From Garment Manufacturing to Hotels
The story of how the small garment manufacturing company in "America Lars'" basement becomes one of Scandinavia's largest hotel property companies.
Lars (1869-1950) apprentices as a tailor, but a lack of work in Romsdalen leads him to decide to try his luck in America as an 18-year-old. He travels around America looking for tailoring jobs and ends up sewing uniforms for the American army. Lars eventually enlists.
He returns home to Norway after 14 years in the military. In 1931, he receives a pension from the American army and uses this as startup capital for the garment manufacturing company in the basement of his home in Måndalen.
The Beginning
America-Lars establishes a garment manufacturing and contract sewing business in the basement of his home at Steinvoll, operating under the name Lars Wenaas Garments. He produces suits and workwear, selling them to clients including Kløverhuset in Bergen.
New factory and generational change
In 1948, the Wenaas family built their own factory premises.
Amerika-Lars died in 1950, and two of his sons took over the company.
Four years later, the brothers decided to part ways, and the youngest son, Sigmund, took 11 seamstresses with him and continued under the name Sigmund Wenaas Konfeksjonsfabrikk at his home in Steinvoll. The house was divided into three parts: one part served as a residence for the family of six, another as lodgings for the seamstresses, while production took place in the basement.
Growth and New Premises
The company outgrows its basement premises, and a new factory is built, called «Damehuset,» because it serves as both a production facility and a dormitory for the seamstresses, who mainly come from Northern Norway and Trøndelag.
At this time, Romsdalen was a national hub for clothing production.
The Build-up Phase: Workwear Becomes Mandatory
In 1972, employers are required to provide workwear for their industrial workers, which is very important for the garment company's continued growth.
Sigmund Wenaas Garment Factory collaborates with several Norwegian garment companies and forms Synfiber A/B to increase exports to Sweden.
Limited company, new management, and own brand
In 1973, Wenaas changed its company structure from a sole proprietorship to a limited company to limit risk.
In 1974, eldest son Lars took over as general manager, and two years later, his brother Nils also joined the management, responsible for production and machinery.
In 1975, the company established its own brand with a logo and proprietary products, and began direct sales. Wenaas entered into a collaboration agreement with Ajak Fabrikker and took over their semi-automated sewing machines. This marked the beginning of production efficiency improvements, which was crucial for competitiveness and profitability.
New factory and entry into the oil industry
The brothers aim to build Europe's most modern garment factory for workwear. They invest a total of 4.2 million kroner in a new factory, completed in 1978. This marks the first of eight construction phases on the way to today's factory in Måndalen.
Sigmund Wenaas Garment Factory focuses on deliveries to the oil industry, establishes its own warehouse in Stavanger, and expands production with protective equipment to become a total supplier to customers domestically and internationally.
In 1978, Wenaas enters into a framework agreement with Aker, which transforms the company from an unknown producer to an accepted supplier in the market.
The Expansion Phase: Wenaas Holding is Formed
Wenaas Holding, which later becomes Wenaasgruppen, is established as a parent company for further expansion and investment in multiple business areas. The first investments in securities amount to 10 million kroner with interest rates of 10–15%.
In 1983, the company purchases shares on the Oslo Stock Exchange for approximately 1 million kroner. Sigmund Wenaas Garment Factory opens a factory in Ireland, and the second construction phase at the factory in Måndalen is completed. The factory is Europe's most modern factory for workwear, and Wenaas is Norway's largest producer.
100 million in revenue
The company surpasses 100 million kroner in revenue after several major contracts and Norwegian acquisitions.
Following experiences from the banking crisis that started in 1987, the real estate strategy was changed to focus on hotels with a single tenant and a long-term contract.
Internationalization and Hotel Investment: Market Leader and International Expansion
Sigmund Wenaas Garment Factory is twice as large as its closest competitor.
Production is gradually relocated, and the head office in Måndalen transitions from being a garment factory to becoming a logistics unit. The company signs a contract with Elkem, acquires Pelly Workwear, and establishes Wenaas Denmark.
Hotel and Alpine Skiing Venture
The group establishes a real estate division with hotels as a key focus area. Bjorli Apartment Hotel is acquired, and the purchase includes the ski resort at Bjorli. The beginning of the alpine resort venture is thus coincidental.
Poland, Sweden, and six new hotels
Sigmund Wenaas Garment Factory opens a factory in Poland. The factory is a replica of the production facility in Måndalen and Ireland.
