Luxury Hotel in Grenivík Still Incomplete Two Years After Planned Opening
A luxury hotel that was originally scheduled to open in Grenivík more than two years ago remains unfinished. The owners state that costs have exceeded expectations and the project has proven more complex than anticipated.
The five-star luxury hotel, located at Þengilhöfði near Grenivík, has significantly overrun its initial cost estimates. The hotel was originally slated to open to guests by the end of 2022 but remains under construction.
Measuring 5,005 square metres, the planned Höfði Lodge was introduced in November 2020 as a five-star hotel with forty rooms, four suites, and world-class experiences such as heli-skiing and fishing. The opening was set for late 2022.
Opening Now Expected Next Year
Since then, various setbacks have delayed the plans of the Icelandic entrepreneurs behind the project, who are backed by foreign investors. The hotel’s opening has been postponed multiple times. Co-owner Björgvin Björgvinsson has stated he prefers not to commit to a new opening date yet, though the goal is to welcome guests sometime next year.
In 2021, Björgvin noted that the project would cost over ISK 1 billion. That estimate has now increased significantly. He attributes the delays to multiple factors — including funding shortages at times and the impact of high interest rates, as seen across many sectors.
The design and construction process has also been unusually complicated. According to Björgvin, the building is likely among the most complex structures ever built in Iceland. Nevertheless, work continues, and the hotel will eventually be completed — albeit several years behind schedule.
Source: RÚV.is
