Luxury Hotel for Sale in Varmahlíð, Iceland
Profitable North Iceland boutique cottage retreat with expansion land, seeking full sale.
Premium Plan
| Established | 20-30 year(s) |
| Employees | 2 - 5 |
| Legal Entity | Private Limited Company |
| Reported Sales | USD 400 - 500 thousand |
| Run Rate Sales | USD 400 thousand |
| EBITDA Margin | 30 % |
| Industries | Luxury Hotels |
| Locations | Varmahlíð |
| Local Time | 6:30 PM Atlantic / Reykjavik |
| Listed By | Management Member |
| Status | Active |
Full Sale
Asking Price:
USD
1.9 million
(Native Currency: EUR 1,600,000)
Reason: The business is being offered for sale due to the planned retirement of one of the owners, who is ap...
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Includes physical assets worth
USD
1.18 million
Interested to connect with advisors
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Business Overview
- Established Arctic boutique retreat located in North Iceland, operating successfully for over two decades.
- Comprises seven fully equipped cottages (36–83 m²) accommodating 2–6 guests, arranged around a central natural stone hot pot.
- Strong online reputation with ratings of 9.3 on Booking. com, 4.8 on Google, and up to 4.94 on Airbnb, with approximately 15% repeat guests.
- The promoters have decades of experience in tourism and hospitality in Iceland, including cooperation with a nearby horse-riding business that generates additional guest referrals. The nearby horse-riding business is operated by the same ownership group (EHF entity), but is not part of the sale.
- Diversified booking channels including Booking. com, Airbnb, Expedia, direct website reservations, and established European and Icelandic travel agency partnerships.
- Year-round operations catering to international tourists, Ring Road travelers, northern lights visitors, couples, families, and small groups.
- Situated on approximately 5,000 m² of government-leased land with an additional 4,500 m² development area prepared for expansion.
- Secured through an unlimited government land lease with very low annual costs, supporting long-term operational stability.
- Includes operational systems, supplier relationships, booking infrastructure, inventory, and transition support from current owners.
- Privately owned with no significant outstanding debts, enabling a clean and straightforward asset transfer.
- Revenue per employee is high because the business operates as a low-staff, asset-based accommodation model where income is driven by cottage rentals, automated booking platforms, and streamlined operations rather than manpower intensity.
- The slight drop in monthly sales is primarily due to normal seasonal fluctuations in tourism demand, particularly variations between peak summer months and comparatively softer winter or shoulder seasons.
- The business operates with a valid business registration certificate.
- Comprises seven fully equipped cottages (36–83 m²) accommodating 2–6 guests, arranged around a central natural stone hot pot.
- Strong online reputation with ratings of 9.3 on Booking. com, 4.8 on Google, and up to 4.94 on Airbnb, with approximately 15% repeat guests.
- The promoters have decades of experience in tourism and hospitality in Iceland, including cooperation with a nearby horse-riding business that generates additional guest referrals. The nearby horse-riding business is operated by the same ownership group (EHF entity), but is not part of the sale.
- Diversified booking channels including Booking. com, Airbnb, Expedia, direct website reservations, and established European and Icelandic travel agency partnerships.
- Year-round operations catering to international tourists, Ring Road travelers, northern lights visitors, couples, families, and small groups.
- Situated on approximately 5,000 m² of government-leased land with an additional 4,500 m² development area prepared for expansion.
- Secured through an unlimited government land lease with very low annual costs, supporting long-term operational stability.
- Includes operational systems, supplier relationships, booking infrastructure, inventory, and transition support from current owners.
- Privately owned with no significant outstanding debts, enabling a clean and straightforward asset transfer.
- Revenue per employee is high because the business operates as a low-staff, asset-based accommodation model where income is driven by cottage rentals, automated booking platforms, and streamlined operations rather than manpower intensity.
- The slight drop in monthly sales is primarily due to normal seasonal fluctuations in tourism demand, particularly variations between peak summer months and comparatively softer winter or shoulder seasons.
- The business operates with a valid business registration certificate.
Products & Services Overview
Year-round boutique cottage accommodation for international tourists traveling the Iceland Ring Road and seeking northern lights experiences, booked via OTAs, direct website, and travel agency partnerships.
Assets Overview
Tangible assets include seven fully equipped cottages accommodating 2–6 guests, along with all furniture, kitchens, appliances, and guest-use equipment.Intangible assets comprise established Expedia listings and the website domain, strong guest reviews and ratings (Booking 9.3, Google 4.8, Airbnb up to 4.94), as well as operational systems, supplier relationships, travel agency partnerships, and active booking channels.
Facilities Overview
The property includes seven cottages (36–83 m²) arranged in a circular layout around a central natural stone hot pot, situated on approximately 5,000 m² of government-leased land. An additional 4,500 m² area is prepared for the development of a second cottage cluster.Each cottage is equipped with a private bathroom, fully fitted kitchen, terrace, and dedicated parking. The buildings are regularly maintained.
The land is secured under an unlimited government lease with very low annual fees (approximately €1,056 for the main area and €433 for the expansion land).
Capitalization Overview
The business is privately owned by its current shareholders and operates without external investors. There are no significant outstanding debts related to the cottage operations, and the ownership structure is straightforward, enabling a smooth transfer to new owners. Detailed information about the shareholders will be disclosed upon formal introduction.
Recent Activity
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Earlier than 15 daysOwner, India, Business Broker connected with the Business
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Earlier than 15 daysPresident, General Merchandise Retailers, Canton, Individual Investor / Buyer connected with the Business
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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