Icelandair Group has sold a 75% stake in Icelandair Hotels and related real estate to Berjaya Property Ireland, a subsidiary of Malaysia-based Berjaya Land Berhad.
The acquisition included a put and call option on the remaining 25% for three years.
Icelandair Hotels, which has an enterprise value of $136 million, operates 20 hotels across Iceland with a total of 1,811 rooms.
Icelandair Group CEO Bogi Nils Bogason said, “While we shift the focus of Icelandair Group to our core aviation business,” bringing such an experienced international investor to the table “confirms the value and quality of the company and the prospects of Icelandic tourism for the years to come.”
According to an Icelandair Group statement, the purchase price will depend on “the amount of net working capital and net interest-bearing debt at the date of delivery.”
Icelandair Group said, “The completion of the transaction and final payment will be at year-end 2019, upon the delivery of the shares. The total EBITDA of the company and related assets for the year 2018 was $12 million. The share purchase agreement is subject to various conditions, such as the necessary approvals pertaining to requirements under act no. 21/1966 and refinancing of Icelandair Hotels and related real estate.”
Icelandair reported a $55.6 million net loss in 2018, reversed from a $37.5 million net profit in 2017. Its total revenue came to $1.5 billion, up 6.5% over 2017, though expenses climbed 15% year-over-year, largely in aviation-related expenses, which increased 21%.
The company’s tourism revenue in 2018 totaled $133.5 million, down 5% from 2017. Icelandair’s tourism segment comprised both Icelandair Hotels and Iceland Travel, Iceland’s largest incoming tour operator entity, the company said. 
In its 2018 financial statement, the company said, “In a strategic review it was concluded to put more focus on aviation and airline operations and less on tourism.” At the time of the report, released Feb. 7, Icelandair said it had initiated a process to sell its hotel operations, which the company said would be concluded in the first half of 2019.