Where to Stay in Reykjavik
Your guide to the best areas and accommodation types
Reykjavik stacks its hotels along Laugavegur and around the Old Harbour, two walkable axes that cover nearly every sight. The centre squeezes boutique hotels into a tight grid where geothermal steam curls past coffee-scented doorways and North Atlantic salt air rolls in. Farther east, Laugardalur offers quieter guesthouses beside the city's legendary thermal pools.
Reykjavik is one of Europe's most expensive capitals. Budget beds are scarce. Mid-range doubles climb steeply from June through August. Luxury hotels command serious rates year-round, though April, May, and October bring noticeably softer pricing.
Budget
ISK 7,000-14,000 per night for hostels and basic guesthouses
Mid-Range
ISK 28,000-55,000 per night for 3-4 star hotels
Luxury
ISK 70,000-160,000 per night for top-tier properties
Where to Stay in Reykjavik
Hand-picked hotels across price tiers for every visitor.
★★★★
Luxury
Iceland Parliament Hotel, Curio Collection by Hilton
From $280 / night
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Our Top Picks
The highest-rated hotel in each price range, selected from all neighborhoods.
Top Pick: City Centre
Budget
Kex Hostel
"The accommodation's hygiene and location were decent. BUT!!! A very dangerous in…"
Public parking
Luggage storage
Wi-Fi in public areas
Bar
City Centre
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Top Pick: City Centre
Mid Range
Candlewood Suites REYKJAVIK by IHG
"The room layout was nice, and it was very convenient to cook for myself. It's ab…"
Public parking
Luggage storage
Taxi booking service
Wake-up call
City Centre
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Top Pick: City Centre
"Beautiful hotel and excellent location (I had a view of the main square and parl…"
Sauna
Spa
Gym
Luggage storage
City Centre
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Best Areas to Stay
Each neighborhood has its own character. Find the one that matches your travel style.
Hotel recommendations verified
City Centre
Mid-range to Luxury
The 101 postal district is where Laugavegur pulls shoppers, diners, and nightlife seekers into a dense grid of painted corrugated-iron facades. Fresh cinnamon rolls from Brauð and Co compete with volcanic salt drifting from souvenir windows. Every major gallery, museum, and restaurant sits within a fifteen-minute walk from any hotel here.
- ✓ Walk to Hallgrímskirkja, Harpa, and the National Museum
- ✓ Densest concentration of restaurants and bars in Iceland
- ✓ Direct bus links to the ring road and Blue Lagoon transfers
- ✓ Consistent hotel quality across all tiers
- ✗ Bar noise on Laugavegur carries until 04:00 on summer weekends
- ✗ Room rates spike sharply in June and July and are among the highest in Europe
Recommended places to stay in City Centre
Budget
Kex Hostel
"The accommodation's hygiene and location were decent. BUT!!! A very dangerous in…"
Public parking
Luggage storage
Wi-Fi in public areas
Bar
✓ Verified
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Mid Range
Candlewood Suites REYKJAVIK by IHG
"The room layout was nice, and it was very convenient to cook for myself. It's ab…"
Public parking
Luggage storage
Taxi booking service
Wake-up call
✓ Verified
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"Beautiful hotel and excellent location (I had a view of the main square and parl…"
Sauna
Spa
Gym
Luggage storage
✓ Verified
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Mid Range
TOP CityLine Fosshotel Reykjavik
"This hotel was the most satisfying I stayed at in Iceland. The overall cleanline…"
Gym
Public parking
Priority airport pick-up
Luggage storage
✓ Verified
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Mid Range
Reykjavik Residence Apartment Hotel
"Stay 5D4N 1. Location: Hotel has several blocks of apartment, we were allocated…"
Priority airport pick-up
Luggage storage
Bar
Priority airport drop-off
✓ Verified
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Old Harbour
Mid-range to Luxury
The Grandi district has converted cold fish warehouses into the Grandi Mathöll food hall, whale-watching piers, and the Whales of Iceland exhibition. A sharp salt-heavy Arctic wind meets you at the pier edge. Smoked langoustine drifts from the food hall on weekend afternoons.
- ✓ Steps from whale-watching and puffin boat departures
- ✓ Grandi Mathöll food hall with Iceland's best street-food range
- ✓ Industrial character lends Reykjavik's most photogenic textures
- ✓ Quieter streets than the Laugavegur strip
- ✗ A 20-minute walk or short taxi to Laugavegur nightlife
- ✗ Fewer restaurant options within the immediate harbour blocks after the food hall closes.
