The best hotels in Reykjavik
Reykjavik has 8,000+ places to stay and a surprising number of them will leave you cold, overpriced, and miles from anything worth seeing. We reviewed the standouts. these 10 made the cut.
Our Top Picks in Reykjavik
Click any hotel to check availability and book at the best price.
Reykjavik City Hostel
Laugardalur, Reykjavik
Free cancellation & Pay later
Canopy by Hilton Reykjavik City Centre
City Centre, Reykjavik
Free cancellation & Pay later
Apotek Hotel
Austurstraeti, Reykjavik
Free cancellation & Pay later
Fosshotel Reykjavik
Skuggahverfi, Reykjavik
Free cancellation & Pay later
Center Hotels Arnarhvoll
Arnarholl, Reykjavik
Free cancellation & Pay later
Ion City Hotel
Laugavegur, Reykjavik
Free cancellation & Pay later
The Reykjavik EDITION
Old Harbour, Reykjavik
Free cancellation & Pay later
All Hotels Compared
Side-by-side comparison to help you pick the right hotel. Prices reflect shoulder season averages.
| # | Hotel | City & Area | Price/Night | Score | Best For |
|---|---|---|---|---|---|
| 1 | Kex Hostel | Mýrargata, Reykjavik | $55–85/night | 8.1/10 | Budget Pick |
| 2 | Reykjavik City Hostel | Laugardalur, Reykjavik | $62–95/night | 7.9/10 | Best Value |
| 3 | Borg Hotel | Austurvollur, Reykjavik | $160–280/night | 9/10 | Top Rated |
| 4 | Canopy by Hilton Reykjavik City Centre | City Centre, Reykjavik | $175–310/night | 8.7/10 | Most Popular |
| 5 | Apotek Hotel | Austurstraeti, Reykjavik | $185–300/night | 8.5/10 | Hidden Gem |
| 6 | Fosshotel Reykjavik | Skuggahverfi, Reykjavik | $140–230/night | 8.2/10 | Business Pick |
| 7 | Center Hotels Arnarhvoll | Arnarholl, Reykjavik | $155–245/night | 8.4/10 | Best Location |
| 8 | Skuggi Hotel | Hlemmur, Reykjavik | $120–195/night | 8.3/10 | Best Value |
| 9 | Ion City Hotel | Laugavegur, Reykjavik | $280–450/night | 9.1/10 | Luxury Pick |
| 10 | The Reykjavik EDITION | Old Harbour, Reykjavik | $390–700/night | 9.4/10 | Top Rated |
Why These Hotels Made Our List
Every hotel earned its spot. Here's exactly why we picked each one.
Kex Hostel
Kex sits in a converted biscuit factory on Skulagata, right along the harbor waterfront. The shared dorms are clean and the private rooms are compact but well-designed. The in-house bar is a genuine local hangout, not a tourist trap. Breakfast is sold separately and worth adding on. Good base for walking to the old harbor fish restaurants.
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Reykjavik City Hostel
This HI-affiliated hostel sits near Laugardalur park, about 2 km from the city center. The bus connection downtown is frequent and reliable. Rooms are basic but spotless, and the kitchen facilities are genuinely usable. The Laugardalur geothermal pool is a five-minute walk from the front door. A solid pick if you want space and value over a central address.
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Borg Hotel
Hotel Borg stands directly on Austurvollur square, the most central spot in Reykjavik. Built in 1930, the art deco interior has been maintained without feeling like a museum. Rooms are large by Icelandic standards and the beds are excellent. The bar draws both guests and locals on weekend evenings. Service is consistently professional across all departments.
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Canopy by Hilton Reykjavik City Centre
The Canopy opened in 2019 on Smidjustigur, a short walk from Hallgrimskirkja church. The design leans into Icelandic materials with a lot of wood, wool, and stone throughout. Rooms are mid-sized with good blackout curtains, which matters a lot in summer. The ground-floor bar serves local craft beers and decent small plates. A reliable international option with more character than most chain hotels.
