Best Hotels & Accommodation in Reykjavik — Biggest Selection & Lowest Prices Guaranteed

Reykjavik, Iceland's capital city, offers a wide range of hotels and accommodations to suit every traveler's preferences and budget. Whether you’re searching for luxury hotels, cozy guesthouses, modern apartments, or budget-friendly hostels, Reykjavik has the perfect place for you to stay. Reykjavik's compact size ensures easy access to main attractions, restaurants, and nightlife, making it an ideal base for exploring the Land of Fire and Ice.

Best Areas to Stay in Reykjavik

The most popular areas to stay in Reykjavik are Midborg, Laugavegur, and Vesturbaer. Each location offers distinct advantages.

Downtown Reykjavik (Midborg)

The heart of the city, Midborg, is the best area to stay for its proximity to Reykjavik’s main attractions like Hallgrimskirkja church, Harpa Concert Hall, and the Sun Voyager sculpture. This bustling area is a top spot to book your hotel in Reykjavik as it features boutique shops, top-rated restaurants, and local bars. Stay at iconic hotels like Hotel Borg or CenterHotel Arnarhvoll for a central and luxurious experience.

Laugavegur Street

Reykjavik’s main shopping street, Laugavegur, is lined with stylish hotels and apartments, ideal for travelers who enjoy being in the center of the action. The boutique Sand Hotel provides a perfect base, offering proximity to cafes, shops, and cultural landmarks.

Vesturbaer

For a quieter, more residential feel, Vesturbaer is an excellent choice. Located west of downtown, this neighborhood is close to attractions like the Old Harbor and Grandi area, known for its seafood restaurants and unique local shops.

Top 12 Best Hotels in Reykjavik

Many hotels in Reykjavik offer excellent amenities and close proximity to popular attractions. With a wide range of options, choosing the best place to stay can be overwhelming. Below is a list of the top hotels in Reykjavik, particularly in the downtown area of Midborg, near restaurants and souvenir shops.

12. Kvosin Downtown Hotel

With spacious, luxury rooms packed with top-tier amenities, Kvosin Downtown Hotel stands out as one of the most appealing accommodations in Reykjavik. Its central location near Reykjavik City Hall, the Parliament building, Austurvollur Square, and the lively shopping street of Laugavegur ensures everything is just a short stroll away, making it an excellent choice for travelers seeking convenience and comfort.

The rooms are among the largest of any Reykjavik hotel, featuring kitchenettes, en suite bathrooms, televisions, luxurious beds, free WiFi, and daily housekeeping. Most also have a patio or balcony.

With beautiful rooms, a unique atmosphere, and a central location, Kvosin Downtown Hotel is a great choice for those seeking to self-cater in the heart of Reykjavik.

11. Hotel Holt

Hotel Holt is a boutique, stylish hotel in a cultural corner of Reykjavik, perfect for travelers seeking comfort and luxury. A top hotel in Reykjavik for decades, it's perfect for those looking for a classic hotel that exudes the city's character. Its large neon sign at the top of the building can be seen from far away and is a notable part of the downtown view on dark nights.

Hotel Holt is located on a quiet street in the residential neighborhood of Thingholt, but is still very close to the center of Reykjavik. As such, it is great for those who want to both be near the city’s action and still get a quiet night’s rest. There are 42 boutique rooms at Hotel Holt, ranging from single rooms for solo travelers to suites for up to three. The decor is a significant part of the hotel’s appeal. The owners are proud art collectors, making the space as much of a gallery as an accommodation.

Travelers who want to stay somewhere overflowing with luxury and culture will find their stay at Hotel Holt.

10. Reykjavik Lights Hotel

The Reykjavik Lights Hotel is probably the most unique hotel in Reykjavik, styled after Icelandic history and nature. It blends modern lighting techniques with a chic style to reflect the aurora borealis and midnight sun that make the country spectacular. However, the rooms speak of Iceland’s past, with each one themed after a day in the country’s old calendar.

