Spahotel Casino, a spa hotel in a superb lakeside location, Savonlinna

Primehotels Oy’s bankruptcy estate is selling Spahotel Casino, a well-known hotel and spa destination in Savonlinna, located on a scenic island on the shore of Lake Saimaa, right near the centre of Savonlinna and in the middle of one of Finland’s most attractive lakeland landscapes. The property includes hotel, restaurant, spa, wellness, sports and conference facilities, as well as significant development potential thanks to the building rights permitted by the local detailed plan.

The property being sold comprises a leasehold right to a plot owned by the City of Savonlinna, with a land area of 9,577 m², and a spa hotel building with a floor area of approximately 6,989 m² and a gross floor area of approximately 7,341 m².

The building was originally completed in 1969 and expanded in 1974, 1985 and 1990. The property has a total of 81 hotel rooms, as well as restaurant, spa, wellness, sports, conference and health service facilities.

The location is exceptionally strong from a tourism perspective. The centre of Savonlinna is about 300 metres away via a pedestrian bridge. The Savonlinna Theatre is next to the property, and the surrounding nature, boating and tourism activities support demand especially during the summer season.

Savonlinna is one of Finland’s best-known summer cities, and its attractions include Lake Saimaa, Olavinlinna Castle, cruises, boating, fishing, canoeing, nature tourism and the Savonlinna Opera Festival. During the opera festival, demand for accommodation in the area has traditionally been strong, and competition in the hotel market is relatively lower than in Finland’s largest cities.

The property offers the buyer a versatile opportunity to continue hotel operations, develop the business or pursue broader property development. In the local detailed plan, the plot is designated for commercial and office buildings, and the total building right is 14,300 m², of which about 7,000 m² has been used. A partly 16-storey building may be constructed on the plot, and a tower hotel has previously been planned for the site.

Condition reports have been prepared for the building, indicating significant renovation needs, so the property is suitable for a buyer with the capacity and interest to develop the whole over the long term. The building is largely at the end of its technical service life.

The property has been leased on a fixed-term basis until 31 August 2026. After that, there will be no hotel operator lease in place and the property will be sold vacant.

The City of Savonlinna has also leased four properties as parking areas in addition to the hotel plot. The lease agreements for the parking areas will transfer to the buyer in the sale.

Electricity, water and district heating connections are operational and included in the sale.

An inventory list has been prepared. The movables are not included in the sale. The buyer has the option to purchase the movables separately for EUR 130,000.

Building basic details:

Address:                                   Kylpylaitoksentie 7, 57130 Savonlinna

Number of floors:      4

Floor area:                       6,989 m²

Gross floor area:                              7,341 m²

Year of construction:                   1969, expanded in 1974, 1985 and 1990

Renovations:                  1990 spa, 2007 health services, 2013–2015 hotel

Hotel rooms:                   81                    

Property basic details:

Property ID:                 740-1-32-13

Register unit type:           plot

Plan:                                 local detailed plan

Plot area:                   8,460 m²

Plot owner:                     City of Savonlinna

Plot lease term:             until 15 November 2047

Building gross floor area:       7,341 m²

Heating system:                 district heating

Plan designation:                    K, block area for commercial and office buildings.

A sixteen-storey building with apartments may be built on the plot; in principle, the maximum permitted storeys is three. The building right is 14,300 m². At least 1 parking space / 100 m² of commercial and office space must be provided.

Further information: Juha Kivelä / GEM Brokerage Oy / juha.kivela@gemproperty.fi