Big plans for expanding a luxury hotel

Tindasel Lodge has not been in operation for a long …

Tindasel Lodge has not been in operation for a long time but there are plans for a major expansion of the hotel and the organisation of entertainment.

“This is the best location in Iceland. You can stay here for 5-6 nights and do something new and exciting every day. We see huge growth opportunities here,” says Sigurður Sindri Magnússon, CEO and owner of the tourism service Deluxe Iceland.

The company runs Tindasel Lodge in Rangárvöllur. It now has eight rooms, which can accommodate up to sixteen guests. The hotel is located in a settled farm that used to belong to the farm Stokkalækur. Plans are in the works to expand the hotel in the coming years. If they are all carried through, it will be possible to accommodate up to 200 guests at any given time. The target group is mainly well-off Americans.

Cost up to ISK 2.8 billion

The first part of the project is now completed, which included the purchase of the land, the operation of an eight-room hotel and the application for permits for buildings that can accommodate up to 200 guests. The second part is ongoing, which includes the search for financing, building 10-15 small-houses that are partly glass, as well as further preparations for the third part, which is set to start in 2026.

The plan is to build a 40-room hotel with spa facilities, fitness center and restaurant. There will be 10 traditional rooms, 10 larger rooms, 16 deluxe rooms and four 70 square meter suites. The hotel’s older premises will be used as accommodation for its staff. In addition, plans are made for another building, “Private Lodge”, which will be available for rent in full for families or groups. Magnússon says that people can stay there more privately and have their own chef and waiter, for example. This construction will have a high cost and is estimated to be up to $20 million in total, or about ISK 2.8 billion.

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