Nordic Hotels & Resorts will open an 83-room resort in Klaksvík, Faroe Islands, in May 2026, responding to surging demand for nature-based travel whilst navigating the distinctive workforce challenges that define remote hospitality operations.
KG Hotel, named after Klaksvík’s port designation used by local fishing vessels, joins Nordic Hotels & Resorts’ portfolio of approximately 50 independent properties across the Nordic region. The development reflects calculated positioning as the Faroe Islands tourism sector experiences rapid expansion that has generated tensions between economic opportunity and environmental preservation.
The resort will feature Alda Spa, restaurant Sand, and meetings facilities accommodating 300 people. The property occupies a waterfront location in the archipelago’s second-largest settlement, home to approximately 5,000 residents.
Remote destination growth patterns
The Faroe Islands exemplify broader shifts in travel preferences towards nature-driven destinations. The autonomous territory, comprising 18 islands between Norway, Iceland and Scotland, welcomes approximately 130,000 annual tourists despite a resident population of just 55,000.
Tourism now generates more than one billion Danish kroner annually for the Faroese economy, traditionally dominated by fishing industries. However, rapid tourism expansion has created operational challenges characteristic of remote destinations globally.
Academic research published in 2025 documented tensions in heavily visited settlements, where infrastructure strain and environmental impact prompted residents to post regulatory signage discouraging certain tourist behaviours. The Faroese parliament enacted legislation in 2024 granting local communities greater influence over tourism development decisions.
Visit Faroe Islands launched initiatives promoting visitor distribution patterns designed to reduce pressure on overtouristed locations whilst extending economic benefits across the archipelago.
Independent hotel positioning strategy
Nordic Hotels & Resorts operates as the largest collection of independent hotels in the Nordic region, positioning properties as design-driven, story-rich experiences. The group functions as part of Strawberry (formerly Nordic Choice Hotels), one of Scandinavia’s major hospitality companies.
Fredrik Blomberg, chief operating officer at Nordic Hotels & Resorts’ resort division, characterised KG Hotel as embodying contemporary resort concepts deeply connected to location and designed to support exploration activities.
The independent hotel model allows properties to maintain distinct identities whilst accessing operational infrastructure, loyalty programmes and commercial capabilities that typically require scale. Nordic Hotels & Resorts’ portfolio spans urban lifestyle properties, mountain retreats and coastal spa resorts.
KG Hotel’s design features natural materials including wood and concrete, with a large open lobby conceived as communal space. Johannes Jensen, appointed general manager, emphasised the property’s identity rooted in Klaksvík’s maritime heritage.
“With KG Hotel, we wanted to create a place that feels open, generous and grounded in who we are,” Jensen said.
Workforce implications for remote operations
Operating resort properties in remote locations presents distinctive human resources challenges that differentiate these operations from urban hospitality environments. The World Travel and Tourism Council projects global hospitality workforce demand will exceed supply by 43 million people by 2035, with remote and seasonal destinations experiencing particularly acute staffing constraints.
Analysis published in 2025 examining North American hospitality employment found participation rates remained weaker in remote destinations, where limited labour pools and short operating seasons constrain recruitment. Urban markets demonstrated stronger recovery, benefiting from deeper talent availability and year-round operations.
Klaksvík’s resident population of approximately 5,000 provides a constrained recruitment base for an 83-room resort requiring staff across accommodation services, food and beverage operations, spa treatments, meetings coordination and property maintenance.
Research examining Faroese tourism published in 2025 noted international collaborations bringing valuable resources and expertise, whilst also generating tensions with local stakeholders regarding employment equity and community impact.
Remote hospitality operations require comprehensive workforce strategies addressing recruitment from limited talent pools, retention in locations offering fewer alternative employment options, and training programmes developing diverse skillsets.
Strategic market positioning
KG Hotel’s development timing aligns with documented growth in nature-based travel segments. Industry analysis identifies increased interest in remote destinations offering authentic experiences over traditional polished resort environments.
The Faroe Islands demonstrated this appeal through successful international marketing campaigns positioning the territory as “Europe’s best-kept secret.” Visit Faroe Islands’ “Closed for Maintenance, Open for Voluntourism” initiative attracted international participants to preserve hiking paths and maintain locations, generating substantial media coverage whilst advancing conservation objectives.
Nordic Hotels & Resorts already operates Hotel Føroyar on the Faroe Islands, providing established operational presence and market knowledge. KG Hotel extends this footprint whilst serving Klaksvík’s role as the northern islands’ administrative and economic hub.
The resort’s meetings and events capacity accommodating 300 people targets growing demand for distinctive conference and incentive travel locations. Remote destination MICE offerings combine business functionality with experiential elements, appealing to organisations seeking memorable settings for leadership development and strategic planning sessions.
