Advisory on Franchise Agreement Negotiations
Hyatt Centric Reykjavík
Nordic Hotel Consulting advised Reitir, Iceland’s largest real estate owner, on a franchise agreement with Hyatt Hotels Corporation for the new 169-room Hyatt Centric Reykjavik. The agreement was finalized in December 2019, and it marked the entry of Hyatt Hotels Corporation in the Icelandic market.
The hotel is due to open in 2022, and it will offer three F&B outlets, including a pop-up rooftop bar, and approximately 200 square meters of meeting facilities. It will be situated on Laugavegur, the main street of Reykjavík. The building will be a redevelopment of what locals know as the former headquarters of the Icelandic National Broadcasting Service.
Quotes from Press Release:
"Over the past year we have spent a great deal of time understanding the Nordic market and getting to know the hotel developers and owners in Iceland. Hyatt Centric Reykjavík will mark the first Hyatt hotel in Iceland, an important milestone for us. Hyatt Centric Reykjavík not only demonstrates our unprecedented growth in the upscale lifestyle segment in Europe, but also our commitment to expand Hyatt's brand footprint in a market currently dominated by independent, regional players."
Peter Norman, Senior Vice President of the Development, Hyatt
"We are thrilled to be working alongside Hyatt to bring the first Hyatt hotel to Iceland and the Nordics as a whole. Our experience in the Icelandic market and Hyatt's unique, personalized approach to development is the perfect combination to develop a distinct offering in the city, With travelers staying in Iceland for an average of five to eight nights all year round, Hyatt Centric Reykjavík will be the ideal base for guests wanting to enjoy a lifestyle hotel whilst taking in the stunning scenery, whether on a hike in summer or while viewing the Northern Lights in winter."
Guðjón Auðunsson, CEO, Reitir fasteignafélag hf
Read more here.
Reitir was founded in 1987, and since then it has become the largest provider of commercial property for rent in Iceland. Reitir's portfolio consists of more than 140 properties, including the Kringlan shopping centre, Holtagardar shopping centre, Icelandair Hotel Reykjavik Natura, or Reykjavik Hilton. The company takes great pride in the preservation of its many historic buildings while striving towards a more sustainable built environment.
Photos: Hyatt Hotels, Erasmusu, Audley Travel