Skanska : develops and sells hotel in Kiruna, Sweden, for about SEK 500 M

11/9/2018 1:00 PM CET

Press release

Skanska develops and builds a new hotel in central Kiruna, Sweden, with Scandic hotels as operator. The hotel is sold to LKAB that will take over the building at the completion in the autumn 2021. The hotel is developed by Skanska Sweden. The sales value is about SEK 500 M, which will be booked in the Commercial Property Development stream in the second quarter of 2019.

The construction contract is worth about SEK 400 M, which will be included in the order bookings for Skanska Sweden for the second quarter of 2019.

The new hotel will be built next to the town Hall on the square in the new central Kiruna. The hotel will have 14,000 square meters and 13 floors, with 231 rooms, restaurant, conference rooms, gym and relaxation area, and a sky bar.

The hotel operator Scandic Hotels has signed a 20-year lease for the hotel, which will be at the forefront in terms of sustainability. The intention is to certify the building according to LEED. Construction start is scheduled for April 2019. The hotel will be ready in October 2021.

Skanska is one of the leading development and construction companies in the Nordics, with operations in building construction and civil engineering in Sweden, Norway and Finland, and developing residential- and commercial property projects in select home markets. The commercial development stream is also active in Denmark. Skanska offers services in public-private partnerships. Skanska had sales of about SEK 65 billion and more than 15,000 employees in its Nordic operations during 2017.

Image by Sandellsandberg.