IHG Hotels & Resorts has signed an agreement with ALVA Capital to introduce its Candlewood Suites midscale long stay brand to Iceland.
The agreement outlines a plan to develop up to 500 rooms in Reykjavik and other locations in Iceland over the next three to five years.
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It also includes the potential for additional IHG brands, such as Holiday Inn Express and Garner, to enter the Nordics market.
The initial Candlewood Suites property, a 53-room development, will be located in Reykjavik’s Hlíðar district and involves the conversion of a former office building into long-stay accommodation.
IHG’s move into Iceland follows recent expansions in the Nordic region, where the company operates or has planned 13 properties, including sites in Sweden, Denmark, and Finland.
voco Stockholm Kista opened in 2024, marking IHG’s return to the Swedish market.
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By GlobalDataIHG Hotels & Resorts Europe development vice president Willemijn Geels said: “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.”
The first Candlewood Suites property in Reykjavik will provide studio and apartment accommodation equipped with kitchens, as well as amenities such as self-service laundry, gym and housekeeping services’ access, and a workspace.
The location places the hotel within walking distance of several city attractions, including the Kjarvalsstaðir Art Gallery, Sundhöllin Public Baths, and The Icelandic Phallological Museum.
The Candlewood Suites Reykjavik opening comes as Iceland reports approximately 2.3 million international visitors annually, far exceeding the national population of about 400,000.
This increase in tourism has created demand for new accommodation options in the region, stated IHG.
ALVA Capital, established in 2012 by Skorri Rafn Rafnsson and based in Reykjavik, manages a portfolio of more than 200 rental units, including hotel rooms, apartments, and mixed-use developments in Iceland and abroad.
ALVA Capital CEO Skorri Rafn Rafnsson said: “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.”
IHG’s Candlewood Suites brand, acquired in 2004, currently includes more than 410 open hotels and 192 in the pipeline worldwide, including nine new openings planned across Northern Europe.
In September 2025, IHG Hotels & Resorts signed an agreement to operate Hotel Schloss Reinhartshausen in Germany as part of its Vignette Collection.
