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Hotels & Accommodation in Reykjavik
Reykjavik is a small capital city, and nearly everything visitors come for sits within a 20-minute walk of the old center. Because Reykjavik is so compact, choosing a hotel here is rarely a question of distance from the sights.
The real decisions are which neighborhood you want to walk out into, how quiet you want your nights to be, and how much you are willing to pay in high season.
Which area of Reykjavik to stay in
Downtown Reykjavik (Midborg)
Hotels in downtown Reykjavik put you within walking distance of Laugavegur shopping street, Harpa Concert Hall, Hallgrimskirkja church, and most of the city's restaurants and bars. Downtown is also the loudest part of Reykjavik on Friday and Saturday nights, and the most expensive area for a hotel room. Staying downtown suits first-time visitors and anyone in Reykjavik for only two or three nights.
Reykjavik's Old Harbor and Grandi
Hotels near Reykjavik's Old Harbor and in the neighboring Grandi district sit a 10 to 15-minute walk west of Laugavegur, along the waterfront. The Old Harbor is where whale-watching boats depart, and Grandi is known for its seafood restaurants and galleries. Rooms around the Old Harbor are usually a little cheaper than rooms of the same standard in the downtown core, and the nights are quieter.
Laugardalur
Laugardalur lies east of downtown Reykjavik, roughly 30 minutes' walk or a short bus ride from the center. Hotels in Laugardalur are better value than those downtown, and parking is easier. Hotel Reykjavik Grand on Sigtun is a 4-star option in Laugardalur itself, and Reykjavik Lights Hotel is a 3-star one on Sudurlandsbraut, along the valley's southern edge. Laugardalur also holds Laugardalslaug, Reykjavik's largest geothermal pool, and the Reykjavik Botanical Garden.
Near Keflavik Airport
Hotels by Keflavik International Airport sit about 50 kilometers outside Reykjavik, so they are not a base for seeing the city. A night near Keflavik Airport is worth booking if you land in Iceland late at night or fly out before 7 a.m., because it saves you a 45-minute transfer at the start or end of your trip.
Types of accommodation in Reykjavik
Instead of scrolling through every Reykjavik property, start from the type of stay that fits your trip:
- Luxury hotels and design hotels suit travelers who want the room itself to be part of the trip.
- Budget hotels and hostels are the cheapest beds in Reykjavik.
- Holiday apartments and guesthouses work best for self-catering and longer stays.
- Family hotels have the room sizes and extra beds that groups traveling with children need.
- Hotels with hot tubs and northern lights hotels are built around winter trips.
The filters at the top of this page narrow Reykjavik accommodation by star rating, review score, parking, accessibility, and dozens of other amenities.
What Reykjavik accommodation costs, and when to book it
Reykjavik is an expensive city for accommodation by European standards, and room rates climb highest in summer.
- June through August is peak season in Reykjavik, when rates reach their annual high and the best-reviewed central hotels fill months in advance.
- Christmas and New Year's form a second, shorter peak, when Reykjavik hotels raise their rates and sell out well ahead.
- Late autumn through early spring is the cheapest window for a Reykjavik hotel, apart from northern lights weekends, which can tighten availability at short notice.
In every season, the most central Reykjavik hotels sell out first, so booking early buys you a better location rather than simply a lower price.
Getting from Keflavik Airport to your Reykjavik hotel
Keflavik International Airport is about 50 kilometers from Reykjavik, or roughly 45 to 50 minutes by road. Airport transfers between Keflavik and Reykjavik run either as scheduled buses that meet every arriving flight, with onward shuttles to most central Reykjavik hotels, or as private cars that take you door to door.
Parking and rental cars in Reykjavik
You do not need a car to get around Reykjavik itself, because the city center is walkable and served by Reykjavik's city buses.
- Street parking in central Reykjavik is paid during the day, and the rates are highest in the zones closest to the harbor.
- Many downtown Reykjavik hotels have no parking of their own, or charge separately for it, so check the hotel's parking arrangements before you book or start from hotels with free parking.
Using Reykjavik as a base for the rest of your trip
Reykjavik works well as a single base for a short trip to Iceland. The Golden Circle, the South Coast, and northern lights hunts all run as day tours from the capital.
Our study on how many days you need in Iceland found that six days suits a Reykjavik-based trip, giving you four full touring days plus your arrival and departure days.
Beyond roughly a week, basing yourself in Reykjavik means longer and longer day-tour drives in each direction. Travelers with a week or more generally see more by splitting their nights between the capital and accommodation near Iceland's other destinations.
Frequently asked questions
What are the best hotels in Reykjavik?
1. Tower Suites Reykjavik: A collection of eight luxurious penthouse suites near Laugavegur, with panoramic views of the city, Faxafloi Bay, and Mt. Esja.
2. Eyja Guldsmeden Hotel: An eco-friendly boutique hotel just off Laugavegur, offering cozy rooms with organic bedding and sustainable design.
3. The Reykjavik EDITION: A luxury hotel on the waterfront near Harpa Concert Hall, featuring 253 modern rooms, a Nordic-inspired spa, and a Michelin-recommended restaurant.
