Where to Stay in Reykjavik: Best Hotels for Every Budget

Choosing the right base makes or breaks a trip to Reykjavik. We compared 40 places to stay across 6 styles — from luxury addresses to hostel bunks — and picked the top-rated options in each class, so you can match your stay to your budget and travel style.

40 places to stay 6 styles€–€€€€ price range Top rated 4.9

Luxury Hotels in Reykjavik

Top 5 of 8

Five-star comfort, standout service and the best addresses in town. Expect the €€€–€€€€ range for this class in Reykjavik.

The Retreat at Blue Lagoon IcelandTop pick
4.9/ 5

The Retreat at Blue Lagoon Iceland offers an immersive experience amid the famous geothermal waters. Guests can unwind in the stunning spa, which features unique treatments using mineral-rich lagoon silica. Luxurious suites provide serene views of the volcanic landscape, integrating nature into every aspect of the stay. Private guided tours of the lagoon and surrounding areas enhance the exclusivity of this resort.

Norðurljósavegur 11, 241 Grindavík, Iceland

Hotel Holt
Hotel Holt€€€
4.7/ 5

Hotel Holt stands out for its rich collection of Icelandic art, making it more than just accommodation. This hotel is known for its classic décor and intimate atmosphere, creating a refined yet warm environment. Guests appreciate the attentive service and the on-site restaurant, renowned for its fine dining that highlights local ingredients. It's ideally situated for exploring Reykjavik's cultural sites, providing a serene retreat after a day of sightseeing.

Bergstaðastræti 37, 101 Reykjavík, Iceland

Reykjavik Konsulat Hotel, Curio Collection by Hilton
4.6/ 5

Reykjavik Konsulat Hotel offers a contemporary take on luxury, blending modern design with touches of Icelandic heritage. Located downtown, this hotel provides easy access to the city's vibrant cultural scene. Guests can enjoy spacious, well-appointed rooms and a range of amenities including a wellness center and an inviting lounge. The hotel's restaurant features a menu that explores Icelandic culinary traditions with a modern twist, making it a dining destination in its own right.

Hafnarstræti 17-19, 101 Reykjavík, Iceland

Canopy by Hilton Reykjavik City Centre
4.5/ 5

Canopy by Hilton Reykjavik City Centre offers a refreshing stay with its design inspired by local culture and history. Located in a lively area close to shops and eateries, it provides guests with a dynamic base to explore Reykjavik. The hotel features cozy rooms with Icelandic touches, a charming restaurant serving locally sourced dishes, and a well-equipped fitness center. Evening tastings of regional delicacies provide an authentic Icelandic experience.

Smiðjustígur 4, 101 Reykjavík, Iceland

101 Hotel
101 Hotel€€€
4.4/ 5

101 Hotel is a sleek, boutique property known for its minimalist design and contemporary art collection. Situated in Reykjavik's bustling center, the hotel provides easy access to art galleries, shops, and cafes. Each room features modern amenities and stylish furnishings, creating a sophisticated urban retreat. Guests can enjoy the hotel's sauna and plunge pool, or savor a meal at the in-house restaurant, which offers a modern take on Icelandic cuisine.

Hverfisgata 10, 101 Reykjavík, Iceland

Spa & Wellness Hotels in Reykjavik

Top 5 of 6

For trips where the hotel is part of the holiday. Expect the €€–€€€€ range for this class in Reykjavik.

Hotel Borg by KeahotelsTop pick
4.6/ 5

Located in Reykjavik's central district, Hotel Borg combines historical charm with modern amenities. Its Art Deco design is complemented by a luxurious spa that offers a range of treatments, including massages and beauty therapies. The hotel's location makes it easy to explore Reykjavik's cultural landmarks, while its in-house restaurant offers gourmet dining options. Each room is elegantly decorated, ensuring a comfortable stay for guests.

Pósthússtræti 11, 101 Reykjavík, Iceland

Hilton Reykjavik Nordica
4.5/ 5

Hilton Reykjavik Nordica is known for its Nordic-inspired design and comprehensive spa facilities. The in-house Nordica Spa features a wide array of treatments, including hot stone massages and facials utilizing Icelandic ingredients. Guests can enjoy a relaxing soak in the hot tubs or unwind in the sauna. The hotel is conveniently located near Laugardalur Park, offering additional recreational opportunities. Its restaurant, VOX, is praised for its use of local produce, enhancing the authentic Icelandic experience.

