Icelandic Hotels’ Financial Snapshot for 2025
Stable Operations Amidst Changing Market Dynamics
Financial Review for Icelandic Hotels
The board of Icelandic Hotels recently confirmed the consolidated financial statements for the first half of 2025, covering the period from January 1 to June 30. The company has released its financial reports, detailing key performance indicators that reflect both challenges and positive trends.
Key Financial Indicators for H1 2025 Compared to H1 2024:
- Revenue reached 6,477.8 million ISK (2024: 6,691 million ISK)
- EBITDA was 688.7 million ISK (2024: 735 million ISK)
- Net loss after taxes was 1,146.8 million ISK (2024: 1,201.2 million ISK)
- Book equity at the end of June 2025 was 24,599.2 million ISK (end of 2024: 25,746 million ISK)
- Equity ratio stood at 37.8% (end of 2024: 36.3%)
During the first half of 2025, approximately 955,000 tourists visited the country, marking a slight decrease of about 1% compared to 2024’s figures of 963,000. The most significant impacts were noted in the first three months, with a decrease of over 9% in tourist arrivals compared to the previous year. This decline negatively affected the company's operations during the first quarter, compounded by rising operational costs attributed to wage increases and inflation trends. Additionally, the strength of the Icelandic króna played a role in diminishing the competitiveness of Iceland as a travel destination.
However, a positive trend emerged in July 2025, with tourist numbers increasing by 9% from the previous year, contributing to an 11.6% rise in company revenues. Expectations for August also appear optimistic.
During the reporting period, the hotel Fosshótel Hekla was sold, which had been closed for some time. This sale is part of the company's strategy to enhance operational efficiency and profitability.
In 2025, a significant decision was made to merge Icelandic Hotels with Fosshótel Reykjavík under the Icelandic Hotels name. Approved by the company's board, the merger will be retroactive from January 1, aiming to streamline operations, standardize procedures, and strengthen competitive positioning.
Icelandic Hotels has continued its expansion work on Hotel Reykjavík Grand during the period, making significant progress on enhancing the hotel. This development includes adding more rooms, expanding conference space, and improving service facilities. The project's goal is to solidify Hotel Reykjavík Grand's status as a leading provider of conference and lodging services in the capital region, improving the company's future competitiveness as well. This project aligns with the company’s long-term strategy to enhance performance and strengthen its revenue base.
"The first half of the year was characterized by fewer tourists and increased operational costs, but the outlook for the latter half is positive. We are witnessing a clear rebound in July and August, accompanied by rising revenues alongside an increase in tourist arrivals. The merger with Fosshótel Reykjavík will strengthen our operations and improve efficiency going forward. The expansion of Hotel Reykjavík Grand is one of our most significant development projects to date and is expected to substantially enhance the company's position," stated Davíð Torfi Ólafsson, CEO of Icelandic Hotels.
The company's financial statements have been enclosed and are also available on the company’s website, www.islandshotel.is/fjarfestar.
The company is listed on the Iceland Stock Exchange and adheres to regulations for companies with registered financial instruments in organized markets. Included is a confirmation letter from Deloitte regarding the bond series IH140647.
For More Information, Contact:
Davíð Torfi Ólafsson, CEO of Icelandic Hotels
david@islandshotel.is
Phone: 862 8089
Frequently Asked Questions
What are the main financial highlights for Icelandic Hotels in 2025?
In 2025, Icelandic Hotels reported revenues of 6,477.8 million ISK, EBITDA of 688.7 million ISK, and a net loss of 1,146.8 million ISK.
How did tourist arrivals impact the company’s performance?
Tourist arrivals decreased slightly in the first half of 2025, contributing to financial challenges, particularly in the first quarter.
What strategic moves were made by Icelandic Hotels in 2025?
The company merged with Fosshótel Reykjavík and sold Fosshótel Hekla to enhance operational efficiency.
What are the future expectations for Icelandic Hotels?
Future expectations are positive, with an increase in tourist arrivals anticipated for the latter half of the year, along with a successful expansion of Hotel Reykjavík Grand.
Who can be contacted for further inquiries about Icelandic Hotels?
For inquiries, Davíð Torfi Ólafsson, the CEO, can be reached via email at david@islandshotel.is or by phone at 862 8089.
