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 10 Top Picks in Reykjavik

Click any hotel to check availability and book at the best price.

Hotel Reykjavík Saga

Reykjavik

$239/night Prices are approximate and vary by season

Reykjavik Residence Apartment Hotel

Reykjavik

$151/night Prices are approximate and vary by season

CityHub Reykjavik

Reykjavik

$72/night Prices are approximate and vary by season

Canopy by Hilton Reykjavik City Centre

Reykjavik

$312/night Prices are approximate and vary by season

Iceland Parliament Hotel, Curio Collection by Hilton

Reykjavik

$388/night Prices are approximate and vary by season

Eric the Red Guesthouse

Reykjavik

$128/night Prices are approximate and vary by season

Reykjavík Marina - Berjaya Iceland Hotels

Reykjavik

$162/night Prices are approximate and vary by season

Nordic Hostel & Apartments

Reykjavik

$121/night Prices are approximate and vary by season

Center Hotels Laugavegur

Reykjavik

$178/night Prices are approximate and vary by season

Exeter Hotel

Reykjavik

$168/night Prices are approximate and vary by season
Browse all hotels →

Why These Hotels Made Our List

Here's why each one made the cut.

Hotel Reykjavík Saga

Reykjavik $239/night Prices are approximate and vary by season 9.6/10

On Skúlagata, a 10-minute walk from the old harbour. One of the highest-rated big hotels in the city, and it shows. Rooms are spacious and modern. You're paying $239 for genuine quality. Skip it if you need nightlife on your doorstep. Saga is quieter, which is exactly why regulars book it again.

Address:Hotel Reykjavík Saga, Lækjargata 12, 101 Reykjavík, Iceland

Neighborhood:Centre

Rating breakdown

  • 5★86%
  • 4★11%
  • 3★2%
  • 2★1%
  • 1★0%

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$240per night
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$270per night
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Reykjavik Residence Apartment Hotel

Reykjavik $151/night Prices are approximate and vary by season 9.4/10

Kitchen, living room, proper space for $151. That's the pitch. You're in the city centre, walking distance to Hallgrímskirkja and Laugavegur. Perfect if you're staying more than two nights or travelling with family. The apartment format saves you from eating out every meal in a city where restaurants aren't cheap.

Address:Reykjavik Residence Apartment Hotel, Vatnsstígur 2, 101 Reykjavík, Iceland

Neighborhood:Downtown

Rating breakdown

  • 5★83%
  • 4★13%
  • 3★1%
  • 2★1%
  • 1★2%

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$150per night
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$170per night
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CityHub Reykjavik

Reykjavik $72/night Prices are approximate and vary by season 9.6/10

Pods, not rooms. You get your own capsule-style space with app controls, surprisingly good soundproofing, and a social lounge below. At $72, it's the cheapest quality sleep in central Reykjavik. On Austurstræti, right in the thick of it. If you've done pods before, you'll appreciate how well this one works.

Address:CityHub Reykjavik, Hverfisgata 46, 101 Reykjavík, Iceland

Neighborhood:Downtown

Rating breakdown

  • 5★89%
  • 4★9%
  • 3★1%
  • 2★1%
  • 1★0%

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$70per night
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$80per night
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Canopy by Hilton Reykjavik City Centre

Reykjavik $312/night Prices are approximate and vary by season 9.2/10

One of the few hotels that actually captures Reykjavik's personality. Icelandic design, local art, a decent bar. You're steps from Ingólfstorg square and the main shopping street. At $312 it's expensive. But 1,162 reviews at 4.6 suggests it earns it. Book direct through Hilton for better rates.

Address:Canopy by Hilton Reykjavik City Centre, Smiðjustígur 4, 101 Reykjavík, Iceland

Neighborhood:Downtown

Rating breakdown

  • 5★79%
  • 4★15%
  • 3★3%
  • 2★1%
  • 1★2%

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$310per night
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$350per night
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$350per night
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Iceland Parliament Hotel, Curio Collection by Hilton

Reykjavik $388/night Prices are approximate and vary by season 9.4/10

The name isn't subtle, but the location is genuinely hard to beat. Literally across from the Alþingi parliament building in the heart of the old city. At $388 it's Reykjavik's premium tier. The breakfast is worth factoring in. If you're here for a special trip and money isn't the priority, it delivers.

