Finnish operator Sokos weighs extending Viru Hotel lease in Tallinn

Finnish company Sokos, which is set to open a new hotel in a few years in the Talsinki district near the Port of Tallinn, is currently negotiating whether to continue leasing space at the historic Viru Hotel. The current agreement with building owner AS Viru Hotell expires on August 31, 2028.

This week Sokos Hotels confirmed plans to open a new hotel in 2029 in the Talsinki quarter being built between Tallinn's port and city center, while stressing that upgrades to the Original Sokos Hotel Viru will also continue.

Sokotel CEO and head of Sokos Hotels' Tallinn operations, Teemu Kilpiä, said development work at Viru is ongoing and business is proceeding as normal. He noted the Viru conference center was recently renovated with a new room called Valuutabaar, that the Viru Pub's offerings and opening hours have been expanded, and that cabaret shows will soon return. Kilpiä confirmed the current lease runs until 2028 and that an extension is under negotiation.

ERR reported earlier this year that Sokotel, which has long run the more-than-500-room Viru Hotel, has posted losses for several consecutive years. Newly published 2025 results show revenue rose 2 percent to €14.28 million, while losses narrowed by 15 percent but still reached €3.68 million.

Rent made up 56 percent of the company's revenue last year, with property-related costs totaling 70 percent overall. Personnel costs came to €2.43 million. Sokotel forecasts a €1.4 million loss this year and aims to keep losses to a minimum through the lease's expiration in 2028. Its parent company also injected an additional €5 million into Sokotel's equity last year.

The building is owned by Finland's Pontos Group, which leases it to Sokotel via AS Viru Hotell. Reports earlier this year indicated Pontos wants to renovate the hotel, which would mean higher rent for Sokos, which is already unhappy with current lease terms.