Hotel Construction Planned in North Iceland Town Skip to content

Hotel Construction Planned in North Iceland Town

The tourism development company Rauðka ehf., owned by Róbert Guðfinnsson, has made an agreement with the municipality Fjallabyggð on obtaining a lot in Siglufjörður, north Iceland, to construct a hotel with 64 rooms, scheduled to open in three years.


From Siglufjörður; a restaurant and gallery operated by Rauðka. Photo by Páll Stefánsson.

The project is estimated to cost ISK 900 million (USD 7.0 million, EUR 5.5 million). Rauðka will also invest ISK 300 million in a cabin in the town’s ski resort and other tourism projects; its total contribution to development in Siglufjörður so far amounts to ISK 600 million, Fréttablaðið reported last week.

“The agreement includes items which we find important to create a basis for a hotel, related to various environmental issues, the ski resort and golf course,” said Finnur Yngvi Kristinsson, Rauðka’s project manager. The hotel’s preliminary design has been completed.

Rauðka already operates a gallery and two restaurants in Siglufjörður. The goal with further development is to create a special position for the region and make it attractive for tourists; it saw a surge in travelers after a new tunnel connecting Ólafsfjörður and Siglufjörður opened in 2010.

As for other projects initiated by Róbert, the pharmaceutical development company Genis, which he represents, announced in March its intention to construct a factory in Siglufjörður to produce medicine that counteract diseases that start with swelling.

The medicine, which goes by the working title T-chos, has been developed by the company in the past seven years. They have obtained a patent license for the drug and human testing is about to be completed.

The factory’s operations are set to begin early next year and to begin with around ten people will be employed there. If production proves successful, their number could increase to 40 or 50, Róbert told


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