Where to stay in Reykjavík: Best areas & Hotels

Are you planning a trip to Reykjavík, Iceland? Where to stay in Reykjavik?

Here is a list of the best hotels in Reykjavík for your perfect stay.

Whether it’s something luxurious or budget-friendly that you’re looking for, one thing is certain: there’s an excellent option out there waiting for you!

Read on to discover why each hotel stands out and how they can fit into your holiday plans.

Best areas to stay in Reykjavík, Iceland.

Finding accommodation in Reykjavík can be tricky – with so many great options available, it can be hard to know where to begin!

To help make your decision easier, we have compiled a list of some of the best areas for staying in Reykjavík. 

Reykjavík City Centre

The city center of Reykjavík, known as the 101 districts, is a vibrant area located around the capital’s main shopping street.

Where to stay in Reykjavik, Iceland? Here is a list of the best areas and hotels in Reykjavik.

It offers visitors a wide range of activities to enjoy during their stay: take a stroll along the waterfront and admire the stunning views, browse the boutique stores for unique Icelandic souvenirs or explore some of Iceland’s finest art galleries.

In addition to these advantages, you can also find an abundance of restaurants and bars nearby, allowing them to sample some of Reykjavík’s famous local cuisine.

Harpa Concert Hall reykjavik iceland.

The city center provides all this in close proximity to many popular tourist attractions such as Hallgrímskirkja church and Harpa Concert Hall.

Harpa Concert Hall reykjavik iceland.


If you’re looking for something a bit quieter, then consider staying at one of the many hostels in the Vesturbær neighborhood.

Vesturbær is the oldest and most traditional district in Reykjavík, characterized by a mix of old Icelandic architecture and stunning natural features.

It is an ideal destination for nature lovers, offering plenty of opportunities to explore its picturesque surroundings.

At Vesturbær, you can easily explore Thingvellir National Park, Kerid volcanic crater, and Blue Lagoon and have the chance to witness the magical Aurora Borealis (Northern Lights).

Kerid volcanic crater lake in Iceland.
Kerid is one of the most famous volcanic craters in Iceland.


If you enjoy sports and outdoor activities, Laugardalur is the best spot to stay in Reykjavik.

Numerous soccer fields, jogging trails, bike lanes, and even an ice rink are located nearby.

Also, it is simple to get from Laugardalur to the city’s zoo, Laugardalur Botanical Park, or its largest outdoor natural thermal lake, Laugardalslaug.

Where to stay in Reykjavik? List of best areas and hotels in Reykjavik.

Popular places to stay in Reykjavík, Iceland

Here are some popular choices for the best place to stay in Reykjavík city center.

Reykjavík Residence Apartment Hotel

You can wander to everything from restaurants and stores to well-known sites like Hallgrmskirkja Church and Harpa Concert & Convention, thanks to the Reykjavík Residence Apartment Hotel‘s excellent location.

Reykjavik Residence Apartment Hotel in Iceland.

This Reykjavík hotel offers a contemporary, cozy apartment with all the essential furniture and appliances. Travelers praise the hotel for having a studio unit that feels much like home. 

Address: Hverfisgata 60, 101 Reykjavík, Iceland.

Kvosin Downtown Hotel

The Kvosin Downtown Hotel is a modern and contemporary hotel located in downtown Reykjavík.

Kvosin Downtown Hotel in Reykjavik Iceland.

The interiors are sleek and luxurious, with plush furnishings and artwork from Icelandic artists on display.

Kvosin Downtown Hotel in Reykjavik Iceland.

Kvosin Downtown Hotel is committed to providing friendly, highly personalized service with the utmost attention to detail. The hotel staff are friendly and attentive and are always ready to help you with any needs.

Kvosin Downtown Hotel in Reykjavik Iceland.

Address: Kirkjutorg 4, 101 Reykjavík, Iceland.

Black Pearl Apartment Hotel

Black Pearl Apartment Hotel offers contemporary interiors designed in the style of modern Scandinavian design.

Black Pearl Apartment Hotel in Reykjavik, Iceland.

