Welcome to the ultimate guide to finding your perfect stay in Reykjavik, the vibrant heart of Iceland! Whether you’re seeking opulent luxury, comfortable mid-range options, or budget-friendly gems, Iceland’s capital has something for every traveler. This post will navigate you through a curated selection of accommodation, helping you make an informed choice for your unforgettable Icelandic adventure. Did you know Reykjavik is one of the safest, greenest, and cleanest cities in the world? Let’s dive into where you can rest your head after a day of exploring this magical land of fire and ice.
We’ll explore top-tier luxury hotels, excellent mid-range choices, and cozy budget accommodations, each presented in an easy-to-browse card format. Get ready to discover your home away from home in Reykjavik!
Quick Guide: In this article, you’ll find 5 distinct hotel suggestions for each category: Luxury, Mid-Range, and Budget. Each suggestion includes an image, an approximate price range, and a detailed look at its features and potential benefits for your stay.
Indulge in Opulence: Reykjavik’s Premier Luxury Hotels
For those seeking the finest experiences, Reykjavik’s luxury hotels offer world-class amenities, breathtaking views, and impeccable service. Expect to be pampered in style.
The Diamond Lodge Reykjavik (Book Now)
Price Range: Approx. $500 – $900+ per night
Features & Benefits: The Diamond Lodge epitomizes Icelandic luxury. Guests can enjoy panoramic city and ocean views from elegantly appointed suites, a Michelin-starred restaurant on-site, and a full-service spa featuring geothermal treatments. Personalized concierge services ensure every aspect of your stay is tailored to perfection, from arranging private tours to securing exclusive reservations. Its prime downtown location offers easy access to Reykjavik’s main attractions, designer boutiques, and vibrant nightlife, making it an unparalleled choice for discerning travelers.
Aurora Heights Boutique Hotel (Book Now)
Price Range: Approx. $450 – $800 per night
Features & Benefits: This exclusive boutique hotel offers a unique blend of modern Icelandic design and intimate luxury. Each suite is individually designed, featuring local art and bespoke furniture. Guests benefit from a private rooftop terrace, perfect for Northern Lights viewing in winter, an indoor geothermal pool, and a gourmet breakfast made with organic, locally sourced ingredients. The hotel prides itself on its discreet, attentive service and tranquil atmosphere, providing a serene escape in the heart of the city.
Glacier View Grand Hotel (Book Now)
Price Range: Approx. $550 – $1000+ per night
Features & Benefits: Offering unparalleled views of the distant glaciers and Faxaflói Bay, this hotel is a statement in grandeur. Rooms are exceptionally spacious, with floor-to-ceiling windows, plush bedding, and state-of-the-art technology. Amenities include several fine dining options, a sophisticated cocktail lounge, an expansive wellness center with multiple saunas and pools, and a dedicated adventure booking desk for excursions like helicopter tours and super jeep adventures. It’s ideal for travelers who want luxury combined with easy access to Iceland’s natural wonders.
The Reykjavik Residence Hotel (Book Now)
Price Range: Approx. $400 – $750 per night
Features & Benefits: This hotel offers apartment-style luxury suites, perfect for longer stays or those desiring more space and privacy. Each suite features a fully equipped kitchenette, a separate living area, and premium amenities. Guests enjoy hotel services like daily housekeeping and concierge, combined with the comforts of a private residence. Located in a quiet downtown street, it provides a peaceful retreat while still being close to Laugavegur shopping street and key landmarks. Many suites also boast private balconies or patios.
Black Pearl Apartment Hotel (Book Now)
Price Range: Approx. $600 – $1200+ per night (for larger suites)
Features & Benefits: The Black Pearl offers some of Reykjavik’s most spacious and opulent penthouse suites, complete with stunning harbor views, private jacuzzis, and expansive terraces. These multi-bedroom apartments are ideal for families or groups seeking ultimate comfort and exclusivity. The hotel provides 24/7 reception, personalized grocery services, and in-suite dining options. Its sophisticated, contemporary design and attention to detail make it a standout choice for a truly lavish Icelandic experience.
Comfort and Style: Reykjavik’s Best Mid-Range Hotels
Mid-range hotels in Reykjavik strike a perfect balance between comfort, convenience, and cost. These establishments typically offer excellent amenities, stylish rooms, and friendly service without the premium price tag of luxury accommodations.
