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Best Reykjavik hotels

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Near Reykjavik Free Church
Reykjavik Marina - Berjaya Iceland Hotels, The Reykjavik Edition, and 61 more
Hotels with parking
Eyja Guldsmeden Hotel, Brim Hotel and others
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Top 10 hotels in Reykjavik

Discover the top hotels in Reykjavik handpicked by local expert Katja Gaskell.
Article Author
Katja Gaskell
27 November 2024
When it comes to capital cities, Reykjavik is up there among my favourites. This laid-back city might be small, but what it lacks in size it more than makes up for with its dynamic museums, exciting restaurant scene and buzzy nightlife – not to mention the incredible day trip opportunities that sit nearby. Spouting geysers, lunar landscapes, magical waterfalls and otherworldly ice caves are all just a short drive away, not forgetting the city's famous Blue Lagoon, where I will happily spend an...Learn moreWhen it comes to capital cities, Reykjavik is up there among my favourites. This laid-back city might be small, but what it lacks in size it more than makes up for with its dynamic museums, exciting restaurant scene and buzzy nightlife – not to mention the incredible day trip opportunities that sit nearby. Spouting geysers, lunar landscapes, magical waterfalls and otherworldly ice caves are all just a short drive away, not forgetting the city's famous Blue Lagoon, where I will happily spend an afternoon every time I visit. Most of Reykjavik's best hotels are positioned around the downtown area, which is also where you’ll find some of the city's most famous sights, including the iconic Solfario statue (The Sun Voyager), the towering Hallgrimskirkja church and the beautiful Harpa Concert Hall. Discover all this and more with my pick of the best hotels in Reykjavik.
The Reykjavik EditionThe Reykjavik EditionRank #1
£120-£1,481/night
Austurbakki 2
For rooms with a view, look no further than The Reykjavik Edition. Located by the Old Harbour Port, most of the 253...Learn more

For rooms with a view, look no further than The Reykjavik Edition. Located by the Old Harbour Port, most of the 253 rooms and suites at this uber-stylish hideaway have floor-to-ceiling windows to maximise those quintessentially Icelandic mountain views.

What I love about this hotel is that it truly celebrates all things Iceland. The black exterior has been designed to echo Iceland's lava landscape, while a sculpture designed to mimic southern Iceland's basalt column stacks stands in the entrance, and a digital artwork of the northern lights hangs in the lobby.

The hotel even has a wake-up service if you stay during the winter months and want to catch the aurora borealis. Make sure to visit the seventh floor bar, The Roof, for a cocktail or two with spectacular views.

Eyja Guldsmeden HotelEyja Guldsmeden HotelRank #2
£76-£418/night
Brautarholt 10-14
I love a good hotel breakfast, and the one at Eyja Guldsmeden Hotel is excellent. The daily morning buffet is piled...Learn more

I love a good hotel breakfast, and the one at Eyja Guldsmeden Hotel is excellent. The daily morning buffet is piled high with everything from bacon and boiled eggs to platefuls of cake and croissants. My favourite is the hotel's homemade Icelandic skyr yoghurt, topped with their in-house muesli.

But it's not just breakfast that makes this one of the best hotels in Reykjavik. I'm also a big fan of the elegant light-filled rooms at Eyja Guldsmeden, which come with wooden four-poster beds draped in white linen cotton (a vibe that's admittedly more Bali than Iceland, but it works).

Located just off Laugavegur, the city’s busy main shopping street, this Reykjavik boutique hotel is also well placed for foodies. Restaurants such as Kaffi Loki that specialise in classic Icelandic cuisine, including fermented shark and rye bread ice cream, are just around the corner.

Reykjavik Residence HotelReykjavik Residence HotelRank #3
£113-£511/night
Hverfisgata 60
The first time I travelled to Reykjavik I was with my family, so we opted for the apartment-style Reykjavik...Learn more

The first time I travelled to Reykjavik I was with my family, so we opted for the apartment-style Reykjavik Residence Hotel. Split over two different (but nearby) renovated historic houses in the downtown area, this stylish hotel was perfect for travelling with younger children.

