Where to Stay in Reykjavik 2024: Hotel Guide for Tourists (+Map & Tips)

Planning a trip to Iceland’s capital city and wondering where to stay on your first visit? In this guide, we share our experience-based tips and suggestions for the very best places to stay in Reykjavik.

We also include our hand-picked hotel recommendations at the most central location in Reykjavik, for all budgets.

Whether you are looking for a place to stay for sightseeing in the city, for tours and day trips nearby, or when traveling by car as part of a longer road trip in Iceland, this guide will help you choose the best places to stay in Reykjavik close to everything.

For more information and our hand-picked recommendations for the best places to stay in Reykjavik, see the detailed guide below. But first – some of my personal favorites in the best area.

My Favorite Hotels in Reykjavik

Reykjavik is not a big city and the center is very walkable. However, figuring out where to stay in Reykjavik requires a bit of research. The biggest challenge lies in finding the best-located accommodation within your budget.

If you don’t have the time to read the entire article or do extensive research and are looking for insider tips on the very best places to stay in Reykjavik, here are my personal favorite hotels for your first visit.

Simply click on the hotel name for more details and rates:

• The most luxurious accommodation is Tower Suites Reykjavik, with modern spacious rooms and unparalleled views.

• Most popular/ great value: Grandi by Center Hotels. This mid-budget 4* hotel offers excellent value at a rather central location next to the harbor and 10-15 minutes walk from the main shopping streets in the old town. It also features an amazing spa area with hot tubs and a sauna.

• Our readers’ favorite: Canopy by Hilton. This higher-budget hotel is located in the heart of the old town, pretty much as central as it gets. It stands out with its modern minimalistic Icelandic design.

• If you are looking for lower-budget accommodations in the center, you can’t go wrong with Refurinn Reykjavik Guesthouse or Student Hostel.

• If you have a car and need a hotel with parking, Eyja Guldsmeden Hotel is one of the very best options within walking distance of the most central area.

READ ALSO: Best Things to Do in Reykjavik

   

Best Area to Stay in Reykjavik

Miðborg (Midborg), aka Reykjavik 101, is the downtown neighborhood of Reykjavik where you’ll find most shops, cafes, restaurants, bars, and tourist sights. It’s the heart of the city and by far the best place to stay in Reykjavik. However, Midborg is a big area and some places are quite far away from the main tourist areas.

The very best area to stay in Reykjavik is in the center of town, north of Hallgrimskirjka, the main church of Reykjavik. We indicated this area in red on our map of central Reykjavik (see above).

This part of the city is centrally located for sightseeing, and you can easily explore the main sights of Reykjavik on foot. All guided tours will pick you up from here and it’s quite easy to reach with an airport transfer from Keflavik (Reykjavik’s international airport). Reykjavik’s domestic airport is also located nearby.

Below, you can find our detailed guide with the best hotels in Reykjavik city center. As much as possible, all our suggestions are focused on the very best location. Take a look!

     

Reykjavik Hotels with the Best Location for Sightseeing

If you are looking for the best-located hotels in Reykjavik, take a look at our selection below. We feature several hotels for different budgets.

• Reykjavik Residence Apartment Hotel. This 4* hotel features studios, suites, and apartments for all group sizes. It combines hotel services with self-catering facilities giving you complete freedom and also the possibility to save money for dining. It has a quiet yet very central location, within walking distance of everything in the city center. No wonder that it’s one of the best sellers in Reykjavik on Booking.com.

• Canopy by Hilton. This modern 4* hotel has rooms and suites for 1-3 people. It’s our readers’ favorite, the hotel we see mentioned in our Iceland and Scandinavia travel group on Facebook time and again.

• Reykjavik Konsulat Hotel is one of the coziest boutique hotels in Reykjavik’s old town. It’s part of the Curio Collection By Hilton = a more unique, intimate experience.

• Hotel Frón. This 3* hotel is one of the best price-quality-location hotels in Reykjavik. A very popular choice and if you get breakfast included in the rate, this hotel offers some of the best value for your money in the most central location.

• Hotel Local 101. This recently renovated hotel offers competitive rates in a quiet central location. Privately owned and with Icelandic touches in every detail, this boutique accommodation is a charming alternative to big-name chains. From Icelandic art and music to locally-inspired cuisine and Iceland-made toiletries, it’s designed to give you a more authentic experience.

