Best Hotels in Reykjavik, Iceland: From Cheap to Luxury Accommodations and Places to Stay

Iceland is the perfect destination for seasoned travelers and adventure enthusiasts. Called the ‘Land of Fire and Ice’, the country is well-known for its towering waterfalls, blue glaciers, and other striking sceneries. Aside from that, it has gained more global popularity given that it is one of the best places in the world to witness the magical Aurora Borealis or Northern Lights! (Best Hotels in Reykjavik)

All of these unique landscapes and natural wonders even perfectly complement the modern capital of Reykjavik that has a quaint café culture and vibrant nightlife. It may be the country’s political and economic center, but it has preserved a nostalgic ambiance that is free of any grand skyscrapers.

RELATED READ: 10-Day Iceland Itinerary

As a tourist, you would usually be inclined to rent a car or camper van as you go around the famed Golden Circle or RinG Road route — but for those who are short on time and are in need of a good base, staying at Reykjavik is a prime choice. To help you plan your trip even better, check out this list of the best budget and luxury hotels in Reykjavik!

Best Budget Hotels in Reykjavik

KEX Hostel

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Housed in an old biscuit factory, this quaint hostel is just steps away from the center of Reykjavik. Guests will enjoy a number of modern amenities here and more!

To love: Good value deal | Landmark: Hallgrímskirkja Church | Price starts from: $22~

Hlemmur Square

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Features an outdoor pool and a stone-paved sun terrace with a sea view. This family-run complex also includes a bar and restaurant.

To love: Luxurious ambiance | Landmark: The David Collection | Price starts from: $22~

Reykjavik- Loft HI Hostel

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Featuring a lounge, bar, and rooftop terrace with a city view, this one of the best hostels in Reykjavik that’s just a few steps away from the main hub. It also has a self-catering kitchen and lockers for guest’s valuables.

To love: Rooftop terrace | Landmark: 101 Reykjavik Street Food | Price starts from: $22~

Reykjavik City HI Hostel

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This eco-certified hostel is beside the geothermally heated Laugardalslaug Swimming Pool and it features a coffee bar, three communal kitchens, and private parking space.

To love: Bar, restaurant | Landmark: Lauga-as | Price starts from: $25~

Galaxy Pod Hostel

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Experience sleeping in a unique capsule bed in this modern hostel! There are also regular bunk beds you can choose from and fun amenities like the playroom with VR games.

To love: Amenities like the playroom | Landmark: Háteigskirkja | Price starts from: $40~

Best Luxury Hotels in Reykjavik

Reykjavik Konsulat Hotel

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This is one of the best hotels in Reykjavik if you’re looking for luxury. Each hotel room comes with a balcony and is equipped with lush amenities.

To love: Hot tub, wellness spa | Landmark: Icelandic Street Food | Price starts from: $220~

101 Hotel

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This sleek and modern boutique hotel is located in central Reykjavik and offers a fitness center, wellness spa facilities and also houses a stylish restaurant and bar.

To love: Traditional Icelandic cuisine at in-house restaurant | Landmark: Mink Viking Portrait Studio | Price starts from: $250~

Black Pearl- Reykjavik Finest Apartments

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Features bright and spacious apartment suites with large windows, fully-equipped kitchen & heated floors. You’ll have everything you need here and so much more.

To love: Spacious rooms, modern equipment | Landmark: Matarkjallarinn- Food Cellar | Price starts from: $350~

Tower Suites Reykjavik

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Located on the 20th floor of a glass tower, these stylish penthouse suites are located in central Reykjavik and feature panoramic views of the city or sea.

To love: Panoramic view of the city | Landmark: Reykjavik Escape | Price starts from: $550~

Diamond Suites Hotel

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Located 30 minutes outside Reykjavik, this offers a wide range of recreational facilities and excellent services. Guests can have a relaxing dip at the luxury spa hot tub and more!

To love: Luxurious features like hot tub, etc. | Landmark: Olsen Olsen | Price starts from: $900~

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