Damage to Radisson Red hotel tower exceeds initial estimate

Damage to the Radisson Red hotel tower on Skúlagata appears far greater than first thought, Jón Árni Ágústsson, one of the owners of companies behind the project, told mbl.is. A bank is investigating the extent of the damage, but Jón said he had not received the results.

He said the damage affected part of the building, including prefabricated room units brought from Poland. The units were installed outside the tower’s concrete lift and stairwell core about a year ago.

The bank has stopped further funding for the project, Jón said, leaving it without the money needed to cover construction costs. He could not say whether the owners would invest more or seek new investors because the full extent of the damage remains unclear.

Jón is listed as holding an indirect 47 per cent stake in Landvík ehf., the parent company of S26 Hotel ehf., which owns the tower. He said he did not know the project’s precise financial position or how further funding would be arranged.

Construction on the 17-storey tower was halted on Monday, and contractors were sent home. It remains unclear when work can resume.