Published: 2015-08-26 12:25:57 CEST
Icelandair Group hf.
Company Announcement

Icelandair Hotels reaches an agreement for a new high quality hotel in Reykjavik city centre

Icelandair Hotels, a subsidiary of Icelandair Group, and Lindarvatn ehf. signed today a lease agreement for the term of 25 years regarding the operation of a high quality hotel located in the former headquarters of Landssiminn near Austurvollur. The new hotel, which has not been named yet, will contain 160 hotel rooms but the brand of the hotel is still undecided. The operation of the hotel is expected to begin in the summer of 2017.

The building of new hotels in Iceland has been prominent during past months but the increase of hotel rooms in Reykjavik has not kept up with increased number of tourists in the city. Icelandair Hotels is preparing new hotels in a few locations in Reykjavik but it is the strategy of the company to increase the number of high quality hotel rooms in the city. Such high quality hotel rooms are necessary for the marketing of Reykjavik as a conference city.

Along with the signing of the lease agreement, Icelandair Group will purchase 50% of the share in Lindarvatn ehf., which is the owner of the property and other properties located near Austurvollur. In total the properties are 15.000 square meters but the hotel is expected to be 11.000 square meters.

 

For further information please contact:

Bjorgólfur Jóhannsson, President and CEO
bubbi@icelandairgroup.is
+354 896 1455

Bogi Nils Bogason, CFO
bogi@icelandairgroup.is
+ 354 665 8801