We went for a two-bedroom apartment, but there are also three-bed options as well as Studios and Junior Suites. Each one comes with hotel trimmings (TVs, iPod docking stations, coffee machines), as well as fridge-freezers and a microwave. The larger apartments, such as the one we stayed in, also have full-sized kitchens.

Even better, the properties are located near the main shopping street of Laugavegur and the rainbow-coloured Skolavordustigur street, and a 15-minute walk to the excellent ice cream shop Gaeta Gelato, making this one of the best hotels in Reykjavik for families.

Hotel Local 101Hotel Local 101Rank #4
£84-£362/night
Ranargata 4a
Housed within an austere 1930s former office block, it would be easy to dismiss Hotel Local 101 from its stark...Learn more

Housed within an austere 1930s former office block, it would be easy to dismiss Hotel Local 101 from its stark exterior. But once you step inside, you quickly realise that this is one of the best hotels in Reykjavik – and one of the most unique.

I stopped for a drink at the ground floor bar and enjoyed the light-filled modern interiors, particularly the cool vintage benches and weather-worn wooden tables. Colour lovers might not appreciate the modern black and white bedrooms, but I thought they looked very stylish (some rooms are on the smaller side though, so do check before you book).

What I think makes this one of the best hotels in Reykjavik, however, is their art collection. You'll find a curated selection of modern Icelandic artworks scattered throughout the hotel, including a fantastic sculpture of a local fisherman that I wanted to take home with me.

Ion City HotelIon City HotelRank #5
£139-£348/night
Laugarvegur 28
Icelanders are justifiably proud of their country, and I love seeing this translated into cool hotel design. Take...Learn more

Icelanders are justifiably proud of their country, and I love seeing this translated into cool hotel design. Take Ion City Hotel, for example, where everything from the wool curtains in the bedrooms and the specially designed lobby light to the dresses and jewellery worn by the hotel staff is made locally.

Of course, this isn’t the only reason why I think Ion City is one of the best hotels in Reykjavik – other factors include its prime location, right in the middle of Laugavegur Street.

Surrounded by shops, restaurants and bars, it’s a fun place to stay if you’re visiting with friends (I stopped by with two girlfriends for a drink and we vowed to stay here the next time we came to Iceland). It’s also a great place to base yourself for sampling the city’s nightlife; next door bar Dillon regularly has live music playing.

Hotel KriunesHotel KriunesRank #6
£103-£479/night
203 Kópavogi
Just 35 minutes by car from Reykjavik, Hotel Kriunes is one for those looking to enjoy both the capital and some of...Learn more

Just 35 minutes by car from Reykjavik, Hotel Kriunes is one for those looking to enjoy both the capital and some of Iceland's magical great outdoors.

The family-run Hotel Kriunes was recommended by a good friend, who loved its location next to a peaceful lake and the plethora of local activities offered. These include horse riding on Icelandic horses (one of the oldest breeds in the world), hiking along volcano trails and even a nearby trampoline park, which was heaven for my kids.

The hotel has gradually evolved over the years: it started as a family home before it slowly expanded with more modern and larger rooms added (some even come with hot tubs). Although we visited during the summer months, the friendly staff shared that this is a great location for spying the northern lights. Even more reason to go back!

Sand Hotel by KeahotelsSand Hotel by KeahotelsRank #7
£120-£1,112/night
Laugavegur 34
If I were ever to join a private members’ club, I would want it to look like Sand Hotel. Cool but not pretentious,...Learn more

If I were ever to join a private members’ club, I would want it to look like Sand Hotel. Cool but not pretentious, understated but with friendly and attentive staff, and with stylish but cosy bedrooms, this is hands down one of the best boutique hotels in Reykjavik.

