CapMan Hotels II fund has signed an agreement to acquire the asset KOY Oulun Kuvernoori in Oulu city centre, Finland, with the intention of redeveloping the building, currently used as an office, into part of Lapland Hotels Oulu. As a result of the conversion the hotel capacity will be increased by 95 rooms in order to meet the strong market demand.
KOY Oulun Kuvernoori is a five storied office property located in the city centre of Oulu, Finland, with a lettable area of 5,657m2. The property is part of the same building complex as Lapland Hotels Oulu. CapMan Real Estate plans to carry out a thorough renovation where the building is transformed into a hotel and rented out on a long-term lease agreement to Lapland Hotels Oulu. As part of the renovation the adjacent buildings are connected, creating one larger hotel with 250 rooms and an increased number of restaurants and meeting rooms. Street level areas of the existing hotel will also be partially remodelled. Environmental and sustainability matters are central in the renovation. Once completed, the new asset targets environmental certificate level BREEAM In-Use Very Good.
”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”, commented Juhani Erke, Partner at CapMan Real Estate.
”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,” said Ari Vuorentausta, CEO at Lapland Hotels.
The acquisition is expected to close and the redevelopment to start in one years’ time once required official authorisations have been obtained.