IHG expands Nordic presence with new Reykjavik hotel signing

IHG Hotels & Resorts has announced the signing of the Holiday Inn Express Reykjavik – Valhöll, marking its second property in Iceland following the opening of Candlewood Suites Reykjavik. The 90-room hotel, being developed in partnership with ALVA Capital, is expected to open in the second half of 2027.

Located at Háaleitisbraut 1, the property will feature the brand’s Generation 5 design, focusing on flexible social spaces for travelers. The site is positioned near the main airport route and key landmarks such as Hallgrímskirkja.

This expansion occurs amid a broader trend of hotel chainification across Europe. Independent and family-run properties are increasingly entering franchise or management agreements with global groups like IHG, Marriott, Hilton, Accor, and Hyatt to access international tourism markets and manage rising technology costs. Estimates suggest chain affiliation in Europe rose from approximately 36% in 2020 to over 41% of the continent’s estimated 6.5 million hotel rooms by August 2026.