Address:Iceland Parliament Hotel, Curio Collection by Hilton, Thorvaldsenstræti 2-6, 101 Reykjavík, Iceland

Neighborhood:Centre

Rating breakdown

  • 5★86%
  • 4★10%
  • 3★1%
  • 2★1%
  • 1★2%

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$390per night
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$440per night
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Eric the Red Guesthouse

Reykjavik $128/night Prices are approximate and vary by season 9.2/10

Named after the Norse explorer, it's got character without being themed to death. On Skólavörðustígur, the art street that leads straight up to Hallgrímskirkja. At $128 you're in a smart location for less than half what the Hiltons cost. The rooms are smaller than the photos suggest. Pack light.

Address:Eric the Red Guesthouse, Eiríksgata 6, 101 Reykjavík, Iceland

Neighborhood:Downtown

Rating breakdown

  • 5★78%
  • 4★14%
  • 3★3%
  • 2★1%
  • 1★4%

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$140per night
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$140per night
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Reykjavík Marina - Berjaya Iceland Hotels

Reykjavik $162/night Prices are approximate and vary by season 9/10

Right on the old harbour, which means easy access to the whale watching boats and a short walk to the Harpa concert hall. At $162 this is solid value for a 4-star. It's not the newest hotel in town. But the location justifies it. Book a harbour-view room or don't bother.

Address:Reykjavík Marina - Berjaya Iceland Hotels, Mýrargata 2, 101 Reykjavík, Iceland

Neighborhood:Vesturbær

Rating breakdown

  • 5★66%
  • 4★25%
  • 3★6%
  • 2★2%
  • 1★1%

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$160per night
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$180per night
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$180per night
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Nordic Hostel & Apartments

Reykjavik $121/night Prices are approximate and vary by season 9.8/10

A 4.9 from 112 reviews is a serious signal. Small operation, clearly cared for. The apartment option gives you a kitchen, which matters in Reykjavik where a restaurant meal easily runs $40. Close to Hlemmur, the main bus hub. At $121, it's smarter value than most 4-star options in this city.

Address:Nordic Hostel & Apartments, Snorrabraut 56, 105 Reykjavík, Iceland

Neighborhood:Downtown

Rating breakdown

  • 5★94%
  • 4★5%
  • 3★0%
  • 2★0%
  • 1★1%

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$120per night
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Center Hotels Laugavegur

Reykjavik $178/night Prices are approximate and vary by season 9/10

On the main shopping street, which means excellent access to everything but also some street noise. The chain has several Reykjavik properties. This one earns its spot with consistently solid rooms and service. At $178, it's fairly priced for a central 4-star. Request a higher floor if noise is a concern.

Address:Center Hotels Laugavegur, 95-99 Laugavegur 95 - 99, 101 Reykjavík, Iceland

Neighborhood:Downtown

Rating breakdown

  • 5★68%
  • 4★22%
  • 3★5%
  • 2★2%
  • 1★3%

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$180per night
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$200per night
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$200per night
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Exeter Hotel

Reykjavik $168/night Prices are approximate and vary by season 9/10

Boutique feel in a classic building near Tjörnin pond and City Hall. The pond is a 3-minute walk. It's quieter than the Laugavegur hotels but still central. At $168 you're getting character and calm that chain hotels can't replicate. One caveat: parking is a mess everywhere downtown. Don't bring a car.

Address:Exeter Hotel, Tryggvagata 12, 101 Reykjavík, Iceland

Neighborhood:Centre

Rating breakdown

  • 5★71%
  • 4★21%
  • 3★4%
  • 2★2%
  • 1★2%

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$190per night
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Didn't find your match above? Here's every hotel in Reykjavik.

Every scored hotel in the city. Filter by price, rating, or type to find yours.

