Oulu’s long-stalled market square hotel finally opens

The Scandic Go hotel on Oulu’s market square, a project mired in delays and scandal, opens its doors today after nearly two decades of setbacks.

Originally proposed in 2008 by businessman Jyrki Hallikainen, the hotel became a symbol of frustration for locals as construction stalled for years. The site, one of the city’s most prime locations beside the market hall, sat half-finished after Hallikainen’s companies went bankrupt in 2022 and he became the subject of criminal investigations.

Property investment firm Balder acquired the unfinished building in 2025 and completed it as a Scandic Go hotel in under a year. The 144-room property, now finished with terraces and large glass windows, exceeds the original plan by about 20 rooms—a point of contention from the start.

Disputes over the building’s height delayed progress for years. The city’s zoning allowed for three floors, but Hallikainen’s company, MPG Services, argued that four were needed for profitability, later pushing for a fifth. The city refused, citing the impact on the square’s character. Construction only began in 2020, but work halted again in 2022 amid the financial collapse of Hallikainen’s other venture, Uros, and subsequent legal scrutiny.

Despite threats of fines from the city, construction remained stalled until Balder’s intervention. The hotel now stands complete, its troubled history earning it local nicknames like “Isaac’s Hotel,” a nod to St. Isaac’s Cathedral in St. Petersburg, which took 40 years to build—twice as long as this project’s 17-year saga.