Iceland Mag

9 Reykjavik

Iceland Mag


Reykjavík City places curbs on new hotel construction: No more hotels downtown

By Staff

  • No new hotels Work on several new hotels in downtown Reykjavík has already started, but no more new projects will be approved. Photo/GVA

Reykjavík City has announced it has revised the city plan for the downtown area, placing curbs on further hotel construction in the city center. New hotel construction will have to take place outside the city center.

Read more: Construction of new hotels in Reykjavík continues apace: 50% more hotel rooms by 2020

The mayor of Reykjavík made the announcement on Facebook, explaining the city would prioritize new housing, while new hotels would have to be constructed further from the city center. "Both changes are part of our attempts to deal with rapid changes in a city which is developing very rapidly."

With regards to new hotels in the city center and along Laugavegurinn street, the main shopping street in downtown Reykjavík, the mayor said that "we believe we have reached a point of saturation." By distributing hotels and foreign travellers more evenly throughout the city and by providing new housing in older neighborhoods, the city will become more diverse, the mayor argued. 

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