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# Hotel Our Score Guest Rating Reviews Type Price/Night Book
1 Hotel Reykjavík Saga 9.3 4.8 328 4★ $240/night Book →
2 Reykjavik Residence Apartment Hotel 9.2 4.7 572 4★ $150/night Book →
3 CityHub Reykjavik 9.2 4.8 252 2★ $70/night Book →
4 Canopy by Hilton Reykjavik City Centre 9.1 4.6 1 162 4★ $310/night Book →
5 Iceland Parliament Hotel, Curio Collection by Hilton 9.1 4.7 365 4★ $390/night Book →
6 Eric the Red Guesthouse 9.0 4.6 302 3★ $130/night Book →
7 Reykjavík Marina - Berjaya Iceland Hotels 9.0 4.5 1 485 4★ $160/night Book →
8 Nordic Hostel & Apartments 9.0 4.9 112 Apartment / Guesthouse $120/night Book →
9 Center Hotels Laugavegur 8.9 4.5 724 4★ $180/night Book →
10 Exeter Hotel 8.9 4.5 778 4★ $170/night Book →
11 The Reykjavik EDITION 8.9 4.5 826 5★ $670/night Book →
12 Muli Hotel 8.9 4.5 633 3★ $130/night Book →
13 Hotel Borg by Keahotels 8.9 4.5 589 4★ $280/night Book →
14 Hilton Reykjavik Nordica 8.8 4.4 2 260 4★ $230/night Book →
15 Fosshotel Reykjavík 8.8 4.4 2 335 4★ $180/night Book →
16 Grandi by Center Hotels 8.8 4.4 1 109 4★ $170/night Book →
17 Candlewood Suites Reykjavik by IHG - Studio Room 8.8 4.7 75 Apartment / Guesthouse $200/night Book →
18 Ion City Hotel 8.7 4.4 180 4★ $260/night Book →
19 Hotel Reykjavík Grand 8.6 4.3 2 169 4★ $190/night Book →
20 Baldursbrá Guesthouse - Triple Room with Shared Bathroom and Hot Tub Access 8.6 5.0 8 Apartment / Guesthouse $100/night Book →

Showing 20 of 39 hotels

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Where 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 hotel regions

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.

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.

Best areas Laugavegur, Austurvollur, Austurstraeti
Price range $160-310/night
Best for First-timers, foodies, city walkers
Avoid Street-facing rooms on Laugavegur if you sleep early
Best months June-August, October-November
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Old Harbour (Grandi) 1 vetted hotel

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.

Best areas Grandi, Grandagarður, Ægisgarður waterfront
Price range $390-700/night
Best for Luxury travelers, couples, design lovers
Avoid If walkability to nightlife is your priority
Best months May-September
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Hlemmur & Skuggahverfi 2 vetted hotels

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.

Best areas Hlemmur, Skuggahverfi, BSÍ area
Price range $120-230/night
Best for Value seekers, day-trip planners, repeat visitors
Avoid Nowhere specific. this area is genuinely fine
Best months September-March for best rates
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Arnarholl & Waterfront 1 vetted hotel

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.

Best areas Arnarholl, Harpa waterfront, Sæbraut
Price range $155-245/night
Best for Culture lovers, couples, Harpa concert-goers
Avoid If late-night bar access is your main need
Best months June-August for longest daylight hours
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Laugardalur 1 vetted hotel

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 Laugardalur, near the geothermal pool complex
Price range $62-95/night
Best for Budget travelers, backpackers, pool enthusiasts
Avoid If nightlife access or walkability is important
Best months October-April for lowest rates
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Best Areas by Vibe

Tell us how you travel.

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.


We reviewed 8,000+ options across the main regions of Reykjavik. We cut anything more than 20 minutes walk from Laugavegur without a compelling reason to be there. We cut hotels with misleading aurora-view claims. most rooms face concrete car parks. We cut hostels with shared bathrooms that charged boutique prices, and we dropped anything rated below 7.5 that couldn't justify it with location or value.

40%

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.

30%

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.

30%

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.

Every hotel on this page earned its spot through this process.


When to Visit Reykjavik

Hotel prices, crowds, and weather vary by season.

Peak

Summer (June-August)

Avg hotel: $175-450/nightCrowds: HighTemp: 10-15°C

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.

Budget Friendly

Winter (November-February)

Avg hotel: $85-195/nightCrowds: LowTemp: -2-4°C

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.

Warming Up

Spring (March-May)

Avg hotel: $120-245/nightCrowds: Low-ModerateTemp: 2-9°C

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.

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Booking Tips for Reykjavik

Smart booking strategies for 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.


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Hotels in Reykjavik, FAQ

Straight answers from our team.

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.


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