Abu Dhabi fund acquires Edition Hotel

Austurhöfn Marriott Hotel next to the Harpa Concert Hall and Congress Centre.
photo/send to mbl.is

ADQ, the investment company of one of the Abu Dhabi state funds, has acquired the stake in the Reykjavík Edition Hotel in Austurhöfn from SÍA III, a fund managed by Stefnir. In addition, ADQ bought shares from other shareholders, including pension funds and private investors, but the holding company Mandólín hf. owns about 70 percent of the hotel.

The following are reports from Stefnir’s website, but mbl.is had previously reported on ADQ’s interest in the hotel. According to Morgunbladid, discussions to sell the stake have been going on for about six months. Purchase prices are not published on the website.

Carpenter & Co., which has been Mandolin’s partner in the project, will retain its stake as stated on the company’s website, Stefnir, and there will be no changes to the operations of the Reykjavík Edition, which will continue to be run by Marriott International.

Edition’s sixteen hotels

The sale is also in line with SÍA III’s vision that the hotel will attract interest from long-term foreign investors who see an opportunity to participate in the further development of the local tourism industry.

Opening in Fall 2021, the Marriott Edition is one of the most spectacular hotels in the country. Construction of the hotel took longer than originally planned and was costly, in part because of the Covid-19 pandemic.

The Reykjavik hotel is not the first hotel acquired by the Abu Dhabi National Trust, but another fund, the Abu Dhabi Investment Authority, has acquired Marriott hotels in Florida, New York and London. The Marriott hotel chain operates multiple brands under its brand name, while Edition Hotels and W-Hotels are so-called high-end hotels that focus on rare travelers. Only 16 hotels operate under the Edition brand, with three more planned for the next few years.