Finland Accommodation

Hotel Santa Claus to expand

1 min read

Aug 27, 2025 10:46:51 AM

New extension to be completed for winter season 2026/27 at Hotel Santa Claus in Rovaniemi

Santa’s Hotel Santa Claus in central Rovaniemi is set to grow significantly. With an investment of €20 million, the family-owned Sava-Group will add 100 new guest rooms along with state-of-the-art meeting and office facilities. The expansion, scheduled for completion by the winter season 2026/27, will boost capacity right in the city center – a timely response to the strong demand from international tour operators.

A landmark project in the heart of the city

The new wing will be built directly opposite the existing hotel and connected by a stylish glass bridge crossing Korkalonkatu. Its design takes into account the character of Rovaniemi’s historic buildings, ensuring it blends seamlessly into the urban landscape.

“This project has been in preparation for more than 20 years, so it’s fantastic to finally move forward,” says Seppo Aho, founder and CEO of the family-run Sava-Group.

Meeting growing demand for Lapland

Construction will start in September, with completion expected in time for the 2026/27 winter season. Rovaniemi is already seeing record bookings for the coming years, highlighting the urgent need for more hotel space.

“The demand for hotel capacity in the city center is unprecedented. This expansion enables us to serve both leisure groups and business travelers more effectively,” explains Hotel Santa Claus CEO Sanna Sandgren.

Visit Rovaniemi CEO Sanna Kärkkäinen underscores the wider impact: “This is one of the largest tourism investments in downtown Rovaniemi in decades and a strong signal of the city’s role as a vibrant, year-round travel destination.”