Suðurlandsbraut 2, 108 Reykjavík, Iceland

Radisson Blu Saga Hotel
4.4/ 5

Radisson Blu Saga Hotel provides a blend of comfort and style with its well-appointed rooms and spa services. Guests can enjoy panoramic views of Reykjavik from the hotel's upper floors or relax at the on-site spa, which includes a sauna and various treatments. The hotel is conveniently located near cultural attractions such as the National Museum of Iceland. Dining options include an upscale restaurant that serves international and Icelandic cuisine.

Pósthússtræti 2, 101 Reykjavík, Iceland

Icelandair Hotel Reykjavik Natura
4.3/ 5

Situated near the Nauthólsvík geothermal beach, Icelandair Hotel Reykjavik Natura is renowned for its commitment to sustainability. The in-house Soley Natura Spa offers a variety of treatments using organic, local products. Guests can explore nearby hiking and cycling trails or relax in the hotel's comfortable, earth-toned rooms. The Satt Restaurant emphasizes sustainable dining with dishes crafted from local ingredients.

Nauthólsvegur 52, 101 Reykjavík, Iceland

Grand Hotel Reykjavik
4.2/ 5

Grand Hotel Reykjavik is known for its spacious rooms and emphasis on wellness. The hotel's spa features various treatments, including aromatherapy and therapeutic massages, aimed at providing relaxation after a day of sightseeing. The hotel is a short distance from Laugardalslaug, one of Reykjavik's largest thermal pools, adding to its appeal for those seeking relaxation. Dining options include a restaurant that emphasizes fresh, local ingredients.

Sigtún 28, 105 Reykjavík, Iceland

Mid-Range Hotels in Reykjavik

Top 5 of 10

The sweet spot: comfortable, well-located and fairly priced. Expect the €€ range for this class in Reykjavik.

Skuggi Hotel by KeahotelsTop pick
4.4/ 5

Located on Hverfisgata, Skuggi Hotel by Keahotels offers a sleek and modern stay with easy access to Reykjavik's attractions. The interiors boast contemporary Icelandic design, creating a chic and comfortable environment. Guests enjoy the hotel's cozy lobby bar and the daily breakfast buffet featuring local produce. Its location makes it a great base for exploring the city's art galleries, shops, and restaurants, while the friendly staff are always on hand to assist with any needs.

Hverfisgata 103, 101 Reykjavík, Iceland

Reykjavik Lights Hotel
4.3/ 5

Reykjavik Lights Hotel stands out with its artistic approach, where each room reflects a particular day in the ancient Icelandic calendar. The hotel’s minimalistic design, paired with natural elements, provides a serene atmosphere. Located near Laugardalur Park, it's a short drive from the city center. The breakfast buffet offers a variety of fresh options to start the day. Whether you're in Reykjavik for business or leisure, the hotel's unique ambiance makes for a memorable stay.

Suðurlandsbraut 12, 108 Reykjavík, Iceland

Storm Hotel by Keahotels
4.3/ 5

Storm Hotel by Keahotels is a stylish choice for those seeking minimalist Scandinavian design. Situated near the bustling city center, the hotel offers easy access to Reykjavik's vibrant life. Rooms are sleek and comfortable, with thoughtful touches that enhance the guest experience. The breakfast buffet is a highlight, featuring a range of local and international options. Guests appreciate the calm atmosphere and the efficient, friendly service that ensures a pleasant stay.

Þórunnartún 4, 105 Reykjavík, Iceland

CenterHotel Plaza
4.2/ 5

CenterHotel Plaza is perfectly situated for those keen to explore Reykjavik's vibrant cultural and nightlife offerings. The hotel features straightforward rooms with all the essential amenities for a comfortable stay. Guests appreciate the welcoming atmosphere and the hotel's proximity to renowned landmarks like the Harpa Concert Hall and the bustling Laugavegur shopping street. A complimentary breakfast is available, and the staff is known for being particularly helpful with local recommendations and tour bookings.

