IHG Hotels & Resorts (IHG) has signed an agreement with ALVA Capital for a 90-room Holiday Inn Express hotel in Reykjavik, Iceland.
Holiday Inn Express Reykjavik – Valhöll is scheduled to open in the second half of 2027 and will mark IHG’s second hotel in Iceland, following the opening of Candlewood Suites Reykjavik.
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According to the company, the new property will use the Holiday Inn Express Generation 5 design, with flexible areas for guests to connect, work and relax. The design also includes updated features focused on comfort, connectivity and functionality.
The signing follows a development agreement between IHG and ALVA Capital last year. That agreement covered plans for up to 500 rooms across Reykjavik and the wider Icelandic market.
ALVA Capital founder and CEO Skorri Rafn Rafnsson said: “This latest signing forms part of our wider hotel development pipeline in Iceland and brings us closer to our shared ambition with IHG to develop up to 500 rooms.”
The new property will add to IHG’s Nordic portfolio of 15 open and pipeline hotels. More than 50 Holiday Inn Express properties are also in development across Europe.
IHG Europe development vice-president Willemijn Geels said: “We are delighted to strengthen our partnership with ALVA Capital and bring Holiday Inn Express to Reykjavik, marking our second property in Iceland.
“With its trusted guest proposition and strong international recognition, the brand is well placed to meet demand from travellers looking for a simple, smart and comfortable stay.
“This signing is another important step in growing IHG’s presence in Iceland, and we look forward to working with ALVA Capital to bring the hotel to life.”