The warm textures and minimalistic décor at this beautiful hotel create a soothing atmosphere that will make your stay as comfortable and enjoyable as possible.

Black Pearl Apartment Hotel in Reykjavik, Iceland.

Black Pearl offers beautiful and spacious suites with balconies that offer stunning views of the city or sea.

Black Pearl Apartment Hotel in Reykjavik, Iceland.

This hotel provides you with a truly luxurious experience, with fully equipped and modern kitchens featuring top-of-the-line appliances.

Black Pearl Apartment Hotel in Reykjavik, Iceland.

It also offers you the convenience of free private on-site parking.

Address: Tryggvagata 18, 101 Reykjavík, Iceland.

Eyja Guldsmeden Hotel

Eyja Guldsmeden Hotel is a stunning mixture of modern design and traditional Balinese influences.

Eyja Guldsmeden hotel in Reykjavik, Iceland.

With its commitment to sustainability, you’ll find that plenty of natural materials are used throughout the property, including wood sculptures, furniture, stonework, and more.

Eyja Guldsmeden hotel in Reykjavik, Iceland.

The décor at Eyja Guldsmeden is largely inspired by Bohemian style, with an eclectic mix of artwork from Bali that adds a vibrant and unique atmosphere to the space.

Address: Brautarholt 10-14, 105 Reykjavík, Iceland.

Sand Hotel by Keahotels

At Sand Hotel, they strive to provide superior service and the highest quality amenities.

Sand hotel suite in Reykjavik, Iceland.

With its convenient location in downtown Reykjavík, you’ll be in close proximity to all of the city’s attractions and just steps away from shopping, dining, and entertainment.

Sand hotel in Reykjavik, Iceland.

Sand Hotel‘s spacious guest rooms are designed to comfort and make your stay pleasant.

Sand hotel is one of the best Reykjavik hotels in Iceland.

When staying at Sand Hotel, you’ll enjoy an unbeatable sleep experience with soft beds that are made up of fresh linens each day. 

Address: Laugavegur 34, 101 Reykjavík, Iceland.

Sand hotel is one of the best hotels in Reykjavik, Iceland.

Midgardur by Center Hotels

Midgardur by Center Hotels has been cleverly renovated to maintain the unique character of its former home.

You can admire the grandeur of the original building from large windows, high ceilings, and elegant details that fill the public areas while enjoying modern comforts in all guest rooms.

Midgardur by Center Hotels in Reykjavik Iceland.

All rooms in Midgardur are finished with a chic, Scandinavian-inspired style and boast up-to-date amenities.

Sauna at Midgardur by Center Hotels in Reykjavik Iceland.

You can also enjoy the in-house restaurant Jörgenson which features an updated menu of international cuisine as well as casual and traditional dishes.

Address: Laugavegur 120, 105 Reykjavík, Iceland.

Restaurant Jörgenson at Midgardur by Center Hotels in Reykjavik Iceland.
Restaurant Jörgenson at Midgardur by Center Hotels in Reykjavik, Iceland.

Best budget hotels in Reykjavík (from 100 to 200 Euros)

It cannot be easy to find a place to stay that fits within your budget, but there are several excellent budget hotels that can help you save money when traveling to Iceland.

Here are some Reykjavík hotels that are under 200 Euros per night.

Hotel Orkin

Hotel Orkin is the perfect base for exploring Iceland’s many wonders and adventures.

Located just a few kilometers from Reykjavík city center, Hotel Orkin offers you the convenience of being close to the capital while still providing a peaceful and serene atmosphere.

With its cozy home-style atmosphere, Hotel Orkin is an ideal place to rest and relax after a busy day of sightseeing and exploring. 

Address: Brautarholti 29, 105 Reykjavík, Iceland.

Guesthouse Galtafell

The staff at Guesthouse Galtafell are some of the most attentive and welcoming individuals you will find in the area.

They are always willing to go above and beyond to ensure that all of you have a pleasant stay.

The rooms in Guesthouse Galtafell are modern, spacious, and comfortable; they come equipped with all the amenities one would expect from a high-end lodging establishment.