Aðalstræti 4- 6, 101 Reykjavík, Iceland

City Center Hotel
4.2/ 5

City Center Hotel is located in one of Reykjavik’s most historic areas, providing a unique juxtaposition of modern comfort with heritage surroundings. This hotel features stylishly appointed rooms and is within walking distance to many of the city’s main attractions, including the Harpa Concert Hall and the National Gallery. Guests enjoy the easy access to local cafes and restaurants, and the staff are praised for their helpful service. An ideal spot for those wanting to soak up the local culture.

Austurstræti 6, 101 Reykjavík, Iceland

B&Bs and Guesthouses in Reykjavik

Top 5 of 6

Smaller places with hosts who know the city. Expect the €€ range for this class in Reykjavik.

Eric the Red GuesthouseTop pick
4.8/ 5

Eric the Red Guesthouse offers a convenient location near Hallgrimskirkja, making it an ideal base for exploring Reykjavik. The guesthouse is celebrated for its friendly hosts who go out of their way to ensure guests have a pleasant stay. Rooms are cozy and well-maintained, and a homemade breakfast featuring local ingredients is served daily. The setting encourages interactions among guests, fostering a community atmosphere.

Eiríksgata 6, 101 Reykjavík, Iceland

Guesthouse Galtafell
4.7/ 5

Guesthouse Galtafell is located in a quiet neighborhood but remains close to Reykjavik's main attractions. The building itself is a piece of history, offering rooms that merge traditional Icelandic architecture with contemporary comforts. Guests appreciate the personalized service and warm atmosphere. Each morning, a hearty breakfast is served, providing a perfect start to a day's exploration in the city.

Laufásvegur 46, 101 Reykjavík, Iceland

Reykjavik Treasure B&B
4.6/ 5

Situated in a quiet area, Reykjavik Treasure B&B provides a welcoming atmosphere with its quaint interiors and friendly hosts. The property is housed in a historic building, adding a touch of Icelandic charm to your stay. Breakfast is prepared with care, featuring local produce. Its central location allows easy exploration of Reykjavik's main attractions, making it a convenient base for travelers. The cozy rooms are complemented by the warm hospitality, making it a memorable experience.

43X4+CVP, Fischersund, 101 Reykjavík, Iceland

4.5/ 5

Bed and Books B&B, located in a residential area, offers a cozy atmosphere with its unique library theme. Guests can enjoy the comfort of a home-like environment and immerse themselves in one of the many books available throughout the property. The friendly hosts provide personalized recommendations and a warm welcome. It's a great choice for those who wish to stay in a quiet area while still being within walking distance of Reykjavik's attractions.

Þórunnartún 6

Butterfly Guesthouse
4.5/ 5

Butterfly Guesthouse offers a cozy stay right in Reykjavik's downtown, making it an excellent base for exploring the city. Known for its warm and welcoming hosts, the guesthouse provides an intimate setting where guests can feel right at home. The interiors are charmingly decorated, reflecting a unique Icelandic character. Breakfast is a highlight here, with homemade offerings setting the tone for a day of adventure.

Ránargata 8, 101 Reykjavík, Iceland

Budget Hotels in Reykjavik

Clean, simple and easy on the wallet. Expect the €–€€ range for this class in Reykjavik.

Hlemmur Square HotelTop pick
4.2/ 5

Located on Laugavegur 105, Hlemmur Square Hotel stands out as a versatile accommodation choice, offering both hostel dorms and hotel-style rooms. This hybrid setup makes it suitable for a wide range of travelers, from backpackers to families. The hotel is set in a historic building, giving it character and charm, while being equipped with modern amenities to ensure comfort. Guests appreciate its central location, which is ideal for exploring Reykjavik's main attractions on foot. The common areas foster a social atmosphere, making it easy to meet fellow travelers. With an in-house bar and restaurant, it also provides a convenient dining option after a day of sightseeing.

Laugavegur, 105 Reykjavík, Iceland

Odalir Hostel
4.0/ 5

Odalir Hostel brings together the essentials of a comfortable stay with a modern and minimalist design. The hostel is strategically located for those wanting to explore Reykjavik’s attractions without straying far from their budget. Rooms are clean and functional, with a shared kitchen and common areas that encourage socializing among guests. Its proximity to the city center makes it a convenient choice for travelers who plan to maximize their time exploring the local sights and cultural offerings.

