Best Hotels in Downtown Reykjavik

Find the best hotels in downtown Reykjavik. Learn about their excellent facilities and amenities you can enjoy during your stay. Read more here to know what top attractions of Iceland are near each accommodation.

Reykjavik is the capital of Iceland and the gateway for most travelers exploring the country. Commonly, visitors stay in the capital city for easy access to adventures in the countryside, such as along the South Coast and to the Jokulsarlon glacier lagoon.

When staying in Reykjavik, finding a hotel should be one of your top priorities. However, there are many hotel options in the city, whether on the luxury or budget side, so choosing can be overwhelming.

To narrow your options, you can start looking from the downtown area of Reykjavik. Its central location makes it the best place to begin your search. For example, you can find budget-friendly accommodations, family-friendly hotels, and guesthouses perfect for couples and solo travelers in the area, whether for business or pleasure. 

Is Downtown Reykjavik a Good Place to Stay?

Reykjavik is a city brimming with cultural and natural attractions, offering a unique blend of nature, culture, history, and modern amenities. Although it’s small in size and population compared to major cities worldwide, it remains an exceptional area to explore.

If you’re planning a trip to Reykjavik, staying in the heart of the city is your best option to experience everything Iceland offers. The downtown area of Reykjavik, also known as 101 Reykjavik, is the central commercial district of the Icelandic capital. The best accommodations, restaurants, shops, and cultural monuments are located here.

Booking your stay in downtown Reykjavik is ideal if you want the best access to Iceland’s vibrant culture and most famous landmarks. For a starter, iconic attractions like the Hallgrimskirkja church and Harpa Concert Hall are in the downtown area.

Similarly, you can find the main shopping district of Reykjavik and Iceland in the downtown area. Laugavegur street is a must-visit if you want to shop from local boutiques and souvenir stores or get a taste of the best Icelandic cuisine.

From your Reykjavik hotel, these places of interest and other top tourist destinations in Iceland are within your reach.

These downtown hotels are also near bus stops for tour pick-ups in Reykjavik. For example, if you plan on joining a sightseeing tour in the Golden Circle or a geothermal bath in the Blue Lagoon, you can find a dedicated bus stop close to your hotel.

Are Hotels in Reykjavik City Center More Expensive?

Reykjavik has a reputation for being on the pricier side of things, so you probably wonder whether hotels in downtown Reykjavik are even more astronomical. While it is true that hotels in the city center may cost a bit more, they may not be as expensive as you think they are.

Prices of hotels can vary depending on several factors, such as amenities and season. For example, on average, mid-priced hotels can go more or less than 250 USD per night. Meanwhile, you can find budget hotels priced around 150 USD and luxury hotels above 500 USD.

Fortunately, the benefits of staying in a hotel in Reykjavik city center outweigh the cost. 

Many of these accommodations offer excellent facilities and amenities. They have on-site restaurants, fitness facilities, and even spas. This means you don’t have to leave the comforts of your hotel.

Additionally, you don’t have to spend much on transportation when staying here. The city center, although providing everything you need, is compact. You can access its places of interest by walking or using public transportation.

The Best Hotels in Downtown Reykjavik

From budget-friendly accommodations to luxury hotels that will give you a five-star experience, these top-rated hotels in Reykjavik city center will make your Iceland holiday one to remember. The list below is ranked based on their average rating on Google reviews.

8. Black Pearl Hotel

The Black Pearl Hotel is a fancy four-star apartment hotel in Reykjavik’s city center, offering proximity to abundant amenities and the calmness of the city harbor. It’s a fantastic option for travelers who want to be close to the action while enjoying comfortable suites.

Travelers who want to stay at the Black Pearl, rated 4.5/5 by over 100 reviews, can choose rooms accommodating two to six people. 

• Economy Suite

• Standard Suite

• Junior Suite

• Deluxe Suite with One Bedroom

• Deluxe Suite with Two Bedrooms

• Penthouse

The cheapest option, the Economy Suite, accommodates two people. On the other hand, the priciest options, the Penthouse and Deluxe Suite with Two Bedrooms, sleep five to six people. Each room can add more guests by seeking assistance from the hotel staff.

Enjoy the convenience of a luxurious apartment while staying at the Black Pearl Hotel. Each suite boasts a fully-equipped kitchen where you can prepare and eat meals. In particular, the kitchen has built-in appliances like a refrigerator, oven, microwave, stovetop, and coffee machine.

The kitchen setup is ideal if you don’t want to spend much on food while enjoying a staycation in the city.

