Revelop, the €1.1 billion real estate investment manager, has executed a strategic coup in Sweden's hotel-starved market by securing a 20-year lease with Ruby Group for a 78-room destination hotel conversion in Malmö's emerging Davidshall district. The deal marks a significant milestone for the German hospitality brand, now under IHG Hotels & Resorts ownership since February 2025, and positions Revelop to capitalise on Sweden's acute hotel undersupply.
The conversion of the historic Norsen 12 office building represents more than just adaptive reuse, it signals Revelop's ability to unlock value in markets where traditional hotel development faces mounting constraints. Located steps from Triangeln commuter station in the Copenhagen-Malmö Öresund region, the project taps into cross-border business travel demand whilst addressing Malmö's chronic shortage of quality accommodation, a factor that has historically limited the city's appeal to international investors and corporates.
What makes this deal particularly compelling for institutional investors is the convergence of ESG mandates with yield enhancement. By avoiding new construction, Revelop dramatically reduces the project's carbon footprint whilst generating superior returns through lower development costs and faster time-to-market. The fourth quarter 2027 opening timeline suggests Revelop can deliver yield-accretive returns ahead of traditional ground-up developments, a critical advantage given current construction cost inflation.
Source: europe-re.com on the 3 September 2025
https://europe-re.com/revelop-secures-1-1bn-portfolio-s-largest-hotel-conversion-with-ihg-backing-in-undersupplied-swedish-market/74472