From Garment Manufacturing to Hotel Real Estate
The story of how a small workwear manufacturing business in Måndalen evolved into one of Scandinavia’s leading hotel real estate companies.
Lars Wenaas (1869–1950) trained as a tailor, but limited employment opportunities in the Romsdal region led him to seek new prospects in America at the age of 18. He travelled extensively across the United States in search of tailoring work and eventually secured a position producing uniforms for the U.S. Army. Later, he enlisted in the military himself.
After 14 years of military service, Lars returned to Norway. In 1931, he received pension from the U.S. Army and used these funds to establish a garment manufacturing business in the basement of his family home in Måndalen.
This modest venture laid the foundation for what would eventually become Wenaasgruppen, a diversified family-owned group with significant interests in hotel real estate and investment management.
The Beginning
In 1931, “America-Lars” established Lars Wenaas Konfeksjon, operating a garment manufacturing and contract sewing business from the basement of the family home at Steinvoll. Producing both tailored suits and everyday apparel, the company quickly secured customers, including the renowned department store Kløverhuset in Bergen.
New Factory and a Generational Transition
In 1948, the Wenaas family built its first dedicated manufacturing facility.
When “America-Lars” passed away in 1950, two of his sons took over the business.
Four years later, the brothers decided to part ways, and the youngest son, Sigmund, continued the operation under the name Sigmund Wenaas Konfeksjonsfabrikk. Together with 11 seamstresses, he resumed production at the family property in Steinvoll. The house was divided into three sections: one served as the home for the family of six, another provided accommodation for the seamstresses, while manufacturing activities took place in the basement.
Growth and New Facilities
As the business outgrew its basement premises, a new factory was constructed. Known as the “Ladies’ House”, the building served both as a production facility and as accommodation for the seamstresses, many of whom came from Northern Norway and the Trøndelag region.
At the time, the Romsdal region was one of Norway’s leading centres for garment manufacturing.
Building the Business: Workwear Becomes Mandatory
In 1972, employers became legally required to provide workwear for industrial employees, a development that proved highly significant for the company’s continued growth.
During this period, Sigmund Wenaas Konfeksjonsfabrikk entered into partnerships with several Norwegian garment manufacturers and helped establish Synfiber A/B to strengthen exports to the Swedish market.
Incorporation, New Leadership and a Proprietary Brand
In 1973, Wenaas changed its corporate structure from a sole proprietorship to a limited liability company, reducing the business risk for its owners.
In 1974, the eldest son, Lars, assumed the role of Managing Director. Two years later, his brother Nils joined the management team with responsibility for production and machinery.
In 1975, the company launched its own brand, complete with a distinctive logo and proprietary product range, while also introducing a direct sales model. Wenaas entered into a partnership with Ajak Fabrikker and acquired its semi-automated sewing machines. This marked the beginning of a major modernization and efficiency drive in production, strengthening both the company’s competitiveness and profitability.
New Factory and Entry into the Oil Industry
The Wenaas brothers set out with an ambitious goal: to build the most modern workwear manufacturing facility in Europe. They invested a total of NOK 4.2 million in a new factory, which was completed in 1978. This marked the first of eight development phases that would eventually lead to the present-day facility in Måndalen.
At the same time, Sigmund Wenaas Konfeksjonsfabrikk expanded its focus to serve the growing oil industry. The company established its own warehouse in Stavanger and broadened its product offering to include personal protective equipment, positioning itself as a full-service supplier to customers in Norway and abroad.
In 1978, Wenaas secured a framework agreement with Aker, a milestone that transformed the company from a little-known manufacturer into a recognized and trusted supplier in the market.
Expansion Phase: Establishment of Wenaas Holding
Wenaas Holding, later renamed Wenaasgruppen, was established as a holding company to support further expansion and investment across multiple business areas.
Its first financial investments amounted to NOK 10 million, generating annual returns of 10 to 15 percent. In 1983, the company began investing in listed securities, acquiring shares on the Oslo Stock Exchange for approximately NOK 1 million.
During the same period, Sigmund Wenaas Konfeksjonsfabrikk opened a manufacturing facility in Ireland, while the second phase of development at the Måndalen factory was completed.
By then, the Måndalen facility had become the most modern workwear manufacturing plant in Europe, and Wenaas had established itself as Norway’s largest producer of workwear.
NOK 100 Million in Revenue
Following the successful award of several major contracts and a series of acquisitions in Norway, the company surpassed NOK 100 million in annual revenue.
