Icelandair Hotels have signed a 20-year lease contract for the property on Thingvallastraeti 23 in Akureyri, near the local campsite, which was bought by Pálmar Hardarson for ISK 160 million (USD 1.4 million, EUR 1 million) at the end of August.
From Akureyri. The new culture and concert center, Hof, is in the foreground. Photo by Páll Stefánsson.
This winter the building, which used to facilitate part of the operations of the University of Akureyri, will be changed into a hotel. If all goes according to schedule, 63 rooms will be ready by June 1, 2011, and 38 additional rooms one year later, ruv.is reports.
Managing director of Icelandair Hotels Magnea Thórey Hjálmarsdóttir said there are many opportunities involved in hotel operations in Akureyri because of how long the tourism period there is.
Because of the local ski resort, Akureyri has become a popular winter destination along with being a frequently-visited destination in summer.
Hjálmarsdóttir estimates that 20 to 40 jobs will be created, which will vary according to seasons. She is not concerned that there will be too many places of accommodation in Akureyri with this latest addition.