A second IHG property in Iceland
IHG Hotels & Resorts announced the signing of Holiday Inn Express Reykjavik – Valhöll on 27 October 2026, strengthening its presence in Iceland and the wider Nordic region.
The new 90-room property, scheduled to open in the second half of 2027, will become IHG’s second hotel in Iceland, following the opening of Candlewood Suites Reykjavik.
The project is being developed in partnership with ALVA Capital, an Icelandic investment company with which IHG has established a hotel development strategy for the local market.
The future hotel will be located at Háaleitisbraut 1, within the Valhöll building in Reykjavik.
Its location, visible from one of the main routes connecting the airport with the capital, will provide access for both international and domestic travellers.
The property will also offer convenient access to Reykjavik’s principal business and leisure districts, as well as several tourist attractions, including Hallgrímskirkja church.
A new-generation Holiday Inn Express
The future property will incorporate Holiday Inn Express’s Generation 5 (Gen 5) design standards.
This latest generation prioritises flexible, functional spaces adapted to the needs of contemporary travellers.
Communal areas will be designed to enable guests to work, meet and relax in an environment that emphasises connectivity and comfort.
The project reflects the positioning of Holiday Inn Express, IHG’s standardised midscale hotel brand offering a streamlined range of services.
The announced capacity is 90 rooms. The statement does not specify the investment amount, the ultimate property owner or the type of hotel agreement selected.
IHG and ALVA Capital: a target of 500 rooms in Iceland
This second signing marks another stage in the relationship between IHG and ALVA Capital.
In 2025, the two partners signed a development agreement covering the potential delivery of up to 500 rooms in Reykjavik and other destinations across Iceland.
The first property developed through this collaboration, Candlewood Suites Reykjavik, is now open.
According to Skorri Rafn Rafnsson, Founder and CEO of ALVA Capital, the first agreement was signed during the EXPO REAL trade fair in 2025.
The partners subsequently used the October 2026 edition of the event in Munich to formalise their second project.
This latest development contributes to the creation of a multi-brand portfolio in Iceland, combining Candlewood Suites’ extended-stay positioning with the midscale offering of Holiday Inn Express.
For Willemijn Geels, Vice President, Development, Europe at IHG Hotels & Resorts, the development of Holiday Inn Express in Reykjavik is intended to meet demand from travellers seeking a recognisable international hotel offering, particularly those from the British and American source markets.
A growing Nordic portfolio
Holiday Inn Express Reykjavik – Valhöll joins a portfolio of 15 Holiday Inn Express properties open or under development across the Nordic countries, according to figures released by IHG as at 30 September 2026.
Across Europe, the brand also has more than 50 properties in development.
For IHG, Iceland therefore represents an additional development market within its regional strategy.
The partnership with ALVA Capital enables the group to introduce several brands within the same market, adapting its hotel products to different accommodation needs.
LTH Analysis | A local partnership to establish a multi-brand presence
IHG’s second signing in Iceland illustrates a development strategy based on collaboration with a local real estate partner.
Rather than pursuing a series of isolated hotel projects, IHG and ALVA Capital are structuring their relationship around a framework agreement with the potential to deliver up to 500 rooms.
This approach provides an opportunity to introduce complementary brands while benefiting from the local partner’s market knowledge and access to identified real estate opportunities.
The choice of Holiday Inn Express enables IHG to strengthen its midscale offering following its initial entry with Candlewood Suites, a brand more closely associated with extended stays.
The commercial challenge will include attracting international travellers seeking familiar brand standards in a destination where tourism flows and operating conditions have specific characteristics.
At this stage, the 500 rooms represent a potential development target, not a volume that has been fully contracted or opened.
Delivery of this pipeline will depend on future signings, regulatory approvals and the development timetable of each individual project.
At a Glance
Hotel: Holiday Inn Express Reykjavik – Valhöll.
Location: Háaleitisbraut 1, Reykjavik, Iceland.
Brand: Holiday Inn Express, IHG Hotels & Resorts.
Partner: ALVA Capital.
Agreement announced: 27 October 2026.
Planned opening: Second half of 2027.
Capacity: 90 rooms.
Design: Holiday Inn Express Generation 5.
IHG presence in Iceland: Second property, following Candlewood Suites Reykjavik.
Development agreement: Up to 500 rooms across Iceland, signed in 2025.
Nordic Holiday Inn Express portfolio: 15 open and pipeline properties.
European Holiday Inn Express pipeline: More than 50 properties.
Investment amount: Not disclosed.
Contract type: Not disclosed.
LTH perspective: IHG is building a multi-brand presence in Iceland through a long-term development partnership with ALVA Capital.
