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Where are the best places to stay in Reykjavik? Does the accommodation in Reykjavik suit people of all budgets? What are the unique qualities of each hotel in Reykjavik? Continue reading for our Top 12 Hotels and Top 5 Hostels in Reykjavik.

A wealth of hotels, hostels, and guesthouses have sprung up across the country to meet the ever-growing demand. There is now such a wide range of options that the choice can be a little overwhelming. That's why we put together a list of the Top 12 Hotels in Reykjavik as well as the Top 5 Hostels in Reykjavik, to read it, just press 'Read more.'

Top 12 Hotels in Reykjavik

12. Kvosin Downtown Hotel

With large, opulent rooms packed with amenities and a location in the heart of the downtown area, there are few places more appealing to the Reykjavik traveler than the Kvosin Downtown Hotel. There are few hotels as central as the Kvosin Downtown Apartments. Reykjavik’s City Hall, the Parliament building and Austurvollur square, and the main shopping street of Laugavegur can all be ambled to in mere minutes.

The Kvosin Downtown Hotel rooms are among the largest of any Reykjavik hotel and are perhaps better described as suites. They boast kitchenettes, en suite bathrooms, televisions, luxurious beds, and many amenities such as free Wifi and daily housekeeping. Most also boast a patio or balcony.

With beautiful rooms, a unique atmosphere, and a central location, those seeking to self-cater in the heart of Reykjavik will find no better choice than the Kvosin Downtown Hotel. 

11. Hotel Holt

Hotel Holt is a boutique, stylish hotel in a cultural corner of Reykjavik, perfect for travelers seeking comfort and luxury. A mainstay in downtown 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 Reykjavík Lights Hotel is probably the most unique, being visibly 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 easy access to Reykjavik's nightlife, shops, restaurants, and museums - but also some 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 hotel located near the center of Reykjavik. 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 any 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 long 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 while availability lasts by choosing a date.

Located on Laekjargata, Hotel Reykjavik Saga is central 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, beautifully located by Reykjavik's Old Harbour. It has an industrial but contemporary feel, equipped with all modern comforts and facilities. The main building is a renovation of a storage house from 1904 that later became a residence and trade. 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 right in downtown Reykjavik can't be beaten, along with many rooms having 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 and sights 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 and consistent style through the common areas and the vast array of different 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 where you can bake 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, meaning you are likely to be away from crowds of people. 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. Skuggi Hotel

Skuggi Hotel is the ideal choice for those who are looking for a central hotel in Reykjavik. Skuggi Hotel gives you the chance to discover the most of what Reykjavik has to offer, combining outstanding service with a great location.

Located in the heart of Reykjavik, Skuggi Hotel sits by one of the oldest streets, Hverfisgata. Iceland’s main shopping street, Laugavegur, is only a 2-minute walk away from the hotel, which is well-known for its variety of restaurants, designer shops, cafés, and thrilling nightlife.

Skuggi Hotel’s rooms found their inspiration from photographs of Iceland’s nature by Ragnar Axelsson. There are 100 in total. All are elegantly decorated to create a cozy home-from-home atmosphere. Downstairs there's a bar that's open to guests and locals.

Skuggi Hotel gives you the chance to discover all that Reykjavik has to offer with its central location.

It's great location, modern design and affordable quality all combine to make Skuggi Hotel the best hotel in Reykjavik according to us at Guide to Iceland.

Top 5 Hostels in Reykjavik

For those on a budget, hostels are the best bet. A wealth of travelers coming to Iceland seek to minimize the cost of their trip. Therefore, there is a thriving hostel industry in the country. The following is our list of the Top 5 Hostels in Reykjavik.

5. Galaxy Pod Hostel

For cheap but very unique accommodation, look no further than Galaxy Pod Hostel. While standard beds are available for a lower price, you can elect to instead sleep within a Japanese-style 'pod,' a small contained unit with a bed, mirror, privacy curtain, shelf, and locker. More comfortable and private than an open dorm, these pods also reflect the quirky originality that Icelanders exhibit.

4. Reykjavík City Hostel

Located at Laugardalur park, is Reykjavík City Hostel. Although an hour’s walk from the downtown area, it is right beside the largest swimming pool in Iceland, Laugardalslaug, as well as the Family Park and Zoo and the botanical gardens. It is also the best place to stay for those who want indoor accommodation right next to Secret Solstice, although you will need to book well in advance if this is your plan.

3. Bus Hostel

About half an hour's walking distance from Reykjavík’s downtown is Bus Hostel, a quirky and noticeably affordable place out of the city’s hustle and bustle. With private rooms and dorms holding up to twenty-four people, it caters perfectly to those on a budget, whether they want their own space or are happy to share.

Though its location is not central, it is very close to the pleasant public park Klambratun, the restaurant and sightseeing location and museum of Perlan, and the inner-city forest of Oskjuhlid.

2. Loft Hostel

Loft Hostel is located very close to the downtown area on Laugavegur shopping street. Clean, modern, and cozy, its bar is a great place to meet new people. It is trendy amongst tourists and locals, particularly in summer, due to its balcony (something few Icelandic bars have). The common room hosts events open to all ranging from concerts, ‘swap-and-drop’ clothing drives, or stand-up comedy shows.

1. KEX Hostel

Located in an old biscuit factory, KEX Hostel has an unusual vibe, with its crumbling walls and unconventional layout. Even so, it has all modern amenities and every kind of lodging, from private double rooms to twenty-person dormitories. This hostel’s main appeal over others is its active live music scene. There are jazz nights every week, and events such as the Reykjavik Airwaves use it as their venue.

BONUS: The most unique place to stay in Reykjavik

The Reykjavik Domes are a unique and spectacular choice of accommodation just outside the capital, based in luxurious tents in the landscapes overlooking Mount Esja. Anyone seeking to immerse themselves in Icelandic nature in an unconventional but comfortable way should grab this once-in-a-lifetime opportunity!