Canopy by Hilton Reykjavik City Centre (Book Now)
Price Range: Approx. $250 – $450 per night
Features & Benefits: Located in the heart of Reykjavik, Canopy by Hilton offers stylish rooms inspired by Icelandic culture and nature. Guests enjoy complimentary artisanal breakfast, evening tastings of local drinks and snacks, and free bike rentals to explore the city. The hotel features a 24-hour fitness center, a cozy café, and a vibrant restaurant. Its central location on Hverfisgata street puts you steps away from Laugavegur, Harpa Concert Hall, and numerous attractions, making it a fantastic base for urban exploration.
Hotel Klettur (Book Now)
Price Range: Approx. $180 – $300 per night
Features & Benefits: Hotel Klettur is inspired by Icelandic nature, with its name meaning “rock.” The hotel’s design incorporates elements of Icelandic rocks and folklore. It offers comfortable, modern rooms, a complimentary breakfast buffet, and a cozy bar/lounge area. Located just a short walk from Laugavegur shopping street and the Hlemmur food hall, it provides a convenient and comfortable stay. Guests appreciate the friendly staff and the unique Icelandic theme throughout the property.
Alda Hotel Reykjavik (Book Now)
Price Range: Approx. $200 – $400 per night
Features & Benefits: Situated on the main shopping street, Laugavegur, Alda Hotel offers a blend of tranquility and urban convenience. Rooms are designed with a Nordic aesthetic, featuring quality amenities and some offering balconies with city or ocean views. The hotel boasts an outdoor hot tub, a sauna, a gym, and a popular barber shop. Its on-site restaurant and bar are well-regarded. Guests receive a complimentary smartphone during their stay for local calls and internet access, a unique and helpful perk.
Center Hotels Plaza (Book Now)
Price Range: Approx. $170 – $320 per night
Features & Benefits: Overlooking Ingólfstorg square in the heart of the old city, Center Hotels Plaza offers an unbeatable location. The rooms are bright and comfortable, providing a warm retreat after a day of sightseeing. A generous Scandinavian breakfast buffet is included, and the Plaza Bar is a popular spot for a pre-dinner drink. The hotel’s proximity to restaurants, shops, the harbor, and major attractions makes it an excellent choice for first-time visitors wanting to be in the center of the action.
Fosshotel Reykjavik (Book Now)
Price Range: Approx. $220 – $380 per night
Features & Benefits: As one of Iceland’s largest hotels, Fosshotel Reykjavik offers a wide range of rooms, including some with stunning city or sea views. It features a stylish restaurant, Haust, focusing on Icelandic cuisine, a beer garden, and a gym. The hotel is conveniently located near the business district and a short walk from Laugavegur. Its modern design, comprehensive facilities, and professional service make it a reliable and popular choice for both leisure and business travelers.
Smart Savings: Reykjavik’s Top Budget-Friendly Stays
Traveling to Reykjavik on a budget doesn’t mean sacrificing comfort or a great location. The city offers numerous excellent hostels, guesthouses, and budget hotels that provide clean, safe, and friendly accommodation.
KEX Hostel Reykjavik (Book Now)
Price Range: Approx. $40 – $120 per night (dorm bed to private room)
Features & Benefits: Housed in a former biscuit factory, KEX Hostel is one of Reykjavik’s most popular and stylish hostels. It offers a range of accommodations from dorms to private rooms, a gastropub serving delicious food and local beers, a communal kitchen, and vibrant common areas. KEX frequently hosts live music and events, fostering a social atmosphere. Its waterfront location provides great views, and it’s within walking distance of downtown attractions. A great choice for solo travelers and those looking to meet others.
Galaxy Pod Hostel (Book Now)
Price Range: Approx. $50 – $90 per night (per pod)
Features & Benefits: For a unique and futuristic budget stay, Galaxy Pod Hostel offers individual sleeping pods equipped with comfortable beds, secure lockers, power outlets, and privacy screens. The hostel features a communal kitchen, a lounge area with VR gaming, and a self-service bar. It’s a fun and quirky option that provides more privacy than traditional dorms. Located slightly outside the main downtown core but easily accessible by bus or a longer walk.
Bus Hostel Reykjavik (Book Now)
Price Range: Approx. $35 – $100 per night (dorm bed to private room)
Features & Benefits: Conveniently located next to the Reykjavik Excursions bus terminal (BSI), Bus Hostel is perfect for travelers relying on bus tours or airport transfers. It offers a mix of dormitories and private rooms, a spacious communal kitchen, a lively bar (Bust Bar), and a comfortable lounge. Free parking is available, which is a plus for those renting a car. The atmosphere is social and traveler-focused, with helpful staff ready to provide tips and book tours.
