The Viru Hotel and Conference Center has for years been operated by the Sokos hotel chain, which leases it through AS Sokotel from AS Viru Hotell, a company belonging to Finland's Pontos Group.

However, the adjacent Viru Keskus shopping center is interested in incorporating some of the space currently used by the hotel into the mall.

"We have already entered into preliminary agreements regarding some areas, while discussions about others remain more theoretical — we have expressed our potential interest and Pontos has taken note of it," Viru Keskus CEO Enn Parel told ERR.

Parel added that, from a construction standpoint, expanding the center into parts of the existing hotel space would be challenging, but based on current knowledge, still feasible.

Sokotel, which has operated a hotel with more than 500 rooms in the building for years, generated €14 million in revenue from hotel, conference and restaurant services in 2024. However, it posted a loss of €4.2 million, following a €3.3 million loss the previous year. Rental costs accounted for 56 percent of its revenue.

"The forecast and plan through the end of the lease on August 31, 2028 is to minimize losses," Sokotel stated in its 2024 annual report.

Recently, business daily Äripäev wrote that the hotel's future is uncertain as the building's owner, Pontos, is interested in renovating it. This would mean higher rent for Sokos, which already considers its current rental costs too high.

Pontos Group's director of real estate investments, Päivi Tomula, told ERR that the company does not comment on details related to its partnership agreements. However, she noted that buildings require ongoing maintenance and periodic, more extensive renovations, which has also been the case with the Viru Hotel over the decades.

"As an active owner, Pontos continuously assesses the condition of its properties and future renovation needs. Information about renovation projects will be disclosed if and when they arise," Tomula said, remaining concise about future plans.

Anne Riska, Sokotel's director of business operations, also declined to comment on whether the hotel chain plans to extend the lease, citing company policy not to discuss lease agreements or negotiations. However, she confirmed that Sokotel maintains an ongoing and constructive dialogue with Pontos Group.

Riska added that Sokotel will continue its operations at the Original Sokos Hotel Viru as usual.

"Each year, we have invested in improving both our guest rooms and public areas to enhance the customer experience," she said. "We are also fully committed to our long-term presence in Tallinn, both now and in the future, and are actively exploring new business opportunities in the market."

Tomula noted that Pontos has consistently invested in the development of the Viru Hotel and continues to actively assess opportunities for further development.

In 2024, AS Viru Hotell earned nearly €8 million in rental income but recorded a net loss of €1.7 million. The year before, the company's loss amounted to €3.3 million, which it attributed primarily to a decline in the value of its real estate.

The lease agreement with Sokotel is not revenue-based but fixed. In its annual report, Viru Hotell said this structure is intended to balance potential seasonality and provide resilience against economic fluctuations.

Pontos Group previously also owned Viru Keskus, but at the end of 2023, Kapitel — which had already held a 28 percent stake — acquired the remaining shares together with Tristafan and financial investors.

The head of Viru Keskus said more detailed information about any potential expansion into hotel space will be available once a transaction materializes.

The Viru Hotel is not under heritage protection, but it is located within the Old Town heritage conservation zone.

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