IHG Hotels & Resorts has announced its first property in Iceland with the signing of Candlewood Suites Reykjavik, developed in partnership with ALVA Capital.
The new midscale long-stay hotel marks IHG’s debut in the Icelandic market and represents the beginning of a broader expansion strategy in the Nordics. The property, located in Reykjavik’s central Hlíðar district, is expected to open in the near future following the conversion of an existing office building.
The agreement with ALVA Capital includes plans to develop up to 500 rooms across Iceland over the next three to five years, potentially introducing additional IHG brands such as Holiday Inn Express and Garner. The Reykjavik signing joins 13 open and pipeline IHG properties in the Nordic region, including voco Stockholm – Kista in Sweden, Crowne Plaza Copenhagen Towers in Denmark, and Hotel Indigo Helsinki in Finland.
IHG Expands in Iceland Amid Growing Tourism Demand
Iceland’s entry into IHG’s portfolio comes as the country continues to experience rapid growth in international tourism. In 2025, the nation welcomed about 2.3 million international visitors — more than five times its population of approximately 400,000. The surge reflects Iceland’s increasing appeal as a global travel destination known for its natural attractions, cultural heritage, and modern hospitality infrastructure.
Located near Reykjavik’s main pedestrian shopping street, the Candlewood Suites property will offer guests convenient access to the Kjarvalsstaðir Art Gallery, The Icelandic Phallological Museum, and Sundhöllin Public Baths. The 53-key hotel will feature casual, reliable, and spacious studios and apartments equipped with kitchens, designed to provide long-stay travelers with both comfort and independence.
“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,” said Willemijn Geels, Vice President, Development, Europe, IHG Hotels & Resorts. “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, said the collaboration represents a key milestone in Iceland’s evolving hospitality sector. “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,” he said. “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, ALVA Capital is a Reykjavik-based investment and development firm with operations spanning fintech, technology, and real estate. The company has expanded its focus since 2020 to include residential and hospitality developments, managing over 200 rental units across Iceland. Its partnership with IHG underscores a shared strategy of long-term value creation in the country’s growing tourism and accommodation sector.
Part of IHG’s long-stay Suites portfolio, Candlewood Suites hotels are designed for extended stays, providing guests with self-service laundry, gym access, and weekly housekeeping, alongside in-room kitchens and workspaces. Each property features the Candlewood Cupboard, an on-site marketplace offering snacks, drinks, and essentials available 24/7.
IHG currently operates nine Candlewood Suites properties in Northern Europe and plans to expand its extended-stay portfolio to meet rising demand for apartment-style accommodations. Across Europe, IHG has 32 extended-stay hotels in operation or development, including brands such as Staybridge Suites and Atwell Suites. As of June 30, 2025, the Candlewood Suites brand encompasses more than 410 open hotels and 192 in the pipeline worldwide.
The addition of Candlewood Suites Reykjavik marks a strategic milestone for IHG Hotels & Resorts as it strengthens its presence across Northern Europe and capitalizes on Iceland’s growing appeal as a year-round travel destination. The property is set to provide a new option for business and leisure travelers seeking flexible, long-stay accommodation in the Icelandic capital.
