The Best Hotels to Book in Reykjavík

Sitting in a former furniture factory, Canopy by Hilton pays tribute to its past with custom-built furnishings
Sitting in a former furniture factory, Canopy by Hilton pays tribute to its past with custom-built furnishings | © Canopy by Hilton Reykjavík City Centre
James Taylor

Explore glacier-capped mountains, thundering waterfalls and active volcanoes from these top hotels in the capital of Iceland – all bookable with Culture Trip.

The colourful, eclectic city of Reykjavík is jam-packed with upmarket Nordic-design hotels and trendy hostels. But head out a little further and you can explore the Golden Circle or hunt for the Northern Lights. Need a place to stay? Read on to discover the finest hotels in the city.

You can now book your exciting getaway with us – our five-day small-group Iceland tour is perfect for exploring the best of the country, from incredible natural landscapes to tasty foodie experiences.

1. Freyja Guesthouse & Suites

Guesthouse, Apartment, Bed and Breakfast

A couch, wood coffee table, and dining table with chairs and stools in a guest room at Freyja Guesthouse & Suites in Reykjavik
Courtesy of Freyja Guesthouse and Suites /

This family-run guesthouse has a homely feel and a stellar location, positioned beside Hallgrímskirkja cathedral in the city centre. It’s a great choice for self-catering (rooms come with fully equipped kitchens) but a continental breakfast is also available. The style verges on the boutique, with walls painted taupe and teal, gilded mirrors and L’Occitane bath products. A family studio (sleeping up to four) is also available.

3. Reykjavik Residence Hotel


A guest room at Reykjavik Residence Hotel, with a bed in one part and a kitchen with a table and chairs in the other
Courtesy of Reykjavik Residence Hotel /

In downtown Reykjavik, this stylish apartment hotel offers the perfect blend of freedom and hotel comforts. Each apartment has a kitchen, but you can also head downstairs to the chic Port 9 restaurant or grab a breakfast basket crammed with fruit, veggies, cheese and yoghurts. Budget travellers can go for an economy studio. Alternatively, splash out on a suite – they have extra space, and some have PlayStations and/or corner bathtubs.

4. Alda Hotel Reykjavik


A spacious and stylish hotel room at Alda Hotel Reykjavik, with a bed separated from the sitting area by a TV and TV stand
Courtesy of Alda Hotel Reykjavik /

This hotel offers a calm atmosphere despite being located on the main shopping street in Reykjavik, Laugavegur. Ease aching muscles in the sauna, or look for the Northern Lights while soaking in the outdoor hot tub. There’s a restaurant serving breakfast, lunch and dinner, an on-site barber and you can even borrow a hotel smartphone during your stay. The nine room categories range from economy doubles to king suites.

5. Reykjavik Konsúlat Hotel


The Konsúlat Hotel was once home to the first department store in the city, built by prominent Reykjavík character Ditlev Thomsen. Inside the impressive three-storey building, rooms are decked in warm hues and feature mid-century furniture such as chesterfield sofas and vintage desks. The hotel restaurant, GOTT Reykjavík, serves contemporary Icelandic cuisine in a minimalist yet sophisticated setting.

6. Hotel Borg by Keahotels

Chain Hotel, Spa Hotel

Couches and chairs around a coffee table in a hotel room at Hotel Borg by Keahotels in Reykjavik
Courtesy of Hotel Borg by Keahotels /

The first luxury hotel in Iceland has long cemented its place among the architectural landmarks of Reykjavík – facing the pleasant Austurvöllur Square, Icelandic parliament and cathedral. Expect royal treatment at this luxury, art deco hotel – which has previously accommodated celebrities, such as Yoko Ono and Lady Gaga. The spa is a real highlight here – warm up in the hot tub, steam bath and sauna after a cold day of sightseeing.

7. Reykjavík Lights by Keahotels


Centrally located, Reykjavík Lights is a Nordic-style hotel with bright rooms decorated in Scandinavian style. The hotel aims to reflect everyday life in Iceland with colourful rooms that represent specific days in the country’s ancient calendar. A complimentary breakfast is included with your stay. Reykjavík Lights is the ideal place for first-time visitors looking to get the most out of their visit as it offers many tours.

8. Canopy by Hilton Reykjavík City Centre

Budget Hotel, Chain Hotel

Right in the middle of downtown Reykjavík is the Canopy by Hilton, a self-billed lifestyle hotel. Spanning six buildings that used to house the most well-known furniture factory in the city, it was more recently home to the nightclub and live music venue, Faktory. Large, contemporary suites pay homage to the building’s past with custom-made furniture and local artwork. Visit the self-service cafe in the lobby for breakfast, or stop by the connected Geiri Smart Restaurant, one of the finest places to eat in Reykjavík.

9. 101 Hotel

Boutique Hotel, Spa Hotel

A unique piece of artwork made up of human faces and words leading to a sitting area with chairs and a fireplace in a room at 101 Hotel in Reykjavik
Courtesy of 101 Hotel /

A member of the Design Hotels group, 101 Hotel is a luxury insight into the world of Icelandic fashion and design. Sleek and modern with black-and-white minimalist tones throughout, the entire hotel feels like a work of art. The latest pieces from both established and up-and-coming local artists are on display, plus there’s a stylish lounge bar for a late-night tipple. As it’s just a block from Laugavegur shopping street, it’s no wonder Kim Kardashian and Kanye West chose this as the place to stay on their Icelandic getaway.

10. Icelandair Hotel Reykjavík Marina


Armchairs, couches and high bookshelves in the lobby at Icelandair Hotel Reykjavík Marina
Courtesy of Icelandair Hotel Reykjavík Marina /

Right next to the working harbour of Reykjavík at the edge of downtown, the Icelandair Hotel celebrates the city’s colourful and creative side. The interior features eye-catching furniture, striking wallpaper and plenty of antiques picked up at the nearby Kolaportið flea market. It’s also a champion of local culture, regularly hosting live music gigs and pop-up concerts, as well as literature events at the in-house cafe. Head for drinks at the neighbouring Slippbarinn – the cocktails are the best in Reykjavík.

11. Eyja Guldsmeden Hotel


Just outside the city centre, in the quickly gentrifying 105 neighbourhood, is the Reykjavík branch of the Guldsmeden hotel chain. It’s cheaper than your average hotel in the country, and the bright rooms feature rustic four-poster beds designed with a Balinese twist. The large restaurant is all about organic, fresh ingredients. Eyja Guldsmeden was also the first hotel in the country to be awarded Green Globe certification, recognising its commitment to sustainability.

12. Hotel Kriunes


Tables and chairs in the restaurant at Hotel Kriunes; there is a view of the landscape and water from the large windows, and the restaurant had wood walls and flooring
Courtesy of Hotel Kriunes /

Overlooking Elliðavatn Lake, and just 15 minutes from downtown, this family-run hotel is perfect for those looking to experience both the natural beauty of Iceland and the city of Reykjavík. The lake is teeming with birdlife in the summer and there are plenty of walking and biking trails that delve into the surrounding parkland. Elegantly furnished rooms are complemented by homely common areas decorated with bookshelves and comfortable lounge chairs. Unobstructed mountain views and minimal light pollution make Hotel Kriunes the ideal place for watching the Northern Lights during the winter months.

Ellie Ross and Camille Buckley contributed additional reporting to this article.
Visiting Reykjavík on a budget? Check out our guide to the best budget-friendly hotels in Reykjavík, Iceland, bookable with Culture Trip.

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