Other room amenities and facilities include a private bathroom with shower and toiletries, bathrobe and slippers, blackout curtains, satellite TV, and free Wi-Fi.

The hotel's central location brings you close to some of the most exciting places in Reykjavik. For example, the award-winning Harpa Concert Hall and Conference Center is less than a mile from the hotel. 

Harpa is one of the most remarkable cultural sites in Iceland because of its one-of-a-kind architectural design. The building features over 700 geometrically shaped glass panels inspired by Iceland's breathtaking natural scenery and northern lights.

Address of Black Pearl Hotel: Tryggvagata 18, 101 Reykjavik, Iceland

7. Kvosin Downtown Hotel

Kvosin Downtown Hotel is a boutique hotel that appeals to many types of travelers, particularly families and groups. The hotel rooms can accommodate up to six people, making them well-suited to small parties or people hoping to entertain clients during their stay.

Kvosin Downtown Hotel, rated 4.5/5 by over 160 guests, is an excellent place to enjoy convenient amenities while spreading accommodation costs comfortably between several people.

Kvosin’s rooms, suites, and apartments are notable due to their spaciousness and homey style. Available rooms are Cozy Rooms, Big Rooms, Bigger Rooms, Biggest Rooms, and the Top Floor Suites.

Each Cozy and Big Room has double beds accommodating two persons, while the Bigger and Top Floor Suites accommodate up to four. Meanwhile, the ideal room for bigger groups of up to six people will enjoy staying at the Biggest Rooms.

This series of luxurious self-catering apartments in downtown Reykjavik features top-rated amenities like a kitchenette, flat-screen TV, Nespresso machine, private bathroom with toiletries, free Wi-Fi, and daily housekeeping. 

Despite being largely self-catered, there is also breakfast available every morning. You can also visit the Aldamot bar in the complex if you’re craving light meals and classic cocktails or wines. There is also a lounge for socializing with other guests and a 24-hour concierge service.

Kvosin sits in a thriving, bustling part of downtown Reykjavik, giving you convenient access to the shops but staying quiet at night. With the hotel’s central location, you can easily find grocery stores and restaurants within a short walk. For example, Icelandic Street Food, Messinn, and 101 Bistro restaurants are just a few feet from the hotel.   

If you want to explore the city, Kvosin Downtown Hotel is near the beautiful Tjornin lake. Around this area, you can also find the Parliament House of Iceland, also known as Althing or Althingi. Althing is considered one of the oldest surviving parliaments in the world.

Less than a mile from the hotel is the National Museum of Iceland, the best place to learn about the nation’s cultural history. The museum has permanent and temporary exhibitions with arts, furniture, artifacts, and tools detailing the founding of Iceland.

Address of Kvosin Downtown Hotel: Kirkjutorg, 101 Reykjavik, Iceland

6. CenterHotel Laugavegur

The CenterHotel Laugavegur is one of the best downtown hotels in the heart of Reykjavik for couples or groups on a budget. This four-star hotel, rated 4.6/5 by over 300 guests, is more affordable than other hotels in the downtown area.

Although CenterHotel Laugavegur has cheaper rooms, it doesn’t fall short of providing great amenities. In particular, the hotel boasts complimentary Wi-Fi, a 24-hour service desk, and an on-site restaurant and bar.

CenterHotel’s Loa restaurant offers Icelandic meals and international classics. There’s also a food section dedicated to Icelandic street food.

Centerhotel Laugavegur offers a variety of affordable rooms that are perfect for couples. Each room has an ensuite bathroom with a shower to ensure your privacy. Options include:

• Standard Double/Twin

• Superior Double/Twin 

• Deluxe Double

• Deluxe Corner 

• Small Double 

One of the reasons CenterHotel Laugavegur ranks as one of the best hotels in downtown Reykjavik is because it’s close to popular attractions in Iceland. Firstly, as its name suggests, the hotel lies on Laugavegur street, the main shopping center of Reykjavik.

Another popular and nearby attraction is the Sun Voyager, less than half a mile from the hotel. The stainless steel sculpture resembles a Viking ship that is part of the local culture. It’s a perennial favorite with locals and visitors because of its location by the coast of Reykjavik.

Address of CenterHotel Laugavegur: Laugavegur 95-99, 101 Reykjavik, Iceland

5. Sand Hotel

The Sand Hotel is a boutique hotel in downtown Reykjavik that is perfect for those who want to be close to the city's bustling streets. It prides itself on a stylish but comfortable atmosphere and sits atop a famous local bakery.

