How many hotels are in Iceland?

Iceland has 165 hotels with a total of 11,599 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 42.4%. 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 165 hotels with 11,599 rooms.
Capital Region occupancy: 56%

Overnight stays, capacity & occupancy rates across all regions

Overnight Stays

Foreigners · TTM

4.9M

+8.5%YoY

Overnight Stays

Foreigners · Jan 2026

245k

-4.3%YoY

Capital Region Occupancy

Jan 2026

56.1%

-6.1 ppvs 2025

Hotel Rooms

165 hotels

11,599

Capacity

Overnight Stays — Foreigners

Year-over-year comparison

Feb '24 – Jan '25

Feb '25 – Jan '26

YoY %

Feb '24 – Jan '25

Feb '25 – Jan '26

YoY

Regional Performance

Jan 2026

Occupancy rates & overnight stays by region

Occupancy Rate

Capital

56%

-6.1pp

Reykjanes

50%

+3.5pp

South

36%

-4.9pp

North

17%

+3.3pp

West

14%

-3.7pp

East

-6.5pp

Overnight Stays

Foreign

Domestic

Total

Capital

170k-11%

Reykjanes

24k+2%

South

63k+1%

North

9k+10%

West

6k-18%

East

2k-30%

💡 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	57	-1	5,442	-113	12,067	-80
South	50	+5	3,026	+371	6,648	+685
Northeast	17	-1	991	-29	2,160	-63
Reykjanes	14		888	-48	1,927	-105
West	14	+1	684	-1	1,485	+58
East	9	+2	332	+64	705	+150
Westfjords	2		161		561
Northwest	2	-2	75	-133	191	-286
Total	165	+4	11,599	+111	25,744	+359

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

Top Source Markets

Jan 2026

Overnight stays by nationality · YoY change

United Kingdom

62k nights

35.8%

-1%

United States of America

48k nights

28.2%

-22%

China

25k nights

14.6%

-9%

Germany

16k nights

9.2%

-2%

France

12k nights

6.9%

-13%

Italy

9k nights

5.3%

+37%

Average Stay Length

TTM

Overnight stays per visitor · Top 6 source markets

🇨🇳

China (354k nights / 108k pax)

3.3

🇩🇪

Germany (407k nights / 147k pax)

2.8

🇬🇧

United Kingdom (597k nights / 234k pax)

2.6

🇺🇸

United States of America (1.5m nights / 646k pax)

2.4

🇫🇷

France (209k nights / 100k pax)

2.1

🇮🇹

Italy (168k nights / 92k pax)

1.8

Overnight Stays per Visitor

Trend

Average overnight stays per foreign arrival

Feb '25 – Jan '26

Feb '24 – Jan '25

Room Capacity Growth

Total hotel rooms by year

2015 → 2026+58% 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.