Recommended places to stay in Old Harbour
Budget
Igdlo Guesthouse
"Excellent location. Very near the BSI bus terminal. Getting around the city is e…"
Public parking
Luggage storage
Wi-Fi in public areas
Laundry room
✓ Verified
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Mid Range
Midgardur by Center Hotels
"Hotel is very clean, location is superb, all amenities within short walking dist…"
Sauna
Spa
Massage room
Gym
✓ Verified
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Luxury
Hótel Reykjavík Saga
"Fantastic hotel 100/100 -Great location (city center + everything nearby, and a…"
Gym
Restaurant
✓ Verified
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Mid Range
Rey Apartments
"Location is good, convenient. Services is good, Hygine is great, clean and new r…"
Priority airport pick-up
Priority airport drop-off
Conference room
Business center
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"Even though it is mentioned that there is a washing machine in this apartment ho…"
Private parking
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Þingholt
Mid-range to Luxury
Þingholt rises gently south of Laugavegur toward Hallgrímskirkja. Steep lanes are lined with colourful corrugated-iron houses, independent galleries, and bakeries that smell of burnt butter and cardamom. The neighbourhood feels composed rather than touristy. You hear bicycle tyres and children rather than delivery trucks. Ten minutes on foot from the city centre.
- ✓ Eight-minute uphill walk to Hallgrímskirkja
- ✓ Local bakeries and coffee shops replace tourist trap pricing
- ✓ Boutique hotel character at rates below city-centre equivalents
- ✓ Einar Jónsson Museum and garden directly accessible
- ✗ No practical on-street parking for rental cars
- ✗ Fewer dining options than along Laugavegur
Recommended places to stay in Þingholt
"The bus hostel is near the airport and quite walkable to major sightseein"
Skiing
Private parking
Airport pick-up
Luggage storage
✓ Verified
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Mid Range
Storm Hotel by Keahotels
"I must strongly recommend this hotel!!! From the moment I checked in, the front…"
Hiking
Airport shuttle pick-up
Luggage storage
Bar
✓ Verified
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Luxury
The Reykjavik EDITION
"Compared to other European hotels, this one is quite nice. The overall service a…"
Sauna
Spa
Massage room
Gym
✓ Verified
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Mid Range
Hotel Leifur Eiriksson
"They even gave us breakfast (with vegetables and fruits, which is worth two or t…"
Public parking
Luggage storage
Bar
Cafe
✓ Verified
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Mid Range
CityHub Reykjavik
"A very new hotel. Close to the main street and is clean. You can use the kitchen…"
Spa
Luggage storage
Bar
Wi-Fi in public areas
✓ Verified
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Hlemmur Quarter
Budget to Mid-range
The Hlemmur Quarter centres on the converted Hlemmur bus terminal, now the Hlemmur Mathöll food hall. The tang of fermented shark and the warmth of fresh bread rise together under iron-and-glass vaulting. This is Reykjavik's most energetic eating strip east of the city centre. Rougher, more local texture than the polished 101 core.
- ✓ Hlemmur Mathöll food hall steps away
- ✓ Laugavegur shopping within a five-minute walk
- ✓ Bus connections to every Reykjavik district leave from Hlemmur
- ✓ Hotel rates run noticeably below equivalent city-centre properties
- ✗ Bar noise from late-night traffic spills onto side streets on Fridays and Saturdays.
- ✗ Less atmospheric visually than Þingholt or the Harbour
Recommended places to stay in Hlemmur Quarter
Budget
B14 Hostel
"The staff of the Hostel are very responsible to solve problems for the guests. T…"
Public parking
Luggage storage
Multi-function room
Wi-Fi in public areas
✓ Verified
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Mid Range
Center Hotels Laugavegur
"Easy access from the airport. Centrally located; very helpful and friendly front…"
2 Parking lots
Luggage storage
Bar
Restaurant
✓ Verified
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Luxury
Alda Hotel Reykjavik
"I loved this hotel and wouldn't hesitate to recommend it! One of the outstanding…"
Sauna
Gym
Luggage storage
Bar
✓ Verified
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Mid Range
Hotel Local 101
"The hotel is 5 minutes walk to the pier and the clerk is kind. Although there is…"
Gym
Bar
Restaurant
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Mid Range
Centrum Hotel Reykjavik
"The waiter can't have an extra bed after work, give us a bigger room, the surrou…"
Priority airport pick-up
Luggage storage
Bar
Restaurant
✓ Verified
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Laugardalur
Budget to Luxury
Laugardalur, a broad green valley east of the city centre, holds the Laugardalslaug thermal swimming complex, the Botanical Garden, and the city zoo. On cold mornings you step through dense geothermal steam. Sulphur-tinged heat of the outdoor pools hits you before you reach the water's edge.
