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Scandic Hotels Group is expanding its budget brand, Scandic Go, through the conversion of existing office buildings in Gothenburg and Umeå, Sweden.
The two new hotels, expected to open in 2026, will add 276 rooms to Scandic's portfolio and demonstrate the brand's successful reception in the economy segment of the market.
The conversion approach leverages the current high demand for hotels while bypassing the lengthy construction periods associated with traditional hotel development.
"We’ve been considering using office spaces for new Scandic Go hotels for some time, which is an important enabler to achieve our goal to add 1,000 to 1,500 rooms per year to our pipeline," said Jens Mathiesen, president and CEO of Scandic Hotels Group.
"Gothenburg, in particular, is a key destination for Scandic, where we have a strong presence in a robust hotel market. Umeå is also a stable market, attracting students and business travellers as well as summer and winter tourists."
The new Scandic Go Gothenburg will be situated in the Lilla Bommen district, a rapidly developing area close to Gothenburg's Central Station.
The 176-room hotel will complement Scandic's existing Gothenburg presence and cater to the city's robust tourism and business travel markets.
The property will also feature 20 bunk bed rooms, catering to a broader guest demographic.
In Umeå, a former office building will be transformed into a 100-room Scandic Go hotel.
The strategically located property, just 250 metres from the central station, is designed to become a local landmark.
The hotel will be environmentally certified with BREEAM [Building Research Establishment Environmental Assessment Methodology] Very Good standards, contributing to Scandic's commitment to sustainability and reduced operating costs.
Scandic has partnered with property owners for both conversions, allowing the landlords to integrate additional commercial activities alongside the hotel operations.
Following the openings, Scandic will operate 10 hotels with a total of 2,846 rooms in Gothenburg and 3 hotels with 458 rooms in Umeå.
This expansion underscores Scandic Go's potential to become a major player in the Swedish economy hotel segment.
"Scandic Go accelerates growth in Sweden with office conversions" was originally created and published by Hotel Management Network, a GlobalData owned brand.
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