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Apotek Hotel
Apotek occupies a heritage building on Austurstraeti that was once the city pharmacy. The lobby has original mosaic floors and high ceilings that give it real character. Rooms upstairs are quieter than the ground floor bar suggests they would be. The restaurant focuses on Icelandic seafood and does it well. Location puts you within two blocks of practically everything in the old town.
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Fosshotel Reykjavik
Fosshotel is a tall modern tower in the Skuggahverfi shadow district, close to Harpa concert hall. Upper-floor rooms have clear views over the bay toward Mount Esja. The rooms themselves are functional and well-equipped rather than stylish. The hotel serves a large buffet breakfast that fuels a full day of touring. Conference facilities make it popular with business travelers during the week.
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Center Hotels Arnarhvoll
Arnarhvoll sits on the hill above Harpa concert hall with direct views across the bay. The building is modern and the rooms facing the water are worth the small premium. It is a ten-minute walk to the main shopping street on Laugavegur. Staff are helpful with northern lights alerts and tour bookings. The Grillid rooftop restaurant one block away is recommended for dinner.
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Skuggi Hotel
Skuggi Hotel is positioned on Hverfisgata near the Hlemmur food market, which is one of the better eating spots in the city. The rooms are small but smartly designed with good storage for luggage. Laugavegur shopping street is a three-minute walk from the front desk. The hotel has no restaurant but the surrounding neighborhood has plenty of options at every price point. A consistent mid-range pick that delivers what it promises.
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Ion City Hotel
Ion City is the urban sibling of the famous Ion Adventure Hotel, located directly on Laugavegur in the heart of Reykjavik. The design is spare and Scandinavian with high-end Icelandic materials throughout. Rooms are spacious by city center standards and the beds are among the best in town. The cocktail bar is a genuine destination for local design professionals. Service anticipates needs without being intrusive.
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The Reykjavik EDITION
The EDITION opened near the Old Harbour in 2021 and immediately became the benchmark for luxury in Iceland. The building incorporates a restored 1917 warehouse and the industrial bones are still visible in the best way. Rooms have floor-to-ceiling windows and some face directly onto the harbor with Snæfellsjökull glacier visible on clear days. The rooftop bar is perhaps the best perch in all of Reykjavik. Rates are steep but the quality across every department justifies them.
Check AvailabilityWhere to Stay in Reykjavik
The neighborhood you pick matters more than the hotel.
First time in Reykjavik? Start here.
Stay within the 101 Reykjavik postal code. That puts you on or near Laugavegur, which is where the restaurants, bars, and independent shops are. Skólavörðustígur runs up to Hallgrímskirkja, and you'll walk it a dozen times without getting bored. Most of our vetted picks sit within this zone or just outside it.
Don't book somewhere cheap in Grafarvogur or Breiðholt to save $30/night. You'll spend it on taxis and lose time you don't have. Reykjavik rewards proximity. the city is small, but January days give you about 5 hours of usable daylight, so every minute counts.
Aurora hunting: what your hotel won't tell you
No hotel in central Reykjavik gives you a real aurora view. the city glow ruins it. What you want is a hotel that's quick to escape from. Ion City Hotel on Laugavegur puts you 12 minutes from Grótta lighthouse by taxi, which is the closest legitimate dark spot. Vedur.is is the official Icelandic Met Office forecast. check it every evening.
Book October-February for aurora odds. February often gives clearer skies than November or December. Rates at mid-range hotels during this period run $120-245/night, which is lower than summer peak. so you're paying less and getting a genuine reason to visit. That's a rare combination in Iceland.
The luxury case: when to spend big in Reykjavik
The Reykjavik EDITION at the Old Harbour is in a different league. It's $390-700/night, and it earns every krona. The Old Harbour neighbourhood is quieter than Laugavegur, the design is sharp without being cold, and you're 10 minutes walk from Harpa Concert Hall and the whale-watching piers on Ægisgarður.
Ion City Hotel on Laugavegur is the other serious luxury option, rated 9.1 and priced at $280-450/night. It's more central, with better walkability. you're in the heart of the city but the rooms feel removed from it. If it's your first trip and you want everything at your feet, Ion City edges it.
