07.10.2025 13:46:
Icelandic investment and development company Alva Capital has signed an agreement with international hotel chain IHG Hotels & Resorts to open the first Candlewood Suites apartment hotel in the Nordics in Reykjavík. The hotel will be located at Rauðarárstígur 27, the former site of the Ministry of Foreign Affairs.
The press release on the subject states that the agreement also includes plans to open 500 accommodations over the next three to five years, under the Holiday Inn Express and Garner hotels brands, which are owned by IHG. IHG is one of the largest hotel chains in the world with about 7,000 hotels and about one million rooms.
Changes already underway.
As previously mentioned, the hotel will be located at Rauðarárstígur 27, where the Ministry of Foreign Affairs was previously located. The announcement states that construction on the changes has already begun. The hotel will boast 53 apartment and studio rooms with kitchen facilities, while Candlewood Suites will serve guests who are planning to stay longer.
“We are very proud to be working with IHG Hotels & Resorts to bring Candlewood Suites to Iceland, as the brand offers guests unique comfort and a homely stay. This is a major milestone in our goal to offer both Icelandic and international guests a more diverse and personalized hotel service than has previously been known in this country. The collaboration with IHG, one of the world’s most respected hotel chains, supports our long-term vision in real estate and tourism and will have a positive impact on the Icelandic market,” says Skorri Rafn Rafnsson, CEO of Alva Capital.
A report in Viðskiptablaðið since March states that Alva Capital has purchased the property at Rauðarárstígur 27 from Eik for 744 million ISK.
Thirteen hotels already in the Nordics
The announcement states that Candlewood Suites Reykjavík underlines IHG’s continued growth in the Nordics, joining a group of thirteen hotels already operating or under construction in the Nordics, including voco Stockholm – Kista, Crowne Plaza Copenhagen Towers and Hotel Indigo Helsinki.
“We look forward to introducing the Candlewood Suites brand to Iceland, which is an exciting and growing market for IHG. We are particularly proud of the effective collaboration between IHG and Alva, with the signing barely completed when construction on the premises began and the aim is to open shortly. Alva has already established a strong reputation in Iceland and the agreement offers good opportunities for growth for both companies across the country, I am very excited to see what the future holds,” said Mario Maxeiner, Managing Director of IHG Hotels & Resorts for Northern Europe.
Link to news on visir.is
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