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Iceland Mag

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Alaskan investors have purchased a 75% stake in one of Iceland's largest hotel chain

By Staff

  • Hotel Borg KEA Hótel owns Hotel Borg, a downtown landmark and one of the best known hotels in Iceland. Photo/Ernir

An American investment fund PT Capital Advisors has purchased a 50% stake in one of Iceland's largest hotel chains, KEA Hotels. A second American investor, JL Properties, had bought a 25% stake in the hotel chain earlier this summer. Bringing the total owned by foreign investors to 75%. Both companies are based in Anchorage, Alaska.

KEA Hótel is Iceland's third largest hotel chain. The chain operates 8 hotels with a total of 624 rooms in Reykjavík and North Iceland. According to a statement from Íslandsbanki bank, which oversaw the sale, the buyers do not intend to make any significant changes to the hotels or their character. 

75% Alaska owned
The purchase price of the 50% stake is reportedly 5.5 billion ISK (52 million USD/44 million EUR). The shares were sold by the CEO of the hotel chain, and an institutional investor, an investment fund owned by Landsbankinn bank, which is owned by the Icelandic state. The fund bought a 60% stake in the hotel chain three years ago. Only one Icelandic investor will remain a shareholder in the hotel chain, a local property development company which will own a 25% stake.

Read more: Alaskan real-estate tycoon buying one of Iceland's largest hotel chains

The purchase by PT Capital is the third major Alaskan investment in Iceland this year, and the second investment by PT Capital. In June Alaska based JL Properties, whose CEO and Chairman is Anchorage real-estate mogul Jonathan B. Rubini, who was ranked the wealthiest man in Alaska in 2015. Earlier this year PT Capital purchased half of the Icelandic telecom and mobile phone carrier Nova. 

One of Iceland's largest hotel chains
operates eight hotels, five in Reykjavík, two in Akureyri town in North Iceland and one by lake Mývatn in North Iceland. The Reykjavík hotels operated by Keahótel include Hótel Borg, one of Reykjavík's best known hotels, as well as Apótek Hotel, Reykjavík Lights, Skuggi Hotel and Storm Hotel.

Keahótel also operates three hotels in North Iceland: Hótel KEA in Akureyri, founded in 1944 one of the oldest hotels in North Iceland, a smaller hotel, Hótel Norðurland and a small hotel by Mývatn lake, Hotel Gígur.

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