New Reykjavik Hotel Planned for Late 2027

A new accommodation option is planned for visitors to Iceland’s capital, with a 90-room hotel expected to open in the second half of 2027. Announced on 27 October, Holiday Inn Express Reykjavik – Valhöll will occupy the Valhöll building at Háaleitisbraut 1. The address places it outside the main downtown sightseeing streets, making the surrounding neighbourhood and journeys into the centre relevant considerations for anyone planning a stay.

The property will be IHG’s second hotel in Iceland, following the opening of Candlewood Suites Reykjavik, and will add another internationally recognised brand to the capital’s accommodation choices. Its building is visible from the main airport route, according to the announcement, although that detail alone does not establish how guests will reach the entrance, whether airport coaches will stop nearby or what transfers will cost.

What to Expect at the Hotel and Nearby

Inside, plans call for shared spaces where guests can work, relax or meet, using the brand’s latest Generation 5 design. Such areas could be useful for checking an itinerary, opening a laptop or gathering with travel companions outside the bedroom. However, the announcement does not specify room layouts, dining arrangements or a full facilities list, so there is not yet enough information to assess how well the hotel will suit different needs.

Nearby Ásmundarsafn offers an introduction to Icelandic sculpture, with works by Ásmundur Sveinsson displayed in the building he designed and its garden. In the wider Laugardalur area, visitors can explore the botanical garden, swim at Laugardalslaug or take children to the Family Park and Zoo. These attractions provide reasons to spend time beyond downtown, while Hallgrímskirkja and the central sightseeing streets remain options for a separate outing from the hotel.

The opening could interest visitors who want to combine Reykjavik’s familiar landmarks with swimming, gardens and museums away from its busiest sightseeing routes. The useful comparison will be the total cost and convenience of a stay: room prices, journeys to planned activities and the services included. A recognisable hotel name may make an option easier to identify, but those practical details will determine whether it makes sense for a particular trip.