Whether you’re splurging or sticking to a budget, Iceland’s capital has some fantastic hotel options.
Reykjavik is the perfect blend of natural beauty and metropolitain vibes – think stunning views of mountains and glimpses of the Northern Lights, alongside cute cafes, bars and famous Icelandic restaurants.
Plus, with top sights like Hallgrímskirkja Church, Harpa Concert Hall and the Blue Lagoon nearby, it’s a dream destination for adventure lovers and culture seekers alike. Let’s dive into the best hotels in Reykjavik for every budget!
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The Best Hotels in Reykjavik For Every Budget
The Best Hostels in Reykjavik
KEX Hostel
KEX Hotel and Hostel is a popular spot for budget travellers with great views out to the waterfront. It’s also walkable to shops and bars, the city centre and the bus station too.
Decor here is industrial meets quirky, which brings a nice homey feel. Guests rave about the numerous bathrooms, friendly reception staff and overall good vibes. There’s a kitchen for cooking meals, a bar for hanging out – they even have a happy hour, helpful for maximising your drinking budget!
Amenities: Family rooms, parking, 24-hour front desk, bar, laundry (extra charge)
Price: Dorm beds start at around £30 per night
Laekur Hostel
Laekur Hostel is a cheap and cheerful spot in the eastern part of Reykjavik. It’s on the smaller side, so a good choice if you find bigger hostels overwhelming. Beds have a socket and a light, there’s a kitchen for preparing food plus an onsite cafe too.
It’s peaceful here beside the sea, but you can hop on the number 12 bus and be in the city centre in about 20 minutes. There’s a supermarket a couple of minutes away which is handy for stocking up on supplies!
Amenities: Family rooms, free parking, bar, terrace, restaurant
Price: Dorm beds start at around £32 per night
Loft Hi Eco Hostel
Loft Hi Eco Hostel is a sociable hostel in central Reykjavik, close to the main street Laugavegur. This makes it a lively place with plenty of things going on around – so it’s a good pick if you’re planning to fill your nights as well as your days!
It’s spick and span here. Generously-sized dorms have internal bathrooms; they also have private rooms if you prefer. Bunk beds have a small shelf for your essentials, a light and a plug socket.
The communal areas here are great for meeting other travellers, from the roof terrace to the bar and lounge area. Plus they lay on free events for guests.
Amenities: Facilities for disabled guests, family rooms, bar, terrace, free events, lift
Price: Dorm beds start at around £37 per night
CityHub Reykjavik
You know we love a pod hotel here, and Reykjavik’s offering is Cityhub. They have hubs (pods) with double beds or two singles, and there’s even a Movie Hub with a TV! Guests rate the beds as being super comfortable too.
This is an aesthetically pleasing place – the lounge area is super slick and so are the shared bathrooms in cool pastel shades. The hubs themselves are bright white and functional, although you can jazz them up with the colourful lighting.
Sociable travellers can meet and mingle in the bar/ kitchen area and on the rooftop – where there’s even a hot tub! The location is super central too with everything you need within walking distance.
Amenities: Facilities for disabled guests, 24-hour front desk, bar, lift
Price: Hubs start at around £62 per night
The Best Budget Hotels in Reykjavik
Refurinn Guesthouse
Picture-perfect Refurin Guesthouse is a welcoming spot on the Old West Side of the city, close to the harbour and you can walk to the city centre as well.
Rooms are cosy with twin beds, there’s a shared kitchen and also laundry facilities for an extra fee. The bathroom is shared but rooms have a sink inside, and if you’re hiring a car there’s free parking nearby.
Amenities: Heating, free parking
Price: Rooms start at around £96 per night
Grettir Guest House
Grettir Guest House is a warm and welcoming spot in central Reykjavik – it’s a 3 minute walk to the airport bus stop, a 5 minute walk to Hallgrimskirkja and less than that to Sundhöll swimming pool.
It’s located in a traditional iron house – rooms are cosy with character and washbasins, and there’s a shared bathroom for guests so just bear that in mind!
The small kitchen has a microwave and tea and coffee facilities too. If you just need a cheap place for a night or two but don’t want to compromise on character, this is the place for you!
Amenities: Heating
Price: Rooms start at around £90 per night
Guest House Pavi
Guest House Pavi is a lovely little guest house right in the centre of town, just 50 meters from Laugavegur – so everything is helpfully within walking distance.
