Íslandshótel story goes back to 1992 when Hotel Reykjavík opened with 30 rooms. 30 years later the hotel chain operated 18 hotels with approx. 2.000 hotel rooms.
The building at Rauðarárstígur 37 in Reykjavík was originally planned as office space but Ólafur Torfason and family made a bold decision to change it into hotel. This vision was remarkable at a time where very few saw an opportunity in the travel industry.
In 1994 Holiday Inn was acquired. A year later the name was changed to Grand Hotel Reykjavík and the hotel opened with 109 rooms.
In 1997 Gullteigur opened at Grand Hótel Reykjavík and became the largest conference hall in Iceland. With the ability to host conferences and reception of up to 500 people, this side of the hotel business grew fast.
Hotel Reykjavík Centrum opened that year in downtown Reykjavík. This charming hotel is located on Aðalstræti, one of Reykjavík’s oldest streets, in a renovated building where the oldest part is from 1764.
Grand Hotel Reykjavík expanded with two large towers built side by side adding 202 rooms to the hotel operation. The hotel became the largest hotel in Iceland with 311 rooms.
At the end of 2008, there was a change in Fosshotel ownership where Ólafur Torfason acquired majority stake in the chain. Fosshotel was established in 1996 and he had acquired 10% share in 1999.
In 2012, the hotel operation was joined under the Íslandshótel brand. This was a milestone in the company history and set the tone for the future direction. Same year, the first hotel was certified under the Nordic Ecolabel. More hotels opened in the countryside e.g. Fosshotel Eastfjords in Fáskrúðsfjörður which is in the center of the Eastfjords.
In 2015, Fosshótel Reykjavík opened and became the largest hotel in Iceland with 320 rooms. Haust Restaurant opened on the ground floor known for it's high quality lunch, brunch and dinner buffets. There’s also The Beer Garden which is the meeting place for beer lovers in Reykjavík. Fosshotel Hekla, a charming country hotel an hour drive from Reykjavik, opened as well.
The hotel portfolio continued to grow. Fosshotel Glacier Lagoon opened, a stunning 4 star hotel between Skaftafell National Park and Jökulsárlón Glacier Lagoon. Two more Fosshotels opened in West Iceland i.e. in Hellnar and Stykkishólmur. Fosshotel Húsavík expanded and went from 66 rooms to 110 rooms.
In wonderful surroundings north of Lake Mývatn, Fosshotel Mývatn opened in 2017. That same year, Fosshotel Reykholt in Borgarfjörður was renovated and Fosshotel Núpar in South Iceland expanded. New and renovated venues opened at Grand Hotel Reykjavík.
Íslandshótel values and vision were integrated into the leaves of a new logo representing what everyone within the hotel chain stands for.
Preparations started for expansion at Fosshotel Reykholt and Fosshotel Stykkishólmur.
The resilience and hard work by Íslandshótel employees shined through during these unprecedented times. The employees were faced with new challenges almost daily and determined to not give in during these tough times.
In May, all 17 hotels were open which was remarkable achievement and something to be proud of. The 18th hotel opened few months later, Hotel Reykjavík Saga. An elegant 4 star hotel ideally situated at the very heart of the Reykjavik city center.
Íslandshótel is proud to be the first Icelandic hotel chain to achieve full Green Key certification across all 17 of its hotels. This prestigious, internationally recognized certification has promoted sustainable practices in over 60 countries for more than 25 years.
On 1 September, Íslandshótel began operating Hilton Reykjavík and Hotel Reykjavík Askja, formerly Hilton Reykjavík Nordica and Reykjavík Natura. The addition brought the company’s portfolio to 19 hotels and around 2,400 rooms, while marking a new chapter in the history of these long-established Reykjavík hotels.
