Will Saga Continue as Hotel, Nursing Home or Dorm?

Numerous parties have shown interest in starting an operation in the building that used to house Hótel Saga, Reykjavík, Morgunblaðið reports. The hotel closed its doors November 1, due to the COVID-19 pandemic. 

The building, completed in 1962,  has always been the property of Icelandic farmers. They, too, own Hótel Saga – the company that operated the hotel. In addition to a hotel, the building has housed the offices of the Farmers’ Association. It has 209 rooms, in addition to banquet- and conference halls.

The interested parties include foreign and local investors, interested in operating a hotel there; companies in the healthcare sector, interested in converting the hotel into a nursing home; and the University of Iceland, interested it using the building for its students.

“We’re considering a number of options, but no decision has been made,” states Gunnar Þorgeirsson, head of the Farmers’ Association. He spoke about the options at a board meeting yesterday.

Discussions are ongoing with interested investors, including local and foreign owners of hotel chains. The foreign investors want to inspect the property before signing an agreement, which is complicated during COVID-19-related travel restrictions, Gunnar explains.

In addition, there are ongoing talks with the healthcare company Heilsuvernd and the nursing home Eir about operating a nursing home in the building, as well as with the University of Iceland about using the building for classes, university offices and overnight accommodation for university students.