Prepared for investor reference · Based on formal appraisal dated 10 June 2026
The asset
Hugarró is a planned eco-luxury hospitality development on a 12.1-hectare site at Litli Botn, at the head of Hvalfjörður fjord — 55 kilometres northwest of Reykjavik and at the trailhead of Glymur, Iceland’s second-highest waterfall. The site benefits from master zoning approval (aðalskipulag) already in place, with detailed zoning (deiliskipulag) published for public consultation and final National Planning Agency approval expected imminently.
The approved development programme comprises:
- A 32-room hotel and 31 free-standing rotating cabins (up to 200-guest capacity)
- Seven geothermal pools and a 350m² wellness hub
- Five meeting facilities, staff housing, and a health-focused restaurant
- Total approved buildable area: 5,000m² of commercial hospitality space
The valuation
The formal appraisal was carried out by Croisette – Real Estate Partner, Iceland’s leading real estate advisory firm and the exclusive Nordic partner of Knight Frank — the world’s largest private property consultancy, active in over 60 countries. 1 The report was authored by Styrmir Bjartur Karlsson, Managing Director and licensed real estate broker, who heads Croisette’s Iceland operations. 5 The valuation is prepared on a Market Value basis — the standard used by banks and institutional investors — and is of a quality accepted for financing purposes.
The assessed values are:
| Planning Stage | Value (ISK) | Value (EUR approx.) |
|---|---|---|
| Master zoning in place (aðalskipulag) | 250–275 million | €1.8–2.0 million |
| Full detailed zoning + approved schematics | 500 million | ~€3.6 million |
The step-up from master to detailed zoning reflects standard Icelandic planning practice: as planning certainty increases, so does the land’s bankable value — a well-established principle in property markets worldwide.
Iceland tourism: A market in sustained demand
Iceland welcomed 2.3 million international visitors in 2025, with the United States, United Kingdom, and Germany as the three largest source markets. 6 Tourism’s gross value added grew 5.5% in 2025 year-on-year, and Keflavík Airport is expected to handle approximately nine million passengers in 2026. 4
Demand for nature-based, premium wellness experiences — the exact segment Hugarró targets — is the fastest-growing corner of that market. Iceland now counts eight major geothermal lagoon destinations, all of which operate at or near capacity during peak season. 2 The category has moved well beyond novelty; it is a structural pillar of Icelandic tourism.
Comparable projects
Two recently built geothermal wellness facilities provide useful context for assessing the Hugarró valuation:
Sky Lagoon (Reykjavik area): Phase 1 of this single-lagoon facility cost approximately ISK 4 billion (€24 million) to construct. 7 The fact that fully-zoned land rights for a more comprehensive mixed-use development are valued at 500 million ISK — roughly one-eighth of Sky Lagoon’s build cost alone — illustrates that the land valuation is measured and conservative relative to the asset class.
Laugarás Lagoon (Golden Circle, opened 2025): Construction of this 1,000m² geothermal lagoon on Iceland’s Golden Circle cost approximately ISK 2 billion (€13.7 million), with annual visitor projections of 150,000–250,000 guests. 3 Hugarró’s permitted development is significantly larger in scope, yet the land is valued at a fraction of Laugarás’s construction cost — again confirming the valuation sits comfortably within market norms.
In both cases, the underlying land value represents 10–15% of total anticipated project construction cost, which is exactly where one would expect it to sit for a planning-consented hospitality site in a premium natural setting.
Assessment
The appraised values are well-grounded. The per-m² rates applied by Croisette (ISK 50–55k at master zoning stage, rising to ISK 90–100k with full planning consent) are consistent with what comparable geothermal and hospitality assets have transacted at in Iceland. Hvalfjörður’s proximity to Reykjavik, its scenery, and its geothermal activity place it firmly in the upper tier of rural hospitality locations — a positioning that the approved 5,000m² programme fully supports.
Croisette’s standing as Knight Frank’s Icelandic representative, combined with Karlsson’s market knowledge and professional licensure, gives this valuation meaningful credibility. It is the type of report that lenders and institutional co-investors in Iceland expect and accept.
In short: the numbers are realistic, the methodology is sound, and the market context is supportive.
This summary is based on the formal land appraisal prepared by Croisette – Real Estate Partner (Knight Frank Iceland), dated 10 June 2026, supplemented by publicly available market data from the OECD, Statistics Iceland, and industry sources.