Hilton is expanding its presence in Iceland, and taking branded hotels out into the Icelandic countryside as the destination looks to encourage visitors to travel out from the capital, Reykjavik.
The company has signed to open a 170 room hotel in Reykjavik, which will launch in spring 2026 in partnership with owner Bohemian Hotels. A decision on branding will be taken in due course. But before that, it will work with Bohemian to open a Curio Collection hotel in Akureyri, opening the doors of a 70 room hotel in summer 2025 – and this will be the first internationally branded hotel in the Icelandic countryside, on the northern coast of Iceland.
The additions will join Hilton’s existing strong presence in the Icelandic capital, where it already has four hotels: two are members of its Curio Collection, along with a Hilton and a Canopy branded property.
Spreading tourism across Iceland
The dramatic island regularly hits international headlines for its amazing geography, which includes active volcanoes that are prone to erupt, and natural hot springs. Visitors arrive by plane to usually stay in Reykjavik, but as tourism grows in Iceland, the government is keen to spread the benefits to communities across the country.
One beneficiary is the northern city of Akureyri, where government support is encouraging more international airlines to plan direct flights. easyJet, Edelweiss Air and Transavia are all opening up the destination. As a result, hotel development is happening, too.
Joining the new Curio Collection in providing accommodation in the area is local operator Islandhotel, who have revealed they will manage a new 120 room hotel being built just outside the town alongside the Forest Lagoon. The hotel will be opening in spring 2026. Also planning ahead is the Hotel Akureyri, which will complete an extension in summer 2024, taking the property to 52 rooms as part of a planned phase of expansion at the property.
And in nearby Grenvik, the 40 room Hofoi Lodge will welcome guests from spring 2025. The hotel is being built by the owners of the Viking Heliskiing, and the focus will be on enjoying the great outdoors. The hotel is perched on a cliff, providing guests with dramatic views of the ocean and local scenery.
Capital developments
Back in Reykjavik, hotel development continues with several projects under way, to suit all price points for visitors. These include a CityHub, opening in autumn 2024 with 93 rooms. Early 2025 will see the launch of the rebranded Hotel Muli, which will be undergoing extensive renovations ahead of reopening as one of Accor’s Ibis Styles hotels. By mid 2025, Hyatt will be opening its Hyatt Centric hotel, created by redevelopment of the former headquarters of the Icelandic National Broadcasting Service.
Further ahead, luxury brand Six Senses will be launching a hotel and branded residences on a site to the east of Reykjavik. Six Senses Ossura Valley will feature all the hallmarks of the brand, with its strong focus on wellness and sustainability.
