Published: 2018-05-18 18:11:58 CEST

Icelandair Group initiates sale process for hotel operations and related properties

Icelandair Group has decided to initiate a process to sell Icelandair Hotels, together with the properties pertaining to these operations.

Icelandair Group President and CEO Björgólfur Jóhannsson: “We introduced a new corporate structure at the beginning of the year, when we divided the Company’s operations into two segments: International flight operations and Investments in aviation and tourism. We are now taking the next steps, with a decision to initiate a process designed to sell majority share in Icelandair Hotels. We are looking in the same way at the properties relating to these business activities. Icelandair Hotels is at the forefront in its field in Iceland; it enjoys a strong market position, is well run and excellently staffed. We have been aware of extensive recent interest in the company, both among Icelandic and foreign entities. Our objective with this change is to sharpen further the focus on our core business, which is international aviation, where we intend to invest further in our Company’s growth through digital solutions, increased automation and a new fleet.”

In the process, the objective will be to maximise the value of our investments, while at the same time preserving the interests of Icelandic tourism, our employees and other stakeholders.

Icelandair Hotels runs 13 hotels: Reykjavik Natura, Reykjavik Marina, Hilton Reykjavik Nordica, Canopy Reykjavik | City Centre, Reykjavik Konsúlat Hótel and Hótel Alda. Outside the Reykjavik metropolitan area there are Icelandair Hotels in Akureyri, at Lake Myvatn and in the East Iceland county of Hérad. In addition, there are franchised hotels at Flúdir, Klaustur, Hamar and Vík, all in rural locations. Icelandair Hotels also operates the summer hotel chain Hotel Edda, with ten hotels across the country. This translates into 1,937 hotel rooms in Iceland as a whole, 876 in Reykjavik and 470 in rural locations which are in operation year-round, in addition to 611 Hotel Edda rooms which are in operation over the summer season. In addition, Icelandair Hotels will open a new hotel on Austurvöllur Park in Reykjavik's Parliament district.

The decision has also been made that Iceland Travel and VITA will be a part of Icelandair Group´s core business. The purpose is to further strengthen the sales of organised tours and related products within Icelandair Group.

Further Information:

Björgólfur Jóhannsson, President and Chief Executive Officer of Icelandair Group, tel: +354-896-1455

Bogi Nils Bogason, Chief Financial Officer of Icelandair Group, tel: +354-665-8801