Finnish hotel operator in talks to extend Viru Hotel lease
The Finnish company Sokos, which will open a new hotel in the Talsinki district near the Port of Tallinn in a few years, is negotiating whether to continue as a tenant at the Viru Hotel, as its lease with the building's owner expires in two years.
Sokos Hotels' lease for the hotel and conference center spaces owned by AS Viru Hotell ends on August 31, 2028.
This week, Sokos Hotels announced that it will open a new hotel in 2029 in the Talsinki quarter being developed between Tallinn's port and city center, but said it will continue upgrading the Original Sokos Hotel Viru as well.
Asked whether Sokos has decided on extending the lease, Sokotel CEO and head of Sokos Hotels' Tallinn operations Teemu Kilpiä said that development at Viru has been ongoing and business continues as usual.
"We've just renovated the Viru conference center and opened a new conference room called Valuutabaar. We've expanded the Viru Pub's selection and opening hours, and cabaret shows will soon resume," Kilpiä said. "The current lease runs until 2028, and an extension is under negotiation."
ERR reported this spring that Sokotel, which has long operated the more than 500‑room Viru Hotel, has been running at a loss for several years. The company has now published its 2025 financial results: revenue grew 2 percent to €14.28 million, and losses decreased 15 percent, but Sokotel still posted a €3.68 million loss.
Rent accounted for 56 percent of the company's revenue last year, and property‑related costs totaled 70 percent. Personnel expenses amounted to €2.43 million. Sokotel forecasts a €1.4 million loss for this year.
"The forecast and plan until the lease ends on 31 August 2028 is to minimize losses," the hotel operator stated in its report.
The parent company also injected €5 million into Sokotel's equity last year.
The building is owned by Finland's Pontos Group, which leases it to Sokotel through AS Viru Hotell. However, Äripäev reported in March that the hotel's future is uncertain: Pontos wants to renovate the hotel, which would mean higher rent for Sokos — already unhappy with the current price.
A Pontos representative said at the time that the company does not comment on details of lease agreements or negotiations.
Pontos Group previously owned the Viru Center as well, but at the end of 2023 Kapitel — which already held a 28‑percent stake — bought the remaining shares together with Tristafan and financial investors.
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Editor: Karin Koppel, Argo Ideon
