Where to Stay in Reykjavik, Iceland: The 14 Best Hotels

Are you wondering where to stay in Reykjavik? This is one of the best places to stay in Iceland and here are our favourite 14 hotels and options. 

It’s safe to assume that most people who visit Iceland will spend some time in Reykjavik. The city is the country’s cultural hub and there’s so much to do there. Plus, for those who don’t fancy driving, it’s the perfect place to base yourself for some day trips around Iceland. 

Plus, when it comes to finding a mixture of accommodation options in Iceland, Reykjavik is one of the best places. 

Iceland is quite an expensive travel destination and hotels around the country can be few and far between. Hotels along the south coast are limited and finding one suitable (or affordable) can sometimes be tricky. 

But, there is a much wider range of hotel options in Reykjavik.

So, if you’re looking for the perfect place to stay in Reykjavik, here are our 14 favourite options from budget apartments to luxury hotels.

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1. Center Hotels Plaza

This was where we stayed during our very first trip to Reykjavik. We visited in December and based ourselves in this hotel for 3 days. It was this trip that made us fall in love with the country. 

Center Hotels Plaza was perfect. The location was incredibly central and we could see one of the main plazas in the city from outside our window. But the soundproofing meant it wasn’t noisy at all and we slept very well. 

Because it was so central it was within walking distance of many of the top attractions in Reykjavik. There were also lots of great restaurants nearby although the hotel itself had a restaurant and bar on the ground floor. 

The breakfast served in the morning was really tasty, the rooms were super comfortable, and it was a really affordable price for the location. Overall, we loved our stay here and highly recommend it to anyone staying in Reykjavik. 

BOOK A ROOM AT CENTER HOTELS PLAZA

2. A Townhouse Hotel 

If you want to enjoy Iceland’s capital in style, look no further than A Townhouse Hotel. This 3-star hotel offers sleek and stylish bedrooms with luxury ensuite bathrooms, seating areas, flatscreen TVs, and plenty of storage space.

Some rooms also feature small kitchenettes and bunk beds for children. Regarding amenities and facilities, A Townhouse Hotel also features a tour desk and a breakfast room. 

This hotel is approximately 1.9 miles from Reykjavik city centre, but many popular attractions are nearby, including Laugavegur Shopping Street and Reykjavik Art Museum. The famous Sun Voyager Sculpture is also only 1.5 miles away.

BOOK A ROOM AT A TOWNHOUSE HOTEL

3. 201 Hotel Reykjavik

201 Hotel Reykjavik, located in neighbouring Kópavogur, is only a short drive from the centre of Reykjavik. It offers simple and affordable rooms for travellers who want to visit Iceland on a smaller budget.

Several types of rooms are available, including standard, twin, and family. Every room features a private bathroom with a shower, a wardrobe, a cosy bed, and a flat-screen TV. Meanwhile, on-site facilities include a fitness room, a bar, and a breakfast area. 

Popular attractions like Laugavegur Shopping Street and the National Museum of Iceland are approximately 4 miles from 201 Hotel Reykjavik. However, Smáralind Shopping Center and the Pearl are nearby.

BOOK A ROOM AT 201 HOTEL REYKJAVIK

4. Apotek Hotel Reykjavik

Apotek Hotel Reykjavik is an excellent option if you want to stay in the heart of the city. Laugavegur Shopping Street is only a 2-minute walk away, while the iconic Hallgrímskirkja Church is 10 minutes away.

This 4-star boutique hotel is set in a beautiful listed building designed by architect Gudjón Samúelsson in 1917. It features a modern, bright interior and spacious bedrooms with ensuite bathrooms, TVs, wardrobes, and desks. 

You can choose between double rooms, deluxe rooms, and suites. After a busy day of exploring, enjoy a meal at the in-house restaurant (one we love and frequently recommend) and a drink at the bar. 

BOOK A ROOM AT APOTEK HOTEL REYKJAVIK

5. Hotel Fron

Hotel Fron is a trendy 3-star hotel with vibrant, modern bedrooms in an excellent location.

The hotel conveniently sits on Laugavegur Shopping Street, Reykjavik’s most famous street. As such, you’ll have easy access to popular shops like 66°North, traditional restaurants and pubs.

Better yet, Hallgrímskirkja Church is only 5 minutes away, and the Sun Voyager is a 10-minute walk away. Hotel Fron offers double, twin, family, and apartment bedrooms.

Every room features a private bathroom, a seating area, windows, and a minibar. The hotel also has a 24-hour front desk, a Scandinavian restaurant with a child-friendly menu, and a tour desk. 

BOOK A ROOM AT HOTEL FRON

6. Stay Apartments Einholt

We stayed at Stay Apartments Einholt during our second trip to Iceland. We were travelling in a group, so wanted more spacious accommodation and because we were in Iceland for a longer time (we did a 7-day road trip), we also wanted cooking facilities to save money. 

Stay Apartments was perfect for our needs. We only spent 2 days in Rekjavik, so we stayed here for two nights at the very end of our trip. It was ideal and very comfortable. 