More than 360 guests rated the Sand Hotel with 4.6/5 stars.

This downtown Reykjavik accommodation features 78 luxury rooms with excellent appliances and services. Each room includes an en suite bathroom, coffee, tea-making supplies, bathrobes, toiletries, a flat-screen TV, and free Wi-Fi for your entertainment.

Choose from a selection of spacious rooms like:

• Small Double Room

• Standard Double Room

• Superior Double Room

• Standard Family Room

• Junior Suite 

• Standard Suite 

• Tower Suite with City View

Most of these rooms sleep two to three people, except for the Standard Family Room, which accommodates four guests. The Tower Room with a city view is the most expensive option and sleeps two people.

One of the main features of the Sand Hotel is the Sandholt bakery, located on the hotel’s ground floor. Sandholt, which opened in 1920, is one of the oldest bakeries in Iceland. Sourdough bread, cakes, tarts, and canapes are must-tries here.

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• Learn more: The Best Bakeries in Reykjavik

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Just beside the bakery is another store of cultural and historical importance to Reykjavik called Verslun Gudstein Eyjolfssonar. It has been one of the leading shops for men’s clothing in Iceland since its founding in 1918.

A five-minute walk from the downtown Reykjavik hotel is the most famous church in Iceland, Hallgrimskirkja. Hallgrimskirkja church is also the tallest in the country at 245 feet (75 meters), and its unique architecture takes inspiration from the basalt columns surrounding the majestic Svartifoss waterfall.

While exploring this cultural attraction, you’ll enjoy a panoramic view of the city because Hallgrimskirkja church sits atop a hill.

Other destinations nearby include the Icelandic Phallological Museum and the Hljomskala park. The park offers visitors an opportunity to revel in some greenery and recover from the bustle of the city center.

Address of Sand Hotel: Laugavegur 34, 101 Reykjavik, Iceland

4. Exeter Hotel

The Exeter Hotel is a charming mid-priced accommodation in central Reykjavik boasting an industrial and contemporary style. Its location near the Old Harbor of Reykjavik gives you access to a panoramic view of the beautiful Faxafloi bay of West Iceland.

Exeter Hotel in downtown Reykjavik is rated 4.6/5 stars by nearly 400 reviews.

Guests at Exeter Hotel can choose from over 100 rooms with modern yet cozy interiors. Apart from the complimentary breakfast and free Wi-Fi, each room has a smart TV, minibar, private bathroom with shower, hairdryer, and wooden floor. 

The rooms available at this hotel include: 

• Superior Double 

• Standard Double 

• Deluxe 

• Junior View Suite 

• Harbor View Suite

The pricier rooms offer a stunning view of the sea and nearby mountains surrounding the Icelandic capital, while the deluxe rooms can be set up as singles or doubles with twin beds. 

While staying at Exeter Hotel, you can take advantage of its wellness facilities. Choose from a relaxing time in the sauna room or a gym workout in the fitness room with weights and essential workout equipment.

Guests wishing to explore beyond the hotel will appreciate the variety of nearby Reykjavik attractions. The accommodation is a short walk from the Grandi harbor, a trendy area with interesting restaurants like Kaffivagninn and Coocoo's Nest.

In addition, with its harbor location, Exeter Hotel makes an excellent base for travelers keen on joining puffin and whale-watching tours in Reykjavik. Faxafloi bay is a popular feeding ground for humpback whales, harbor porpoises, and other curious marine animals.

Address of Exeter Hotel: 12, Tryggvagata, 101 Reykjavik, Iceland

3. Alda Hotel

The Alda Hotel Reykjavik is a four-star hotel in the heart of Reykjavik, situated along the upper end of Laugavegur street. It’s one of your top hotel choices if shopping and food hopping are your priorities for visiting Iceland.

Alda Hotel is rated 4.6/5 stars by over 530 reviews.

The downtown accommodation offers many high-quality rooms for all travelers, including solo travelers, couples, and families. Guests can choose from standard guest rooms, queen guest rooms, family rooms, and king and queen suites.

Most rooms accommodate up to two people, while the family rooms have two twin beds that fit up to four. The suites or luxury rooms provide a larger space with more amenities and room for extra guests.

In addition, if you stay in any of Alda Hotel’s rooms, you can enjoy a complimentary breakfast and ensuite bathrooms with hair dryers.  

On top of its wide selection of rooms, this four-star hotel in downtown Reykjavik also boasts several noteworthy attractions. These include a first-rate fitness center, an outdoor hot tub with a view of the beautiful northern lights of Iceland in winter, and a sauna open all year round.

