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Best Hotels In Reykjavik, Iceland: Budget To Luxury Options


Modified: December 28, 2023

by Maighdiln Getz



Reykjavik, the capital city of Iceland, is a vibrant and enchanting destination known for its stunning landscapes, unique culture, and warm hospitality. As the gateway to this captivating country, Reykjavik offers a wide range of hotels and accommodations to suit every traveler’s needs and preferences. Whether you’re looking for a budget-friendly option or a luxurious retreat, there is something for everyone in this charming city.


With its diverse selection of hotels, Reykjavik promises a memorable stay for all types of travelers. From cozy boutique hotels to internationally renowned chains, the city boasts an array of options that cater to different budgets and tastes. To help you make the most of your experience, we have compiled a comprehensive list of the best hotels in Reykjavik, ranging from budget-friendly to luxurious establishments.


Whether you are exploring the city’s historic landmarks, indulging in its vibrant nightlife, or embarking on thrilling outdoor adventures, having a comfortable and convenient place to stay is essential. So, let’s dive into the different categories of hotels and accommodations available in Reykjavik, ensuring that you can find the perfect place to enhance your Icelandic experience.


Budget Hotels

Traveling on a budget doesn’t mean having to compromise on comfort or quality. Reykjavik offers several budget-friendly hotels that provide excellent value for money without sacrificing convenience or amenities. These hotels are ideal for budget-conscious travelers who want to explore the city without breaking the bank.


One popular option is the Fosshotel Reykjavik, located in the city center. This hotel offers comfortable and modern rooms at an affordable price. It features a restaurant, bar, and even a fitness center, ensuring that guests have everything they need for a pleasant stay.


The CenterHotel Plaza is another excellent choice for budget travelers. Situated in the heart of Reykjavik, this hotel is within walking distance of major attractions such as the Hallgrimskirkja Church and the National Museum of Iceland. It offers comfortable rooms, a café, and a 24-hour reception, providing convenience and affordability.


If you’re looking for a more unique experience, the Kex Hostel is a great option. Housed in a former biscuit factory, this trendy hostel offers budget-friendly accommodation in shared dorms or private rooms. With its hip décor, lively bar, and communal areas, it’s a popular choice among young travelers and backpackers.


For those who prefer self-catering options, the Stay Apartments is an ideal choice. These cozy apartments offer fully equipped kitchens, allowing guests to prepare their meals and save on dining expenses. With multiple locations throughout the city, guests can choose the most convenient base for their Reykjavik adventures.


While these budget hotels offer affordable rates, they do not compromise on comfort or cleanliness. They provide a comfortable bed, essential amenities, and a central location, ensuring that you can enjoy all that Reykjavik has to offer without straining your wallet.


Mid-Range Hotels

If you’re looking for a bit more luxury and comfort during your stay in Reykjavik, the city offers a range of mid-range hotels that provide excellent amenities and a higher level of service without breaking the bank. These hotels strike a balance between affordability and quality, making them a popular choice for many travelers.


One standout option is the Icelandair Hotel Reykjavik Natura. Located near the city center, this hotel offers spacious and tastefully decorated rooms with modern amenities. Guests can enjoy a relaxing spa, fitness center, and an on-site restaurant that serves delicious Icelandic cuisine. The hotel’s eco-friendly approach adds to its appeal.


The Canopy by Hilton Reykjavik City Center is another fantastic choice for mid-range accommodations. Situated in a prime location, this stylish hotel captures the essence of Icelandic design and hospitality. The rooms are beautifully decorated, and guests can enjoy amenities such as a fitness center, a rooftop bar, and a complimentary breakfast.


If you prefer a more intimate setting, Hotel Borg is a perfect option. This historic boutique hotel offers elegantly designed rooms with a touch of old-world charm. With its prime location in the city center, it provides easy access to Reykjavik’s main attractions. The hotel’s classic decor and impeccable service create a truly memorable experience.


