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
Hotel Cabin
Budget hotel with compact cabin-style rooms close to the seafront walking path.
Check rates on Booking.comGuesthouse Sunna
Small guesthouse with apartments below Hallgrimskirkja church.
Check rates on Booking.comKEX Hostel
Design-led hostel in a former biscuit factory with a popular bar and dorm and private rooms.
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Hostel inside the Hlemmur bus terminal building with private rooms and dorms, beside the Hlemmur food hall.
Check rates on Booking.comLoft Hostel
Hostel on Bankastræti with a rooftop bar and dorm and private options.
Check rates on Booking.comReykjavik Downtown Hostel
Hostel near the old harbour with dorms and private rooms.
Check rates on Booking.comReykjavik City Hostel
Hostel next to the Laugardalur campsite and the Laugardalslaug pool.
Check rates on Booking.comMid-range
Icelandair Hotel Reykjavik Marina
Harbourfront hotel with an industrial-maritime theme and an on-site slipway bar and cinema.
Check rates on Booking.comIcelandair Hotel Reykjavik Natura
Four-star hotel next to Reykjavik domestic airport and the Nauthólsvík geothermal beach with a spa.
Check rates on Booking.comHilton Reykjavik Nordica
Business-oriented four-star hotel with the Nordica Spa, a short bus ride from the centre.
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Large hotel near Laugardalur park, the botanical garden and the Laugardalslaug pool.
Check rates on Booking.comRadisson Blu Saga Hotel Reykjavik
Landmark hotel on Hagatorg square beside the University of Iceland.
Check rates on Booking.comFosshotel Reykjavik
Tall four-star hotel with views over the bay and a restaurant on the upper floors.
Check rates on Booking.comFosshotel Baron
Three-star hotel with studio-style rooms two blocks from Hlemmur and a sea-view roof.
Check rates on Booking.comFosshotel Rauðará
Three-star hotel on a quiet street with a short walk to Hlemmur and Laugavegur.
Check rates on Booking.comCenter Hotels Plaza
Four-star hotel on the oldest street in Reykjavik with a bar overlooking Ingólfstorg.
Check rates on Booking.comCenter Hotels Arnarhvoll
Waterside hotel facing the sea and Harpa with a Nordic-style restaurant.
Check rates on Booking.comCenter Hotels Miðgarður
Three-star hotel at the quieter east end of Laugavegur, close to Hlemmur.
Check rates on Booking.comCenter Hotels Þingholt
Four-star hotel in the Þingholt quarter between Laugavegur and the pond.
Check rates on Booking.comCenter Hotels Laugavegur
Three-star hotel on the main shopping street with a short walk to Hlemmur.
Check rates on Booking.comHotel Frón
Apartment-style hotel in the middle of Laugavegur with kitchens in the rooms.
Check rates on Booking.comHotel Klettur
Three-star hotel in a quiet residential block east of the centre.
Check rates on Booking.comHotel Óðinsve
Small hotel on Óðinstorg square, a few steps from Hallgrimskirkja.
Check rates on Booking.comHotel Reykjavik Centrum
Hotel on Aðalstræti built beside the remains of a Viking-age longhouse shown in the Settlement Exhibition.
Check rates on Booking.comHotel Reykjavik Metropolitan
Three-star hotel in the west-town residential streets near the old harbour.
Check rates on Booking.comExeter Hotel
Three-star hotel in the old harbour district close to whale-watching departures.
Check rates on Booking.comAlda Hotel Reykjavik
Modern hotel on Laugavegur with a ground-floor bistro.
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Four-star hotel in a 1930s building on the main shopping street.
Check rates on Booking.comSkuggi Hotel by Keahotels
Three-star hotel on Hverfisgata with a restaurant and bar, a short walk to Hlemmur.
Check rates on Booking.comStorm Hotel by Keahotels
Three-star hotel in the Borgartún business district near the Sun Voyager sculpture.