Plus, its location in the heart of the city on stylish Laugavegur street is ideal. Hip neighbours include the oldest gentlemen’s tailor in Iceland and family-run Sandholt Bakery, purveyors of what I will happily argue are among the best pastries in town (try a kleina, an Icelandic doughnut, followed by a cinnamon bun).

Also handy is the nearby bus stop, where tour buses depart to other corners of Iceland – you can store any excess luggage at Sand Hotel if you plan to be gone for a night or two.

Hotel Borg By KeahotelsHotel Borg By KeahotelsRank #8
£101-£566/night
Posthusstraeti 11
Hotel Borg was the first luxury hotel to be built in Iceland and remains one of the best hotels in Reykjavik to this...Learn more

Hotel Borg was the first luxury hotel to be built in Iceland and remains one of the best hotels in Reykjavik to this day. It was the passion project of Johannes Josefsson, a famous local wrestling champion, Olympian and circus performer who spent the money he earned performing and competing overseas building this iconic Art Deco property.

The hotel opened in 1930 and has since welcomed everyone from Marlene Dietrich and Ella Fitzgerald to everyday folk such as me, who come to admire the period features and furnishings, survey the black and white historical photos lining the walls, and wave "hallo" to the bust of Josefsson in the hotel lobby.

Of course, the city's hotel scene has come a long way in the last 95 years, but this is still one of my favourite hotels in Reykjavik and well worth checking into for a night or two.

Kvosin Downtown HotelKvosin Downtown HotelRank #9
£142-£358/night
Kirkjutorg 4
If you're looking to splash out, then you can't go wrong with Kvosin Downtown Hotel, one of the best hotels in...Learn more

If you're looking to splash out, then you can't go wrong with Kvosin Downtown Hotel, one of the best hotels in Reykjavik. I'm a big fan of this Reykjavik boutique hotel, which sits within a 19th-century former library and soft drinks factory in the perfect downtown location.

Rooms inside this historic building are charmingly categorised as Cozy, Big, Bigger, and Biggest, and all come with a kitchenette. There's also the Top Floor Apartment, which is ideal if you're travelling with younger kids (it comes with a fantastic bunk bed).

What I really love about Kvosin Hotel, however, is their cosy bar Aldamot, which is home to the most incredible collection of wines, whiskeys and gins, as well as knowledgeable staff on hand to help if you can't decide what to order. My tip is to try one of their excellent Icelandic G&Ts.

Alda Hotel ReykjavikAlda Hotel ReykjavikRank #10
£90-£466/night
Laugavegur 66-68
Located at the quieter end of Laugavegur Street, the Alda Hotel Reykjavik is one that I recommend to friends who...Learn more

Located at the quieter end of Laugavegur Street, the Alda Hotel Reykjavik is one that I recommend to friends who want to be close to the action but not right in the thick of it all.

This is a really stylish place to stay and its communal areas are decorated with fun artworks and designer furniture. The elegant guestrooms, meanwhile, come with Arctic goose-down bedding (particularly welcome during the winter months).

There are a few things that make this Reykjavik boutique hotel stand out. The first are the complimentary Android smartphones for guests to use during their stay. The second is the garden hot tub, where you will (hopefully) see the northern lights. And the third is the in-house barber shop that will ensure you look your best before hitting the town.

Useful Info

KAYAK’s insights for hotels in Reykjavik

Discover seasonal trends, ideal booking windows, and other data-driven tips to plan your stay in Reykjavik with confidence.

Which month has the cheapest hotel rates in Reykjavik?

Hotels are cheapest in Reykjavik in May, with average rates of £131. In comparison, September is the most expensive month, with prices at £214.

What is the cheapest day of the week to book a hotel in Reykjavik?

Wednesday offers the lowest rates in Reykjavik, with an average nightly price of £123. The highest prices are found on Saturday, with average rates at £165.

Which neighbourhood do KAYAK users most love to book their hotel in Reykjavik?