Drawing on lessons learned from the banking crisis that began in 1987, the Group revised its real estate strategy to focus on hotel properties with a single tenant and long-term lease agreements. This approach provided greater predictability, stability, and reduced risk within the property portfolio.
Internationalisation and Expansion into the Hotel Sector: Market Leadership and International Growth
Sigmund Wenaas Konfeksjonsfabrikk had grown to become twice the size of its nearest competitor, establishing itself as the clear market leader in Norway.
As production was gradually relocated abroad, the headquarters in Måndalen evolved from a manufacturing facility into a logistics and distribution centre. During this period, the company secured a major contract with Elkem, acquired Pelly Workwear, and established Wenaas Denmark, further strengthening its position and international presence.
Hotel and Alpine Skiing Venture
The Group established a dedicated real estate division with hotels as a strategic focus area. The acquisition of Bjorli Apartment Hotel marked the beginning of this venture. Included in the transaction was the Bjorli ski resort, making the Group’s entry into the alpine resort industry largely unplanned.
What began as a coincidental acquisition would later develop into a broader investment focus within the alpine resort sector.
Poland, Sweden and Six New Hotels
Sigmund Wenaas Konfeksjonsfabrikk opened a manufacturing facility in Poland. The factory was modelled on the company’s existing production plants in Måndalen and Ireland.
The company also secured contracts with Norway Post (Posten) and the Norwegian Police Service for the production of uniforms. Through the acquisition of Jobber AB, Wenaas also established a presence in the Swedish market.
In 1994, the company changed its name to Wenaas AS. In the same year, the Group acquired six hotels in Norway, comprising a total of 750 rooms, marking a significant step in the development of its hotel portfolio.
Stock Exchange Listing
In August 1996, Wenaas became the first company in the Romsdal region to be listed on the SME Market of the Oslo Stock Exchange. A total of 40 percent of the shares were sold to investors, while the family retained ownership of the remaining shares.
The listing provided a strong platform for continued growth and expansion. At the time, the company’s ambition was to double annual revenue from NOK 300 million to NOK 600 million within five years.
Establishment in the United States and the Creation of Wenaas Hotels
Wenaas expanded into the United States while continuing to grow through the acquisition of several garment manufacturing companies in Norway and Sweden. During this period, the company became the first supplier in Norway to introduce a dedicated range of high-visibility workwear.
At the same time, Wenaas Hotels was established, bringing all hotel properties together under a single holding company. The Group further strengthened its hospitality portfolio through the acquisition of four additional hotels, adding a total of 600 rooms during the year.
17 Hotels and an Aborted Stock Exchange Listing
By 1998, Wenaas Hotels owned 17 hotels across Norway, comprising a total of 2,400 rooms.
In the spring of 1998, the company planned to launch an initial public offering. However, as Norges Bank increased its key policy rate by 4.25 percentage points to 8 percent over a five-month period, investor demand weakened significantly. As a result, the planned stock exchange listing was withdrawn.
Europe’s Largest Workwear Company: Surpassing NOK 1 Billion in Revenue
After exceeding NOK 1 billion in annual revenue, Wenaas merged with the Danish company Kansas in January 1999. The combined entity, Kansas Wenaas, became the largest workwear company in Europe.
Shortly thereafter, the company was acquired by the private equity firm Axcel and delisted from the stock exchange. The business later changed its name to Kwintet.
Following the transaction, Wenaas Holding retained a 13 percent ownership stake in the new company.
Building the Hotel Portfolio: Radisson Blu Plaza, a Flagship Investment
Wenaasgruppen acquired the Radisson Blu Plaza Hotel in Oslo, one of Norway’s most iconic hotel properties. The acquisition became a flagship investment for the Group and marked a significant milestone in its development as a leading hotel real estate investor.
The hotel has since remained a cornerstone of the portfolio, reflecting Wenaasgruppen’s long-term strategy of investing in high-quality, large-scale hotels in prime urban locations.
Expansion into Alpine Resorts and Copenhagen
Wenaasgruppen expanded its presence in the alpine resort sector through the acquisitions of Norefjell Skisenter, Valdres Alpinsenter, Vassfjellet Skiheiser, and a stake in Oppdal Skisenter.
At the same time, the Group strengthened its hotel portfolio with the acquisition of three prominent hotels in Copenhagen: Radisson Blu Scandinavia Hotel, Radisson Collection Royal Hotel, and Park Inn by Radisson Copenhagen Airport.