4. Sand Hotel: A stylish boutique hotel on Laugavegur with sleek interiors and a highly rated breakfast from the famous Sandholt Bakery.
5. Hotel Borg: A historic Art Deco hotel in downtown Reykjavik, known for its elegance and proximity to Iceland’s Parliament and top attractions.
What are the best hotels located in Reykjavik's city center?
1. Radisson Blu 1919 Hotel: Set in a historic building downtown, this hotel blends classic charm with modern amenities, including a restaurant, bar, and fitness center.
2. Hotel Borg: A landmark Art Deco hotel beside Iceland’s Parliament, offering spacious rooms and suites, and a central location near cafes and public squares.
3. Centerhotel Arnarhvoll: A stylish, centrally located hotel with rooms facing the ocean, harbor, and Mt. Esja, a restaurant, bar, and access to a fitness center.
4. Canopy by Hilton Reykjavik City Center: A modern hotel just steps from Laugavegur, featuring spacious rooms, a restaurant, bar, and fitness facilities.
5. Hotel Alda: Located on Laugavegur, this hotel is known for its sleek design, comfortable rooms, and central convenience.
What is the best 5-star hotel in Reykjavik?
What is the best area to stay in Reykjavik?
What types of accommodations are available in Reykjavik?
Why should I stay in Reykjavik during my trip to Iceland?
Staying in Reykjavik also makes it simple to explore top attractions like the Golden Circle, South Coast, Snaefellsnes Peninsula, or even begin a journey around the Ring Road.
Is it expensive to stay in Reykjavik?
Can I book cheap accommodation in Reykjavik as a budget traveler?
What types of accommodations in Reykjavik are best for families or groups of friends?
For those who don’t mind staying outside the city center, cottages near Reykjavik provide more space, independence, and a peaceful setting surrounded by nature. Staying close to attractions like Laugavegur Street, Perlan, or the harbor adds extra convenience for families traveling with children.
Is it better to stay in a hotel or an apartment in Reykjavik?
Apartments, on the other hand, offer more space, kitchen facilities, and flexibility—perfect for families, groups, or longer stays in the city.
What is the check-in and check-out time at Reykjavik hotels?
What is the best way to book a hotel in Reykjavik?
How far in advance should I book my hotel in Reykjavik?
What taxes or fees should I expect when booking a hotel in Reykjavik?
Do hotels in Reykjavik accept foreign currency or only Icelandic krona (ISK)?
How do I get from the international airport to my accommodation in Reykjavik?
Can I pick up my rental car directly from my accommodation in Reykjavik?
Can I go on a guided tour directly from my accommodation in Reykjavik?
What amenities can I expect at a hotel in Reykjavik?
Is breakfast included at hotels in Reykjavik?
Which Reykjavik hotels offer the best views?
1. Tower Suites Reykjavik: Enjoy panoramic views of the city, the ocean, and surrounding mountains from this luxurious, high-rise boutique hotel.
2. Storm Hotel: Relax with beautiful views of the harbor and easy access to central Reykjavik’s attractions.
3. Exeter Hotel: Stay by the waterfront with scenic views of Faxafloi Bay and close proximity to the Old Harbor.
4. CenterHotel Arnarhvoll: Take in sweeping views of the bay, Harpa Concert Hall, and Mount Esja from the hotel's upper floors and rooftop bar
Where should I stay in Iceland to see the northern lights?
1. Stay near dark-sky spots in Reykjavik: If you're based in the city, head just a few kilometers from downtown to Grotta Lighthouse on the Seltjarnarnes Peninsula, or hike up Oskjuhlid Hill near Perlan for a view over the capital and the night sky.
2. Join northern lights tours from Reykjavik: Book a tour that takes you out to sea or into the countryside, where there’s less artificial light and a higher chance of spotting the aurora in full display.
Do hotels in Reykjavik have parking?
Do Reykjavik hotels provide free Wi-Fi?
Are Reykjavik hotels and accommodations suitable for digital nomads or remote work?
Do hotels in Reykjavik have air conditioning?
Some Reykjavik hotels with air conditioning include Iceland Parliament Hotel, Curio Collection by Hilton, and Tower Suites Reykjavik.
Do Reykjavik hotels have gyms or fitness centers?
Are Reykjavik hotels pet-friendly?
and any additional cleaning fees.
Are Reykjavik hotels accessible for travelers with disabilities?
However, accessibility features vary, especially in older buildings. It’s best to check in advance with the hotel and request an accessible room if needed.
Do Reykjavik hotels offer airport transfers?
Can I store my luggage at a hotel in Reykjavik before check-in or after check-out?
Is Reykjavik a walkable city for hotel guests?
Can I find eco-friendly hotels in Reykjavik?
1. ION City Hotel: A modern, design-focused hotel that emphasizes sustainability through energy-efficient systems, eco-conscious materials, and support for local producers.
2. Eyja Guldsmeden Hotel: A stylish, eco-certified hotel that uses organic products, promotes waste reduction, and follows environmentally friendly practices throughout its operations.
What should I pack for a hotel stay in Reykjavik?
Is tipping required at hotels and accommodations in Reykjavik?
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