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Thursday, 29 October 2026 Icelandic stories. Global audience.
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New 500-Guest Hotel Planned Near Fjaðrárgljúfur Canyon in Southern Iceland

Steina resort reveals plans for a large destination hotel on Heiðarsel land in Skaftárhreppur, aimed at international visitors. The project will be close to the popular Fjaðrárgljúfur canyon.

a large destination hotel exterior under construction near a canyon (Fjaðrárgljúfur)
Image: Hansueli Krapf / Wikimedia Commons (CC BY-SA 3.0) · licence, original (resized) Illustrative image.

A major hotel development with capacity for 500 guests is planned on land called Heiðarsel in Skaftárhreppur, a rural municipality in southern Iceland, according to a report by mbl.is.

The new project by Steina resort will be located close to Fjaðrárgljúfur, the canyon in southeast Iceland known for its dramatic cliffs and the Fjaðrá river. The site is also near the Ring Road and the village of Kirkjubæjarklaustur.

Torfi G. Yngvason, one of the owners of Steina resort, told mbl.is that the company is focused on attracting international hotel chains for the operation. “We are only looking at international parties. These are top-tier hotel chains because we intend to build a unique destination hotel,” Torfi said (translated from Icelandic).

Sources

Image: Hansueli Krapf / Wikimedia Commons (CC BY-SA 3.0) · licence, original (resized) Illustrative image.