CapMan Hotels II fund has signed an agreement to acquire KOY Oulun Kuvernööri in Finland with plans to convert the existing office into an extension of Lapland Hotels Oulu.
Situated in Oulu's city centre, KOY Oulun Kuvernööri is a five-storey office property that spans 5,657m² of leasable space and is part of the same building complex as Lapland Hotels Oulu.
CapMan Real Estate plans to convert the building into a hotel leased on a long-term basis to Lapland Hotels Oulu, adding 95 rooms to the hotel's capacity.
This acquisition is expected to be completed and the redevelopment will begin within one year once the necessary official authorisations have been obtained.
CapMan Real Estate partner Juhani Erke said: “The Oulu hotel market is very appealing and we are delighted to be part of further redeveloping Lapland Hotels Oulu.
“The planned extension will enable the hotel to increase operational efficiency and answer the strong market demand by growing an already very successful hotel concept.”
Lapland Hotels CEO Ari Vuorentausta said: “As part of the renovation, most rooms will be equipped with ensuite saunas, as is central to our concept. The large courtyard will be developed for event use and meeting rooms will be expanded. In connection to this, we will also renew parts of the current hotel.
“All this will create an even more attractive hotel than before. Our collaboration with CapMan, which started in 2017 and currently covers three of our hotels, has been very well-functioning and we are pleased to be kicking off this new redevelopment project with them as our partner.”
This renovation will connect the adjacent buildings, creating a larger hotel with 250 rooms, along with an expanded range of restaurants and meeting spaces.
The ground-level areas of the existing hotel will also undergo partial remodelling and the renovation will focus on environmental and sustainability concerns.
The project aims to achieve a Building Research Establishment Environmental Assessment Method In-Use Very Good certification upon completion.
