Scandic Hotels revealed today that it has signed a long-term lease agreement to take over a 178-room hotel in Helsinki. The deal also covers extending leases for an additional four hotels with a total of 979 rooms.
Besides its 178 rooms, the hotel has seven meeting rooms with capacity for a total of almost 300 people, two restaurants and a gym. Scandic will take over the hotel from its current operator, Sokos, in 2020.
The new hotel is located in Helsinki’s Pasila area, close to the city’s Messukeskus expo and convention centre, which hosts more than 100 events annually and 1.3 million visitors.
Becoming known as a digital media hub, the Pasila area is expected to grow even more in the coming years thanks to a new traffic solution and a new centre called Tripla, a three-block complex that will house a shopping centre, residential units, offices and a public transport terminal.
The lease extensions, meanwhile, comprise four hotels operated by Scandic where the existing leases will expire within three years. The prolonged agreements are revenue-based with minimum guarantees.
These hotels are the Scandic Aulanko in Hämeenlinna, the Scandic Eden in Nokia, the Scandic Waskia in Vaasa and the Crowne Plaza Helsinki, which is operated under a franchise agreement with InterContinental Hotels Group.
The agreement was signed between Scandic and the Finnish private equity fund CapMan, and the two parties have also agreed on an extensive renovation programme where the parties will invest around €20 million each to secure hotels for the future. The deal comes as Scandic is rapidly expanding its presence in Finland.
“This is a good agreement where we can ensure the long-term operation of these five hotels. Scandic has an excellent track record of running hotels in Finland, and it’s the largest hotel chain with the best coverage in the country and the Nordics,” says Pirjo Ojanperä, partner at CapMan Hotels RE KY.