Private equity real estate investor Slättö has acquired a centrally located vacant and outdated office building in Copenhagen, Denmark, which will be transformed into a tech-enabled lifestyle hotel.
With the site acquired from Commercial Real Estate Denmark, the deal is a strategic move to capitalise on the performance of the Copenhagen hotel market.
Slättö chief investment officer Erik Dansbo said: “This is a milestone investment for Slättö, marking our continued growth in Denmark and a very strong start for our Value Add III fund.
“Together with earlier acquisitions in residential and logistics light industrial, this project reflects the strength of our investment strategy and execution capacity across sectors.”
The property was a former police headquarters built in 1961 and is situated on Halmtorvet Square, near the city's Meatpacking District and transport hubs.
A long-term lease has been secured with hotel operator Bob W for this brown-to-green conversion project.
The renovation will begin in the first quarter of 2026 and aims to preserve the building's architectural heritage while incorporating significant energy upgrades.
The goal is to achieve DGNB Gold environmental certification, reflecting the project's sustainability ambitions.
The 169-room apart-hotel is expected to open its doors in the fourth quarter of 2027.
Slättö Denmark country head Anders Østergaard Hansen said: “Denmark is a strong real estate market with transparency, liquidity, and international investor appeal.
“This is why Slättö, as a leading Nordic real estate fund manager, aims to grow in the country, and our investment in the Halmtorvet project is a natural step on that journey.”
Copenhagen's hotel market has shown resilience and growth, with overnight stays exceeding 2019 levels for three consecutive years.
The city's appeal is bolstered by its international travel links, diverse demand, and limited forthcoming supply.
Bob W's CEO and co-founder Niko Karstikko said: “Copenhagen has long been an important city for us - not only as the leading Nordic travel destination, but also for its global reputation in sustainability, design, and culture.
“With one successful property already operating here, we’re proud to strengthen our presence in the capital”.
Last year, hotel operator Strawberry announced a collaboration with Slättö to launch a new hotel chain.
This venture aims to focus on strategic locations, quality, and high sustainability standards, aligning with the broader trends in the Nordic hotel market.
"Slättö acquires building in Denmark to develop lifestyle hotel" was originally created and published by Hotel Management Network, a GlobalData owned brand.
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