Budget Reykjavik: spend smart, not cheap
Kex Hostel on Mýrargata is the best budget pick we've found in years of looking. It's $55-85/night, the common areas are genuinely good, and the bar draws a mixed crowd of locals and travellers. You're 5 minutes walk from the Old Harbour and about 12 minutes from Laugavegur on foot.
Reykjavik City Hostel in Laugardalur is cheaper on average but requires Bus 14 to reach downtown. budget 20 minutes each way. It works if you're spending most days on day tours that pick up outside the hostel. Otherwise, pay the small premium for Kex and save your energy for the things that actually matter.
Day trips and which hotel location makes them easier
The Golden Circle (Þingvellir, Geysir, Gullfoss) and the South Coast (Seljalandsfoss, Skógafoss, Reynisfjara black sand beach) are the two main day-trip routes. Most tours depart from BSÍ Bus Terminal near the city centre, so any hotel within 101 Reykjavik works fine. Drive time to Þingvellir is about 45 minutes from downtown.
If you're renting a car, Fosshotel Reykjavik in Skuggahverfi has a car park nearby and easy access to Route 1. Hotels on Laugavegur are harder for self-drivers. parking is metered and scarce. Plan around this before you book, especially for multi-day ring road trips starting and ending in Reykjavik.
Eating and drinking: where to go from your hotel
Laugavegur and the streets branching off it. Skólavörðustígur, Hverfisgata, Vitastígur. hold most of the restaurants worth your time. Matur og Drykkur on Grandagarður does exceptional modern Icelandic food, and it's 5 minutes from any Old Harbour hotel. Avoid the tourist-trap lobster soup spots on Hafnarstræti. they're priced for people who don't know better.
For coffee, Reykjavik Roasters on Kárastígur is the benchmark. Kaffihús Vesturbæjar in the Vesturbær neighbourhood is a genuine local spot that most visitors never find. Both are within 15 minutes walk of the city centre. Skip the overpriced hotel breakfast and start your morning right.
Reykjavik's best neighborhoods
Prioritize the City Centre and Old Harbour areas first. You'll walk to Hallgrímskirkja, Laugavegur, and the harbour in under 15 minutes. and that matters a lot when the weather turns sideways.
City Centre (101 Reykjavik) 4 vetted hotels Walk everywhere, eat well, sleep central.
Walk everywhere, eat well, sleep central.
The 101 postal code is the core of Reykjavik life. Laugavegur runs through it, Austurvollur square anchors the east end, and you're never more than 15 minutes walk from the Old Harbour or Hallgrímskirkja. This is where most of our picks land, and for good reason.
Hotels here range from the refined Borg Hotel at Austurvollur ($160-280/night, rated 9.0) to the mid-range Canopy by Hilton at $175-310/night and Apotek Hotel on Austurstraeti at $185-300/night. You're paying for convenience and you get it. The streets are lively until late, especially on Fridays and Saturdays.
Don't expect quiet. Laugavegur on a weekend night is loud and fun, which is great if that's your scene and irritating if it's not. Ask for a room on an upper floor or facing an interior courtyard if you need silence. The trade-off is worth it for most travelers.
Old Harbour (Grandi) 1 vetted hotel Quieter, cooler, and worth the short walk.
Quieter, cooler, and worth the short walk.
The Old Harbour area has changed fast. Grandi, the old fishing district west of Grandagarður, now has some of the best restaurants in the city. Matur og Drykkur, Marshall Restaurant, the Fishmarket. The Reykjavik EDITION sits right here, and at $390-700/night it's the most expensive hotel on our list. It's also the best rated at 9.4.
You're about 12 minutes walk from Laugavegur, which feels far in bad weather but isn't a real problem. The neighbourhood has its own rhythm, quieter than the centre but genuinely interesting. Whale-watching boats depart from Ægisgarður, about 5 minutes on foot.
This is the right pick if you want space, design, and a hotel that doesn't feel like it's trying too hard. It's not for budget travelers and it's not trying to be. Luxury here is understated and specifically Icelandic, which is harder to find than you'd think.
Hlemmur & Skuggahverfi 2 vetted hotels Value-focused and right on the pulse.
