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From left to right: Kenneth Macpherson (IHG), Matthew Woollard (IHG), (Mrs) Willemijn Geels (IHG), Skorri Rafn Rafnsson (CEO at Alva Capital), Karin Sheppard (IHG), Farkhad Kamilov (IHG), Miguel Martins (IHG) – Image Credit IHG Hotels & Resorts
IHG Hotels & Resorts has signed an agreement to open its first Candlewood Suites property in Reykjavik, Iceland, as part of a development strategy with ALVA Capital. The partnership aims to develop up to 500 rooms in Iceland over the next three to five years.
IHG Hotels & Resorts has announced the signing of its first property in Iceland under the Candlewood Suites brand. The new development, located in the Hlíðardistrict of Reykjavik, will be a conversion of a former office building into a 53-room hotel. The property is situated near Reykjavik’s main pedestrian shopping street and several tourist attractions, including the Kjarvalsstaðir Art Gallery and Sundhöllin Public Baths.
The agreement with ALVA Capital includes plans to develop up to 500 rooms across Iceland over the next three to five years. This initiative will introduce IHG’s brands, including Holiday Inn Express and InterContinental Hotels, to the Nordic region. The Reykjavik property is expected to open soon, joining IHG’s existing 13 properties in the Nordic countries, including locations in Sweden, Denmark, and Finland.
Iceland has experienced significant tourism growth, with approximately 2.3 million international visitors annually. The new Candlewood Suites aims to cater to this demand by offering extended-stay accommodations with amenities such as kitchens, self-service laundry, gym access, and weekly housekeeping.
The Reykjavik property will be part of IHG’s long-stay Suites portfolio, which includes nine Candlewood Suites set to open across Northern Europe. The brand focuses on providing apartment-style accommodations with reliable service, reflecting the increasing demand for extended stays in the region.
IHG’s global portfolio for the Candlewood Suites brand includes over 410 open hotels and 192 in the pipeline as of June 30, 2025. The Reykjavik project marks a strategic expansion for IHG in the Nordic market, leveraging ALVA Capital’s established presence in Iceland.
