Scandic Plans Stockholm’s First Underground Hotel on Drottninggatan

STOCKHOLM, June 3, 2026 — Scandic Hotels and property owner Axfast have announced plans to develop a 135-room Scandic Go hotel beneath Drottninggatan in central Stockholm. Construction is scheduled to begin this year, with the project expected to open to guests in 2027.

The development will transform previously underutilized retail and warehouse space within an existing building into a mixed-use property featuring hotel accommodations, retail outlets, and office space. The project marks the first underground hotel in Scandic’s portfolio.

Scandic Go Stockholm Underground Hotel Expands City-Centre Hospitality

The new Scandic Go Stockholm underground hotel will feature 135 guest rooms distributed across four below-ground floors. While guestrooms will be windowless, shared guest areas and staff facilities will have access to natural daylight through windows in other parts of the building.

Guests will be able to check in digitally or through a reception area located one level below ground. The property’s location beneath Drottninggatan places visitors within walking distance of Stockholm Central Station, shopping districts, restaurants, and major transport connections.

Historic Building Receives New Purpose

The building, originally completed in 1959, will be repurposed as part of a broader redevelopment initiative. Areas previously used for storage and retail operations will be converted into modern hospitality and commercial spaces.

Scandic and Axfast said the project aligns with growing demand for efficient urban hotel concepts that maximize existing real estate while minimizing environmental impact.

Sustainability at the Core of Development

The redevelopment will pursue BREEAM In-Use Excellent certification, one of the leading sustainability standards for existing buildings. Hotel operations will also seek certification under the Nordic Swan Ecolabel, the official environmental certification program across Nordic countries.

These certifications reflect increasing emphasis on sustainable development and responsible hotel operations within the Scandinavian hospitality sector.

Growing Demand for Windowless Hotel Rooms

Scandic noted that interest in windowless guestrooms has increased in recent years, particularly among travelers seeking darker sleeping environments and reduced outside noise. Similar room concepts are already available across several existing Scandic properties.

The company believes the underground hotel format can provide a comfortable and practical accommodation experience while supporting efficient use of urban space.

Part of Scandic Go Expansion Strategy

The project forms part of Scandic’s broader strategy to expand the Scandic Go brand through new developments, acquisitions, and innovative property conversions. The brand focuses on affordable, streamlined accommodations designed for modern travelers seeking convenient city-centre locations.

With construction expected to begin in 2026, the Scandic Go Stockholm underground hotel will introduce a new hospitality concept to the Swedish capital while contributing additional room capacity in one of Scandinavia’s busiest travel destinations.

Source: Scandic Hotels and Hotel News Resource.