ICELAND. Keflavík International Airport operator Isavia is exploring the feasibility of developing a new airport hotel in cooperation with an experienced developer and operator.
A ‘sustainable’ hotel – to be sited adjacent to the terminal – is envisaged for the growing airport, where Isavia expects to serve approximately 7.8 million passengers in 2023. The operator’s projection is for that to rise to 10 million passengers by 2026 and 12-14 million passengers by 2035.
Isavia noted that the rate of passenger growth has led to a shortfall in accommodation in the area close to the airport, particularly for higher-quality rooms.
The operator said it expects the hotel will feature a minimum of 200 rooms in the first phase with a possibility to double in size in the second phase. The facility would have the potential to offer multiple F&B outlets, meeting rooms, a fitness centre and direct terminal access, Isavia added.
Isavia Commercial Director Thorunn Marinosdottir said: “Our main goal is to enhance the overall experience and services at the airport for the growing number of passengers. We believe that a new airport hotel will not only address the increasing demand for high-quality accommodation but also contribute to the larger land development plan at KEF.”
She added: “It’s safe to say that KEF has established itself as a leading hub for transatlantic air travel between Europe and North America. Furthermore, Icelanders are frequent flyers, flying an average of 2.6 flights a year.
“We therefore think this would be a great opportunity for an experienced operator to fill this under-supply of bedrooms and provide facilities for growing regional business and KEF employee population.”
The potential hotel initiative is part of Keflavík Airport’s broader landside redevelopment programme, which includes a passenger terminal and a multi-storey car park.
As part of the preparation for a tender, and to create awareness about the potential opportunity, Isavia has invited interested parties with extensive experience in developing and operating hotels to answer a short questionnaire about the project. It should be completed here no later than 12.00 GMT on 30 November 2023.
Subsequent stages, such as one-on-one clarification meetings, will take place between November and December 2023. The official tender documents are expected to be published in 2024. 
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