The hotel is located just at the edge of the city center, offering access to Reykjavik's nightlife, shops, restaurants, and museums — but also providing quiet and calm during the day. With its awesome view of the mountains and a perfect location close to the city center, Reykjavik Lights Hotel offers all the comforts of home in a unique city atmosphere.

9. Nordurey Hotel City Garden

Nordurey City Garden is a modern, comfortable Reykjavik hotel located near the city center. This accommodation offers comfortable double rooms. All rooms are in a minimalist Scandinavian style and come with everything you need for a trip to Reykjavik.

Nordurey Hotel City Garden has an attractive location in the middle of Iceland's capital, with most of the city's main attractions within walking distance. You can have free breakfast during your stay, which is served on-site. There's a large garden outside with a porch, green lawns, and outdoor seating.

If you plan to spend a night or two in Reykjavik and want a comfortable place to stay, Nordurey Hotel City Garden is a great choice.

8. Hotel Borg

Hotel Borg, which opened in 1930, has a grand, historic charm unmatched by any other city accommodation. Though it sits on the same square as Iceland's Parliament Building and Cathedral, it is still the most imposing building in sight. It has retained its art deco design since it was opened and is the first choice to stay for foreign dignitaries visiting Iceland.

It has a luxurious spa with a hot tub, sauna, steam room, and gym, where guests can receive cleansing beauty treatments such as a seventy-five minute illuminating facial. Its standard rooms are well-decorated and spacious, and its deluxe rooms and suites are even more so.

Those that appreciate local history and classic design will love staying at the luxurious Hotel Borg.

7. Hotel Reykjavik Saga

Hotel Reykjavik Saga is a beautiful, central hotel in the capital of Iceland with a range of chic rooms for its guests. Travelers hoping for a stylish base in the heart of Reykjavik should book their accommodation early to avoid missing out.

Located on Laekjargata, Hotel Reykjavik Saga is near to many of the capital's most famous and fascinating sites. Hotel Reykjavik Saga's spacious and luxurious rooms have large satellite televisions and en suite bathrooms with showers and hair dryers.

A fitness center allows you to keep active during your stay, and a breathtaking rooftop terrace will enable you to hunt for the northern lights in winter or enjoy the midnight sun in summer.

Hotel Reykjavik Saga is a modern, chic place to stay in downtown Reykjavik, particularly for couples and solo travelers.

6. Exeter Hotel

Exeter Hotel is a 4-star design hotel located by Reykjavik's Old Harbor. It has an industrial but contemporary feel, equipped with all modern comforts and facilities. The main wing is a renovation of a storage house from 1904 that later became a residence and trade building. Nowadays, the hotel’s exterior is a tribute to contemporary architecture and the times when fishing and trade were the area’s main industries.

The rooms in Exeter Hotel are decorated with industrial décor, modern furniture, and wooden floors. They are fully equipped with a smart TV, telephone, minibar, and coffee/tea facilities.

The location in downtown Reykjavik can't be beaten, and many rooms feature wonderful views of the ships in the harbor, the bay of Faxafloi and Mount Esja in the distance.

Exeter Hotel is a modern and luxurious hotel located in the heart of Reykjavik, next to the most popular attractions of Iceland’s capital city. It features all the facilities you need for a great and unforgettable stay with the maximum comfort level. 

5. Sand Hotel

Sand Hotel is a superb choice if you’re looking for a boutique hotel in central Reykjavik. Its unbeatable location, superior comfort, cleanliness, and facilities make it the perfect option for the discerning traveler who values a touch of luxury.

The central location of Sand Hotel allows you to take in the vibrancy of city life and all that it has to offer. Reach shops and restaurants and several nearby cultural attractions by foot within a matter of minutes.

You don’t need to go far at all to sample delectable bakery treats. Sandholt Bakery is conveniently-located on the ground floor of Sand Hotel, where the hotel breakfast is served as well.

Sand Hotel is a superior choice for top-end accommodation in central Reykjavik. If you value a great night’s sleep in a comfortable bed and waking up to a delicious buffet breakfast, we highly recommend Sand Hotel. It’s perfect for anyone who values high-quality services and amenities with a dazzling array of city attractions within a short distance.

