New airport hotel at KEF Airport
Isavia is currently seeking partners for the construction and operation of a new airport hotel. A needs assessment has confirmed strong market demand for a 4-star hotel in the airport’s forecourt. As the operator and manager of KEF Airport, Isavia is now looking for potential partners to bring this project to life.
Over the past decade, KEF Airport has experienced significant growth, driven by Iceland's rising popularity as a tourist destination and its expanding role as a key transfer hub for passengers traveling between Europe and North America.
This growth presents a strong opportunity for a high-quality hotel investment that caters to both transfer passengers and the increasing number of tourists. Additionally, there is an ambition to establish direct flights from KEF to Asia in the coming years. However, the supply of available hotel rooms in the airport area has not kept pace with demand.
The Hotel
- The goal is to develop a new 4-star on-airport hotel that ensures high service quality for passengers. There is also potential to co-locate two separate hotel brands, offering both a 3-star and a 4-star experience, if deemed feasible.
- The hotel site spans 13,000 square meters, with a total usable building area of 20,000 square meters across four floors. Additionally, permission has been granted to construct a basement beneath the entire building footprint.
- A demand has also been identified for hotel facilities such as F&B, meeting rooms and a fitness center.
KEF Airport is open to discussions with the right partners regarding various business models for developing and operating the hotel.
The designated plot is currently occupied by a surface parking lot, approximately 200 meters from the existing passenger terminal. The hotel will be located in front of the future passenger terminal, within a short walking distance or potential indoor connections.
Highly Attractive Opportunity
Isavia is seeking experienced hotel developers to participate in a tender for the construction of a new airport hotel at KEF airport.
The airport’s strategic location—between Europe and North America—and its distance from Iceland's capital, Reykjavik, make this a highly attractive opportunity. The rapid increase in passenger volumes has presented an amplified demand for hotels in the airport area.
Ongoing Landside Redevelopment
The new hotel is part of an ongoing landside redevelopment program that will bring significant improvements to KEF in the coming years, with a strong focus on improving the passenger experience and service.
The development of Keflavík Airport follows a dedicated master plan, which is in effect until 2045. In parallel with this Master Plan, a specialized development plan for the landside area was approved by Isavia's board in the fall of 2022. This plan prioritizes enhancing the passenger experience while also optimizing the company’s revenue potential. It considers various aspects, including the development of a landside hotel, as well as improvements to transportation, shopping, and other services.
