Key Market Indicators
Iceland's hotel room supply is projected to reach nearly 19,800 bedrooms by 2028, up from approximately 17,400 in 2023. The sector is experiencing an average annual growth rate of 2.1%. Historically, since 1995, Iceland's hotel room supply has grown at an average rate of 2.7% per year. In 2023, Iceland was ranked 28th globally in terms of available hotel rooms, with Lithuania just ahead, also at around 17,400 bedrooms. Leading the rankings were Germany, Spain, and France, occupying the second, third, and fourth spots, respectively. Meanwhile, Iceland's hotel occupancy level saw a significant dip. In November 2021, occupancy stood at 41.2%, a sharp decline from 60.6% in October of the same year. This represents a notable decrease from the previous year's levels.
