Iceland Mag

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Iceland Mag


The small village of Vík in S. Iceland to get a greatly expanded new luxury hotel and spa

By Staff

  • Icelandair hotels Vík After the new addition has been completed the hotel will have 126 rooms. Photo/Icelandair hotels Vík

Thanks to its spectacular setting, black sand beaches and towering volcanic stacks, as well as the charming atmosphere, the small village of Vík in South Iceland has in recent years been transformed into a regional hub for tourism. And the busiest small town in Iceland. It has been estimated that at least 4,000 cars pass through Vík daily during the peak months of summer, carrying something like 10,000 people.

Demand for accommodation exceeds supply

Icelandair hotel Vík

Seen from the air The hotel opened its doors in 2014. Photo/Icelandair hotels Vík

This growing stream of visitors has created a booming tourism industry and a shortage of accommodation. In 2016 the local municipal council banned new Airbnbs in an effort to ease a housing shortage and maintain the character of the village. A more permanent response is to increase the supply of hotel rooms.

Read more: An Airbnb ban in the village of Vík in South Iceland

Plans to expand the Icelandair hotel in Vík have therefore been scaled up. The hotel, which opened in 2014, already has 78 rooms. The original plan envisioned that 30 new luxury rooms, but now the operator plans to add 48 new rooms, bringing the total to 126. The manager of the hotel told the local news site Vísir that the reason the hotel is adding more hotels than initially planned is that demand has been far greater than originally anticipated.

The addition includes 20 luxury suites, 4 apartment suites, family suites on two floors as well as smaller hotel rooms. The addition will also include a spa, new conference rooms and a new panorama northern light bar with a view of the mountains surrounding Vík and the North Atlantic.  

Icelandair hotel Vík

The addition This computer rendering shows what the addition will look like. Photo/Icelandair hotels Vík


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