For a unique stay, consider the 101 Hotel. With its sleek and contemporary design, this boutique hotel offers stylish rooms and personalized service. The on-site restaurant features modern Icelandic cuisine, and the bar serves up creative cocktails in a chic ambiance. The 101 Hotel is the perfect choice for those seeking a trendy and sophisticated experience.


These mid-range hotels provide a step up in terms of comfort, style, and amenities, making them an excellent choice for travelers looking for a more indulgent stay in Reykjavik. They combine affordability with a touch of luxury, ensuring a memorable and enjoyable experience for guests.


Luxury Hotels

If you’re seeking the ultimate in luxury and sophistication, Reykjavik offers a selection of upscale hotels that provide an exceptional experience for discerning travelers. These hotels boast lavish accommodations, world-class amenities, and impeccable service, ensuring a truly memorable stay in the city.


One standout luxury hotel is the Hotel Reykjavik Marina. Situated by the picturesque Old Harbor, this boutique hotel offers stylish and contemporary rooms with stunning views of the waterfront. The hotel features a trendy restaurant, a cozy bar, and even a cinema room, providing a unique and immersive experience for guests.


For a truly extravagant escape, the Grand Hotel Reykjavik is an excellent choice. This elegant hotel offers spacious and opulent rooms with luxurious amenities. Guests can indulge in the hotel’s spa and wellness center, which includes a hot tub, sauna, and an indoor pool. With its gourmet restaurants and bar, this hotel is the epitome of luxury.


The Ion Luxury Adventure Hotel is another exceptional option for luxury seekers. Located in the stunning Icelandic countryside, this unique hotel offers contemporary and minimalist design, blending seamlessly with the natural surroundings. Guests can enjoy panoramic views, a luxurious spa, and even the opportunity to witness the awe-inspiring Northern Lights.


For a truly unique experience, the ION City Hotel combines luxury with sustainability. Situated in the city center, this eco-friendly hotel offers stylish and environmentally conscious accommodations. Guests can enjoy an exquisite rooftop restaurant and bar, as well as a wellness center, creating a luxurious and guilt-free stay experience.


These luxury hotels provide a haven of indulgence and relaxation, ensuring an unforgettable stay in Reykjavik. From stunning views to world-class amenities, guests can immerse themselves in luxury and truly pamper themselves during their time in the Icelandic capital.



Reykjavik offers a diverse range of hotels and accommodations that cater to every traveler’s needs and preferences. Whether you’re on a tight budget, seeking mid-range comfort, or looking for the ultimate luxury experience, there is a perfect hotel waiting for you in this vibrant city.


For budget-conscious travelers, there are numerous options available, such as the Fosshotel Reykjavik, CenterHotel Plaza, Kex Hostel, and Stay Apartments. These establishments provide affordable rates without compromising on comfort or convenience, ensuring a pleasant stay without straining your wallet.


If you’re looking for a bit more luxury and indulgence, mid-range hotels like the Icelandair Hotel Reykjavik Natura, Canopy by Hilton Reykjavik City Center, Hotel Borg, and 101 Hotel offer a balance between affordability and quality. These hotels provide superior amenities and service, creating a more pampering experience for guests.


For the ultimate in sophistication and opulence, the luxury hotels in Reykjavik deliver an unparalleled experience. Hotels like the Hotel Reykjavik Marina, Grand Hotel Reykjavik, Ion Luxury Adventure Hotel, and ION City Hotel offer lavish accommodations, world-class amenities, and extraordinary service to cater to the most discerning travelers.


Whether you’re exploring the city’s historic landmarks, immersing yourself in its unique culture, or embarking on thrilling outdoor adventures, having a comfortable and well-situated place to stay is crucial. The hotels in Reykjavik ensure that you have a delightful and memorable experience, providing a cozy home base to recharge and relax after exploring all that this captivating city has to offer.


So, whether you’re visiting Reykjavik on a budget, seeking mid-range comfort, or craving luxury and indulgence, rest assured that the perfect hotel awaits you in this enchanting city. Book your stay at one of these top hotels and make the most of your Icelandic adventure.