IHG Hotels & Resorts has signed an agreement with ALVA Capital for a 90-room Holiday Inn Express in Reykjavik, with an opening planned for the second half of 2027.
Holiday Inn Express Reykjavik – Valhöll will become IHG’s second property in Iceland, following the opening of Candlewood Suites Reykjavik. The signing advances a development partnership that could bring up to 500 rooms to the Icelandic market.
A 90-room hotel at the Valhöll property
The hotel will be located at Háaleitisbraut 1, in Reykjavik’s Valhöll property. The site has visibility from the main airport route and access to the city centre, business districts and attractions including Hallgrímskirkja.
Plans include the brand’s Generation 5 design, with shared spaces intended for working, relaxing and socialising.
“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,” said Willemijn Geels, Vice President, Development, Europe at IHG Hotels & Resorts.
ALVA Capital partnership targets up to 500 rooms
IHG and ALVA Capital signed a development agreement in 2025 covering plans for up to 500 rooms across Reykjavik and the wider Icelandic market.
Their first property, Candlewood Suites Reykjavik, has since opened. The Holiday Inn Express agreement was signed in Munich earlier in October 2026.
“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,” said Skorri Rafn Rafnsson, Founder and CEO of ALVA Capital.
The new hotel will add another internationally recognised brand to Reykjavik’s accommodation market, with IHG identifying the United States and the UK among its key visitor markets.
IHG expands its Nordic portfolio
The Reykjavik signing joins an IHG Nordic portfolio of 15 open and pipeline properties, according to figures dated 30 September 2026. Across Europe, more than 50 Holiday Inn Express hotels are in development.
