How many hotels are in Iceland?

Iceland has 171 hotels with a total of 12,165 rooms. The hotel sector has grown significantly since 2010 to accommodate increasing tourism demand.

What is the hotel occupancy rate in Iceland?

The current hotel occupancy rate in Iceland is 64.0%. Occupancy varies significantly by season, with peak rates during summer months (June-August) often exceeding 90% in popular areas like Reykjavik.

How many overnight stays do tourists have in Iceland?

Foreign tourists account for approximately 4.9 million overnight stays in Icelandic hotels annually. The average length of stay is around 2-3 nights per visitor.

Which region in Iceland has the highest hotel occupancy?

The Capital Region (Reykjavik area) consistently has the highest hotel occupancy rates in Iceland, typically 10-20 percentage points higher than other regions. The South and Reykjanes Peninsula also see strong occupancy due to their proximity to the airport and popular attractions.

When is peak season for Iceland hotels?

Peak season for Iceland hotels is June through August (summer), when occupancy rates are highest and prices peak. Shoulder season (May, September-October) offers good availability and moderate prices. Winter (November-April) is low season for most hotels outside Reykjavik, though northern lights tourism has increased winter demand.

Iceland Hotel Statistics

Iceland has 171 hotels with 12,165 rooms.
Capital Region occupancy: 77%

Overnight stays, capacity & occupancy rates across all regions

Overnight Stays

Foreigners · TTM

4.9M

+9.3%YoY

Overnight Stays

Foreigners · Feb 2026

352k

+6.7%YoY

Capital Region Occupancy

Feb 2026

76.8%

+1.1 ppvs 2025

Hotel Rooms

171 hotels

12,165

Capacity

Overnight Stays — Foreigners

Year-over-year comparison

Mar '24 – Feb '25

Mar '25 – Feb '26

YoY %

Mar '24 – Feb '25

Mar '25 – Feb '26

YoY

Regional Performance

Feb 2026

Occupancy rates & overnight stays by region

Occupancy Rate

Capital

77%

+1.1pp

South

66%

+1.5pp

Reykjanes

60%

+1.5pp

North

36%

+2.8pp

West

32%

+2.3pp

East

24%

-4.2pp

Overnight Stays

Foreign

Domestic

Total

Capital

217k+2%

South

108k+18%

Reykjanes

27k-7%

North

22k+11%

West

14k+13%

East

4k+21%

💡 Compare occupancy rates with actual overnight stays across regions

Hotel Capacity by Region

Number of hotels, rooms, and beds · YoY change

Region	Hotels	±	Rooms	±	Beds	±
Capital region	58		5,605	+50	12,423	+274
South	53	+6	3,202	+453	7,035	+878
Northeast	18	-1	1,075	+43	2,322	+71
Reykjanes	15		905	-48	1,960	-104
West	14		743	+5	1,608	+59
East	9	+2	332	+101	736	+256
Northwest	3	-1	182	-26	413	-64
Westfjords	1		121		485
Total	171	+6	12,165	+578	26,982	+1370

Change (±) shows year-over-year difference vs 2025

Top Source Markets

Feb 2026

Overnight stays by nationality · YoY change

United Kingdom

86k nights

33.8%

-3%

United States of America

63k nights

24.7%

-13%

China

52k nights

20.5%

+74%

Germany

23k nights

8.9%

+8%

France

16k nights

6.5%

-16%

Other Asian countries

14k nights

5.7%

+22%

Average Stay Length

TTM

Overnight stays per visitor · Top 6 source markets

🇨🇳

China (377k nights / 112k pax)

3.3

🇩🇪

Germany (410k nights / 150k pax)

2.7

🇬🇧

United Kingdom (593k nights / 228k pax)

2.6

🇺🇸

United States of America (1.5m nights / 644k pax)

2.3

🇫🇷

France (205k nights / 100k pax)

2.1

🏳️

Other Asian countries (183k nights / 0k pax)

0.0

Overnight Stays per Visitor

Trend

Average overnight stays per foreign arrival

Mar '25 – Feb '26

Mar '24 – Feb '25

Room Capacity Growth

Total hotel rooms by year

2015 → 2026+65% growth

Domestic Overnight Stays

Icelandic guests · Annual totals

Normal

COVID

YTD

Data Notes

Hotel data includes only traditional hotels that are open year-round. Occupancy rates measure room utilization as a percentage of available capacity. 2025 figures are preliminary.