Value-focused and right on the pulse.
Hlemmur is at the east end of Laugavegur, and it's had a proper revival since the Hlemmur Mathöll food hall opened. Skuggahverfi (Shadow District) sits just south, near the BSÍ Bus Terminal. Both are walkable to the centre and slightly more affordable than the Austurvollur end of town.
Skuggi Hotel in Hlemmur runs $120-195/night and rates 8.3. Fosshotel Reykjavik in Skuggahverfi is $140-230/night with an 8.2 rating. These are solid mid-range picks. You're 8-12 minutes walk from Hallgrímskirkja and about the same to the main Laugavegur strip.
The Hlemmur bus terminal is right here. Bus 1, 3, and 6 all stop within 3 minutes walk. If you're doing a lot of day tours, the BSÍ terminal nearby is where most operators pick up. Practical area, good food scene, and prices that don't punish you.
Arnarholl & Waterfront 1 vetted hotel Best views in the city, full stop.
Best views in the city, full stop.
Arnarholl sits between the City Centre and Harpa Concert Hall, with the inlet views that photographers come here for. Center Hotels Arnarhvoll is the main option here at $155-245/night, rated 8.4 and badged Best Location. The name isn't marketing. on a clear day you see Esja mountain across the water from the upper floors.
You're 5 minutes walk from Harpa and about 10 minutes from the main Laugavegur strip. The Sun Voyager sculpture is a 3-minute stroll east along the waterfront path. It's a genuinely pleasant walk even in February, if you've got the right jacket.
This area is calmer than the Laugavegur end of the centre but still central. Mid-range pricing, great views, close to cultural venues. If you want one reason to pick Arnarholl over the Austurvollur cluster, it's the outlook over the harbour at sunset.
Laugardalur 1 vetted hotel Budget-friendly, local, and a bus ride from the action.
Budget-friendly, local, and a bus ride from the action.
Laugardalur is a residential valley east of the centre, home to the Laugardalur geothermal pool complex. one of the best public pools in Iceland and a local institution. Reykjavik City Hostel is based here, running $62-95/night. It's the most affordable option on our list after Kex.
The honest trade-off: you need Bus 14 or Bus 2 to reach Laugavegur, which is about 20 minutes each way. That's not catastrophic, but it adds up across a 4-day trip. On the upside, you're walking distance to the Laugardalur pools, which cost around 1,000 ISK ($7) to enter and are worth every øre.
Good pick for backpackers doing lots of day tours that depart early. the quieter neighbourhood means better sleep. Less good if your plan is to wander Laugavegur at midnight and walk back. Know what you're optimising for before you book.
Best Areas by Vibe
Tell us how you travel and we'll point you to the right part of Reykjavik.
Romantic
The Old Harbour (Grandi area) is the right call for couples. Quiet streets, harbour views, design hotels, and some of the best tables in the city. all without the Laugavegur crowd noise.
Culture
Stay near Arnarholl for Harpa Concert Hall access and the waterfront museum strip. you're 5 minutes from Harpa and 10 minutes from the Reykjavik Art Museum on Tryggvagata.
Family
Laugardalur works well for families. the outdoor pool complex is exceptional, there's green space, and mid-size apartments here cost less than cramped city-centre rooms.
Budget
Mýrargata and the Kex Hostel strip near the Old Harbour is the sweet spot: $55-85/night, genuinely good communal spaces, and a 5-minute walk to the harbour without paying Old Harbour hotel prices.
Coastal
The Sæbraut waterfront path from Arnarholl east toward Laugardalur is Reykjavik's best coastal strip. flat, walkable, and stunning on a clear day with Esja mountain across the inlet.
Foodie
Base yourself on or near Laugavegur for access to the full eating scene: Hverfisgata, Skólavörðustígur, and the Grandi restaurant cluster on Grandagarður are all within 15 minutes walk.
Location Quality
Is the neighborhood walkable? Are restaurants, shops, and attractions within 10 minutes on foot? How does it feel after dark? We evaluate safety, public transport access, and whether the area has genuine local character or just tourist traps. A hotel in the wrong neighborhood ruins a trip. That's why location carries the most weight.
