Spent many a time in Iqaluit. With a bit of double bunking , and provided there isn't a conference or sports tournament going on - there's lots of hotel room.
The airport fire services guys are top-notch up there - and a blast to hang with. A top notch diversion spot with very capable FSS as well.
Iqaluit is very much one of the 'big-cities' of the North. It has 7800 people living there! Throw a traditional name on it and foreigners automatically think it's some shanty town with a Hudson's Bay trading post and a row of igloo's 😒......There's towns in southern Canada; with more people, who have less amenities and space than Iqaluit does.
Between the Nova, Frobisher, and even Navigator Inn there's lots of room this time of year.
Any competent Customer Journey Management team at an airline should be able figure things out for these people.