• Loft – HI Hostel. A very popular hotel/ hostel combo. Offers accommodation ranging from a bunk bed in a shared room to big private rooms with private bathrooms. Prices vary a lot depending on which room you choose.

TIP: Using the map below, you can easily compare hotels, apartments, and short-term rentals in Reykjavik city center. Simply insert your travel dates and group size and you’ll quickly see all the best options in the very best area.

     

Most Popular Hotels in Reykjavik City Center

Below is a selection of the most popular hotels in Reykjavik city center. Some of them are located just a bit further away, but all of them are still within easy walking distance from the main areas, shops, and restaurants.

All these hotels are good for sightseeing in the city and also for tours and excursions from Reykjavik.

Also here, we feature a few of the most popular Reykjavik hotels for all budgets, sorted approx. from the most expensive to the cheapest.

• Grandi by Center Hotels and Exeter Hotel. These extremely popular 4* hotels offer some of the best price/quality ratio in Reykjavik center. Their central location close to the harbor is also very convenient for tours and airport transfers.

• Reykjavik Marina Hotel. A very popular 4* hotel close to the harbor. Some of the best customer reviews in its price range. Excellent choice with rooms in different budget categories.

• CenterHotel Plaza. This 3* modern hotel is one of the top picks in central Reykjavik. It’s located on the western end of the city center, close to the lake, the harbor, several museums, and many restaurants.

• Reykjavik Residence Apartment Hotel. Already mentioned for its great location, this 4* hotel is also one of the most popular choices in central Reykjavik. It’s also great for bigger families and offers a self-catering option in addition to hotel facilities.

• Hotel Frón. This highly-rated 3* hotel was already mentioned in our selection of the best-located hotels in Reykjavik. Excellent value within a mid-range budget.

   

Best Budget Hotels in Central Reykjavik

As already mentioned, accommodation in Reykjavik isn’t cheap. Especially if you stay in the best area. And while there are cheaper options too, central location can save you money on transportation, so it’s usually worth it.

In our selection below, we feature the best budget hotels in Reykjavik. ‘Budget’ is relative in such an expensive destination as Iceland. For this selection, we start with the best-rated cheapish hotels, those that offer the best quality at a lower price. Further below, you find even lower-budget hotels, but customer reviews aren’t that great.

• Student Hostel. This modern hostel is the best-rated lower-budget accommodation in Reykjavik town center.

• Refurinn Reykjavik Guesthouse. This is one of the best-sellers among budget hotels in the center of Reykjavik. If you don’t mind a shared bathroom, it offers excellent value at a very good location within walking distance of the main sights.

• Grettir Guesthouse. One of the best-rated lower-budget accommodations in the heart of the city center.

• Igdlo Guesthouse. This popular guesthouse also has budget rooms for families or groups of friends. Great value if you are traveling in a group of 3-4 people and don’t mind shared bathrooms and a 10-20 min walk to the main sights and restaurants.

• Guesthouse Pavi. If you are looking for a budget stay in Reykjavik and also want to have a private bathroom, then this is by far the cheapest option. It’s somewhat further from the main sights, but still very walkable. Customer reviews aren’t great and most bookings are non-refundable, but if you just need a cheap place to stay in Reykjavik, it’s a very good choice.

TIP: When looking for a budget hotel in Reykjavik, keep in mind that some hotels offer free breakfast and free cancelation. Also, some of the cheaper accommodations only have shared bathrooms. In addition, it’s also worth checking what’s available within your budget for your travel dates as some more expensive hotels sometimes also offer discounts.

   

Best Reykjavik Hotels with Parking

If you are renting a car for your trip in Iceland and are also planning to stay in Reykjavik for a night or two, keep in mind that it’s not easy to find a parking space in the city center. Not even to mention the parking cost.

So if you have a car, it’s better to stay outside the city or just outside the city center. Here are some of the best hotels in central Reykjavik with parking:

• Eyja Guldsmeden Hotel. This beautiful 4* hotel has some of the best ratings in Reykjavik. Located just on the outskirts of the city center, it’s still within easy walking distance to everything. AND it has convenient free parking.