The most popular neighbourhood in Reykjavik among KAYAK users to search for a hotel is Miðborg, with an average price of £159. Cityhub Reykjavik, Kex Hostel, and Hostel B47 rank among the highest-rated hotels in Miðborg.

How much is a hotel in Reykjavik for tonight?

The best deal for a 3-star hotel room in Reykjavik found by KAYAK users in the last 3 days was £64, while a 4-star hotel the lowest price was £106. The cheapest room found overall was for £68.

How much is a hotel in Reykjavik for this weekend?

The cheapest hotel room in Reykjavik for the upcoming weekend found on KAYAK in the last 3 days was for £64 per night. For the same dates, 3-star hotel rooms have been found for as low as £64 per night and 4-star hotel rooms from £126 per night.

How early should you book a hotel in Reykjavik?

Book at least 2 days before your stay begins to get the best price for your Reykjavik hotel.

How much is a Reykjavik hotel?

Here are our most popular & best value hotels

Good to know

Low season

April

High season

July

Average price (weeknight)

£178

Average price (weekend night)

£191
Cheapest month to stay with an average 14% drop in price.
Most expensive month to stay with an average 45% rise in price.
Average Sun - Thu price over the last 2 weeks.
Average Fri & Sat price over the last 2 weeks.

KAYAK's top tips for finding Reykjavik hotel deals

  • The cheapest 3-star hotel room in Reykjavik found on KAYAK in the last 2 weeks was £65, while the most expensive was £269.
  • How long should you stay? KAYAK users usually book their hotel in Reykjavik for 3 days.
  • Travellers in search of a touch of luxury, should consider one of the Reykjavik’s upscale hotels, such as Ion City Hotel, which features modern Scandinavian decor and suites that offer private saunas and balconies with city and bay views.
  • Guests staying at Radisson Blu Hotel Saga will enjoy the hotel’s 8th floor restaurant, Grillid, which serves up Icelandic and European cuisine and offers one of the best panoramic views of the city.
  • One of Iceland’s top-rated luxury hotels is Ion Adventure Hotel, located in Selfoss, just under an hour’s drive east of Reykjavik. A stay at this eco-friendly hotel offers unparalleled views of Iceland’s magnificent lava fields and a chance to get a glimpse of the Northern Lights
  • For many travellers visiting Reykjavik, a dip in the steamy turquoise waters of the Blue Lagoon is the most memorable part of the trip. The Northern Light Inn in Grindavik is conveniently located near the Blue Lagoon.
  • Downtown Reykjavik is home to myriad cultural and historical sights, as well as a rich restaurant and nightlife scene. This region features a selection of upscale hotels for higher budgets, such as Hlemmur Square and the 41 A Townhouse Hotel.
  • Guests searching for a budget hotel in Reykjavik can try the Blue House B&B, situated on the Seltjarnarnes peninsula, which offers scenic walking paths along the shoreline.
  • With family rooms and triple rooms, the Hotel Odinsve is ideal for families visiting Reykjavik, as is Icelandair Hotel Reykjavik Marina, situated adjacent to the port, near the Saga Museum.
  • You'll find plenty of hotels in Reykjavik with good children's facilities. Have a look at 201 Hotel, in the Kopavogur neighbourhood. It has large rooms for families, and you can order a crib in your bedroom if you have a baby with you. There's a flat screen TV with cable for kids' entertainment and a laundry service. The hotel serves an enticing kid-friendly buffet.
  • Iceland has a rich artistic history, and if you're an art aficionado, you'll find a good few prestigious galleries. Book your stay at Hotel Holt ­– The Art Experience. It will only take you about 10 minutes to walk to the Asgrimur Jonsson Collection from your lodgings. It's also near one of the city's most famous architectural sights, the imposing modern cathedral of Hallgrímskirkja.
  • If you're looking for a romantic getaway in this beautiful northernmost capital city in the world, we can recommend House of the Snowbird. Behind this charming name lies a lovely old-fashioned hotel from where you can easily walk to the city centre and the port. It's an adults-only hotel offering peace and quiet. You'll have your own fully equipped kitchen and a private entrance.