Visitors wanting to shop and dine on-site at the hotel can take advantage of the Brass Kitchen and Bar, both ideal stops for food and drinks. The restaurant features European and Icelandic cuisines, with a great selection of beers and cocktails.

With Alda Hotel Reykjavik’s proximity to Laugavegur main street, you’ll have access to the widest selection of shops, souvenir stores, cafes, and restaurants just a few minutes away. So, for example, if you’re looking for locally made items to take home, the Viking store is less than a mile from the hotel.

Address of Alda Hotel: Laugavegur 66-68, 101 Reykjavik, Iceland

2. Canopy Hotel by Hilton Reykjavik City Centre

The Canopy Hotel by Hilton is a beautiful accommodation in Reykjavik’s downtown area. This hotel is a popular option for travelers and business people because of its proximity to the Harpa Concert Hall and Conference Center, where most business and cultural events occur.

The Reykjavik hotel, rated 4.6/5 stars by more than 800 reviews, features 112 rooms situated in its six interconnected buildings. These buildings feature a modern and elegant interior design that pays homage to its eclectic past, which used to be an arts hub and furniture factory.

Each room in Canopy Hotel by Hilton is decorated in a Scandinavian style that is elegant and comfortable. This sensibility appeals to many different travelers. Guests can choose from standard single rooms, superior twin rooms, junior suites, standard king rooms, and suites.

The standard room accommodates two people, while the suites are open for three. Special arrangements can also be made for extra beds if you book for a bigger group by speaking with the concierge.

The excellent amenities of each room include private bathrooms with showers and toiletries. You may also enjoy the LCD television, mini refrigerator, free Wi-Fi, and other resources of your booked room.

Additionally, during booking, you can include breakfast in your room. This breakfast buffet offers a variety of local dishes from the hotel restaurant’s menu.

There are several other amenities at the Canopy Hotel by Hilton. This hotel has meeting rooms, a fitness center, and a 24-hour hotel gym. There’s also a cafe for guests who want a relaxing cup of coffee before joining a sightseeing tour outside the city.

If you want to explore the city during your hotel stay, Laugavegur shopping street is just a few minutes' walks away. Canopy is also close to several other attractions like Arnarholl hill and Austurvoller public square.

Arnarholl hill is a prominent part of the Old Harbor and is believed to take its name from the many eagles in the country. Their numbers have diminished with time, but Arnarholl Hill still offers visitors a spectacular view of the city and harbor.

Meanwhile, Austurvoller public square is a popular gathering place and an excellent location to start shopping excursions. The Austurvoller is close to many shops and cafes and prominently features a statue of John Sigurdsson, a local national hero.

Address of Canopy Hotel by Hilton: Smidjustigur 4, 101 Reykjavik, Iceland

1. Hotel Reykjavik Saga

Hotel Reykjavik Saga is a four-star hotel in the heart of Reykjavik, located beside the peaceful Lake Tjornin. Although this accommodation opened in 2022, this city center accommodation boasts a 4.8/5 rating from around 50 reviews.

The variety of rooms makes Hotel Reykjavik Saga in Iceland popular with many different types of travelers, from business people to families and solo travelers to couples. Guests can choose from a wide selection of chic and comfortable rooms with excellent amenities, particularly:

• Standard Double/Twin

• Superior Double/Twin 

• Deluxe Double/Twin 

• Family Deluxe

• Junior Suite

• Standard Suite

• Executive Suite

The standard and deluxe rooms accommodate two guests, while the luxurious suites are open for up to three people.

Make your stay at Hotel Reykjavik Saga as comfortable and convenient as possible by enjoying your room’s en suite bathroom, free Wi-Fi, and breakfast. Guests can also stay at the hotel's lounge and roof terrace to marvel at Reykjavik's charming streets.

One of the closest attractions to the hotel is Tjornin lake. The lake is a breathtaking setting in the city because it represents the excellent urban planning of Reykjavik while maintaining its beautiful nature.

Meanwhile, just a few feet away from this location is the Domkirkjan cathedral. This remarkable building is the origin point of Lutheranism in Iceland. It’s a special spot for locals and a point of fascination for travelers who appreciate historical landmarks.

Address of Hotel Reykjavik Saga: Laekjargata 12, 101 Reykjavik, Iceland

We hope this list helps you find a place to stay in downtown Reykjavik. Don't hesitate to comment below to share your great experience with these accommodations.