A hotel development planned within Malmö’s industrial heritage
On 26 October 2026, Swedish hospitality advisory firm Annordia announced that it had been appointed by Varvsstaden AB, a property development company belonging to the Peab group, to identify a hotel operator in Malmö.
The project concerns the former Machine and Assembly Workshop, a historic building at the Kockums shipyard in the Varvsstaden district.
This former industrial area, closely associated with Malmö’s maritime history, is now undergoing urban regeneration.
The ambition is to transform the workshop into a hospitality destination while preserving the site’s principal architectural features, particularly its exposed steel structures and extensive roof glazing.
A proposed 208-room hotel covering 13,400 sq m
Under the current plans, the future property would cover approximately 13,400 sq m and include:
- 208 guestrooms;
- Several restaurants and bars;
- A potential rooftop restaurant and bar with a panoramic terrace;
- A spa and fitness centre;
- Conference, meeting and event facilities.
However, the proposed development programme remains flexible.
Annordia specifies that the concept can be adapted to the requirements and preferences of the selected operator.
This flexibility leaves room to define the hotel’s commercial positioning, potential brand affiliation and spatial configuration.
No hotel brand has been announced at this stage.
A central location between the waterfront and business district
The site benefits from a waterfront location in Malmö, close to several business, university and cultural centres.
According to Annordia, the proposed hotel would be located approximately 700 metres from Malmö Central Station, 300 metres from the university and 700 metres from Malmö Live, a complex hosting cultural activities and events.
The historic city centre, Stortorget and Lilla Torg would also be within walking distance.
International accessibility is another advantage of the project: Copenhagen Airport is reportedly less than 25 minutes away by direct train.
This location could enable the hotel to target several market segments, including business travellers, conference delegates, international visitors and leisure guests.
Annordia appointed to identify the future hotel operator
The operator selection process is being managed by Annordia, a consultancy specialising in hospitality advisory services and hotel-related real estate transactions.
The mandate involves identifying an operator willing to lease the property.
At this stage, the process therefore concerns the search for a hotel tenant, rather than the announcement of a management or franchise agreement.
The announcement invites interested operators to contact Hans Åke Petersson, CEO & Partner at Annordia.
The financial terms of the lease, the property investment amount, the construction timetable and the anticipated opening date have not been disclosed.
For further information, please contact:
Hans Åke Petersson, CEO & Partner, Annordia
✉️ hansake.petersson@annordia.com
📞 +46 70 699 37 51
LTH Analysis | An industrial heritage conversion whose hotel business model remains to be defined
The Varvsstaden project presents several features of interest to hotel operators.
The first concerns the nature of the asset: converting a former industrial building can provide a distinctive architectural identity that would be difficult to reproduce in a new-build development.
The second relates to the versatility of the proposed hotel, with a planned offering combining accommodation, food and beverage, wellness and events.
The third is the opportunity for the future operator to contribute to defining the concept before it is finalised.
For Varvsstaden AB, the challenge will be to identify an operator capable of capitalising on the building’s industrial identity while establishing a viable business model that takes account of the constraints associated with a conversion of this scale.
The development could appeal to lifestyle hotel brands, independent operators or hotel groups seeking a property with a substantial meetings and events component.
Nevertheless, the site’s commercial potential must be distinguished from the project’s definitive economic feasibility.
The rent level, conversion costs, respective obligations of the landlord and tenant, and delivery timetable will be decisive factors in the operator selection process.
At this stage, no hotel operating agreement has been concluded.
At a Glance
Country: Sweden.
City: Malmö.
District: Varvsstaden, former Kockums shipyard.
Developer: Varvsstaden AB, part of Peab Group.
Hotel adviser: Annordia.
Project: Conversion of the former Machine and Assembly Workshop.
Planned capacity: Approximately 208 guestrooms.
Gross project area: Approximately 13,400 sq m.
Facilities: Restaurants, bars, potential rooftop venue, spa, gym and conference facilities.
Operator search: Ongoing.
Proposed contractual approach: Hotel lease.
Hotel brand: Not yet selected.
Opening date and investment: Not disclosed.
LTH perspective: Industrial heritage conversion with an operator-led, flexible hospitality concept.