Value for Money
We compare what you pay against what you get. A €150 hotel with a great location, clean rooms, and helpful staff can outscore a €500 hotel with fancy amenities in a bad area. We factor in seasonal pricing, cancellation policies, and hidden costs like tourist tax and breakfast surcharges. The goal is finding the best ratio, not the lowest price.
Guest Experience
We analyze thousands of verified guest reviews across multiple platforms, looking for patterns rather than individual complaints. Consistent praise for cleanliness, staff, and room quality counts. We also assess the intangibles: does the hotel have character? Would you recommend it to a friend? A soul-less chain hotel with perfect facilities still loses to a well-run boutique with personality.
When to Visit Reykjavik
When to visit Reykjavik and what to pay.
Summer (June-August)
This is Reykjavik's most popular window. 24-hour daylight, festival season, and the Secret Solstice festival in June driving hotel prices to their annual peak. Budget hotels fill fastest; Kex Hostel beds at $85/night are gone months ahead. Book by March for anything decent in July.
Autumn (September-October)
September is the best month most people don't consider. Crowds thin, prices drop 20-35% from peak, and aurora odds start climbing from late September onward. The Iceland Airwaves festival in early November pushes prices back up. book around it or lean into it, but don't get caught off guard.
Winter (November-February)
Lowest prices of the year except around Christmas and New Year, when Reykjavik's celebrations on Austurvollur square drive a short-lived spike. January is genuinely the cheapest and quietest month. hotels run $85-150/night and you'll have the Golden Circle almost to yourself. Dress for it: windchill near the coast hits hard.
Spring (March-May)
Daylight returns fast in March. you gain nearly 6 minutes a day through April, and by May you've got solid afternoon light for hiking and photography. Easter week sees a noticeable uptick in Icelandic domestic travel, which quietly fills Reykjavik hotels from within. Prices sit comfortably below summer peak, usually $120-200/night for a decent mid-range room.
Booking Tips for Reykjavik
Insider tips for booking hotels in Reykjavik.
Book aurora season hotels before October
The October-February aurora window is well known now, and decent hotels in the 101 Reykjavik area fill up 6-8 weeks ahead. If you're targeting a specific dark-sky date, lock in your room first and plan the tour after. Grótta lighthouse is 15 minutes by taxi from central Reykjavik and free to visit. you don't need a paid tour.
Don't pay for airport-area hotels unless your flight is before 6am
Hotels near Keflavik airport or in Hafnarfjörður (30-40 minutes south of the centre) often market themselves as 'convenient.' They're $90-160/night and save you nothing unless your departing flight is at 5am or earlier. The Flybus from BSÍ terminal costs around $25 and covers the 50 km in 45 minutes. use it.
Ask for high floors. the views are worth it
Reykjavik's flat cityscape means even a 4th-floor room at a place like Fosshotel Reykjavik in Skuggahverfi or Center Hotels Arnarhvoll can deliver an unobstructed view of Esja mountain or the inlet. This costs nothing extra. Email ahead and ask specifically for a north-facing room above the 3rd floor. most hotels accommodate it.
The Iceland Airwaves festival week in November: plan ahead
Iceland Airwaves runs every November across venues on Laugavegur, Hverfisgata, and smaller spots throughout 101 Reykjavik. Hotel prices jump 30-50% and rooms within walking distance sell out in August. If you're going for the festival, book in July. If you're not, check the exact dates and avoid them. or negotiate a non-festival-week rate directly with the hotel.
Skip hotel breakfast and eat Icelandic instead
Hotel breakfasts in Reykjavik run $20-30/person and they're usually unremarkable. Brauð & Co on Frakkastígur opens early and has the best pastries in the city for around $6-8. The Hlemmur Mathöll food hall at the east end of Laugavegur does proper breakfast bowls for $10-14. Both are within 15 minutes walk of any central hotel.
Check the free cancellation window, not just the price
Reykjavik weather is genuinely unpredictable. a planned February visit can shift entirely based on storm forecasts or aurora activity. Book hotels with free cancellation up to 48 hours before arrival whenever possible. The price difference is usually $10-20/night compared to non-refundable rates, and in Iceland that flexibility is actually worth it.
