Our story
Our story is real, honest, and full of heart. It began in 1994 with a small guesthouse and a big dream to build a legacy of hospitality. This is the story of how our family built Center Hotels from the ground up, right here in Reykjavík.
From then to now
We love our story – because it’s real. It’s honest, it’s a little bit messy and it’s full of heart. That’s why we enjoy sharing where we came from, how it all started and how we grew into who we are today.
Our story: a family business since 1994
Center Hotels is a family-owned Icelandic hotel group. It began in 1994 with a 14-room guesthouse in Reykjavík. Today we have eight hotels and one apartment hotel, all in the heart of the city. Most of them are in buildings that used to be something else entirely. Here's how one family from Akranes built it, one building at a time.
The sweet beginning
The owners; Kristófer and Svanfríður grew up in Akranes, a small town in West Iceland. They met at the age of ten and married in 1975. They spent six years studying in Sweden: Svanfríður in nurse anaesthesia, Kristófer in economics and regional planning. They moved home in 1987 and started their careers, Svanfríður as a nurse and Kristófer as a consultant. Along the way came three children: Maron, Sara and Anna Ólöf.
1994 – A little guesthouse on Flókagata
Kristófer's father, Oliver, was the live-in night porter at Guesthouse Flókagata 1. When the owner offered to sell it to him, Oliver turned to his son. Kristófer and Svanfríður bought the 14-room guesthouse, and our hospitality journey began. Svanfríður left nursing to run the guesthouse day to day. Grandpa Oliver kept the night shift. The children cleaned rooms and served breakfast after school before moving up to the reception desk. Everyone started at the very beginning.
1998 – Skjaldbreið: fingers to the bone
Four years later, we bought our first hotel: Skjaldbreið on Laugavegur, Reykjavík's main shopping street. The stately building was originally a pharmacy, where the pharmacist lived, worked and made medicines. Turning it into a 33-room hotel took serious work. While removing a broken window, Kristófer nearly cut off his hand. Luckily, Svanfríður knew a specialist nerve doctor, who performed groundbreaking surgery on his arm. Kristófer was back at work the next day. We really did work our fingers to the bone to open Skjaldbreið. Literally.
2001 – Klöpp: from the nation's news to a good night's sleep
Our second hotel, Klöpp, opened in the former home of RÚV, Iceland's national public broadcaster. A building that once brought the news to the nation became a 46-room hotel, a few minutes' walk from Skjaldbreið. With two hotels in the city center, we gave them a shared name: Miðbæjarhótel, or Center Hotels. The idea of a group of hotels all in the heart of Reykjavík was born. So was our wider family, as the people working at both hotels became part of it.
2006 – Þingholt: printed on our hearts
Hotel number three came with a story we couldn't resist. From 1942 to 1994, the building was the Ísafold printing house, which also printed Morgunblaðið, Iceland's national newspaper. The building sits on Þingholtsstræti, one of the oldest streets in the city center and a smart address then and now. A neighborhood with that much character deserved a hotel to match. So instead of following the style of our first two hotels, we did something new and made Þingholt a boutique hotel. It has 52 stylish rooms, each with its own identity, and has been a little gem in the city center ever since.
2007 – Arnarhvoll: a new chapter by the harbour
2007 was a busy year, and it brought a building with a personal story. This harbourside building dates from 1933 and was designed by the renowned architect Guðjón Samúelsson. It was once the engineering school Vélstjóraskólinn, where Svanfríður's father studied. Few hotels can say a family member studied there. It also sits in one of the most special spots in the city center. On one side is the city; on the other, unobstructed views across the sea to Mount Esja. Today it's Center Hotels Arnarhvoll, with 104 rooms, a spa and a top-floor lounge and bar where you can take in that view.
2009 – Plaza: back to the news
We seem to have a thing for newspapers. Our fifth hotel, Plaza, was built for the national newspaper's offices and print house. The location is about as central as Reykjavík gets. Plaza sits on Aðalstræti, the oldest street in Reykjavík. Right outside the front door is Ingólfstorg, the city's oldest square and a hub for events and happenings in the city center. Step outside and you're in the middle of it all. After renovation, Plaza became our largest hotel, with 255 rooms and views over the city center.
2015 – Miðgarður: banking on a new direction
Building a hotel group takes a sense of adventure. So, after two decades of hard work, Kristófer and Svanfríður finally set off on their dream: sailing around the world. They left the hotels in the hands of their daughter and trusted team members. That same year, we opened Miðgarður in the former home of the Agricultural Bank of Iceland (Búnaðarbankinn) and its Agricultural Credit Department. Today the old bank is anything but quiet. It has 170 rooms, a secluded garden, a spa, and meeting rooms and event venues for all sizes. At its heart is Jörgensen Kitchen & Bar, which comes alive with live music every Thursday.
2019 – Laugavegur: amazing things happen when we all pool together
Laugavegur roughly translates as "Pool Road". It was the old route to the hot springs where Reykjavík locals once did their laundry. Today it's the city's main shopping street and home to our seventh hotel, with 102 rooms and a restaurant. At 25 years, we refreshed the Center Hotels brand, and Laugavegur was the first hotel in our new look. It's full of stories, quotes and sayings about Iceland and Icelanders, so our guests can feel part of the family.
2021 – Grandi: nerves of steel
After a very tough 2020, we opened hotel number eight in Grandi. The building was once the machine shop of Héðinn, a well-known marine engineering and steelworks company. Grandi sits in one of the liveliest parts of the city center, close to the up-and-coming harbor area, where Reykjavík's creative scene keeps growing. It's a part of the city that's always changing, and a great base for anyone who wants to be in the middle of it. The hotel opened with 195 rooms, and in 2026 we added 30 more, bringing the total to 225. The hotel features Grandi Restaurant & Bar, plus a venue and meeting rooms for events and gatherings. The beautiful spa has a skylight above the hot tub, so you can soak in the warm water while you watch the Icelandic sky above you.
2023 – Þingholt Apartments: a new twist
Over the years, we kept hearing the same question. Families traveling with kids, friends exploring Iceland together: they all wanted to stay together, not split across separate rooms down the corridor. They wanted a kitchen table to gather round, room to spread out and a place that felt like home. So we listened. Family member number nine is a little different from the rest. Þingholt Apartments offers 31 spacious hotel apartments for up to six guests, on Þingholtsstræti, just off Laugavegur. In the apartments, guests can cook breakfast together, plan the day's adventures, then step straight out into downtown Reykjavík.
Still a family business
More than thirty years on, the family is still at the heart of it all. Children and grandchildren alike have worked in the business. Many still do, across everything from technology and operations to sales and marketing. Around them is our wider family: around 350 staff members who welcome guests every day and help them make the most of their stay, both at the hotels and in Reykjavík, Iceland, from local tips to the city's hidden gems. Come and get to know our hotels.