The company signs contracts with the Post Office and the Police to produce uniforms. Through the acquisition of Jobber AB, they also establish themselves in Sweden.
In 1994, the company changes its name to Wenaas AS, and in the same year, six hotels in Norway with a total of 750 rooms are acquired.
Stock market listing
As the first company in Romsdalen, Wenaas is listed on the SMB list of the Oslo Stock Exchange in August 1996. 40 percent of the shares are sold, while the family retains the rest. This provides a good foundation for further growth. The plans are to increase revenue from 300 to 600 million over five years.
US Expansion and Wenaas Hotels
Wenaas expands into the USA and acquires several apparel companies in Norway and Sweden. The company is the first player in Norway to launch high-visibility collections.
Wenaas Hotels is founded, and all hotels are consolidated under this parent company. Additionally, four hotels, totaling 600 rooms, are acquired during the year.
17 hotels and a failed stock market listing
Wenaas Hotels owns 17 hotels in Norway with a total of 2,400 rooms.
In the spring of 1998, an IPO for the company is planned, but when Norges Bank increases the key interest rate by 4.25 percentage points to 8 percent within five months, it fails to attract investors. Consequently, there is no IPO.
Europe's largest workwear company: Surpasses 1 billion NOK
After Wenaas surpasses 1 billion NOK in revenue, they merge with Danish Kansas in January 1999. Kansas Wenaas becomes Europe's largest player in workwear, but is shortly thereafter acquired by the investment company Axcel and delisted from the stock exchange. The company eventually changes its name to Kwintet. Wenaas Holding owns 13 percent of the new company.
Hotel Development: Radisson Blu Plaza – A Flagship
Wenaasgruppen acquires the Radisson Blu Plaza Hotel in Oslo. The hotel will become a flagship and a clear statement of the group's position as a hotel investor.
Alpine Skiing Ventures and Copenhagen
Wenaasgruppen acquires Norefjell Ski Resort, Valdres Alpine Centre, Vassfjellet Ski Lifts, and parts of Oppdal Ski Resort.
The group also acquires three hotels in Copenhagen: Radisson Blu Scandinavia Hotel, Radisson Collection Royal Hotel, and Park Inn by Radisson Copenhagen Airport.
Shipping as a New Focus Area
Shipping will become a new focus area, in addition to apparel, hotels, asset management, and ski resorts.
Hotel Expansion: New Name, New Strategy
Lars steps down as CEO of Kwintet, and Wenaas Holding sells its stake in the apparel company. Wenaas Holding changes its name to Wenaasgruppen, and a new head office is established in Steinvoll, Måndalen, where it all began.
Wenaasgruppen sells 13 of its 29 hotels and adopts a new strategy to invest in larger hotels. The acquisition of the Radisson Royal Hotel in St. Petersburg marks its entry into the Russian hotel market.
Focus on Russia and commitment to the sports and leisure market
Lars buys out Nils' 35 percent share in Wenaasgruppen, and the brothers continue with their respective ventures.
Wenaasgruppen acquires two large hotels in St. Petersburg.
The group establishes Wenaas Sport og Fritid and acquires Trygve Alm, the first of many investments in the sports and leisure industry.
New Headquarters in Måndalen
The Wenaas Group is moving into its new headquarters in Måndalen. Outside stands a statue of the founder, Amerika-Lars, in his iconic pose.
Into Central Europe
The acquisition of four hotels in Germany marks Wenaasgruppen's investment in hotel properties in Central Europe.
All companies under Wenaas Sport og Fritid merge and change their name to Wenaas Nordic.
Pure-play hotel property strategy
The Wenaas Group is refining its strategy to invest in larger, central hotel properties with a minimum of 200 rooms in major European cities.
The group sells Wenaas Nordic after eleven years and winds down its shipping business.
Pandemic and reopening
The Covid-19 pandemic impacts the global economy. Travel restrictions force the temporary closure of several of Wenaasgruppen's 28 hotels.
All hotels reopen during 2021, and after two to three years of restrictions, optimism returns to the travel industry.
Sale of Russian hotels
In 2023, Wenaasgruppen sold its 10 Russian hotels, comprising over 4,000 rooms, to Cosmos Hotel Group after more than 15 years of ownership. The sale is a result of Russia's invasion of Ukraine in 2022.
At the same time, the hotel market is recovering, and the development is happening faster than many had expected. From 2023, Wenaasgruppen will focus on hotel properties and asset management.
Into the future
Wenaasgruppen currently has 18 hotel properties and a securities portfolio of NOK 6.5-7.0 billion.