FAQs when booking a hotel in Reykjavik

  • Which neighbourhood in Reykjavik is good for nightlife?

    Reykjavik is a small city with an electric nightlife and restaurant scene. Book a hotel on the city’s main street, Laugavegur, such as the upscale Sandhotel or more affordable Loft Hostel to be in the center of the action.

  • Which hotel area is especially good for shopping in Reykjavik?

    In addition to restaurants and bars, Laugavegur is home to Iceland’s best fashion and design shops, as well as a good selection of hotels. Just east of the city centre, Kringlan Mall, boasts over 150 shops and restaurants, as well as a multi-screen cinema. The City Park Hotel and Hilton Reykjavik Nordica are good options nearby.

  • Where in Reykjavik can I find a hotel with a view?

    Situated on Laugavegur shopping street, Alda Hotel Reykjavik features big picture windows and a rooftop terrace offering excellent views of the surroundings. Meanwhile, Centerhotel Arnarhvoll, which is located on the water’s edge give guests great views across the bay to the mountainous landscape beyond.

  • Which hotels in Reykjavik offer an especially good breakfast?

    Start the day off on the right foot and full of energy for a day of sightseeing by choosing a hotel that lays on a good morning spread. There are many top hotels in Reykjavik that feature a delicious breakfast, such as the Hilton Reykjavik Nordica and the Fosshotel Reykjavik.

  • Which hotels in Reykjavik have especially good spa services?

    Reykjavik is the perfect place to unwind with a spa holiday and the city and surrounding regions are home to an array of hotels with spas that offer sublime services. Hilton Reykjavik Hotel features an award winning spa with a variety of massage and facial treatments, two hot tubs, a relaxation pool, and steam rooms.

  • Are there good hotels for business-people near Reykjavik Airport?

    Business travellers who're stopping in Reykjavik overnight or only spending a few days in the city will appreciate a hotel close to the airport. You could hardly ask for any nearer than Airport Hotel Aurora Star. It's a mere 100 yards or so from the terminal building. Business amenities include a dedicated workspace with computer and fax services. It also has an on-site restaurant so you can dine in for extra convenience.

  • Where is a hotel with access to public transport?

    Hotel Phoenix is an easy walk away from the main Hlemmur Bus Terminal in Reykjavik. You'll also be conveniently close to many of the attractions in the city centre, like The Sun Voyager and the fascinating Iceland Phallological Museum. The hotel has an express check-out service, a wake-up service, and offers daily housekeeping.

  • Where to stay in Reykjavik?

    The most popular neighbourhoods amongst KAYAK users are Miðborg and Laugardalur. Hotels in walking-distance from Blue Lagoon are also very sought-after.

  • How do I find a hotel in central Reykjavik?

    After you launch a hotel search on KAYAK, you can refine your research by neighbourhood, which allows you to pick the central Reykjavik districts. You can also do a search using the city map to choose a specific location, like Reykjavik city centre

  • How can I find hotels near me?

    Take a look at our extensive hotel map to find the best hotels near you.

  • Are there Reykjavik hotels with free parking?

    There are many hotels in Reykjavik that offer both parking and free parking. Popular choices among KAYAK users include Eyja Guldsmeden Hotel, Brim Hotel and Hotel Lotus.

Where to stay in Reykjavik?

Our map will help you find the perfect place to stay in Reykjavik by showing you the exact location of each hotel.

What Reykjavik hotel guests are talking about

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Hotels about topic

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Fosshotel Raudara - Reykjavik - Restaurant
Parking
Free Wi-Fi
Pet-friendly
Hotel Muli - Reykjavik - Bedroom
Hotel Muli
Háaleiti og Bústaðir
8.5Very Good(3228)
Parking
Free Wi-Fi
Brim Hotel - Reykjavik
Parking
Free Wi-Fi
Pet-friendly

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