- ✓ Laugardalslaug thermal pools a five-minute walk from most hotels
- ✓ Lower room rates than the city centre
- ✓ Bus 2 connects directly to downtown Reykjavik in 15 minutes
- ✓ Botanical Garden for a quiet morning walk among Arctic flora
- ✗ Needs bus or car for evening dining and nightlife
- ✗ Less atmospheric than the harbour or Þingholt districts
Recommended places to stay in Laugardalur
Budget
Old Town Reykjavik
"酒店沒有什麼的服務、因為一切已經準備好曬、地方簡潔乾淨、洗手間、浴室有多個👍地理位置極佳、去各處也非常方便、而且有一部24小時的咖啡機、提供咖啡和熱水、無限供應…"
Public parking
Luggage storage
Wi-Fi in public areas
✓ Verified
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Mid Range
Grand Hótel Reykjavík
"The room was great, and the front desk service was excellent. Breakfast was supe…"
Gym
Private parking
Luggage storage
Bar
✓ Verified
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"Very good location and convenient for foods. However, it is very noisy and distu…"
Sauna
Gym
Luggage storage
Bar
✓ Verified
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Mid Range
Skuggi Hotel by Keahotels
"Lighting in the room was rather dim which made it abit difficult for us to get s…"
Private parking
Luggage storage
Bar
Restaurant
✓ Verified
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Mid Range
City Center Hotel
"Great experience! The service at the hotel is impressive. The warm and attentive…"
Luggage storage
Wi-Fi in public areas
✓ Verified
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Vesturbær
Budget to Mid-range
Vesturbær, the West Quarter, is where Reykjavik lives. Timber-frame houses line quiet lanes. Locals queue at community pools. A coastal path hugs grey Faxaflói bay. Wind smells of kelp and open ocean. The domestic airport sits at the eastern edge. Early flights to Akureyri or the Westfjords start here.
- ✓ Reykjavik Domestic Airport within a ten-minute walk
- ✓ Nauthólsvík geothermal beach nearby for open-water bathing
- ✓ Quietest central streets in the city
- ✓ Apartment rentals offer better value than equivalent hotel rooms
- ✗ 25-minute bus ride or a long walk to Laugavegur dining and nightlife
- ✗ Limited restaurant choice within the immediate neighbourhood
Recommended places to stay in Vesturbær
"The only bad thing about this place is that I was only able to stay here 1 night…"
Luggage storage
Bar
Restaurant
Taxi booking service
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Luxury
Reykjavik Domes
"Very very good hotel, very authentic room, very beautiful view and get to see au…"
Golf course
Public parking
Airport pick-up
Luggage storage
✓ Verified
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Mid Range
Guesthouse Sunna
"The Canopy by Hilton Reykjavik City Centre is fantastic! The facilities, cleanli…"
Private parking
Luggage storage
Wi-Fi in public areas
✓ Verified
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Mid Range
Grandi by Center Hotels
"We had no issues here. Our room was comfortable. It even had a deep tub to soa…"
Massage room
Public parking
Luggage storage
Bar
✓ Verified
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Mid Range
Alfred's Studios
"There are two apartments, confusing location, have to wait for the password to o…"
Public parking
Airport pick-up
Airport drop-off
Wi-Fi in public areas
✓ Verified
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Find Hotels in Reykjavik
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Accommodation Types
From budget-friendly hostels to luxury hotels, here's what's available.
Hotels
ISK 28,000-160,000 per night
Reykjavik's hotels range from Art Deco city-centre landmarks to converted fishing warehouses at the Harbour. Nordic-minimalist design dominates across all price tiers.
Best for: Travelers wanting daily housekeeping. On-site dining. Walking-distance access to major sights.
Booking directly through keahotels.is or a hotel's own site typically beats OTA rates by 10-15 percent. Flexible cancellation usually included.