Check rates on Booking.comReykjavik Lights Hotel by Keahotels
Three-star hotel in the Suðurlandsbraut area near Laugardalur, a short bus ride from the centre.
Check rates on Booking.comEyja Guldsmeden Hotel
Eco-focused Guldsmeden hotel with an organic breakfast, east of Hlemmur.
Check rates on Booking.comReykjavik Residence Hotel
Apartment hotel with fully equipped kitchens in the heart of the centre.
Check rates on Booking.comReykjavik Marina Residences
Apartment-hotel units on the old harbour with kitchens and views over the bay.
Check rates on Booking.comLuxury
The Reykjavik EDITION
Five-star design hotel beside Harpa concert hall with a rooftop bar and harbour views.
Check rates on Booking.comCanopy by Hilton Reykjavik City Centre
Contemporary four-star hotel in the shopping and nightlife quarter close to Hallgrimskirkja.
Check rates on Booking.comHotel Borg
Art Deco hotel opened in 1930 facing Austurvöllur square and the Parliament.
Check rates on Booking.comHotel Holt
Boutique hotel known for its collection of Icelandic art and a quiet residential setting.
Check rates on Booking.comRadisson Blu 1919 Hotel
Four-star hotel in the 1919-built former Eimskip headquarters near the harbour.
Check rates on Booking.comReykjavik Konsulat Hotel, Curio Collection by Hilton
Curio Collection hotel in a restored 1914 building on the old town harbour street.
Check rates on Booking.comIceland Parliament Hotel, Curio Collection by Hilton
Upscale hotel beside the Alþingi building and Austurvöllur square.
Check rates on Booking.comApotek Hotel by Keahotels
Boutique hotel in a historic pharmacy building at the junction of Austurstræti and Pósthússtræti.
Check rates on Booking.comTower Suites Reykjavik
Apartment-style suites in a tower on the seafront with sea-facing views.
Check rates on Booking.comBest neighborhoods to stay
Choose your base based on your interests and travel style.
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
Laugavegur and Þingholt
The main shopping street and the quiet streets below Hallgrimskirkja, with cafes, bars and boutiques.
Best for: First-timers, nightlife, shopping
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
Hlemmur and Borgartún
Transport hub with the Hlemmur food hall and the business district along the seafront path.
Best for: Lower prices, bus connections
Laugardalur
Park district with the geothermal Laugardalslaug pool, the botanical garden, the zoo and campsite.
Best for: Families, pool lovers, car travellers
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.
The Reykjavik EDITION
Five-star design hotel beside Harpa concert hall with a rooftop bar and harbour views.
Check rates on Booking.comCanopy by Hilton Reykjavik City Centre
Contemporary four-star hotel in the shopping and nightlife quarter close to Hallgrimskirkja.
Check rates on Booking.comHotel Borg
Art Deco hotel opened in 1930 facing Austurvöllur square and the Parliament.
Check rates on Booking.comHotel Holt
Boutique hotel known for its collection of Icelandic art and a quiet residential setting.
Check rates on Booking.comRadisson Blu 1919 Hotel
Four-star hotel in the 1919-built former Eimskip headquarters near the harbour.
Check rates on Booking.comReykjavik Konsulat Hotel, Curio Collection by Hilton
Curio Collection hotel in a restored 1914 building on the old town harbour street.
Check rates on Booking.comBooking tips
Get the best deals and avoid common mistakes.
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.
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.
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).
Hotels near Hlemmur and Borgartún are often 20-40 percent cheaper than those on Laugavegur and still within a 15-minute walk of Hallgrimskirkja.
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.
Guesthouses
Family-run guesthouses offer authentic local experiences and often include home-cooked meals. Great for cultural immersion.
Serviced apartments
Ideal for longer stays or families. Kitchen facilities help save money and provide flexibility.
Hostels
Budget-friendly option for solo travelers. Dorms and private rooms available with social common areas.