The hotel’s most distinctive feature that impresses you is the incredibly cute pets who always greet you when you enter.

Address: Laufasvegur 46, 101 Reykjavík, Iceland.

Nordurey Hotel City Garden

Nordurey Hotel City Garden is the perfect choice for those looking for an affordable stay in Reykjavík.

Its double rooms provide all that you would expect from a comfortable stay.

The cozy, European-style rooms may feel small to American you but are perfect for practicality and comfort.

It is designed with a soothing minimalist style, allowing you to enjoy the peaceful atmosphere during your visit.

Address: Hrísateigur 14, 105 Reykjavík, Iceland.

Guesthouse Sunna

Guesthouse Sunna is ideal for those looking to experience all Reykjavík has to offer.

You will find a centrally located downtown area, only a few minutes away from the famous attractions and vibrant restaurants, shops, and cultural activities.

Guesthouse Sunna boasts 49 well-appointed rooms, ranging from single bedrooms to large family apartments.

Each room is fitted with modern amenities, and many offer views toward Hallgrímskirkja, one of Reykjavík’s most iconic landmarks.

Address: Thórsgata 26, 101 Reykjavík, Iceland.

Where to stay in Reykjavík with family?

If you are planning to visit Reykjavík with your family, there are several excellent hotels to choose from.

Here is a list of the best Reykjavík hotels for family stays. 

Old Charm Reykjavík Apartments

Old Charm Reykjavík Apartments offer you a truly unique way to experience this vibrant city.

Situated in downtown Reykjavík, the apartments are set within 120-year-old houses that have been tastefully renovated and decorated with stylish modern amenities to ensure maximum comfort and convenience.

From beautiful wooden floors to classic period features, Old Charm Reykjavík Apartments blend the best of both worlds – combining traditional Icelandic charm with all the comforts of modern living.

You will also benefit from its seven self-catering accommodation options, allowing them to make themselves at home in one of the spacious and well-appointed apartments.

Address: Vatnsstígur 10B, 101 Reykjavík, Iceland.

Reykjavík Marina

Located in Reykjavik’s increasingly upscale harbor district, Reykjavík Marina provides you with a breathtaking view of the harbor, mountains, and sea.

The hotel’s suites are spacious and outfitted with contemporary furnishings, as well as all the necessary amenities to make your stay enjoyable.

With its colorful architecture and innovative design, this former paint factory has been transformed into an inspirational urban space.

Each room in Reykjavík Marina is individually decorated with artwork reflecting Reykjavik’s rich fishing tradition and elements inspired by Icelandic nature.

You can enjoy access to a fitness center, swimming pool, spa, and an on-site restaurant serving delicious Icelandic cuisine. 

  • Address: Myrargata 2, Vesturbær, 101 Reykjavík, Iceland.

Fosshotel Reykjavík

Fosshotel Reykjavík is an ideal destination for families seeking a luxurious, world-class experience in the heart of Iceland’s bustling capital.

Fosshotel in Reykjavik, Iceland.

Most of the rooms feature plenty of natural light and spectacular views of the city or sea. It offers you modern and warm interiors and various amenities that meet all expectations.

Fosshotel Reykjavík also proudly presents its main hotel restaurant, Haust, the Icelandic word for autumn.

Fosshotel in Reykjavik, Iceland.

Designed by acclaimed local creative Leifur Welding, this cozy and sophisticated space offers you fresh local cuisine in a relaxed atmosphere.

Address: Þórunnartún 1, 105 Reykjavík, Iceland.

Where to stay in Reykjavík with the best views?

There are many accommodation options on offer that provide spectacular views of the city or its surroundings – from luxury hotels to cozy apartments.

Tower Suites Reykjavík

Tower Suites Reykjavík, located on the 20th floor of one of the city’s most iconic buildings, offers unparalleled views and an unforgettable experience.

Tower Suites in Reykjavik, Iceland.

The suites offer you a unique combination of modern luxury and traditional Icelandic hospitality.

Tower Suites in Reykjavik, Iceland.

