Scandic Enter into New Deal with CapMan

Date: July 2018

Location: Helsinki, Pasila, Hameenlinna, Nokia and Vaasa, Finalnd

Name: Scandic Pasila, Scandic Aulanko in Hämeenlinna, Scandic Eden in Nokia, Scandic Waskia in Vaasa and Crowne Plaza Helsinki.

No. of Keys: 979

Owner: Scandic Hotels has signed a new property, and four lease extensions, with Finnish private equity fund CapMan. The addition will be a re-brand of a 178 room hotel in Pasila, Helsinki.

The lease extensions cover Scandics in Hämeenlinna, Nokia and Vaasa plus the Crowne Plaza Helsinki.

“We are extremely pleased to extend our already strong offering in the Helsinki area through Scandic Pasila, a hotel that will complement and diversify our existing portfolio, says Aki Käyhkö, Managing Director of Scandic Hotels Finland.

The new hotel is located in Helsinki’s Pasila area. It has 178 rooms, 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 in 2020 (currently Sokos).

Pasila is a digital media hub. It also boasts the largest exhibition centre and sports and events arena in Finland. Messukeskus, the large congress and trade fair area, hosts more than 100 events annually and 1.3 million visitors.

The Pasila area is set 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 comprise four hotels operated by Scandic where existing leases will expire within three years. The prolonged agreements are revenue based with minimum guarantees. Scandic and CapMan Hotels RE KY have also agreed on an extensive renovation program where the parties will invest approximately 20 EUR million each to secure hotel offerings for the future.

– 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. We look forward to a profitable partnership with Scandic going forward, says Pirjo Ojanperä, Partner at CapMan Hotels RE KY.

THPT Comment: Good move for both parties…Scandic is the largest hotel company in the Nordic Region with 280 hotels in 130 locations, throughout Scandinavia.

First Seen: Scandic website