IHG Hotels Resorts Expands into Iceland with Candlewood Suites Agreement

What's Happening?

IHG Hotels & Resorts has announced a strategic partnership with ALVA Capital to open its first Candlewood Suites property in Reykjavik, Iceland. This development is part of a broader strategy to introduce up to 500 rooms in Iceland over the next three to five years. The new property will be located in the Hlíðardistrict of Reykjavik, converting a former office building into a 53-room hotel. This initiative marks IHG's entry into the Nordic market, leveraging ALVA Capital's established presence in Iceland. The Reykjavik property will join IHG's long-stay Suites portfolio, which includes nine Candlewood Suites set to open across Northern Europe.

Why It's Important?

The expansion into Iceland represents a significant move for IHG Hotels & Resorts as it taps into the growing tourism market in the region. Iceland has seen a substantial increase in international visitors, with approximately 2.3 million annually. The introduction of Candlewood Suites aims to meet the demand for extended-stay accommodations, offering amenities such as kitchens, self-service laundry, and gym access. This development not only strengthens IHG's presence in the Nordic countries but also diversifies its portfolio to include more long-stay options, catering to the evolving needs of travelers seeking apartment-style accommodations.

What's Next?

The Reykjavik property is expected to open soon, adding to IHG's existing 13 properties in the Nordic region, including locations in Sweden, Denmark, and Finland. As the project progresses, IHG and ALVA Capital will continue to explore opportunities to expand their footprint in Iceland, potentially introducing other IHG brands such as Holiday Inn Express and InterContinental Hotels. The success of this venture could influence further investments and partnerships in the Nordic hospitality market.