Rooms are compact, clean and bright, and communal bathrooms are well kept. They have twin, triple, quadruple and 6-person rooms – so this is a good one if you’re travelling as a larger family or group. There’s a kitchen for preparing meals and parking right outside.
Amenities: Family rooms, free parking
Price: Rooms start at around £70 per night
Stay Apartments Bolholt
Stay Apartments Bolholt is perfect if you prefer having a bit more space for your stay and the facilities to make your own meals – it’s a solid option for an affordable family stay.
Guests rate the clean, comfortable and well-equipped apartments – some of which have lovely views of the bay and mountains – and there’s even a bakery next door for your breakfast!
The apartments are about a 25 minute walk from the centre, but well connected by public transport so it’s straightforward to get around. Parking is free if you have a car.
Amenities: facilities for disabled guests, family rooms, lift, laundry (extra charge), free parking
Price: Rooms start at around £95 per night
The Best Mid-Range Hotels in Reykjavik
Hotel Local 101
Hotel Local 101 is a sweet hotel just a few minutes’ walk from the harbour. It’s on a traditional street which makes for a cute stay, but you can easily walk to the tourist hotspots. It was renovated fairly recently, so the rooms are nicely modern – and guests rate the cleanliness of the place as well as the kind staff and cosy vibes. They even serve up a buffet breakfast here!
Sociable travellers can meet and mingle in the bar/ kitchen area and on the rooftop – where there’s even a hot tub! The location is super central too with everything you need within walking distance.
Amenities: Family rooms, fitness centre, bar, restaurant, terrace, laundry (extra charge)
Price: Rooms start at around £100 per night
Hotel Von
This smart hotel with modern decor is right in the middle of things on Laugavegur – you can even grab a city view room for views of Hallgrímskirk.
Rooms at Hotel Von are aesthetically pleasing, compact and comfortable. There’s an onsite restaurant for dinner – it serves up European and global cuisines – and a snug basement bar for drinks. You can stock up on snacks at the supermarket next door, and buses stop within a few minutes’ walk of the hotel – handy if you have tours booked.
Amenities: Facilities for disabled guests, family rooms, bar, 2 restaurants, heating, lift, 24-hour front desk
Price: Rooms start at around £120 per night
Hotel Odinsve
Hotel Odinsve is a lovely 4 star spot, and whilst prices jump in high season, it’s very reasonable in the quieter months.
Rooms are clean and modern, in shades of grey with fresh white linens and thoughtful design elements like lamps and chairs. There’s an airy restaurant, as well as a terrace and balcony – which gives you a great opportunity to admire the views. Location-wise its central, a few minutes walk from Laekjartorg Square.
Amenities: Family rooms, bar, restaurants, laundry, 24-hour front desk
Price: Rooms start at around £121 per night
Hotel Fron
Hotel Fron is right on Reykjavik’s main shopping street, Laugavegur, putting you in the heart of the action. You’ll find shops, restaurants and bars like the lively Kaldi and Lebowski just steps away.
The hotel has warm and cosy decor, with light wood furnishings, stylish artwork and a laid-back vibe. Rooms range from basic singles to spacious apartments with kitchenettes.
There’s a small bar and helpful staff who can help you book tours or hire a car. The buffet breakfast is filling and the on-site restaurant offers informal Nordic dining.
Amenities: facilities for disabled guests, family rooms, bar, restaurants, heating, 24-hour front desk, room service
Price: Rooms start at around £142 per night
The Best Boutique Hotels in Reykjavik
Hotel Holt
Hotel Holt is in the heart of Reykjavik, with cool mid-century modern decor that nods to its heritage whilst keeping things very up to date. Rooms are spacious and well decorated, with wooden accents and soothing neutral colours. For epic views book a room with access to the hotel’s balcony.
You can walk everywhere from here, from the old town and harbour to shops and restaurants. This place even has its own art gallery, with a private collection of works by Icelandic artists.
Amenities: Bar, 24-hour front desk, lift, free parking, laundry (extra charge)
Prices: Rooms start at around £155 per person, per night
Exeter Hotel
Exeter Hotel is a 4 star design hotel is by the harbour, near the impressive Harpa concert hall. So it’s walkable to town yet you get some peace and quiet in the evenings.
Rooms have modern furnishings which contrast nicely with the industrial-style decor and wooden floors. Beds are super comfy, and you’ve got a coffee maker and a fridge in your room too.
On site there’s a restaurant, bar and even a bakery – which makes things sociable. There’s also a sauna for relaxing. Staff are super helpful and can book tours and trips for you.
