A century-old building designed by Theodor Höijer
Designed in 1900 by Finnish architect Theodor Höijer, the “Proffa” building occupies a prime corner site in central Helsinki. Originally built as a residential property, it was later converted into office space and is now embarking on a fresh transformation as a hotel.
Its location benefits from close proximity to the Kamppi Center and excellent public transport links — two decisive advantages for an urban hotel project.
A conversion driven by the constraints of the building
The decision to convert the asset into a hotel was driven primarily by structural constraints. Originally designed as a residential building, protected as a listed heritage property and featuring numerous load-bearing walls, it placed significant limits on conventional office use.
Union Investment says it examined several alternative scenarios before settling on hotel use, following location, market and profitability analyses that all pointed in the same direction. Thomas Stancel, Technical Project Manager at Union Investment, said that given the structural complexity of the building, the company chose Ruby Group for its recognised expertise in converting historic buildings in prime locations, and that it had also brought in a general contractor with strong know-how in upscale hotel refurbishments.
Ruby Hotels, the operator chosen for the project
The project is underpinned by a 30-year lease already signed with Ruby Group. Part of the ground-floor retail space will be retained, while another portion will be repositioned.
Bastian Stuhke, Senior Asset Manager Hospitality at Union Investment, said Ruby Group’s hotel concept aligns perfectly with the property’s characteristics, and that Union Investment was delighted to be partnering with such an experienced operator.
🔗 Also on LTH: Ruby Hotels’ new flagship project in Berlin, in the heart of the Kurfürstendamm
A deal within the DIFA-Fonds Nr. 3 portfolio
The “Proffa” building has been part of the DIFA-Fonds Nr. 3 portfolio since 2019. The change of use is intended to secure a stable long-term income stream while improving the quality of the asset and its rental terms.
The new Ruby hotel is scheduled for delivery by the end of 2027, at an investment of approximately EUR 11.5 million.
At a glance by The Hospitality Tribune
Union Investment converts historic Helsinki office into 84-room Ruby hotel
Building permit secured for the “Proffa” office-to-hotel conversion in downtown Helsinki
Approximately 3,160 sqm of office space to become 84 hotel rooms
30-year lease signed with Ruby Group; investment of around EUR 11.5 million
Completion planned for late 2027
Asset held since 2019 within the DIFA-Fonds Nr. 3 portfolio
