Zleep Hotels makes foray into Swedish market

Zleep Hotel Copenhagen City, Denmark, image courtesy of Zleep Hotels (The new Zleep Hotel is slated to open in January 2019 following the partial conversion of a Stockholm office building. )

Zleep Hotels is bringing its hotel brand across country borders. The Danish company is converting one third of an office building in Stockholm, Sweden into a 152-room hotel—the company's first outside of Denmark.

The upcoming Zleep Hotel will share the building in the Upplands Väsby district of Stockholm—a Tier 2 market—with Swedish real estate developer FastPartner AB once it opens in January 2019. The two companies set plans for the project in March 2017. It will be in the center of a business district, near the E4 highway and between Stockholm City and Arlanda Airport.

Zleep already has a large development pipeline in Denmark and outside of the country. However, the group is in talks with even more interested investors and developers to accelerate the brand's expansion.

"It is a large step for Zleep Hotels to enter the Swedish market. In Denmark, there is still room for growth—but in Sweden, our opportunities are much greater. The market is mature and offers abundant locations that fit the brand. For Zleep, our northern neighbor is a growth opportunity, and Upplands Väsby in Stockholm is a great starting point to begin our development of, hopefully, many Zleep hotels in the future," Peter Haaber, CEO of Zleep Hotels, said in a statement.

Zleep Hotels, which Haaber founded in 2003, operates a portfolio of nine hotels with 870 guestrooms, as of 2017. Another five hotel projects are in the brand's development pipeline as Zleep aims to operate 20 hotels in 2020. Zleep reported in 2016 it earned a net revenue of more than DKK110 million, while its employee base totals more than 100 members.