Amenities: Facilities for disabled guests, restaurant, fitness centre, 24-hour front desk, room service, tea and coffee facilities
Prices: Rooms start at around £155 per person, per night
Kvosin Downtown Hotel
Kvosin Downtown Hotel is a lovely boutique hotel near the cathedral and parliament. The historic building dates back to 1900, but inside it’s all modern, with beautiful rooms with feature walls, warm tones and comfy beds. Their superior rooms have kitchenettes so this is a smart option if you like hotel vibes but the convenience of a kitchen for meals.
But don’t worry, they do serve a buffet breakfast here and there’s a bar and restaurant here too if you prefer to let someone else take care of refreshments!
Amenities: Facilities for disabled guests, family rooms, tea and coffee facilities, bar, 24-hour front desk, parking (extra charge)
Prices: Rooms start at around £160 per person, per night
Vintage Apartment Hotel
This bougie spot on Laugavegur makes for a very easy stay in Reykjavik. Rooms at Vintage Apartment Hotel have historic elements left in them like old beams and brick walls which gives a sense of character. Guests rave about pretty much everything – from the spacious rooms to nice hot showers, fluffy towels and helpful staff.
All apartments have kitchen facilities (including a stovetop and oven) – perfect if you like to save on eating out and use the cash for a nicer place to stay.
Amenities: Family rooms, bar, heating, lift
Prices: Rooms start at around £160 per person, per night
The Best Luxury Hotels in Reykjavik
Hotel Eyja
Hotel Eyja is an attractive hotel with a sort of boho meets luxury vibe.
You’ve got four poster beds and fluffy sheepskin rugs to keep things cosy. It’s even got an eco-certification – it gets power from geothermal energy and renewable sources. It’s part of the Guldsmeden Hotels group, known for high-demand properties that blend luxury and sustainability.
They have all sorts of classes and trips for guests, from cooking and yoga to hiking and horseriding. Location-wise it’s central so shops, bars and nightlife are close by. It’s a 5 minutes walk from Hlemmur Food Hall, great for meals on the go.
Amenities: Bar, restaurant, fitness centre, tea and coffee facilities, laundry (extra charge), bicycle rental, free parking
Price: Rooms start at around £158 per night
Reykjavik Saga
Reykjavik Saga is a well-located 4 star spot next to Lake Tjornin, with a bus stop right outside. It’s quiet but central, so you’re getting the best of both worlds here, and there’s a rooftop terrace so you can gawp at your surroundings.
Rooms are clean and nicely decorated with everything you could need for your stay. There’s a steam room and a sauna if you want to recharge; the helpful staff make you feel at home and can even book tours for you too.
Amenities: facilities for disabled guests, fitness centre, sauna, restaurant, bar, room service
Price: Rooms start at around £200 per night
Reykjavik Edition
The only 5 star hotel in Iceland! If money is no object, then you’ll probably want to check in here. Edition hotels have a bit of a cult following and it’s easy to see why at this fancy spot.
A sleek property right on the waterfront, it’s a sophisticated accommodation with amazing views of the Harpa concert hall and beyond. Rooms are bright and airy, not fussy, with wooden accents creating warmth.
In fact you might find it hard to leave – as well as a bar and restaurant there’s even a nightclub and underground spa – volcanic rock hammam anyone?
Amenities: facilities for disabled guests, family rooms, bar, restaurant, spa, parking (extra charge)
Price: Rooms start at around £340 per night
Tower Suites Reykjavik
Now Tower Suites takes its name from its position – you’ll find it on the 20th floor of one of Reykjavik’s tallest buildings.
There are just 8 suites here but they are oh so luxurious – each named after the landmark you can admire from them. Each suite has stunning panoramic views of the skyline and the sea through floor to ceiling windows.
The finish is very high end, with great design and a penthouse feel. There’s an honesty bar so you can mix your own drinks as you take in the skies. You can order a massage to have in your room, or ask reception for a yoga mat so you can salute the Icelandic sun.
Amenities: Facilities for disabled guests, bar, tea and coffee facilities, lift, heating, bar, concierge, parking (extra charge)
Price: Rooms start at around £355 per night
Have A Memorable Stay At One Of The Best Hotels in Reykjavik For Every Budget
Whether you’re in town to chase the Northern Lights, dive into Icelandic culture or simply relax in one of the coolest cities in the world, these Reykjavik hotels for every budget will help you find the ideal accommodation for your trip.
