Nrep, Urban Partners’ real estate investor, has announced that its Nrep NSF V Fund has completed the acquisition of one of Stockholm’s largest hotels, Clarion Hotel Stockholm, from Aspelin Ramm Fastigheter AB.

The hotel market in Stockholm is experiencing a strong recovery after the pandemic with revenue per available room that, despite inflation, surpasses pre-2020 levels. Nrep’s acquisition of Clarion Hotel Stockholm is positioned to capitalize on this growth and offers both immediate and long-term value.

Clarion Hotel Stockholm has 532 rooms spread over 23,700 square metres of lettable area. It houses bars, restaurants, a spa and gym, as well as meeting and conference rooms. The property is fully leased to the Nordic region’s second largest hotel operator, Strawberry, with a long-term lease. The acquisition gives Nrep access to more than 1,000 hotel rooms in central Stockholm.

The hotel is located next to the Skanstull metro, a stone’s throw from the heart of Södermalm and with beautiful walking paths and marinas in proximity. The emerging Söderstaden, which includes Slakthusområdet, Gullmarsplan and the Globen area’s magnificent arenas, is also nearby and strengthens the hotel’s long-term guest base. Avicii Arena and 3Arena (formerly Tele 2 Arena) host some of the country’s biggest events and attract more than 3.5 million visitors annually.

“It is a well-designed, well-managed and functional property we are acquiring from Aspelin Ramm Fastigheter and it is fully in line with our ambition to acquire high-quality assets with strong operators in important urban locations. By combining our high focus on sustainability with improvements in the hotel’s commercial offering, we create values that benefit the guests, Strawberry and Södermalm as a district and destination,” says Carl-Adam von Schéele, Country Manager for Nrep Sweden.

The property currently has the BREEAM Very Good certification and has good potential to obtain BREEAM Excellent with minimal investment.

Nrep is part of the investment platform Urban Partners, which consists of three strategies with a common vision focused on solving the challenges of urbanization. Last year, Urban Partners raised Europe’s largest value-add fund, Nordic Strategies Fund V (NSF V), with approximately EUR 3.65 billion in capital. The acquisition of Clarion Hotel Stockholm is made via NSF V.