• Hotel Klettur. This is an excellent value 3* hotel with complimentary parking. The location is similar to the previously mentioned hotel, closet several supermarkets, and about 10-15 min walking distance from Hallgrimskirkja and other central attractions.

• Fosshótel Rauðará. This is a great quality-price 3* hotel with easy parking, but – at the time of the last update – it’s not free anymore. About 10-15 minutes walk from the main central areas.

• Reykjavik Natura Hotel. This is a great value 4* hotel just outside Reykjavik city center. It’s located near the Domestic Airport and close to the big roads. Easy to get to and there’s a big free car parking right at the front door. While not exactly next door, you can walk to the city center in about 20-25 minutes.

   

Reykjavik Hotels with Best Views

Reykjavik is located by the sea and some hotels have amazing views! Here are some of the best Reykjavik hotels with the nicest views, just keep in mind that you also have to choose a room with a view!

• Tower Suites Reykjavik. This all-suites hotel is one of the most luxurious hotels in Reykjavik. The views are amazing, but so is the price!

• CenterHotel Arnarhvoll. Already mentioned as one of the most popular hotels in the city, it’s not only centrally located, offers a good price-quality ratio for a 4* hotel, but also has rooms with beautiful sea views.

• FossHotel Reykjavik. A fabulous 4* hotel with amazing sea views from some rooms and city views from most other rooms. We once stayed here and loved it. It’s a bit outside of the main central area, but just a few minutes on foot and totally walkable even in winter.

• Reykjavik Marina Hotel. A beautiful 4* hotel next to the harbor. Some rooms have sea views, but it’s more harbor views actually. Nevertheless, the hotel has a nice location, is not too far from everything, and offers very good value for your money.

• Alda Hotel Reykjavík. This is a very popular and very centrally located 4* hotel that has a couple of rooms with a balcony and (far) sea view. It’s not as high as the other hotels in our selection and so sea views are just partial, behind the rooftops of other buildings.

   

Best Luxury Hotels in Reykjavik

There aren’t many 5* hotels in Reykjavik. In fact, there is just one. But there are some really nice luxury hotels in the city center. Here are our top recommendations:

• Tower Suites Reykjavik. One of the most luxurious and most expensive hotels in Reykjavik. The views are superb too!

• Black Pearl Apartment Hotel. This 5* Reykjavik hotel offers somewhat more affordable luxury. It has beautiful self-catering apartments for various group sizes, an excellent location in the city center, and is one of the highest-rated hotels in Reykjavik.

• Reykjavik Konsulat Hotel, Curio Collection By Hilton. This beautiful boutique 4* hotel offers excellent value for those looking for a more affordable luxury stay in Reykjavik.

   

Best Reykjavik Hotels for Northern Lights

If you are looking for the best Reykjavik hotels for the Northern Lights, you should know that it’s really not easy to see auroras in the city (let alone from your room) and it’s best to take a Northern Lights tour.

That being said, if aurora activity is exceptionally high and the sky is clear, you might be able to see auroras in the city despite the light pollution. In that case, it’s best to simply walk to the harbor. Your chances of seeing the Northern Lights from your hotel room window are really slim.

But if you want to have a chance to see the Northern Lights from your hotel room, then you should book a room with sea view in one of the hotels we already mentioned above.

Here are the best Reykjavik hotels for Northern Lights:

• FossHotel Reykjavik.
• CenterHotel Arnarhvoll.
• Tower Suites Reykjavik.

Good to know: One of the best places for watching the Northern Lights in Reykjavik is near the Grótta Island Lighthouse in the city neighborhood called Seltjarnarnes). It’s as far from the lights of the city as possible. However, you can’t easily walk there as it’s about 5 km outside of the city center and there are no hotels in that area.

Another good place to see auroras in Reykjavik is the hill where Perlan Museum is located, about 30-40 minutes walk from the city center.

READ ALSO: Northern Lights in Iceland – All Your Questions Answered

Reykjavik Accommodation for Families

Reykjavik has many hotels for all budgets, but the majority of them only offer rooms for 2 or 3 people, sometimes – 4. Luckily, there are also a few good choices in the city center for bigger families of 5-6 people or even more.

