Plans proposed to convert old barrel factory at Ægisgata in Reykjavík into hotel and hostel

Plans are underway to convert the old barrel factory at Ægisgata in Reykjavík into a hotel and hostel, pending approval from local authorities. Over 50 artists currently occupy the space, which has become a hub for artistic activity and innovation.

The structure, built in the early 20th century, serves as studio space for its tenants. The city council recently decided to seek public input on proposals to transform the facility into accommodations. With around 40 exhibitions hosted there, the building spans 1,400 square meters across three floors plus a basement, with artists renting almost the entire space except for the third floor.

Local artist Katrín Inga Jónsdóttir Hjördísardóttir, who is on the board of the Reykjavík Sculptors’ Association, emphasized the building’s unique suitability for complex artwork, noting that no other facility in the area offers such an environment for creativity and innovation.

As the city experiences rapid growth in hotel accommodations, the number of hotel rooms in central Reykjavík surpassed 3,000 by the end of 2022. This increase has raised concerns among local artists regarding the future of cultural spaces amidst a burgeoning tourism industry.

Artist Anna Rún Tryggvadóttir raised concerns about the implications of commercializing an already vibrant creative environment, highlighting the importance of the location for local culture and its connectivity to other cultural institutions.

The proposal will soon enter a public consultation phase, stressing the need for maintaining artistic spaces amid the rising interest in hospitality in Reykjavík. The building’s owners have declined to comment on the matter when approached.