Open Travel Guide
Hotels in Reykjavik

Best Hotels in Reykjavik 2026

The bases that make a Reykjavik trip work, from hostel beds to flagship suites.

The short answer: start with The Reykjavik EDITION, Canopy by Hilton Reykjavik City Centre and Hotel Borg. This guide profiles 43+ hotels and places to stay in Reykjavik, with prices, timing, and the practical notes that decide whether each one earns a place in your plan.

Reykjavik is Iceland's capital and northernmost capital city of a sovereign state, set on the Faxaflói bay with mountains and glaciers on the horizon. Known for the Hallgrímskirkja church, the Harpa concert hall, geothermal swimming pools and a compact, colourful old town, it is the base for the Golden Circle, the South Coast and northern lights tours.

Accommodation overview

Reykjavik's hotels cluster in the 101 postcode around Laugavegur, Austurstræti and the Old Harbour, with Hlemmur and Borgartún offering cheaper rooms a ten to fifteen minute walk from the centre. Laugardalur and Suðurlandsbraut suit visitors with a car or a bus pass, while Nauthólsvík is close to the domestic airport. Prices are indicative double-room rates per night in Icelandic krona (about ISK 125 to US$1) and rise sharply from June to August and over New Year.

Budget
ISK 6,000-24,000 (~$48-192) per night, from hostel dorm beds to simple private rooms
Mid-range
ISK 16,000-46,000 (~$128-368) per night
Luxury
ISK 30,000-95,000 (~$240-760) per night
Where to stay
101 Reykjavik around Laugavegur and the Old Harbour for sights and dining; Hlemmur and Borgartún for lower prices

Hotels by budget

Find accommodation that fits your travel budget.

Budget-friendly

Budget

Hotel Cabin

ISK 12,000-20,000 (~$96-160) per night, indicative double room 2/5

Budget hotel with compact cabin-style rooms close to the seafront walking path.

Wi-FiShared kitchen
Check rates on Booking.com
Budget

KEX Hostel

ISK 7,000-22,000 (~$56-176) per night, indicative double room 2/5

Design-led hostel in a former biscuit factory with a popular bar and dorm and private rooms.

RestaurantBarWi-Fi
Check rates on Booking.com
Budget

Bus Hostel Reykjavik

ISK 6,000-18,000 (~$48-144) per night, indicative double room 2/5

Hostel inside the Hlemmur bus terminal building with private rooms and dorms, beside the Hlemmur food hall.

Wi-FiShared kitchenDorms and private rooms
Check rates on Booking.com
Budget

Loft Hostel

ISK 7,500-22,000 (~$60-176) per night, indicative double room 2/5

Hostel on Bankastræti with a rooftop bar and dorm and private options.

BarWi-FiShared kitchen
Check rates on Booking.com
Budget

Reykjavik City Hostel

ISK 6,500-20,000 (~$52-160) per night, indicative double room 2/5

Hostel next to the Laugardalur campsite and the Laugardalslaug pool.

Wi-FiShared kitchenDorms and private rooms
Check rates on Booking.com

Mid-range

Mid-range

Fosshotel Reykjavik

ISK 20,000-36,000 (~$160-288) per night, indicative double room 4/5

Tall four-star hotel with views over the bay and a restaurant on the upper floors.

RestaurantBarWi-Fi
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Mid-range

Fosshotel Baron

ISK 17,000-30,000 (~$136-240) per night, indicative double room 3/5

Three-star hotel with studio-style rooms two blocks from Hlemmur and a sea-view roof.

Wi-FiKitchenette in some roomsBar
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Mid-range

Fosshotel Rauðará

ISK 16,000-28,000 (~$128-224) per night, indicative double room 3/5

Three-star hotel on a quiet street with a short walk to Hlemmur and Laugavegur.

Wi-FiBreakfast availableBar
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Mid-range

Center Hotels Plaza

ISK 22,000-38,000 (~$176-304) per night, indicative double room 4/5

Four-star hotel on the oldest street in Reykjavik with a bar overlooking Ingólfstorg.

BarWi-FiBreakfast available
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Mid-range

Hotel Frón

ISK 18,000-32,000 (~$144-256) per night, indicative double room 3/5

Apartment-style hotel in the middle of Laugavegur with kitchens in the rooms.

KitchenetteWi-Fi
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Mid-range

Hotel Klettur

ISK 16,000-28,000 (~$128-224) per night, indicative double room 3/5

Three-star hotel in a quiet residential block east of the centre.

Wi-FiRestaurant
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Mid-range

Hotel Óðinsve

ISK 18,000-32,000 (~$144-256) per night, indicative double room 3/5

Small hotel on Óðinstorg square, a few steps from Hallgrimskirkja.

Wi-FiBreakfast available
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Mid-range

Hotel Reykjavik Centrum

ISK 24,000-40,000 (~$192-320) per night, indicative double room 4/5

Hotel on Aðalstræti built beside the remains of a Viking-age longhouse shown in the Settlement Exhibition.