Here are some of the best centrally located hotels that offer family rooms or apartments for big families, sorted by price:

• Black Pearl Apartment Hotel. Luxury apartments for up to 6 guests.

• Reykjavik Residence Apartment Hotel. Beautiful hotel with suites and apartments for up to 6 people.

• Kvosin Downtown Hotel. Rooms and apartments for up to 5 people.

• Rey Apartments and Reykjavik4You Apartments. Beautiful centrally-located apartments for up to 6-8 people.

• Hotel Ódinsvé & Ódinsvé Hotel Apartments. Mid-range budget hotel with rooms and apartments for up to 5 people.

   

Best Reykjavik Hotels with Airport Transfer

International Keflavik Airport is located about 45 minutes drive from Reykjavik. So many first-time travelers are looking for a hotel with an airport transfer. However, most Reykjavik hotels don’t have their own shuttle services. They simply use buses and private transfers that you could easily also arrange yourself (and cheaper!).

TIP: This is the most convenient shuttle bus to/from the airport. If you prefer a private transfer, you can find the best options here.

All the hotels featured in our article are quite easy to reach with an airport transfer. So you can simply book any Reykjavik hotel in the city center and you won’t have trouble getting there from the airport.

That said, buses aren’t allowed to drive in the old town, so – depending on the exact location of your hotel, you may have to walk a little bit.

For more information about getting to Reykjavik from Keflavik airport (and vice versa), please check our complete guide via the link below. It contains all the information you need to know.

LEARN MORE: Reykjavik – Keflavik Airport Transfers

   

Where to stay near Reykjavik Domestic Airport

Reykjavik Airport is also known as a domestic airport (code RKV). This airport is located very close to the city center and is not to be confused with the international Keflavik Airport (KEF) where most visitors arrive in Iceland.

For example, flights to Akureyri in northern Iceland or to Ísafjörður in the Westfjords depart from here. Also some flights to Greenland operate from domestic airport.

Anyhow, if you are taking a flight from the domestic airport and are looking for a hotel to stay nearby, you should know that there are no hotels that offer direct access to the domestic airport in Reykjavik. Reykjavik Natura Hotel, which literally borders the domestic airport, is actually a 2.5 km, 30-minute walk from the entrance. And they do not have a shuttle…

On our recent trip to Greenland, we needed a hotel near Reykjavik Airport twice. We chose to stay close to Hallgrimskirkja Church, about 2 km away. This location is very central and close to everything in town, plus, there is a city bus #15 that goes to the domestic airport.

Some of the nicest accommodations in this area are Guesthouse Sunna, Guesthouse Galtafell, and Travel Inn. If you don’t have much luggage and the weather is really nice, you could even walk to the airport from these hotels. Alternatively, take a bus or a taxi – it’s literally less than 5 minutes by car.

So, this is our guide to Reykjavik hotels. I hope that it will help you find the best accommodation option for your stay!

TIP: If you are looking for additional information for your trip to Iceland, please check some of our suggested articles below. Alternatively, see our Iceland Travel Guide for even more practical information and travel inspiration for a big variety of destinations in Iceland.

Itineraries & accommodation:

• Where to Stay in Iceland (accommodation suggestions for all the popular areas)
• Iceland Itinerary Suggestions (for any trip, from 1 to 14 days)
• 10 Days Ring Road Itinerary (complete circle)
• 4 Days in Iceland (detailed South Coast itinerary)
• 7 Days in Iceland (detailed South & West Iceland itinerary)
• 10 Days in North & West Iceland

Essential travel tips for Iceland:

• Iceland Travel Tips
• How Expensive is Iceland
• What to Wear in Iceland in Summer
• What to Wear in Iceland in Winter
• When to visit Iceland – Summer vs Winter

Reykjavik & surroundings:

• One Day in Reykjavik
• Is Reykjavik Worth Visiting?
• What to See in Reykjavik
• Perlan Museum in Reykjavik
• Best Half-Day Tours from Reykjavik
• Best Day Trips from Reykjavik (all seasons)
• Best Winter Tours from Reykjavik
• Reykjanes Peninsula
• Best Places to See on the South Coast of Iceland

   

Reykjavik Hotels FAQ

READ ALSO: Best Places to Visit in Iceland

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