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The Best Hotels to Book in Iceland for Every Traveller

Choose a peaceful retreat with sweeping views of the Icelandic landscape
Choose a peaceful retreat with sweeping views of the Icelandic landscape | Courtesy of Hotel Kriunes / Expedia

Iceland is blessed with a vibrant capital city, glacier-capped mountains and a vast, volcanic landscape. It’s also home to incredible hotels, including former pharmacies, cosy guesthouses and contemporary pads. Explore Reykjavík and beyond from these top places to stay.

Hotel Borg by Keahotels

Chain Hotel, Spa Hotel

Cream sofas with wooden armrests in sleek suite with large windows and black and white art on the walls at Hotel Borg by Keahotels.
Courtesy of Hotel Borg by Keahotels / Expedia

Embrace the 1920s lifestyle at this grand, art deco hotel, overlooking Reykjavík’s Austurvöllur public square. Its 99 rooms and suites nod to this era, with monochrome colour schemes and marble bathrooms. The excellent onsite Borg Spa features a hot tub, sauna, steam bath and treatments, including aromatic massages and a full-body scrub with marine enzymes said to relieve jet lag.

101 Hotel

Boutique Hotel, Spa Hotel

Large canvas with clay faces on a white wall of a suite with a sleek fireplace, small tree trunk coffee table and black armchairs at 101 Hotel.
Courtesy of 101 Hotel / Expedia

This boutique hotel in downtown Reykjavík was once an office block. Today, it offers chic rooms, an excellent restaurant and comfort in spades. Expect bathrooms with underfloor heating, balconies with city views (in the larger rooms) and Bang & Olufsen speakers. The restaurant and bar, complete with a glass ceiling, is a local favourite – it features a menu with Icelandic and international cuisine, including hamburgers and pizza.

Hotel Keflavik

Hotel, Luxury

Leather couches and armchairs next to a blazing fire in a sitting area at Hotel Keflavik.
Courtesy of Hotel Keflavik / Expedia

Approximately 5km (3mi) from Keflavík International Airport, this four-star hotel has 70 well-decorated rooms, a fully equipped fitness centre and a restaurant. The decor is contemporary and elegant, with paintings of Icelandic scenes in the lobby and red carpets in some of the bedrooms. Breakfast is a good spread of cold meats, eggs and a generous selection of bread and pastries. Dinner is more formal – Icelandic cuisine with a fish and meat slant.

Hotel Jazz

Hotel, Budget Hotel

Twin beds with white sheets and leather headboard below a photo of an exploding volcano at Hotel Jazz.
Courtesy of Hotel Jazz / Expedia

Hotel Jazz is an ideal place if you’re looking for a bolthole near Keflavík International Airport; it has easy self-check-in, luggage storage and a taxi shuttle service. A self-service breakfast is also available from 4am, perfect before an early flight. Choose from single, double, twin and triple rooms – they all have wooden floors alongside coffee and cream colour schemes.

Hotel Kriunes

Hotel

Comfy leather armchairs on a raised platform in a wooden panelled lounge area with fairylights on the ceiling and a large window looking out onto the fjords at Hotel Kriunes.
Courtesy of Hotel Kriunes / Expedia

A 15-minute drive from the centre of Reykjavík, this family-owned hotel has friendly service, a relaxed atmosphere and expansive views of the mountains and Lake Elliðavatn. Look out for freshly caught trout from the lake and homegrown veggies on the hotel menu. Families are well catered for here, with large child-friendly rooms, while couples can enjoy the honeymoon suite with a four-poster bed and bathtub.

Kvosin Downtown Hotel

Boutique Hotel

Green sofa with comfy cushions in an airy room with a round metal table, picture of an autumnal tree and a vase of flowers at Kvosin Downtown Hotel.
Courtesy of Kvosin Downtown Hotel / Expedia

There’s a vibrant, boutique feeling to this hotel in the heart of Reykjavík, with its bold feature walls and plush bedding. Rooms range from cosy doubles to family-friendly boltholes that sleep up to six; all come with kitchenettes. Thick blackout curtains are ideal for the midnight sun, while smart bathrooms have organic, local toiletries. The lively downstairs bar, Aldamó, is popular with locals and serves light dishes and quality wines.

Eyja Guldsmeden Hotel

Hotel

A wooden four-poster bed, side table with a vase of flowers, and large windows in a hotel room at Eyja Guldsmeden Hotel.
Courtesy of Eyja Guldsmeden Hotel / Expedia

The atmosphere at this bohemian hotel is cool yet unpretentious. It sits inside a former office building and features exposed brick walls, graffiti art and industrial-style lighting. Each of the single, double and triple rooms comes in standard or superior categories and features a four-poster bed, parquet floors and organic toiletries. As the hotel is in downtown Reykjavík, you’ll be surrounded by cosy cafes, restaurants and shops, and the main sights are within striking distance.

Hotel Hilda

Hotel, Boutique Hotel

White washed exterior of Hotel Hilda with frosty lawn. Frosted glass conservatory to the left of the hotel.
Courtesy of Hotel Hilda / Expedia

For a homely, authentic stay in the capital, try the Hotel Hilda, a five-minute walk from the city centre. Host Margret makes you feel welcome from the moment you step inside, where the 15 cosy, ensuite rooms spread over four floors have pops of bright decor and photographs of Icelandic wildlife on the walls. Wake up to the sound of birds in the garden, and start the day with a breakfast buffet.

Apotek Hotel by Keahotels

Boutique Hotel

Double bed with grey throw in sleek, grey-toned room with chic wooden furniture at Apotek Hotel by Keahotels.
Courtesy of Apotek Hotel by Keahotels / Expedia

This centrally located hotel in Reykjavík has a great backstory – it’s set inside a building that served as the capital’s pharmacy from 1930 until 1999. The restaurant is a local favourite; its former days are visible in the walls stacked with glass medicine bottles and “pharmacist” cocktails. The duck and waffle starter is a highlight. All 45 rooms and suites are smart and include flat-screen TVs, Bluetooth speakers and Nespresso machines.

Still not sorted your stay? Browse our selection of the best boutique hotels in Iceland, or budget hotels in Iceland. If lavish stays are more your thing, then take a look at our top picks for the island’s best luxury stays. For the most relaxing break, book a room at one of Iceland’s top spa and wellness hotels.

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