Case Study: How an Unused Industrial Site Became One of the City’s Most Profitable Hospitality Concepts
The most valuable opportunities often lie where others see nothing at all. That’s what we discovered when we turned an unused industrial site into Iglupark — a thriving hospitality concept that didn’t require land ownership, only vision, design, and the right strategy. Sometimes innovation isn’t about owning more — it’s about seeing more. Here’s what we learned, how we did it, and how the same approach could work for you.
What Four Years Taught Us — and Can Teach You
Operating Iglupark wasn’t a marketing experiment — it was a strategic move to learn, adapt, and understand the realities our clients face.
Watch the full 2-minute story for a detailed look at Iglupark’s revenue model, performance breakdown, and how different business elements work together to drive growth.
Over four years, we’ve seen how a well-designed hospitality concept can scale, diversify, and perform:
~50,000 sauna experiences delivered
~20,000 overnight stays hosted
The largest single event hosted? A 450-guest event — proving the concept’s ability to scale beyond individual stays.
Launched in the midst of post-Covid Tallinn, the timing was risky. Tourism was down, and international visitors are a crucial audience:
25% of sauna guests and 60% of overnight stays come from abroad.
Yet within just two years, we began hearing from travelers who said Iglupark wasn’t just part of their trip to Estonia — it was the reason they came.
The takeaway? Knowing how each element impacts your bottom line is key to making smarter, data-driven growth decisions — and offering unique, memorable experiences is what draws guests in the first place.
The Business Advantage That Changes Everything
One of the strongest lessons we’ve learned is that flexibility isn’t a bonus — it’s a business model. Guest feedback guided almost every major decision:
We introduced new sauna models and hot tubs.
We developed varied cabin types to suit different stay lengths and budgets.
We opened an Iglubar — something never in the original plan.
All of this was possible because Iglucraft’s plug-and-play approach allows spaces to evolve without major disruption. Quick installation and simple relocation mean the business can respond to demand in real time.
Built for All Seasons
Estonia’s climate is nothing if not extreme — from -20 °C winters to +30 °C summers.
At Iglupark’s shoreline location, nature brings even more to the equation:
Strong coastal winds often sweep across the site.
Hail and heavy rain are common during seasonal shifts.
Intense summer sun defines the warmest months of the year.
Waves breaking just meters away create a naturally humid coastal atmosphere.
Through all of this, our handcrafted cabins and saunas have remained stable, resilient, and comfortable. Their all-weather durability not only ensures a consistently positive guest experience but also supports long-term profitability and predictable returns — season after season.
Rethinking ROI: Beyond the Cabin
Perhaps our most significant discovery is that return on investment doesn’t stop at accommodation. Offices, saunas, and multifunctional spaces — often in combination — are powerful revenue drivers. Many companies now book work + wellness packages, blending productivity with relaxation in one seamless experience.
The results speak for themselves:
Clients report up to 20% higher occupancy after adding Iglucraft units.
Premium positioning allows for up to 20% higher nightly rates — on par with top-tier hotels.
Why This Works
The success of Iglupark comes down to a few key principles that underpin every Iglucraft project:
Differentiation – Become the reason people visit.
In a competitive market, a unique experience is why guests choose you. Just like with Iglupark, visitors didn’t come to Estonia searching for accommodation — they came because of the concept itself.
Craftsmanship – Deliver quality that defines your brand.
Each cabin is handcrafted over hundreds of hours, with around 2,700 shingles placed one by one — a level of detail that sets you apart from mass-produced options.
Flexibility – Build and grow on your terms.
Modular, scalable units can be delivered fully assembled to almost any location — even mountaintops — and easily expanded or adapted as your business evolves.
Human-Centred Experience – Design around what people truly want.
Spaces shaped by customer feedback create comfort, reconnection, and well-being — encouraging longer stays, better reviews, and repeat visits.
Sustainability – Build responsibly and attract conscious travellers.
Made from locally sourced timber and shingles crafted in southern Estonia, the cabins are timeless, sustainable, and aligned with the future of tourism.
A Proven Path for Hospitality Growth
With over 1,000 Iglus delivered across 30+ countries, Iglucraft has helped businesses all over the world rethink what’s possible with modular hospitality. Iglupark is more than a destination — it’s living proof that when design and functionality work together, they don’t just create beautiful spaces. They create profitable, sustainable businesses.
