The Best Luxury Hotels to Book in Reykjavík, Iceland

Enjoy the views and stylish decor at Tower Suites in Reykjavík, Iceland
Enjoy the views and stylish decor at Tower Suites in Reykjavík, Iceland | Courtesy of Tower Suites Reykjavik / Expedia
Ellie Ross

Explore the Icelandic capital from a luxurious base, complete with fine Nordic cuisine and Aurora Borealis views.

Looking for a hotel that’s a cut above the average? Whether you’re after an in-room sauna or an outdoor hot tub for gazing at the Northern Lights, Reykjavík is home to a whole host of luxury hotels. Here’s our pick of some of the best the capital has to offer.

1. Hotel Holt

Boutique Hotel

Low-lit interior of a seating area at Hotel Holt, Reykjavik, with leather sofas, lamps, and book-lined walls
Courtesy of Hotel Holt / Expedia

A gallery without the crowds sounds like luxury to us. Hotel Holt is home to the largest private collection of Icelandic art. Delve into it on the twice-weekly guided walk around the hotel, which is crammed with hundreds of seascapes, stoneware reliefs and bronze sculptures. The 42 rooms are classically styled and feature original paintings. Dinner at the smart Holt restaurant is excellent, with organic wines to match.

2. Kvosin Downtown Hotel

Boutique Hotel

Close-up inside a room at Kvosin Downtown Hotel, with large double bed, two small bedside tables and two overhanging lamps
Courtesy of Kvosin Downtown Hotel / Expedia

Expect rooms with plush bedding, thick blackout curtains and organic, local toiletries at this boutique hotel, located next to Austurvöllur park. Choose from four categories ranging from cosy doubles to family-friendly boltholes that sleep up to six. Aldamót, the lively hotel bar, is popular with locals and serves light dishes and quality wines.

3. 101 Hotel

Boutique Hotel, Spa Hotel

A modern monochrome bedroom interior at 101 Hotel, Reykjavik, with a double bed and desk by the window
Courtesy of 101 Hotel / Expedia

Once an office block in downtown Reykjavík, this sleek boutique hotel offers minimalist rooms and bags of comfort. The decor is monochrome, and luxurious touches include bathrooms with underfloor heating and Bang & Olufsen speakers. The larger rooms have balconies with city views. Join locals beneath the glass ceiling in the restaurant and bar for everything from hamburgers to fine cuisine.

4. Hotel Odinsve


Light-filled suite at Hotel Odinsve, with kitchen and breakfast bar, six-person dining table and sitting area with sofa and TV
Courtesy of Hotel Óðinsvé / Expedia

The 50 rooms and suites of this centrally located hotel welcome you with a cool, pared-back style. Think neutral colour schemes, elegant wood floors and lots of natural light entering through french doors and large windows. For a more luxurious option, book a junior suite – split over two floors, offering great views – or a luxury apartment with self-catering flexibility. Snaps restaurant has a bistro vibe with cosy booths and a superb brunch menu – try the pancakes with Icelandic blueberries.

5. Hotel Borg by Keahotels

Chain Hotel, Spa Hotel

Tiled spa interior at Hotel Borg by Keahotels, Reykjavik, with a hot tub and lounger chairs
Courtesy of Hotel Borg by Keahotels / Expedia

If you enjoy the grandeur of Art Deco style, look no further than this landmark hotel, overlooking Austurvöllur square. Its 99 rooms and suites feature black-and-white colour schemes, geometric cushions and smart marble bathrooms. There’s also an excellent spa with a hot tub, a sauna, a steam bath and a range of treatments, including marine enzyme conditioning for the whole body that’s said to relieve jet lag.

6. Reykjavik Konsulat Hotel, Curio Collection by Hilton


Tiled spa interior at Reykjavik Konsulat Hotel, Curio Collection by Hilton, with a hot tub and egg chair suspended from the ceiling in the foreground, and a relaxation area in the background
Courtesy of Reykjavik Konsulat Hotel, Curio Collection by Hilton / Expedia

Dating back to the 1900s, this former department store was transformed into the luxury, contemporary hotel that you see today. Little luxuries, such as the sauna and whirlpool, blend well with heritage touches like the exposed original stone walls. Rooms range in size from twin, queen and king to large suites with leather sofas, fresh flowers and private terraces. The restaurant – Gott Reykjavík – serves local, homemade dishes like grilled eldfell burger and creamy seafood soup.

7. Ion City Hotel

Boutique Hotel, Luxury

Modern suite interior at Ion City Hotel, with sitting and dining areas in the midground and a doorway leading to a bedroom in the background
Courtesy of Ion City Hotel / Expedia

There’s a cool, edgy design to this hotel with its hanging seats and mirrored corridors. Standard doubles come complete with egyptian-cotton linen, organic toiletries and a window sofa. Upgrade to a premium suite with panoramic views, a private sauna and a freestanding bathtub. Downstairs, Sumac restaurant serves Middle Eastern mezze, such as crispy falafel and grilled lamb ribs.

8. Tower Suites Reykjavik

Luxury, Chain Hotel

Spacious corner suite interior at Tower Suites Reykjavik, with hardwood parquet flooring, a sitting area with a large TV, a bar, and floor-to-ceiling windows across two walls
Courtesy of Tower Suites Reykjavik / Expedia

Views don’t get much better than this. The eight luxurious suites here are positioned on the 20th floor and offer the highest viewpoint in Reykjavík. Each has its own distinctive character – from the Vífilsfell suite, with its freestanding bathtub looking towards the mountains, to the Akrafjall room overlooking the ocean. Telescopes and the self-serve Honesty Bar are thoughtful touches.

9. Alda Hotel Reykjavik


Spacious suite interior on the top floor of Alda Hotel Reykjavik, with an armchair, coffee table and sofa in front of a window
Courtesy of Alda Hotel Reykjavik / Expedia

Like the idea of sinking into an outdoor hot tub for some stargazing? Book a suite at the Alda Hotel, positioned at the quiet end of Laugavegur, the main shopping street in Reykjavík. Step inside the hotel, and you’ll discover an oasis of calm, with rooms and suites painted in peaceful shades of grey and cream. The place also boasts a trendy barber, plus a brasserie-style restaurant for burgers, soups and salads.

For more luxury hotels around the country, read our guide to the best luxury hotels in Iceland – then book your next stay on Culture Trip. On a budget? Check out our pick of the best budget-friendly hotels in Reykjavík, Iceland, or if you’re after other accommodation options in the capital, check into one of the best hotels in Reykjavik.

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