A Rare Opportunity to Own a Profitable Lifestyle Retreat in North Iceland
North Iceland
A Place People Come Back To
There are places you visit once in your life.
And there are places you return to — again and again.
Hestasport Cottages belongs to the second category.
For more than two decades, guests from around the world have travelled to this quiet corner of North Iceland — not only for accommodation, but for the experience of space, nature, silence, and authenticity that has become increasingly rare in modern tourism.
Located only one kilometre from Iceland’s famous Ring Road, yet surrounded by open landscapes, mountains, and sky, the property offers something many travellers search for and few properties truly deliver:
A sense of peaceful isolation without remoteness.
Why Iceland — And Why Now
Iceland has become one of the world’s most desirable travel destinations over the past decade.
Key drivers include:
- Unique landscapes found nowhere else on Earth
- Political stability and safety
- Strong tourism growth year-round
- Northern lights tourism expansion
- Increasing demand for boutique and nature-based accommodation
- High-spending international visitors
Unlike many European markets, Iceland still offers:
Limited supply + high demand + premium pricing potential
North Iceland in particular represents one of the last regions with authentic atmosphere and room for growth, compared to the heavily saturated South Coast.
Why North Iceland
North Iceland offers a different experience than the crowded southern tourist routes.
Here guests find:
- Wide open landscapes
- Authentic Icelandic culture
- Lower visitor density
- Dramatic mountain scenery
- Access to hiking, horseback riding, and nature
- Exceptional northern lights visibility due to low light pollution
Varmahlíð is strategically positioned between Akureyri (the capital of North Iceland) and the western fjords, making it a natural stop for travellers exploring the country.
The location combines accessibility with tranquility — a rare combination that drives guest satisfaction and repeat visits.
Distances:
- Ring Road (Route 1): 1 km
- Sauðárkrókur: 25 minutes
- Akureyri: 1 hour
- Akureyri Airport: 98 km
- Reykjavík / Keflavík International Airport: 336 km
Guests can reach a geothermal swimming pool within a 15-minute walk — a culturally significant part of Icelandic daily life.
The Property — Designed Around Experience
The resort consists of seven cottages arranged in a circular layout around a central natural hot pot area.
This layout creates:
- Privacy for each unit
- A sense of community without crowding
- Visual harmony with the surrounding landscape
Total land currently in use: approx. 5,000 m²
Additional development land prepared: approx. 4,500 m²
Land tenure: Government lease through municipality of Skagafjörður
Lease duration: Unlimited
Annual lease cost:
- Existing area: €1,056 per year
- Additional development land: €433 per year
This combination of extremely low cost and unlimited duration provides exceptional long-term operational security.
Accommodation Overview
The resort includes:
- 4 cottages for 2 persons (36–37 m²)
- 1 cottage for 4 persons (44 m²)
- 2 cottages for 6 persons (51 m² and 83 m²)
All units include:
- Private bathroom
- Kitchen facilities
- Terrace
- Parking next to the unit
The larger 6-person cottage includes two bathrooms and a semi-professional kitchen.
Construction years: 2002–2011
Several bathrooms have been renovated. Buildings are maintained annually with exterior treatment.
The condition can be described as functional but with clear potential for modernization, offering opportunities for value increase.
The Heart of the Property — The Natural Stone Hot Tube
One of the most memorable features — and one frequently mentioned in guest reviews — is the handcrafted natural stone hot tube located in the center of the cottage circle.
Unlike prefabricated plastic hot tubs, this hot pot blends naturally into the environment and provides an authentic Icelandic bathing experience.
Guests sit in warm geothermal water while surrounded by mountains, silence, and sky.
In winter, it becomes a northern lights viewing point.
In summer, a place of relaxation under the midnight sun.
This feature alone creates emotional attachment to the property.
Northern Lights — A Major Revenue Driver
The property benefits from minimal light pollution.
Street lighting can be switched off, creating ideal conditions for northern lights viewing — an increasingly important factor for winter tourism demand.
Many guests choose accommodation specifically based on aurora visibility.
A Proven Business — Operating Since 2002
The cottages have operated successfully for more than 20 years.
This long history provides:
- Brand recognition
- Operational stability
- Established systems
- Returning guests
- Trust with travel partners
The business operates year-round with stable seasonal performance.
Financial Performance
Revenue Average last 3 years: 358.989€
Estimated annual profit:
€100,000 – €130,000
Operating costs approximately €228,048 annually including:
- Energy
- Cleaning
- Insurance
- Salaries
- Platform commissions
Energy costs remain relatively low:
- Electricity: approx. €2,150/year
- Hot water: approx. €6,200/year
Commission structure:
- Platforms: 15–18%
- Travel agencies: 15–20%
Occupancy — Strong Year-Round Demand
Last three years Average :
Total: 73 %
Summer: 91%
Winter: 53%
This demonstrates resilience and consistent demand.
Pricing Power
2026 nightly rates:
Summer:
- 2-person: €275
- 4-person: €295
- 6-person: €325
Winter:
- 2-person: €220
- 4-person: €365
- 6-person: €395
Winter pricing for larger units is already strong due to northern lights tourism.
Distribution and Marketing
Booking channels include:
- Booking.com
- Airbnb
- Expedia
- Direct website
- Travel agencies via Travia
Diversification reduces platform dependency and risk.
Reputation — A Major Asset
Guest ratings:
- Booking.com: 9.3 (524 reviews)
- Google: 4.8
- Tripadvisor: 4.8
- Airbnb: up to 4.94
- Expedia: 9.8
Repeat guest rate approximately 15%.
This level of reputation significantly reduces marketing risk for new owners.
Improvement Opportunities
The property offers upside potential in the future through:
- Interior modernization
- New kitchens
- Updated furniture and design
- Self check-in implementation
- Lighting improvements around hot pot
- Pricing increases after upgrades
These improvements could increase both revenue and property value.
Infrastructure & Operational Facilities
The property currently benefits from additional operational facilities located on site, including:
- Laundry room with washing and drying equipment
- Reception / office space
- Storage containers and cleaning equipment
- Basic staff accommodation
- Maintenance tools and operational vehicles
These facilities are not included in the base purchase price, but are available to the buyer through flexible arrangements.
Options may include:
- Rental agreements
- Purchase by negotiation
- Operational cooperation during the transition period
This flexibility allows new owners to decide whether to integrate these facilities into their long-term strategy or develop alternative solutions according to their individual business model.
Sale Details
Inventory included
Training and transition support available
Preferred transfer timeline: October 2026
Reason for sale: Owner retirement
Investment Perspective
The property represents:
- Established operation
- Proven profitability
- Growth potential
- Lifestyle opportunity
- Rare expansion land availability
Closing Thought:
There are many accommodation businesses for sale.
Very few offer:
- Authentic Icelandic experience
- Strong reputation
- Expansion potential 2nd Cottage circle
- Stable income
- Lifestyle value
This property is one of those rare combinations.
