IHG Hotels & Resorts expands into Iceland with first Candlewood Suites property in Reykjavik - Get updated on what's happening in tourism!

IHG Hotels & Resorts (IHG), one of the world’s leading hotel companies, has announced its first signing in Iceland for its midscale extended stay brand Candlewood Suites. The agreement, made with ALVA Capital, includes plans to develop up to 500 rooms in Reykjavik and across Iceland over the next three to five years, introducing key IHG brands such as Holiday Inn Express and Garner hotels to the Nordic market.

A strategic step in IHG’s Nordic expansion

The new Candlewood Suites Reykjavik joins IHG’s 13 open and pipeline properties across the Nordics, following the brand’s return to Sweden with voco Stockholm – Kista, as well as Crowne Plaza Copenhagen Towers in Denmark and Hotel Indigo Helsinki in Finland.

Iceland’s tourism sector has seen remarkable growth in the past decade, now welcoming around 2.3 million international visitors annually – more than five times the country’s population of roughly 400,000. With this rising demand, IHG’s entry into Iceland strengthens its position in one of the region’s most dynamic travel markets.

A central Reykjavik location offering space and comfort

Situated in Reykjavik’s Hlíðar district, near the city’s main shopping street, the new Candlewood Suites will provide convenient access to key attractions such as the Kjarvalsstaðir Art Gallery, the Icelandic Phallological Museum, and Sundhöllin Public Baths.

The 53-key property, converted from a former office building, will offer spacious studios and apartments equipped with kitchens, giving guests both the comfort and independence of home alongside reliable hotel services.

Statements from IHG and ALVA Capital

Willemijn Geels, Vice President, Development, Europe at IHG Hotels & Resorts, said:

“We are delighted to introduce Candlewood Suites to the Nordics with this landmark signing in Reykjavik – an exciting and emerging market for IHG. Our collaboration with ALVA has been highly productive from the start, and this project holds great potential for further growth across Iceland. We are proud to see our shared vision come to life so swiftly.”

Skorri Rafn Rafnsson, CEO of ALVA Capital, added:

“Partnering with IHG Hotels & Resorts to bring Candlewood Suites to Iceland is a major milestone for us. The brand combines the comforts of everyday living with the convenience of hotel services, ideal for both short and extended stays. This partnership represents our commitment to delivering tailored hospitality experiences that meet the evolving needs of travellers in Iceland.”

About ALVA Capital

Founded in 2012 by Skorri Rafn Rafnsson, ALVA Capital is a Reykjavik-based investment and development firm with roots in fintech and technology. Since 2020, the company has expanded into real estate, focusing on residential and hospitality projects. Its current portfolio includes over 200 rental units across apartments, hotel rooms, and mixed-use developments. ALVA’s data-driven investment approach emphasizes long-term value creation through innovation, operational excellence, and sustainable growth.

Candlewood Suites: a growing presence in Northern Europe

Part of IHG’s extended stay Suites portfolio, Candlewood Suites properties provide self-service laundry, fitness facilities, and weekly housekeeping, as well as fully equipped kitchens, coffee and tea makers, and dedicated workspaces. Guests can also access the Candlewood Cupboard, a 24-hour marketplace offering drinks, snacks, and personal essentials.

IHG currently has nine Candlewood Suites hotels set to open across Northern Europe, reflecting the growing demand for midscale extended stay accommodation. Globally, the brand counts over 410 open hotels and 192 in the pipeline, underscoring its position as a key player in the long-stay segment.

Image Credit: © IHG Hotels & Resorts