Especially due to the sanctions that are not entirely lifted yet, it’s still hard to book hotels online. On hotel’s sites like Booking or TripAdvisor, you can only find a few options, while using Iranian native travel agencies such as 1stQuest, you have more and better options. If you are going to apply for the visa on arrival, you will need confirmation of hotel booking, while if you are on an organized tour, the tour leader will have made the invitation letter for you so you will travel with your visa already glued to your passport.