Iceland capital Reykjavik‘s hotel landscape is entering a new phase with the opening of two internationally branded lifestyle properties: Radisson RED Reykjavik and Hyatt Centric Reykjavik.
The additions significantly expand Iceland’s upscale accommodation offering and strengthen the capital’s appeal as a year-round city destination for international travelers.
The Radisson RED Reykjavik introduced in early July the lifestyle-focused Radisson RED brand to Iceland with a 211-room property overlooking the city and nearby coastline. Located in downtown Reykjavik, the hotel combines contemporary Scandinavian-inspired design with flexible social spaces, a rooftop venue and panoramic views across the capital. The property has been designed to appeal to younger travelers, digital nomads and guests seeking a more informal hotel experience.
Just a short distance away, Hyatt Centric Reykjavik marks another milestone by becoming Hyatt’s first branded hotel in Iceland. Scheduled to open in early August in the heart of the city’s main shopping and entertainment district, the 169-room hotel will feature three food and beverage outlets, including a rooftop bar offering views across Reykjavik. Hyatt says the property has been designed as a launch point for travelers looking to explore Iceland’s culture, culinary scene and natural attractions.
Hyatt Centric Reykjavik to open in August (Photo: Hyatt Corporation)
Reykjavik growing popularity
The two openings reflect growing confidence in Iceland’s tourism sector despite increasing competition among European destinations. Reykjavik continues to benefit from strong demand for nature-based travel, Northern Lights experiences, geothermal wellness tourism and stopover visitors connecting between North America and Europe.
Combined, the two hotels add nearly 380 new guestrooms to Reykjavik’s accommodation inventory, providing additional capacity during peak summer travel and the increasingly popular winter season.
Reykjavik is indeed Iceland’s largest hotel market, offering approximately 5,620 hotel rooms across 60 hotels in 2025. While there is no specific data for Reykjavik alone, the capital serves as the gateway for most of the country’s nearly 2.3 million international overnight visitors. Hotel occupancy averaged last year 74.7%, significantly above the national average.
The openings underlines a broader trend of international hotel companies investing in Iceland, where visitor demand has rebounded strongly in recent years. Reykjavik is consequently attracting greater interest from global hospitality brands for one of Europe’s most distinctive city-break destinations.
