The number of hotel rooms in Reykjavík is expected to increase by 50 percent in the next two to four years, according to RÚV.
The number of foreign tourists arriving in Iceland has rapidly increased in recent years. At the same time, the number of hotel rooms has been rising. Right now, there are close to 5,000 hotel rooms in Reykjavík, but close to 2,400 rooms are either under construction or at the planning stage in the capital.
Óli Örn Eiríksson, division manager of Reykjavík’s economic development, told RÚV that the number of hotel rooms is lagging behind the increase in the number of tourists. “The number of tourists increases a lot faster than the number of hotel rooms.” The occupancy rate of hotel rooms, he stated, is up every year.
Here is a list of hotels being planned or constructed:
The largest hotel will be located at Hlíðarendi, with 360 rooms.
At Grensásvegur 1, a 350-room hotel is planned.
The Marriot Edition Reykjavík hotel, next to Harpa Concert Hall, will include 250 rooms.
Also under construction is the 160-room Icelandair Parliament hotel by Austurvöllur square.
In the former Television Building (Sjónvarpshús) at Laugavegur 176, and 120-room hotel is planned, and another one equally large at Suðurlandsbraut 18. Construction has begun of a 120-room hotel in Lækjargata.
Twelve other projects are known to be either at a planning stage or under construction in Reykjavík. Altogether, they make up 2,400 hotel rooms. That doesn’t include more than 300 hotel rooms being planned in Hafnarfjörður and Kópavogur.
Should there be an overexpansion in hotel construction, Óli Örn pointed out that some of the hotel rooms include hotel apartments, which could be converted into regular apartments. Airbnb apartments would be the first ones to lose business if demand goes down, he stated, which would benefit the rental market.