Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations

Iceland is the perfect destination for seasoned travelers and adventure enthusiasts. Called as the ‘Land of Fire and Ice’, the country is well-known for its towering waterfalls, blue glaciers, and other striking sceneries. Aside from that, it has gained more global popularity given that it is one of the best places in the world to witness the magical Aurora Borealis or Northern Lights! (Best Hotels in Reykjavik)

All of these unique landscapes and natural wonders even perfectly complement the modern capital of Reykjavik that has a quaint café culture and vibrant nightlife. It may be the country’s political and economic center, but it has preserved a nostalgic ambiance that is free of any grand skyscrapers.

RELATED READ: 10-Day Iceland Itinerary

As a tourist, you would usually be inclined to rent a car or camper van as you go around the famed Golden Circle or RinG Road route — but for those who are short on time and are in need of a good base, staying at Reykjavik is a prime choice. To help you plan your trip even better, check out this list of the best budget and luxury hotels in Reykjavik!

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Activities to do in Reykjavik?






Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
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» Best Budget Hotels in Reykjavik  «

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ KEX Hostel
» See the BEST price deal at Agoda, Booking or HostelWorld
» You can also check HotelsCombined to compare rates

Housed in an old biscuit factory, this quaint hostel is just steps away from the center of Reykjavik. Guests will enjoy a number of modern amenities such as a café and bar, heated outdoor patio, and more!

What to love: Good value deal
Closest landmark: Hallgrímskirkja Church
Price starts from: $22~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Hlemmur Square
» See the BEST price deal at Agoda, Booking or HostelWorld
» You can also check HotelsCombined to compare rates

This is a luxurious hostel that won’t break your travel budget! You will love the spacious rooms that they offer along with the food service, happy hour bar, playroom, two kitchens, and lounges.

What to love: Luxurious ambiance
Closest landmark: The David Collection
Price starts from: $22~
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Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Reykjavik- Loft HI Hostel
» See the BEST price deal at Agoda, Booking or HostelWorld
» You can also check HotelsCombined to compare rates

Featuring a lounge, bar, and rooftop terrace with a city view, this one of the best hostels in Reykjavik that’s just a few steps away from the main hub. It also has a self-catering kitchen and lockers for guest’s valuables.

What to love: Rooftop terrace
Closest landmark: 101 Reykjavik Street Food
Price starts from: $22~

Best Hotels in Reykjavik : Reykjavik City HI Hostel
+ Reykjavik City HI Hostel
» See the BEST price deal at Agoda, Booking or HostelWorld
» You can also check HotelsCombined to compare rates

This eco-certified hostel is beside the geothermally heated Laugardalslaug Swimming Pool and it features a coffee bar, three communal kitchens, and private parking space. Breakfast buffet even includes home-made, organic and local options.

What to love: Bar, restaurant
Closest landmark: Lauga-as
Price starts from: $25~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Galaxy Pod Hostel
» See the BEST price deal at Agoda or HostelWorld
» You can also check HotelsCombined to compare rates

Experience sleeping in a unique capsule bed in this modern hostel! There are also regular bunk beds you can rather choose and fun amenities like the playroom where there are virtual reality games.

What to love: Amenities like the playroom
Closest landmark: Háteigskirkja
Price starts from: $40~
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» Best Mid-Range Hotels in Reykjavik  «

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Reykjavik Residence Apartment Hotel
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

This is one of the best hotels in Reykjavik that has aparthotel rooms. Each accommodation is individually furnished and decorated and provided with modern and standard amenities.

What to love: Lounge, bar
Closest landmark: Braud & Co
Price starts from: $100~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Radisson Blu 1919 Hotel
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

This luxury hotel is located within walking distance from Reykjavik’s main shopping streets. All rooms have private bathrooms that feature eco-friendly rain showers and lush interiors.

What to love: Large fitness center
Closest landmark: Hidden People Iceland
Price starts from: $150~

Best Hotels in Reykjavik : Canopy by Hilton Reykjavik City Centre Hotel
+ Canopy by Hilton Reykjavik City Centre Hotel
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

Located near Laugavegur Shopping Street, this boasts a number of amenities. The rooms and suites are also styled in shades of ocean and volcanic rock and provided with high-tech facilities.

What to love: Amenities like fitness center, etc.
Closest landmark: Mink Viking Portrait Studio
Price starts from: $170~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Sand Hotel by Keahotels
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

This is one of the best 4-star hotels that is affordable and good for value. As a boutique accommodation, it has a panoramic terrace where guests can enjoy free continental breakfast.

What to love: FREE Breakfast
Closest landmark: Braud & Co
Price starts from: $180~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Hotel Borg by Keahotels
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

This elegant Art-Deco style hotel is located in central Reykjavik overlooking the historic Asuturvollur Square. Along with a full-service spa, this luxury hotel has a fitness center and more!

What to love: Full-service spa, fitness center
Closest landmark: Icelandic Street Food
Price starts from: $200~
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» Best Luxury Hotels in Reykjavik  «

Best Hotels in Reykjavik : Reykjavik Konsulat Hotel, Curio Collection
+ Reykjavik Konsulat Hotel, Curio Collection
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

This is one of the best hotels in Reykjavik if you’re looking for luxury. Each hotel room comes with a balcony with panoramic views of the city while spending the rest of the day in the grand amenities.

What to love: Hot tub, wellness spa
Closest landmark: Icelandic Street Food
Price starts from: $220~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ 101 Hotel
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

This sleek and modern boutique hotel is located in central Reykjavik and offers a fitness center, wellness spa facilities and also houses a stylish restaurant and bar.

What to love: Traditional Icelandic cuisine at in-house restaurant
Closest landmark: Mink Viking Portrait Studio
Price starts from: $250~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Black Pearl- Reykjavik Finest Apartments
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

Features bright and spacious apartment suites with large windows, black curtains, and heated marble floors. You’ll have everything you need here given the fully-equipped kitchen and so much more.

What to love: Spacious rooms, modern equipment
Closest landmark: Matarkjallarinn- Food Cellar
Price starts from: $350~
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Best Hotels in Reykjavik : Tower Suites Reykjavik
+ Tower Suites Reykjavik
» See the BEST price deal at Agoda or Booking
» You can also check HotelsCombined to compare rates

Located on the 20th floor of a contemporary of a glass tower, these stylish penthouse suites are located in central Reykjavik and feature panoramic views of the city or sea.

What to love: Panoramic view of the city
Closest landmark: Reykjavik Escape
Price starts from: $550~

Best Hotels in Reykjavik, Iceland: Cheap to Luxury Accommodations
+ Diamond Suites Luxury Boutique Hotel
» See the BEST price deal at their website
» You can also check HotelsCombined to compare rates

Located 30 minutes outside Reykjavik, this accommodation offers a wide range of recreational facilities and excellent services. Guests can have a relaxing dip at the luxury spa hot tub and more!

What to love: Luxurious features like hot tub, etc.
Closest landmark: Olsen Olsen
Price starts from: $900~
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Best Hotels in Reykjavik




All Reykjavik accommodations listed above offer a wide range of recreational facilities and services that will make your stay more fun, convenient and hassle-free. I hope this list of budget and luxury hotels helped you in planning where to stay when you visit such a wonderful country!




  • What do you think of these best hotels in Reykjavik?
  • Which hotel would you like to try the most?
  • Or have you stayed in any of these before? How was it?






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