Reykjavik concerned over halt to hotel tower construction

Reykjavik is seeking information about the future of the Radisson Red hotel tower after construction stopped earlier this week, the city’s environment and planning council chair told mbl.is.

“Of course I’m concerned about the status of the project. It would not be good if construction stopped for a long time,” Guðný María Jóhannsdóttir said. She said the city did not yet have detailed information and was trying to understand the situation, adding that finding a solution was important.

Asked whether the city would take the initiative to hold talks if needed, Guðný María said it would. She said developers were assessing the situation and possible options, but she did not know the project well enough to say what was being considered.

Work on the 17-storey hotel tower on Skúlagata was halted on Monday, and contractors were sent home. Jón Árni Ágústsson, one of the owners of the companies behind the project, told mbl.is that damage to the building appeared to be much greater than first thought. The extent of the damage remains unclear and is being investigated on behalf of the bank. Arion Bank has confirmed it holds a mortgage on the project and says work is under way to find a solution. It is not known when construction can resume.