Icelandair Hotels

Icelandair Hotels is the largest and the leading hotel company in Iceland. The company runs and franchises two hotel chains: Icelandair Hotels, a chain of 3 and 4 star hotels and Hotel Edda a chain of summer hotels with a total of 1,500 rooms, which are located all around the country. In 2007 Nordica, the flagship, was separated from IH hotels and a franchise agreement was signed with Hilton International.

Markets

The market environment is still dominated by a steadily growing last-minute booking trend. The Internet plays a bigger role than before, resulting in a higher yield per guest. The Hilton brand gives us access to valuable resources and customers, which are intended to be utilized to the fullest, especially in the field of meetings and conferences. Furthermore, the company's leading position in the domestic market has secured for its flagship hotel, the Hilton Reykjavík Nordica, an excellent reputation and a high level of satisfaction in the very demanding local corporate market.

Outlook

 We are committed to profitable growth of the Icelandair Hotels operation, and this agreement with Hilton is a major step for us in that direction. With a continued focus on cost and aggressive marketing, we expect healthy growth over the next few years.