Each suite has its own distinct character, with a 360-degree panoramic view of the city and the nearby mountain range.

Tower Suites is one of the best hotels in Reykjavik, Iceland.

The ever-changing scenery is something to behold as you witness varying weather conditions and light during your stay.

Tower Suites in Reykjavik, Iceland.

Tower Suites Reykjavík has all the comforts of home, including spacious living areas, fully equipped kitchenettes, private balconies with spectacular views, and inviting sleeping quarters.

Address: Katrínartún 2, 105 Reykjavík, Iceland.

Center Hotels Arnarhvoll

From the exterior’s brown-brick facade to its minimal Nordic interior decor, Center Hotels Arnarhvoll succeeds in creating an atmosphere that is both elegant and cozy at the same time.

Arnarhvoll hotel in Reykjavik, Iceland.
SKY Bar in Center Hotels Arnarhvoll.

Featuring stylish and comfortable guest rooms, it offers you amenities such as a whirlpool tub and sauna.

Arnarhvoll hotel in Reykjavik, Iceland.
You can also enjoy steam bath.

The hotel also features a classy restaurant and bar with breathtaking views of both the sea and mountains.

Arnarhvoll hotel in Reykjavik, Iceland.
Breakfast Center Hotels Arnarhvoll.

Booking one of Center Hotels Arnarhvoll‘s rooms with sea views allows you to witness the glittering beauty of Harpa, Iceland’s renowned concert hall at night. 

Address: Ingolfsstræti 1, 101 Reykjavík, Iceland.

Arnarhvoll hotel in Reykjavik, Iceland.

Rey Apartments

Rey Apartments offers a unique experience in Reykjavík, situated in the heart of Reykjavík’s oldest neighborhood.

This building is within walking distance of countless shops and restaurants, fashionable cafés, art galleries, and dynamic nightlife.

Rey Apartments in Reykjavik, Iceland.

Every apartment in Rey Apartments is meticulously designed to provide modern, luxurious amenities while remaining cozy and inviting.

The fully-equipped kitchens feature all of the necessary appliances for preparing meals at home, while the private bathrooms come complete with a shower for added convenience.

Rey Apartments in Reykjavik, Iceland.

Address: Grettisgata 2A (front door at Klapparstigur), 101 Reykjavík, Iceland.

FAQs about places to stay in Reykjavík

How expensive are Reykjavík hotels? How much for staying one night?

The cost of a hotel room in Reykjavík varies greatly depending on the time of year, location, and amenities. Generally, average prices range from $120 to $250 per night. It is always advisable to check hotel websites or contact hotels directly to get the most up-to-date and accurate pricing information.

Is Reykjavík a good place to stay to explore Iceland?

Reykjavík, the capital of Iceland, is an excellent base for exploring the country. The city is well-connected to other parts of Iceland, with frequent bus and air services available to help travelers explore the country’s many attractions.

How long to stay in Reykjavík?

If you want to explore the city’s museums, galleries, parks, and cultural institutions, at least 3-4 days is recommended. For visitors who are more interested in outdoor activities such as sightseeing trips or excursions to geothermal springs, a minimum of 5-7 days is necessary.

Where to stay in Reykjavík to see the Northern lights? (outside the city center)

It’s best to stay outside the city center of Reykjavík if you want to see the Northern lights. For those looking for nature-inspired accommodation, Hotel Rangá offers individually designed suites surrounded by Icelandic scenery. Located about one hour from Reykjavík’s center, this hotel provides you with the opportunity to relax and take in the breathtaking beauty of the surrounding areas.

A final thought about Reykjavík hotels

With its vibrant city life, world-class restaurants, and stunning natural scenery, Reykjavík is a popular tourist destination for travelers from all over the world.

While there are many great places to stay in Reykjavík, we’ve compiled a list of our top favorites to help you narrow down your options.

From luxury hotels with breathtaking views to cozy apartments steps away from the best nightlife in town, there’s something for everyone on this list.

So whether you’re looking for an action-packed vacation or a relaxing getaway, be sure to check out our recommendations for the best areas to stay in Reykjavík.

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