IHG Hotels & Resorts has signed Holiday Inn Express Reykjavik – Valhöll, its second property in Iceland. The hotel is expected to open in the second half of 2027. ALVA Capital is the development partner, the same company behind Candlewood Suites Reykjavik, IHG’s first Icelandic hotel, which is now open. The signing adds to IHG’s Nordic portfolio and continues a plan to grow in the country.
At a Glance
The hotel will have 90 rooms and sit at Háaleitisbraut 1, inside the well-known Valhöll property. The site has strong visibility from the main airport route, which suits both international and domestic travelers. Hallgrímskirkja, one of Reykjavik’s best-known landmarks, is within easy reach. So are the city center and its main leisure and business districts.
The design follows the brand’s latest Generation 5 look. IHG describes it as flexible, social spaces where guests can connect, work, and relax. The company says the aim is simple travel with better comfort, connectivity, and function. IHG also expects visitors from key markets, including the United States and the UK, to recognize the brand. The hotel will add another internationally branded option to Reykjavik’s lodging market.
The Partnership
IHG and ALVA Capital signed a development agreement in 2025. It covers plans for up to 500 rooms across Reykjavik and the wider Icelandic market. The first hotel was signed at the EXPO REAL trade fair in Munich a year ago, and the second was signed there earlier this month. ALVA Capital Founder and CEO Skorri Rafn Rafnsson said the latest deal “forms part of our wider hotel development pipeline in Iceland.”
Willemijn Geels, IHG’s Vice President of Development for Europe, called the signing another step in growing the company’s Iceland presence. She said the brand’s recognition puts it in a good position to meet demand for simple, comfortable stays. The hotel joins 15 open and pipeline properties in the Nordics, based on figures as of September 30, 2026. IHG also has more than 50 Holiday Inn Express hotels in development across Europe.
