IHG Hotels & Resorts (IHG), one of the world’s leading hotel companies, has announced its first signing in Iceland with Candlewood Suites Reykjavik, marking the debut of the group’s midscale long-stay brand in the country.
The signing, in partnership with Icelandic investment firm ALVA Capital, represents a major milestone for IHG in the Nordics. Over the next three to five years, IHG and ALVA plan to develop up to 500 rooms across Iceland, introducing several of IHG’s most recognized brands, including Holiday Inn Express and Garner Hotels.
Set in Reykjavik’s Hlíðar district, just steps from the city’s main shopping street, the new Candlewood Suites will offer convenient access to key attractions such as Kjarvalsstaðir Art Gallery, The Icelandic Phallological Museum, and Sundhöllin Public Baths. The 53-key property, a conversion of a former office building, will feature spacious studios and apartments with fully equipped kitchens — ideal for travelers seeking a home-like experience during extended stays.
“We are proud to introduce Candlewood Suites to the Nordics with this landmark signing in Iceland,” said Willemijn Geels, Vice President of Development, Europe, IHG Hotels & Resorts. “ALVA Capital has proven to be an excellent partner, and this project lays the groundwork for long-term growth across the country.”
Skorri Rafn Rafnsson, CEO of ALVA Capital, added:
“Candlewood Suites combines the comforts of daily life with the convenience of hotel living. This partnership with IHG allows us to meet the growing demand for longer stays in Iceland and marks an exciting step in our hospitality expansion.”
Founded in 2012, ALVA Capital is a Reykjavik-based investment and development firm with a growing real estate portfolio of over 200 rental units, including apartments and hotel rooms. Since 2020, the company has expanded into hospitality, focusing on long-term value creation through innovative and data-driven strategies.
Part of IHG’s Suites portfolio, Candlewood Suites offers guests practical amenities such as self-service laundry, gym access, weekly housekeeping, and the Candlewood Cupboard, an on-site marketplace for snacks, drinks, and essentials.
With nine Candlewood Suites hotels currently in development across Northern Europe and over 400 open worldwide, IHG is strengthening its position in the fast-growing extended-stay segment — one increasingly favored by travelers seeking flexibility, comfort, and independence.