These investments further reinforced Wenaasgruppen’s position as a leading owner of hotel properties while broadening its footprint across key Nordic markets.
Shipping Becomes a New Strategic Business Area
Shipping emerged as a new strategic investment area for Wenaasgruppen, complementing the Group’s existing activities in workwear, hotel real estate, asset management, and alpine resorts.
The expansion reflected the Group’s ambition to diversify its investment portfolio and build positions across a range of industries with long-term growth potential.
Hotel Expansion: A New Name and a New Strategy
Lars stepped down as Chief Executive Officer of Kwintet, and Wenaas Holding subsequently divested its remaining ownership stake in the workwear company. At the same time, Wenaas Holding changed its name to Wenaasgruppen, and its headquarters were relocated to Steinvoll in Måndalen, where the Group’s history first began.
As part of a strategic repositioning, Wenaasgruppen sold 13 of its 29 hotels and adopted a new investment strategy focused on larger hotel properties. The acquisition of the Radisson Royal Hotel in St. Petersburg marked the Group’s entry into the Russian hotel market and represented an important step in the continued expansion of its international hotel portfolio.
Focus on Russia and Expansion into the Sports and Outdoor Market
Lars acquired Nils’ 35 percent ownership stake in Wenaasgruppen, and the two brothers subsequently pursued their business interests independently.
Wenaasgruppen further strengthened its presence in Russia through the acquisition of two major hotels in St. Petersburg, reinforcing the Group’s commitment to the Russian hotel market.
At the same time, the Group established Wenaas Sport og Fritid and acquired Trygve Alm, the first of several investments within the sports and outdoor sector. This marked the beginning of a broader expansion strategy aimed at building a strong position in the leisure and retail markets.
New Headquarters in Måndalen
Wenaasgruppen moved into its new headquarters in Måndalen, further strengthening its connection to the community where the Group was founded. Outside the building stands a statue of the founder, “America-Lars”, depicted in his iconic pose as a tribute to the entrepreneur whose vision laid the foundation for the company’s success.
The headquarters serves as a reminder of the Group’s heritage while reflecting its continued development as an international investment and real estate company.
Expansion into Central Europe
The acquisition of four hotels in Germany marked Wenaasgruppen’s entry into the Central European hotel market and represented an important step in the Group’s international growth strategy.
At the same time, all companies within the Wenaas Sport og Fritid division were merged and rebranded under the name Wenaas Nordic, creating a stronger and more unified platform for the Group’s activities in the sports and outdoor market.
Refined Hotel Real Estate Strategy
Wenaasgruppen further refined its investment strategy, focusing exclusively on large, centrally located hotel properties with a minimum of 200 rooms in major European cities.
As part of this strategic focus, the Group sold Wenaas Nordic after eleven years of successful operation and exited the shipping sector, allowing resources and capital to be concentrated on its core activities in hotel real estate and asset management.
Pandemic and Reopening
The COVID-19 pandemic had a profound impact on the global economy and the travel industry. As a result of travel restrictions and reduced demand, several of Wenaasgruppen’s 28 hotels were temporarily closed.
Throughout 2021, all hotels gradually reopened, and following two to three years of restrictions, optimism returned to the hospitality sector. The recovery marked the beginning of a renewed period of growth and activity across the Group’s hotel portfolio.
Sale of the Russian Hotel Portfolio
In 2023, Wenaasgruppen sold its ten hotels in Russia, comprising more than 4,000 rooms, to Cosmos Hotel Group following more than 15 years of ownership. The divestment was a direct consequence of Russia’s invasion of Ukraine in 2022.
At the same time, the hotel market was recovering from the effects of the pandemic, with the rebound occurring faster than many had anticipated. From 2023 onwards, Wenaasgruppen has focused its activities on hotel real estate and asset management, reinforcing its position as a long-term investor in these core business areas.
Looking Ahead
Today, Wenaasgruppen owns 18 hotel properties and manages a securities portfolio valued at NOK 6.5–7.0 billion.
Building on more than nine decades of entrepreneurial heritage, the Group continues to pursue a long-term investment strategy focused on hotel real estate and asset management. With a strong financial position, high liquidity, and a portfolio of prime hotel assets across Europe, Wenaasgruppen is well positioned to create sustainable value and seize new opportunities in the years ahead.