Sundlaugavegur 34, 105 Reykjavík, Iceland

Student Hostel
3.8/ 5

Student Hostel caters primarily to budget travelers and students, offering a no-frills accommodation experience. Situated conveniently in Reykjavik, guests find themselves within walking distance of many of the city's attractions, including the iconic Hallgrímskirkja and Laugavegur shopping street. While the facilities are basic, they are clean and functional, providing everything needed for a comfortable stay. The hostel fosters a social atmosphere with communal kitchen facilities, enabling guests to prepare their own meals, and a common room for socializing or relaxing after a day of sightseeing.

Hringbraut 29, 101 Reykjavík, Iceland

Hostels in Reykjavik

Top 5 of 7

Social stays and the cheapest beds in the city. Expect the €€–€€€ range for this class in Reykjavik.

Galaxy Pod HostelTop pick
4.5/ 5

Located on the lively Laugavegur street, Galaxy Pod Hostel offers a unique sleeping experience with its space-themed pods. Each pod provides personal privacy with modern amenities while fostering a communal atmosphere in shared lounges. A perfect base for exploring Reykjavik's vibrant nightlife, the hostel also provides a fully equipped kitchen and a cozy common area with board games and a projector for movie nights.

Laugavegur 172 3rd floor, 105 Reykjavík, Iceland

Reykjavik Loft HI Hostel
4.5/ 5

Situated near Laugavegur, Reykjavik Loft HI Hostel provides an excellent base for exploring the city. Its standout feature is the rooftop terrace, offering stunning views of the city and a perfect spot for relaxing after a day's adventures. This hostel hosts regular events, making it a lively place to meet fellow travelers. Guests can choose from dormitory or private rooms, and enjoy the shared kitchen facilities and common areas designed for socializing.

Bankastræti 7, 101 Reykjavík, Iceland

Reykjavik Downtown HI Hostel
4.3/ 5

Situated near the Old Harbour, Reykjavik Downtown HI Hostel is an eco-conscious option for travelers looking to explore the city's rich cultural offerings. The hostel features comfortable dormitory and private rooms, each designed with sustainability in mind. Guests can enjoy the communal kitchen and cozy lounge area, perfect for sharing travel stories and planning adventures. The staff are known for their helpful tips on exploring Reykjavik and beyond.

Vesturgata 17, 101 Reykjavík, Iceland

Reykjavik City HI Hostel
4.2/ 5

Reykjavik City HI Hostel is perfect for families and solo travelers looking for a quieter stay. Set in Laugardalur Park, the hostel is close to Reykjavik's largest swimming pool and the Family Park & Zoo. It offers a range of room types, from private family rooms to shared dormitories. Guests enjoy access to a large communal kitchen, a peaceful garden area, and a dedicated children's playroom.

Sundlaugavegur 34, 105 Reykjavík, Iceland

Bus Hostel
4.0/ 5

Bus Hostel offers a budget-friendly option for travelers, conveniently situated near the main bus terminal for easy access to city transport. The hostel features a laid-back atmosphere with colorful decor, making it a great spot for meeting new friends. Guests can choose from a variety of dormitory options, and enjoy the communal kitchen and social bar area. The hostel is a short walk from Perlan, a landmark offering panoramic views of Reykjavik.

Skógarhlíð 10, 105 Reykjavík, Iceland

Reykjavik Accommodation: Frequently Asked Questions

How many places to stay are there in Reykjavik?+

We track 40 places to stay in Reykjavik across 6 styles — luxury hotels, spa & wellness hotels, mid-range hotels, b&bs and guesthouses, budget hotels, hostels — each with its own profile, photo and verified details.

What is the best-rated place to stay in Reykjavik?+

The Retreat at Blue Lagoon Iceland currently holds our highest rating (4.9/5) among featured picks. A sanctuary surrounded by Iceland's iconic geothermal waters, offering a tranquil escape.

How expensive are hotels in Reykjavik?+

Featured places to stay in Reykjavik span the €–€€€€ price range. 18 of our featured picks sit in the budget-to-moderate tiers, so a comfortable stay doesn't require a luxury spend.

When should I book a hotel in Reykjavik?+

For the best selection in Reykjavik, book several weeks ahead — earlier around summer weekends and major events, when the highest-rated places fill first. Live availability for every hotel on this page is one click away via the booking links.