Danske Bank has taken over Estatia Resort Norefjell, a huge Norwegian hotel that has been battling serious financial problems, according to the Norwegian business newspaper Finansavisen.
The Danish bank will convert 530 million Norwegian kroner worth of debt into equity and will also finance a congress facility with a capacity to host 750 people.
“I must admit that some Danske Bank departmental meetings will be held in the mountains,” Stian Anderson, the head of communications for Danske Bank in Norway, told Finansavisen.
Anderson went on to state that the bank didn’t have any ambition to own the hotel forever.
The hotel, located at the Norefjell Ski Resort north-west of Oslo, opened in 2009 with a massive spa facility, 284 apartments and 1,900 beds – the most in the Nordic region.
But 140 of the apartments have yet to be sold, the construction costs came to 500 million Norwegian kroner more than planned, and the hotel has a debt of 760 million Norwegian kroner.