Radisson Red tower carries 18.5 billion krónur in mortgage certificates

Five mortgage certificates on the Radisson Red hotel tower at Skúlagata 26 total 18.5 billion krónur in their original amounts, equivalent to nearly two million krónur per square metre of hotel space, mbl.is reported. The calculation is based on the 9,545.9-square-metre floor area listed in approved plans from 2024.

Arion Bank holds all five certificates, according to Viðskiptablaðið. Their original amounts do not show the loans’ current outstanding balances or the property’s value. The owner, S26 Hotel ehf., had debts of more than 10 billion krónur at the end of 2025.

Construction on the 17-storey tower was halted on Monday and contractors were sent home after the bank stopped further financing. The project includes more than 200 hotel rooms, but its opening has been postponed several times.

One of the company’s owners, Jón Árni Ágústsson, told Morgunblaðið that damage to part of the building appeared to be much greater than first thought. The bank is investigating the extent of the damage, he said. Arion Bank has confirmed that it is working on a solution but has not said what that involves.

Guðný María Jóhannsdóttir, chair of Reykjavík’s environmental and planning council, said the city was seeking information about the project and would initiate talks if needed. She said she was concerned about the project’s status and that a prolonged halt to construction would be undesirable.