IHG Hotels & Resorts has announced its first signing in Iceland through its midscale long stay brand Candlewood Suites. The agreement with ALVA Capital includes plans to develop up to 500 rooms in Reykjavik or across Iceland over the next three to five years, introducing brands such as Holiday Inn Express and Garner hotels.
“We are looking forward to introducing the Candlewood Suites brand to the Nordics with the signing of Candlewood Suites Reykjavik in Iceland, an exciting emerging market for IHG. We are especially proud of the swift collaboration between IHG and our esteemed partners at ALVA, who have successfully signed and already begun the conversion to open this property in the near future. ALVA has an established presence in Iceland and this deal holds great potential for IHG to grow across the country with a well-respected partner and I am truly excited to see what’s to come,” said Willemijn Geels, vice president, development, Europe, IHG Hotels & Resorts.
Located in Reykjavik’s Hlíðar district near the main pedestrian shopping street, Candlewood Suites Reykjavik will be converted from a former office building into a 53-key hotel. The location provides access to nearby attractions, including the Kjarvalsstaðir Art Gallery, The Icelandic Phallological Museum and Sundhöllin Public Baths.
The new property will feature studios and apartments equipped with kitchens and include self-service laundry, access to a gym and weekly housekeeping. Guests will also have access to the Candlewood Cupboard, a 24-hour marketplace offering drinks, snacks and essentials.
“We are incredibly proud to be working with IHG Hotels & Resorts to bring Candlewood Suites to Iceland. It is a brand that blends the comforts of daily life with the conveniences of a hotel, enabling guests to stay comfortably and maintain their normal routines, however long their stay. The signing marks a significant step in our commitment to providing exceptional hospitality and tailored services that meet the evolving needs of travellers in Iceland. Partnering with a well-renowned international hotel company like IHG has already proven to be a great choice as we push ahead with the conversion of this property and we’re incredibly excited to realise the full potential of this deal,” said Skorri Rafn Rafnsson, CEO of ALVA Capital.
Founded in 2012, ALVA Capital is a diversified investment and development firm based in Reykjavik. Since 2020, it has expanded into real estate with a focus on residential and hospitality projects.
Candlewood Suites Reykjavik joins IHG’s portfolio of more than 410 open hotels and 192 in the pipeline. IHG currently has nine Candlewood Suites properties set to open across Northern Europe, reflecting continued demand for extended stay accommodations.
