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New KEX hotel to open in Þingeyri, Westfjords of Iceland

Written by Anja | May 6, 2025 8:57:41 AM

Renowned Reykjavík brand brings new life to a historic building on Dýrafjörður

Later this May, a new KEX hotel will open its doors in Þingeyri, a picturesque village in Iceland’s remote Westfjords. The project is led by one of the co-founders of the popular KEX Hostel in Reykjavík, which has gained a strong reputation as a vibrant cultural and culinary hotspot in the capital.

The new hotel is located on Hafnarstræti, in a building of historical importance that once housed the Dýrafjörður Trading Company—one of the most significant commercial enterprises in the region during the 20th century. More recently, the property operated under the name Hotel Sandfell, and it is now being reimagined under the KEX brand with a refreshed vision.

Renovation planned in stages

Hotel owner Kristinn Vilbergsson emphasized that the transformation will unfold gradually: “We’re starting small. This summer we’ll make the first changes, and perhaps more will follow next year. It’s a three-year project overall,” he told local media.

n addition to guest accommodations, the property will feature a restaurant and a bar—true to KEX’s signature style, which blends urban charm with creative cuisine and cultural flair.

From Reykjavík to the remote North

The KEX brand is especially known for its original hostel in Reykjavík, which evolved from a lively social venue with legendary jazz nights into a boutique-style city hotel. Although the live music program ended in 2024, KEX remains synonymous with unconventional hospitality and distinct character.

Now, with its new location in Þingeyri, KEX is venturing into the Westfjords for the first time—a region celebrated for its raw nature, dramatic scenery, and authentic Icelandic atmosphere.

More on the new KEX-hotel in Iceland.

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