IHG Hotels & Resorts continues Nordic expansion with first property in Iceland

07.10.2025 (London, UK): IHG Hotels & Resorts (IHG), one of the world’s leading hotel companies, announces its first signing in Iceland for its midscale long stay brand Candlewood Suites, by IHG. Signed as part of an agreement with ALVA Capital, IHG will look to develop up to 500 rooms in the city or wider Iceland over the next three to five years introducing some of IHG’s leading brands, including Holiday Inn Express and Garner hotels, to the Nordics.

Expected to open in the near future, the landmark signing in Reykjavik joins 13 open and pipeline properties in the Nordics, including the re-entry of IHG in Sweden last year with the opening of voco Stockholm - Kista, Crowne Plaza Copenhagen Towers in Denmark and the Hotel Indigo Helsinki in Finland.

Iceland presents a compelling next step in IHG’s regional footprint as the country has seen a dramatic surge in tourism over the last decade. Thanks to a unique blend of natural wonders and urban appeal, the country is now welcoming approximately 2.3 million international visitors annually – a figure that exceeds the national population of around 400,000 people by more than fivefold.

Located in the city centre of Reykjavik in the Hlíðar district close to city’s main pedestrian shopping street, the property will offer convenient access to a number of tourist attractions, including the contemporary Kjarvalsstaðir Art Gallery, The Icelandic Phallological Museum and Sundhöllin Public Baths – all of which are within easy walking distance.

The 53 key property will be a conversion of a former office building and will offer guests casual, reliable, and spacious studios and apartments equipped with kitchens. This provides guests the personal and physical space they need to not just stay comfortably but feel at home.

(Mrs) Willemijn Geels, Vice President, Development, Europe, IHG Hotels & Resorts, commented: "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.”

Skorri Rafn Rafnsson – CEO of ALVA Capital comments: “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."

Founded in 2012 by Skorri Rafn Rafnsson, ALVA Capital is a diversified investment and development firm headquartered in Reykjavík, Iceland. With deep roots in fintech and technology, ALVA has built and scaled several industry-leading ventures—among them Netgiro, Inkasso, Bland, Heimkaup, Hopkaup and Moberg—and achieved notable exits in those sectors.

Since 2020, ALVA has expanded its strategic focus into real estate, directing its capital and expertise toward the development, ownership, and operation of residential and hospitality properties. Today, the firm’s portfolio encompasses over 200 rental units spanning apartments, hotel rooms, and mixed-use developments.

ALVA Capital employs a data-driven investment philosophy, emphasizing long-term value creation across both its venture and real estate platforms. The group continues to operate across Iceland and internationally, leveraging operational support, innovation, and capital to grow its holdings and deliver market-leading performance

Part of IHG’s long stay Suites portfolio, Candlewood Suites properties provide self-service guest laundry, access to gym facilities and weekly housekeeping services, as well as equipped kitchens, in-room coffee & tea making facilities, comfortable seating and a space to work. Guests can access the Candlewood Cupboard, a marketplace offering a variety of drinks, snacks and personal essentials for purchase or quality bean-to-cup coffee and tea available 24/7.

IHG has nine Candlewood Suites set to open across Northern Europe, offering guests a new midscale aparthotel experience, underpinned by a reliable service and apartment-style amenities. This increasing demand for extended stays is reflected in IHG’s wider Europe growing pipeline and system size of 32 extended stay properties. 

Candlewood Suites Reykjavik joins IHG’s global portfolio of over 410 open and 192 pipeline Candlewood Suites hotels since the brand was acquired 2004.

*Numbers as of June 30, 2025