EDMONTON -- Floors of luxury homes in Edmonton's ICE District will instead become a hotel after the condominiums sold poorly, officials say.

SKY Residences was supposed to occupy floors 30 through 66 in Stantec Tower.

Officials confirmed to CTV News Edmonton on Thursday the bottom 12 floors will be converted into a new hotel.

"You have to be flexible to market demands. You have to be flexible to what your customers and your market is saying," said Tim Shipton of ICE District Joint Venture.

Shipton said the group would be looking for a premium hotel brand, but that there was no deal in place yet.

Those who purchased a property on one of the 12 floors will be moving to one of the remaining, higher floors.

"The higher up you are in a tower, the higher value. We're offering that to residents at no additional cost," Shipton said.

The future hotel will be the second in ICE District.

The building's first 29 floors will be used as commercial space by a German real estate company, Deka Immobilien.