Hostels
ISK 7,000-14,000 per night for dorms; ISK 18,000-30,000 for private rooms
Small cluster of design-forward hostels on Laugavegur, Skúlagata, and the Harbour. Private rooms alongside dorms. Quality well above the European average.
Best for: Solo travelers. Backpackers. Anyone prioritising location and social atmosphere over space.
Private rooms at Kex and Loft sell out six weeks ahead in summer. Dorm beds typically have availability within a week.
Guesthouses
ISK 15,000-38,000 per night
Family-run guesthouses in Þingholt, Vesturbær, and Laugardalur deliver the most personal service in Reykjavik. Home-cooked Icelandic breakfasts with fresh skyr and dense rye bread.
Best for: Travelers wanting residential character. Quieter setting. Host who knows the city.
Most accept card payment on arrival. Smaller properties in Vesturbær occasionally take reservations by email rather than through booking platforms.
Apartments
ISK 24,000-60,000 per night depending on size and neighbourhood
Self-catering apartments cluster in Vesturbær and Laugardalur. Full kitchen access meaningfully reduces costs in one of Europe's most expensive cities.
Best for: Families. Groups. Travelers staying five nights or more who want to self-cater some meals.
Reykjavik levies a tourist accommodation tax per person per night. Short-term rental listings include this in the quoted total. Confirm before paying.
Booking Tips
Insider advice to help you find the best accommodation.
Book city centre six weeks out in summer
City-centre and Old Harbour hotels fill by mid-April for the June through August peak. Þingholt guesthouses and Laugardalur hotels hold availability two to three weeks longer. Often the last well-located options at reasonable rates when the centre is sold out.
Northern Lights windows reward flexible itineraries
Reykjavik hotels during December and January sell out quickly around forecasted geomagnetic activity. Refundable rate lets you shift nights when the aurora forecast looks strong. Fixed non-refundable booking on the wrong night is one of the most common traveller regrets from a Reykjavik winter trip.
Midweek arrivals cost noticeably less than weekend arrivals
Reykjavik draws a high proportion of long-weekend visitors from London, Amsterdam, and Copenhagen. Friday and Saturday rates jump sharply above Tuesday and Wednesday equivalents at the same property. Arrive on a Tuesday. Depart on a Saturday. Covers most key sights while cutting accommodation costs.
Free parking means staying east of the centre
City-centre hotels rarely include free parking. On-site spaces charge daily rates that add up quickly on a multi-night stay. Hotels in Laugardalur and Vesturbær routinely offer free or low-cost parking. Matters significantly if you plan to self-drive the Golden Circle, South Coast, or Snæfellsnes Peninsula.
When to Book
Timing matters for both price and availability.
High Season
Reserve six weeks ahead for June through August. city-centre and Old Harbour properties. Northern Lights season from November through March fills on short notice around clear-sky forecasts. Monitor aurora predictions. Keep a refundable rate.
Shoulder Season
April to May and September to October are the ideal window for visiting Reykjavik. Fewer crowds. 25 to 30 percent softer rates. Fully functional daylight for sightseeing. Two to three weeks advance booking is usually sufficient outside the city centre.
Low Season
February and March bring the deepest hotel discounts of the year. The aurora is still active. A week or two of notice secures the best properties. Genuine walk-in availability exists across most of the city.
Three weeks covers most situations outside summer and the Northern Lights peak. Six weeks is the safe margin for June, July, and the Christmas through New Year window.
Good to Know
Local customs and practical information.
Check-in / Check-out
Standard check-in is 15:00. Check-out is 11:00. Luggage storage is universally available at Reykjavik hotels and hostels for early arrivals and late departures. Includes the bus terminal.
Tipping
Tipping is not customary in Iceland. Service staff do not expect it. Rounding up a restaurant bill is appreciated on occasion. Carries no social obligation.
Payment
Cards are accepted everywhere in Reykjavik. Taxis, markets, small cafes. ISK cash is rarely necessary. Small number of guesthouses in Vesturbær and Laugardalur prefer it for security deposits.
Safety
Reykjavik is consistently ranked among the safest capitals in the world. Main practical concern is weather. Even in July, temperatures drop sharply after midnight. Arctic wind cuts through lightweight clothing faster than most visitors expect. Keep a windproof layer in your bag regardless of the season.