4. Hotel Reykjavik Marina

The Hotel Reykjavik Marina is located in a beautiful location by the Old Harbor right beside the downtown area, with incredible views over the ocean and wharf.

The hotel interior blends an authentic maritime theme with modern Icelandic design throughout the common areas and the vast array of rooms. The building’s previous uses were all related to the fishing industry that used to dominate this part of the city, and this history is visible in the hotel.

This hotel has a theater showing Icelandic films with English subtitles, a gym with a climbing wall, and a restaurant and bar called Slippbarinn with a diverse Icelandic menu, a wide drink selection, and regular entertainment.

As can be gathered by its wealth of rooms and amenities, Hotel Reykjavik Marina should be considered by all travelers seeking stylish accommodation in the heart of the capital.

3. Alda Hotel

Alda Hotel is a wonderful place to stay in the heart of the capital, located on its main shopping street, Laugavegur. With a range of modern, comfortable rooms, travelers of all kinds will appreciate its many facilities and proximity to the city’s major sites.

It boasts an outdoor hot tub from which you can look out to the northern lights in winter and relax under the midnight sun in summer. Nearby is an indoor sauna you can enjoy year-round. There is also an excellently furnished fitness center. Brass Restaurant is a great place on-site to enjoy breakfast, lunch, or dinner, and the Brass Bar is a wonderful spot to unwind with a drink in the evening.

There is even a barbershop where you can get a haircut for the perfect holiday pictures!

A final bonus of staying at Alda Hotel is that all guests are lent an Icelandic smartphone that they can use to make local calls and navigate the city with ease.

Alda Hotel is a wonderful place to stay for guests seeking modern, comfortable lodgings with a range of facilities in the heart of the nation’s capital.

2. Eyja Hotel

Eyja Hotel is a modern, bohemian hotel just off of Laugavegur in Reykjavik. Travelers to Iceland’s capital seeking a comfy, trendy, central spot to stay will find no better choice.

Eyja Hotel is slightly away from the downtown area. It is found towards the business side of town, away from the crowds. Even so, you can easily walk to all the major attractions.

Part of the hotel’s charm is the style of its rooms. Self-described as "unstructured maximalism," all have an eclectic, welcoming decor, boasting unusual art, vintage pieces, and excessive opulence, such as in the four-poster beds.

Eyja Hotel also has a popular bar and lounge, a business center, a fitness center, and a restaurant. All guests get free parking, which is a huge bonus since the hotels in the dense city center of Reykjavik sometimes lack parking.

Eyja Hotel is a fantastic choice for travelers looking for a modern, trendy, comfortable place to stay in Reykjavik.

1. The Reykjavik EDITION

The best hotel in Reykjavik is The Reykjavik EDITION, offering unparalleled luxury and modern comfort in the heart of Iceland’s vibrant capital. Combining exceptional service, elegant design, and a prime waterfront location, this 5-star hotel promises an unforgettable stay.

Located steps from the iconic Harpa Concert Hall and within walking distance of Hallgrimskirkja church and the Old Harbor, The Reykjavik EDITION places guests at the center of the city’s culture, with boutique shops, gourmet restaurants, and museums nearby.

The hotel features 253 stylish rooms and suites, including a penthouse with harbor views, the Michelin-recommended Tides restaurant, a Nordic-inspired spa, and a 24-hour fitness center.

With executive meeting rooms, valet parking, and personalized services, The Reykjavik EDITION is the perfect base for exploring Reykjavik’s charm and Iceland’s natural wonders.

Explore Reykjavik From Your Base

Reykjavik accommodations are the perfect starting point for exploring Iceland’s wonders, including the Golden Circle, South Coast, and northern lights. Many hotels offer tour pickups, making it easy to discover the country’s breathtaking landscapes without hassle.

Whether you’re here for culture, adventure, or relaxation, Reykjavik offers exceptional hotels and accommodations to make your trip unforgettable. Scroll up to find the best hotel in Reykjavik for your needs.