The kitchen area was well-equipped and we had plenty of seating in the dining and living area for the 6 of us. The 3 bedrooms were simply decorated but comfortable and we had a very good night’s sleep here. 

The location, while slightly further from the centre of Reykjavik, was still within easy walking distance to many of the top attractions. You could reach Hallgrimskirkja within 15 minutes on foot and there were plenty of restaurants within a similar distance. 

Another bonus for us was the free parking outside which made things super easy if you’re driving around Iceland. 

BOOK A ROOM AT STAY APARTMENTS EINHOLT

7. Tower Suites Reykjavik

Stay at Tower Suites Reykjavik if you want to spend the night in luxury. This dazzling 4-star hotel has modern suites with luxurious private bathrooms, seating areas, and beds.

Located on the 20th floor of a glass tower, these stylish suites also feature floor-to-ceiling windows that offer outstanding city views.

Some rooms even feature a bathtub and telescope overlooking the city. As if things couldn’t get any better, Tower Suites offers massage services, a tour desk, and room service breakfast.

Regarding location, the hotel is only a short walk from Laugavegur Shopping Street, the Sun Voyager Sculpture, and Hallgrímskirkja Church.

BOOK A ROOM AT TOWER SUITES REYKJAVIK

8. Loft – HI Hostel

Loft – HI Hostel on Bankastræti Street is perfect for backpackers travelling on a tight budget. The modern, clean, and spacious dormitory rooms are very reasonably priced. These rooms also present an excellent opportunity to meet other like-minded travellers.

The hostel also offers private bedrooms with ensuite bathrooms if you prefer your own space. Loft – HI Hostel has a wide range of facilities, including a lounge, a rooftop terrace, and a bar. 

Furthermore, you can join in with the hostel’s weekly social events. When it comes to exploring Reykjavik, Hallgrímskirkja Church, Harpa Concert Hall, and Hestarétt Thors Jensen are close by.

Lækjartorg Bus Station is also only 140 meters away.

BOOK A ROOM AT LOFT HI HOSTEL

9. Grandi by Center Hotels

If you’re looking for a hotel in Reykjavik that has it all, Grandi by Center Hotels is perfect.

This grand 4-star hotel in Seljavegur offers stylish bedrooms and suites with private bathrooms, seating areas, and minibars. Some rooms also offer a balcony.

However, it’s the on-site facilities that often impress guests most. 

At Grandi, you’ll find multiple hot tubs, a restaurant, a fitness centre, and a sauna. The hotel also offers massage services, a tour desk, and a 24-hour front desk. 

As for location, Grandi by Center Hotels is right near Reykjavik Harbour, where you’ll find the Whales of Iceland Museum, Þúfa, and the Reykjavík Maritime Museum.

BOOK A ROOM AT GRANDI BY CENTER HOTELS

10. Fosshótel Rauðará

Fosshotel Rauðará is an affordable, family-friendly hotel in central Reykjavik, just 150 metres from Laugavegur Shopping Street and a 5-minute walk from Klambratun Park. Höfði House, Hallgrímskirkja Church, and Skólavörðustígur are also nearby.

The family rooms at this 3-star hotel feature double beds, sofa beds, private bathrooms with showers, and TVs. Every room also provides essential amenities like WiFi, towels, and soaps.

Regarding facilities, Fosshotel Rauðará has a breakfast room with child-friendly options, a bar, a cocktail lounge, and a tour desk offering a variety of exciting activities. The hotel also provides private parking at an extra cost for those arriving by car. 

BOOK A ROOM AT Fosshótel Rauðará

11. Hotel Island – Spa and Wellness

With an on-site spa and wellness centre, Hotel Island is an excellent place to stay if you want to relax and unwind with your partner. Perfect for a romantic getaway, the hotel’s spa and wellness centre features a fitness room, a steam room, a sauna, and a hot tub. 

Hotel Island also offers massage services and personal training. Other hotel facilities include a restaurant, a bar, and a beauty salon.

Every bedroom has a modern interior, private bathroom, and TV. Some rooms also offer panoramic city views.

For attractions, Hotel Island is close to Laugavegur Shopping Street, Laugardalslaug Public Pool, and Kringlan Shopping Centre.

BOOK A ROOM AT HOTEL ISLAND SPA AND WELLNESS

12. Hotel Klettur

Free parking isn’t the only draw to Hotel Klettur, but it’s a major highlight. This 3-star hotel is one of a few places you can park for free near Laugavegur Shopping Street. The hotel is also only a short walk from Reykjavik Art Museum and the Sun Voyager.

Hotel Klettur offers modern bedrooms with private bathrooms, free WiFi, and TVs. Many rooms also feature balconies with panoramic views of Reykjavik.

Meanwhile, continental breakfast is served daily in the dining room, and the hotel bar is a great place to relax. Better yet, hotel staff are happy to organise sightseeing trips and whale-watching tours, some of the best day trips from Reykjavik.

BOOK A ROOM AT HOTEL KLETTUR

13. Hotel Borg By Keahotels

Hotel Borg is located in central Reykjavik, overlooking the famous Austurvollur Square. As such, you’ll never be too far from the city’s best attractions, cafes, and restaurants.