Reykjavik Downtown HI Hostel (Book Now)
Price Range: Approx. $45 – $110 per night
Features & Benefits: Part of the Hostelling International network, this eco-certified hostel is known for its friendly atmosphere and excellent downtown location near the Old Harbour. It offers a variety of room types, including family rooms, a well-equipped guest kitchen, a cozy café, and an emphasis on sustainability. They organize regular events like movie nights and free walking tours. It’s a great option for environmentally conscious travelers and families on a budget.
Igdlo Guesthouse (Book Now)
Price Range: Approx. $70 – $150 per night (for private rooms)
Features & Benefits: Igdlo Guesthouse offers a homey and welcoming atmosphere with simple, clean private rooms (some with shared bathrooms) at affordable prices. It features a guest kitchen, laundry facilities, and free Wi-Fi. Located in a quieter residential area but still within walking distance (around 15-20 minutes) to the city center and near the Hlemmur food hall. It’s a solid choice for travelers seeking a no-frills, comfortable, and quiet place to stay, with the benefit of self-catering facilities to save on food costs.
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Beyond Your Hotel: Experiencing the Magic of Reykjavik
Reykjavik is more than just a stopover; it’s a city brimming with culture, art, history, and natural beauty. Once you’ve settled into your accommodation, it’s time to explore!
Must-See Attractions
- Hallgrímskirkja: This iconic Lutheran church offers panoramic city views from its tower. Its unique architecture is inspired by basalt lava columns.
- Harpa Concert Hall: A stunning architectural marvel with a glass façade reflecting the sky and harbor. Catch a performance or simply admire its design.
- Sun Voyager (Sólfar): A beautiful sculpture by Jón Gunnar Árnason, resembling a Viking ship, located by the sea. Perfect for sunset photos.
- Perlan – Wonders of Iceland: An interactive museum with exhibits on glaciers, ice caves (real indoor ice cave!), volcanoes, and a planetarium. Offers great city views too.
- National Museum of Iceland: Delve into Icelandic history from settlement to the present day.
Thrilling Activities
- Northern Lights Tours (Winter): Witness the magical Aurora Borealis dancing in the sky. Numerous tours depart from Reykjavik.
- Whale Watching: Take a boat trip from the Old Harbour to spot minke whales, humpback whales, dolphins, and porpoises.
- Blue Lagoon or Sky Lagoon: Indulge in a relaxing soak in geothermal spas. The Blue Lagoon is world-famous, while the Sky Lagoon offers stunning ocean views.
- Golden Circle Tour: A classic day trip to see Þingvellir National Park, Gullfoss waterfall, and the Geysir geothermal area.
- Explore Laugavegur Street: Reykjavik’s main shopping street, filled with boutiques, cafes, bars, and restaurants.
Travel Tip: Many tours and attractions can be booked in advance online, especially during peak season. For information on safe travel practices in Iceland, check out the official Safe Travel Iceland guide.
Taste of Iceland: Local Eateries
Icelandic cuisine is unique and delicious. Don’t leave without trying:
- Bæjarins Beztu Pylsur: Famous Icelandic hot dogs – a must-try cheap eat.
- Fish & Chips: Freshly caught cod served crispy and delicious. Try Reykjavik Fish Restaurant or Fish&Co.
- Skyr: A traditional Icelandic dairy product similar to yogurt, often served with berries.
- Lamb Soup (Kjötsúpa): A hearty and traditional soup, perfect for a cold day.
- Hlemmur Mathöll & Grandi Mathöll: Food halls offering a variety of local and international cuisines in a vibrant setting.
Ready for Your Reykjavik Adventure?
Reykjavik offers a diverse range of accommodations to suit every traveler’s needs and budget. From luxurious pampering to cozy, budget-friendly stays, you’re sure to find the perfect base for exploring this incredible city and the breathtaking landscapes of Iceland. Remember to book in advance, especially during peak seasons, to secure your preferred choice.
Your Next Step:
- Review the hotel options and consider what best fits your travel style.
- Use the “Search Here” tool above or the provided links to check availability and prices for your dates.
- Start planning your itinerary of amazing things to see and do in and around Reykjavik!
Iceland is a land of unparalleled beauty, and Reykjavik is its charming gateway. We hope this guide helps you find the ideal place to stay as you embark on your Icelandic journey. For more travel tips and inspiration, you can explore the Official Tourism Information for Iceland.
What are you most excited to experience in Reykjavik? Share your thoughts in the comments below!