Skanska sells a new hotel in LKAB for 500 million euros

The construction contract amounts to about SEK 400 million, which is included in the order intake of Skanska Sweden for the second quarter of 2019.

"We look forward to participating in the development of the new Kiruna, the hotel will be a landmark in the city and we are very pleased to have signed an agreement with a long-time owner," said Bernt Lundstedt, developer, Skanska Sweden.

The new hotel is built next to the town hall near the square of the new center of Kiruna. The hotel has 14,000 square meters spread over 13 floors. It offers 231 rooms, a restaurant, conference rooms, a gym, a relaxation area and a slider.

Hotelier Scandic Hotels has signed a 20-year lease for the hotel, which will be at the forefront of sustainability. The intention is to make the building environment compliant with the LEED standard. The start of construction is scheduled for April 2019. The hotel will be completed in October 2021.

Kiruna is making an urban conversion and the layout of a new city center is about three kilometers from the current center. The background is that iron ore mining – which is the basis of Kiruna's business world – must continue in areas that would damage the existing downtown. A multi-year dialogue between Scandic and the developer of Skanska, in consultation with LKAB, has just been concluded as part of an agreement for a new hotel building located in block 10 of the new center of Kiruna. When the new hotel is ready, it replaces the existing Scandics activities in the current Scandic Ferrum.

"We are delighted to be involved in the creation and development of the new Kiruna Center, and the new hotel, like our present, will be a meeting place for hot and busy travelers and we will be able to offer something One-off with our planned clouds, this will truly give a hotel experience beyond the usual, "says Peter Jangbratt, CEO of Scandic Hotels Sweden.