The City of Reykjavík is implementing policies to limit hotels in the downtown core.
Icelandair currently operates 13 hotels under the brands Icelandair Hotels and Hotel Edda—1,937 rooms in total.
“We’re looking at one of the worst springs in the last five years or so,” said Páll L. Sigurjónsson, the managing director of Kea Hotels.
Nearly every hotel in the capital area was fully booked on Sunday night, leaving travelers who’ve been stranded in Iceland because of inclement weather without a place to stay.
Authorities in the Bláskógabyggð municipality have rejected a proposal to build a massive luxury hotel and spa complex near Þingvellir National Park.