Hotels in Reykjavik — FAQ
Everything you need to know before booking hotels in Reykjavik.
What's the best area to stay in Reykjavik?
The City Centre around Laugavegur and Austurstraeti is the sweet spot. You're within 10 minutes walk of Hallgrímskirkja, the Old Harbour, and most of the good restaurants. Hotels here run $120-310/night depending on the season, but you'll save money on taxis.
How much should I budget for a hotel in Reykjavik?
Budget options like Kex Hostel on Mýrargata start at $55/night. Mid-range hotels in Skuggahverfi or Hlemmur run $120-245/night. If you want genuine luxury near Austurvollur or the Old Harbour, block out $280-700/night and don't flinch. it's worth it.
Is Reykjavik walkable, or do I need a car?
The city centre is very walkable. Laugavegur to the Old Harbour is about 12 minutes on foot, and Hallgrímskirkja is 8 minutes from most central hotels. But if you're planning day trips to the Golden Circle or South Coast, rent a car. the buses work but they're slow and schedule-dependent.
When is the best time to book a hotel in Reykjavik?
Book at least 3 months ahead for June-August travel, when prices jump hard and rooms at popular spots like Borg Hotel or Canopy by Hilton sell out weeks in advance. For aurora season (October-February), 6-8 weeks ahead is usually fine, but avoid booking the week of Iceland Airwaves festival in November without locking in early.
Which Reykjavik hotels are best for seeing the Northern Lights?
Honestly, no city-centre hotel gives you a good aurora view. light pollution kills it. Ion City Hotel on Laugavegur is your best base for quick escapes: you can grab a taxi to Grótta lighthouse in under 15 minutes, which is one of the closest dark spots to the city. Most aurora apps will tell you when it's worth the trip.
Are there good budget hotels in Reykjavik?
Kex Hostel on Mýrargata is the best budget option in the city, with beds from $55/night and a bar that locals actually use. Reykjavik City Hostel in Laugardalur is cheaper on average but adds about 20 minutes on bus 14 to get downtown. Pick Kex if location matters. and it does.
What's the public transport situation in Reykjavik?
Strætó buses cover the city and surrounding areas. A single ride costs around 600 ISK ($4.50), and the app lets you buy tickets in advance. Bus 1 and Bus 6 are your main routes along Laugavegur and into the centre. but honestly, for most central hotels, you won't need buses at all.
Which Reykjavik neighbourhood should I avoid for hotels?
Skip hotels near Kópavogur and the airport zone around Hafnarfjörður unless you specifically need easy airport access. You'll pay similar prices to mid-range city-centre hotels but add 30-40 minutes of transit time each way. That's a real cost when days are short in winter.
How far is Reykjavik city centre from Keflavik Airport?
Keflavik International Airport is about 50 km from the city centre. roughly 45 minutes by car. The Flybus costs around $25-30/person and drops you at BSÍ Bus Terminal, then connects to major hotels. A private taxi runs $80-110 depending on time of day and how many bags you have.
Do Reykjavik hotels include breakfast?
Some mid-range and luxury hotels include breakfast, but many don't, and the ones that do often charge $20-30 extra per person when it's optional. Skip hotel breakfast and walk to Brauð & Co on Frakkastígur for fresh pastries at a fraction of the price. the cinnamon rolls alone are worth the 5-minute detour.
What's the Iceland Airwaves festival and how does it affect hotel prices?
Iceland Airwaves is a major music festival held every November across venues on Laugavegur and nearby streets in the city centre. Hotel prices spike 30-50% during that week, and rooms within walking distance sell out months ahead. Book in August if you're going, or plan around it entirely.
Is Reykjavik safe? Does location within the city matter for safety?
Reykjavik is extremely safe. it consistently ranks among the safest capitals in the world. The 101 Reykjavik postal area (covering Laugavegur, Austurvollur, and the Old Harbour) is where most visitors stay, and it's active until 2am on weekends without any issues. Location matters for convenience, not safety.