Besides Austurvollur Square, popular attractions near this hotel include Whales of Iceland, Laugavegur Shopping Street, and Lake Tjörnin.

This 4-star Art Deco-style hotel offers sleek, stylish, modern bedrooms with ensuite bathrooms, free WiFi, and TVs. Hotel Borg also prides itself on equipping rooms with Phillippe Starck fixtures and fittings. 

Regarding on-site facilities, you’ll have access to an in-house spa and fitness centre featuring a steam room, sauna, and hot tub. There is also an in-house restaurant.

BOOK A ROOM AT HOTEL BORG BY KEAHOTELS

14. Sif Apartments

Sif Apartments offers modern and spacious apartments in central Reykjavik, approximately 800 metres from the Sun Voyager and a 17-minute walk from Hallgrímskirkja Church.

In the immediate area around this 4-star property, you’ll find Laugavegur, Frímúrarareglan á Íslandi, and plenty of places to eat and drink.

The apartments at Sif feature bedrooms, dining areas, seating areas, fully-equipped kitchens, and balconies. Some apartments also have multiple bathrooms. 

From some apartments, you are treated to spectacular views of Reykjavik. You might even be able to glimpse Hallgrímskirkja Church. Apartments are available for up to six people. 

BOOK A ROOM AT SIF APARTMENTS

What are the best areas to stay in Reykjavik?

Reykjavik in general is a great place to stay. Whether you’re spending one day in Reykjavik or longer, most of the hotels are within walking distance of the city’s top attractions and within easy access to tours, restaurants, cafes, and shops. 

A few of the notable areas to stay in are:

• Miðborg – Also known as Downtown Reykjavik, this is the best area to stay for a first-time visitor. You’ll find many of the top attractions here including Hallgrímskirkja Church, Harpa Concert Hall, and the Sun Voyager. 
• Vesturbær – This area is in the west of Reykjavik and is a much quieter area than Miðborg. It’s mostly known for the popular Vesturbæjarlaug swimming pool and cute local cafes.
• Laugardalur – Located east of the downtown area, Laugardalur has a large park, botanical garden, and one of Reykjavik’s largest geothermal swimming pools. It’s less central but ideal for active travellers and nature lovers.
• Hlíðar – Hlíðar is close to downtown but offers a more laid-back, suburban feel. It’s home to the Kjarvalsstaðir Art Museum and has a mix of modern apartments and guesthouses.
• Grandi – This is the Old Harbour area. The former industrial area is now a trendy neighbourhood with boutique hotels, seafood restaurants and a range of museums and exhibits like Whales of Iceland and the Icelandic Lava Show

Here are a few top tips to bear in mind when deciding where to stay in Reykjavik:

• No Car? Stay in Miðborg or Vesturbær for easy access to attractions and public transport.
• With a Car? Consider areas like Laugardalur where parking is easier and accommodations are more spacious.
• Peaceful Retreat? Vesturbær or Grandi are excellent options.
• Nightlife? Stick to Miðborg for the best access to bars and clubs.

How far in advance should I book hotels in Reykjavik?

Aim to book your hotel in Reykjavik as early as possible.

Hotels all over Iceland (not just in the capital but also the south coast and Golden Circle hotels) are limited so can sell out well in advance.

If you know the dates you are planning to travel, make sure to book as soon as you can to guarantee you can get the rooms you want at the best price.

Is it easy to find parking in Reykjavik?

This depends on where you are staying. If your hotel is located in one of the more central neighbourhoods like Miðborg, parking might be more limited and often requires payment during the day. 

Most parking in the city centre is divided into zones (P1, P2, P3, and P4). P1 is the most central and expensive, while P4 is further out and cheaper. 

There are also several multi-storey car parks in Reykjavik, such as Harpa Concert Hall and Kolaportið Market, which are convenient places to park if you’re only visiting for a day trip.

However, many central hotels and guesthouses offer reserved parking for guests, so it’s worth checking with your accommodation beforehand. 

If you’re staying in quieter residential neighbourhoods like Vesturbær or Hlíðar, you’ll likely find free or less crowded parking options, though this is still not guaranteed. The easiest thing to do by far if you know you’ll be driving is to find a place to stay that has free parking.

Overall…

There are so many great places to stay in Reykjavik. You can find luxury hotel suites, affordable apartments, or even hostels for the ultimate budget traveller.

Our favourite hotels include Center Hotels Plaza for an affordable yet central location, Tower Suites for a splurge, or A Townhouse Hotel for affordable luxury.. We’ve based ourselves in Reykjavik several times and each time had a great experience in the city.

If you’re after a great place to stay in Reykjavik, I hope this article has given you plenty of inspiration. After all, if you’re keen to see the best things in Iceland, you definitely need to stop in Reykjavik!

As always, if you have any questions about where to stay in Reykjavik or want to ask a question about planning your trip, head to our free Facebook Group to ask us anything!

👉 Still planning your trip? Check out our 3-day guide to Iceland for exactly what we did when we stayed in Reykjavik.

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