IHG Hotels & Resorts (IHG), one of the world’s leading hotel companies, has announced the signing of Holiday Inn Express Reykjavik – Valhöll, further strengthening its Nordic portfolio and marking its second property in Iceland following the opening of Candlewood Suites Reykjavik. Signed with ALVA Capital, the hotel builds on the companies’ growing relationship and their shared ambition to expand quality branded hospitality across Iceland.
Expected to open in the second half of 2027, the 90-room hotel will be located at Háaleitisbraut 1 in Reykjavik, in the well-known Valhöll property. With strong visibility from the main airport route, positioning it well for international and domestic travellers. Guests will be within easy reach of Hallgrímskirkja, one of Reykjavik’s best-known landmarks, as well as the city centre and its key leisure and business districts.
The hotel will feature the brand’s latest Generation 5 (Gen 5) design, which creates flexible, experiential environments that attract and excite today’s travellers, encouraging guests to connect, work and unwind in intuitive social spaces. This next-generation design reinforces the brand’s commitment to delivering simple, smart travel with enhanced comfort, connectivity, and functionality.
Willemijn Geels, Vice President, Development, Europe, IHG Hotels & Resorts, said: “We are delighted to strengthen our partnership with ALVA Capital and bring Holiday Inn Express to Reykjavik, marking our second property in Iceland. With its trusted guest proposition and strong international recognition, the brand is well placed to meet demand from travellers looking for a simple, smart and comfortable stay. This signing is another important step in growing IHG’s presence in Iceland, and we look forward to working with ALVA Capital to bring the hotel to life.”
The signing marks the next step in IHG’s relationship with ALVA Capital and supports the companies’ strategy to develop multiple hotels in Iceland. IHG and ALVA Capital signed a development agreement in 2025 with plans to develop up to 500 rooms across Reykjavik and the wider Icelandic market.
Skorri Rafn Rafnsson, Founder and CEO of ALVA Capital, said: “We signed our first hotel with IHG at EXPO REAL a year ago, and Candlewood Suites Reykjavik is now open. Returning to Munich earlier this month to sign our second hotel together was another important milestone in our partnership. This latest signing forms part of our wider hotel development pipeline in Iceland and brings us closer to our shared ambition with IHG to develop up to 500 rooms. We are delighted with how the partnership has grown and see significant opportunity ahead.”
Holiday Inn Express is designed to help travellers rest and recharge, offering a consistent and straightforward experience for guests on the move. The new hotel will further diversify Reykjavik’s internationally branded hotel offer and offer visitors from key markets, including the United States and the UK, a familiar hotel brand.
Holiday Inn Express Reykjavik – Valhöll joins a growing portfolio of 15 open and pipeline properties in the Nordics, as well as more than 50 Holiday Inn Express properties in development across Europe.
