The Best Hotels to Book in Iceland for Every Traveller

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.

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.

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.

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.

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.

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.

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.

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.