JLL has successfully advised Midstar Hotels AB on the sale of Midstar Fastigheter AB, which owns a landmark Nordic hotel portfolio to CapMan Hotels II, a fund managed by CapMan Real Estate. This transaction represents the largest hotel deal in Nordic history and one of Europe's most significant in recent years.
News release
18 February 2025
JLL Advises Midstar Hotels on Record-Breaking Nordic Hotel Portfolio Sale
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The portfolio contains a total of 28 hotels in the Nordic region and 4,709 keys, with plans to increase the capacity to 4,887 rooms by 2027. The geographic distribution includes 16 hotels in Sweden, eight in Norway, and four in Denmark with a total area of approx. 250,000 sq.m. The hotels are located in major metropolitan areas such as Copenhagen, Stockholm, Gothenburg, and Oslo in addition to regional hotels in prime locations.
The portfolio has a well-diversified tenant mix, which includes some of the region's most reputable and creditworthy hotel operators. Among these are renowned brands such as Strawberry, Scandic, Best Western, and Elite, ensuring a robust and reliable income stream for the new owner.
The seller, Midstar Hotels AB, is owned by a consortium of institutional investors and the management company. This consortium includes Alecta, Kåpan, PRI, Riksbankens Jubileumsfond, and Midstar AB ( the management company).
The transaction is subject to customary regulatory approval from the Swedish Competition Authority and the transaction will close shortly after such approval has been granted.
The transaction was executed by JLL's Capital Markets Sweden team in collaboration with JLL's Hotel EMEA team and Akershus Eiendom in Norway, leveraging their combined expertise in both the local Nordic markets and the broader European hotel sector.
Thomas Persson, Head of Capital Markets Nordics at JLL, commented on the significance of the deal: "This transaction signals a significant shift in market sentiment, with Nordic hotel properties regaining strong investor appeal. The cumulative bid value approaching EUR 8 billion underscores the intense interest in this portfolio."
Will Duffey, Head of EMEA Hotels & Hospitality Capital Markets at JLL, added, “The Nordic region presents compelling investment opportunities, underpinned by strong trading fundamentals. We're proud to have served as the exclusive advisor for the Midstar portfolio, guiding this historic transaction – one of the largest hotel portfolio sales ever in the Nordics.
“By leveraging our profound local insights and JLL's global reach, we successfully connected this exceptional opportunity with leading international investors. We're delighted to have secured CapMan as the buyer and look forward to seeing how they'll further enhance this impressive portfolio.”
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.