RestaurantBarWi-Fi
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Mid-range

Exeter Hotel

ISK 17,000-30,000 (~$136-240) per night, indicative double room 3/5

Three-star hotel in the old harbour district close to whale-watching departures.

Wi-FiBar
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Mid-range

Eyja Guldsmeden Hotel

ISK 19,000-34,000 (~$152-272) per night, indicative double room 3/5

Eco-focused Guldsmeden hotel with an organic breakfast, east of Hlemmur.

Organic breakfastWi-FiBicycle loan
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Luxury

Luxury

The Reykjavik EDITION

ISK 55,000-95,000 (~$440-760) per night, indicative double room 5/5

Five-star design hotel beside Harpa concert hall with a rooftop bar and harbour views.

RestaurantRooftop barSpa
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Luxury

Hotel Borg

ISK 36,000-62,000 (~$288-496) per night, indicative double room 4/5

Art Deco hotel opened in 1930 facing Austurvöllur square and the Parliament.

RestaurantBarGym
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Luxury

Hotel Holt

ISK 34,000-58,000 (~$272-464) per night, indicative double room 4/5

Boutique hotel known for its collection of Icelandic art and a quiet residential setting.

RestaurantBarWi-Fi
Check rates on Booking.com

Best neighborhoods to stay

Choose your base based on your interests and travel style.

Local atmosphere

Old Harbour and Harpa

Waterfront with Harpa concert hall, whale-watching departures, restaurants and the Grandi food and shop area.

Best for: Whale watching, dining, harbour views

Local atmosphere

Laugavegur and Þingholt

The main shopping street and the quiet streets below Hallgrimskirkja, with cafes, bars and boutiques.

Best for: First-timers, nightlife, shopping

Local atmosphere

Austurstræti and Austurvöllur

The old town core around Parliament, the cathedral and Aðalstræti, the oldest street in Reykjavik.

Best for: Sightseeing on foot, historic hotels

Local atmosphere

Hlemmur and Borgartún

Transport hub with the Hlemmur food hall and the business district along the seafront path.

Best for: Lower prices, bus connections

Local atmosphere

Laugardalur

Park district with the geothermal Laugardalslaug pool, the botanical garden, the zoo and campsite.

Best for: Families, pool lovers, car travellers

Local atmosphere

Nauthólsvík and Hlíðar

Quiet area by the geothermal beach, the domestic airport and the University of Iceland.

Best for: Domestic flights, quiet stays

Our top picks

Handpicked recommendations for every type of traveler.

Luxury

The Reykjavik EDITION

ISK 55,000-95,000 (~$440-760) per night, indicative double room 5/5Harbourfront, next to Harpa

Five-star design hotel beside Harpa concert hall with a rooftop bar and harbour views.

RestaurantRooftop barSpa
Check rates on Booking.com
Luxury

Hotel Borg

ISK 36,000-62,000 (~$288-496) per night, indicative double room 4/5Austurvöllur square

Art Deco hotel opened in 1930 facing Austurvöllur square and the Parliament.

RestaurantBarGym
Check rates on Booking.com
Luxury

Hotel Holt

ISK 34,000-58,000 (~$272-464) per night, indicative double room 4/5Bergstaðastræti, Þingholt

Boutique hotel known for its collection of Icelandic art and a quiet residential setting.

RestaurantBarWi-Fi
Check rates on Booking.com

Booking tips

Get the best deals and avoid common mistakes.

Tip

Book three to six months ahead for June to August and for New Year; Reykjavik rooms are among the priciest in Europe in peak summer.

Tip

Keflavik Airport is about 50 km from the centre; the Flybus and Airport Direct coaches stop at the BSÍ terminal and many hotels, with fares of about ISK 3,500-4,500 (~$28-36) one way.

Tip

Cheapest sleeps are the hostels: KEX Hostel, Bus Hostel at Hlemmur, Loft Hostel and Reykjavik City Hostel in Laugardalur, with dorm beds from about ISK 6,000-9,000 (~$48-72).

Tip

Hotels near Hlemmur and Borgartún are often 20-40 percent cheaper than those on Laugavegur and still within a 15-minute walk of Hallgrimskirkja.

Tip

Check whether breakfast is included; it commonly is at Fosshotel, Center Hotels and Icelandair hotels and is worth it given restaurant prices.

Alternative accommodations

Beyond traditional hotels, consider these options.

Alternative

Guesthouses

Family-run guesthouses offer authentic local experiences and often include home-cooked meals. Great for cultural immersion.

Alternative

Serviced apartments

Ideal for longer stays or families. Kitchen facilities help save money and provide flexibility.

Alternative

Hostels

Budget-friendly option for solo travelers. Dorms and private rooms available with social common areas.