The bank Islandsbanki will play a key role in financing the hotel at Borgartun and it is estimated that the hotel will be 16 stories high with around 340 rooms. In addition, Indian and Icelandic investors are going to build a 250 room luxury hotel next to Harpa Concert and Conference Hall, downtown Reykjavik. Earthworks have already begun for that hotel.
When these two hotels are ready, the number of hotel rooms in Reykjavik will increase substantially. It is expected that the growth in tourism for the past years, in Iceland, will continue over the next few years.
Arni Gunnarsson, chairman of the Icelandic Tourist Industry Association, does not fear for too much supply. "According to the development, like it has been, there has been a great increase in the number of foreign visitors to the country" said Arni. The hotel in Borgartun will be a four star hotel. "I think that this is a good development and that we are offering quality accommodation. We want to attract tourists that are ready to pay well and treat themselves in other kinds of activities."
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