Rovaniemi | Building permit for Santa’s Hotel Santa Claus’ expansion

Hotel Santa Claus Oy has obtained a building permit to expand the hotel located in Rovaniemi city centre.

Rovaniemi-based family-owned Sava-Group Oy is investing 20 million euros in the expansion of Hotel Santa Claus, for which a building permit has now been obtained. The expansion will be built on a plot owned by Kiinteistö Oy Kalotinlinna, a part of the Aho family company, and located across the street from Hotel Santa Claus. The expansion will become part of the Kalotinlinna real estate company.

The existing building of Santa’s Hotel Santa Claus will connect to the expansion by a magnificent gateway crossing over Korkalonkatu. The style of the historic buildings in the block has been taken into account in the design of the extension so that it fits well into the streetscape.

“The plan and project have been prepared for twenty years, so it’s great to finally be able to implement the investment. As far as I know, no new hotel building has been built in the city center area since the Santa Claus Hotel was completed in 2001,” says Seppo Aho, founder and CEO of Sava-Group Oy.

“Construction work will begin in September and the hotel expansion is expected to be completed for the winter season 2026–2027,” says Maarit Aho, CEO of Kalotinlinna.

More hotel capacity to Rovaniemi city centre

“The upcoming and subsequent winter season for Rovaniemi tourism looks record-breaking, and we have received many happy contacts from international tour operators regarding the increase in hotel capacity,” says Sanna Sandgren, CEO of Hotel Santa Claus.

“Santa’s Hotels’ new investment is a significant breakthrough in the development of tourism in the center of Rovaniemi. Tourism investments of this scale have not been made in the city center area for a long time, and most of the investments in recent years have been directed outside the city center. This project strengthens Rovaniemi’s position as a vibrant and year-round tourist city and supports sustainable urban development.” says Sanna Kärkkäinen, CEO of Visit Rovaniemi.

The expansion in a nutshell

  • Building rights on the plot: 13 000 m2
  • First stage expansion part: 6 000 m2
  • 100 new hotel rooms, and meeting rooms & office spaces
  • The building will have seven floors
  • Connecting gateway to Santa’s Hotel Santa Claus’ existing building
  • Part of the plot is leased until 2031, after which the next stages of the expansion will be implemented

Information:

Sanna Sandgren
CEO, Santa’s Hotels
+358 40 199 3525
sanna.sandgren(at)santashotels.fi

Maarit Aho
CEO, Kiinteistö Oy Kalotinlinna
+358 500 102 102
maarit.aho(at)santashotels.fi

Santa's Hotel Santa Claus logo

Hotel Santa Claus Oy is part of the Lappish family-owned Santa’s Hotels chain, which is part of the Sava-Group group. The group has been operating hotels for over 30 years, and over the years the Santa’s Hotels chain has grown into one of the most significant Lapland tourism operators. In addition to Rovaniemi, the chain’s hotels are located in Luosto, Saariselkä, Kilpisjärvi and Kalajoki, and the chain also includes a luxury villa in Levi. The Santa’s Hotels chain’s turnover in 2024 was 32 million euros, and the chain employs approximately 150 people year-round and approximately 300 people during the high season.