Where to Stay in Reykjavik, Iceland
Are you wondering where to stay in Reykjavik, Iceland? You’re in the right place!
Below, I’ve rounded up the best places to stay in Reykjavik for every budget. As Reykjavik is the capital city, you’ll likely start or end your trip to Iceland here, especially given its proximity to Keflavík International Airport, the country’s only international airport. Most travelers spend one or two days here.
I wouldn’t recommend spending a lot of time in Reykjavik, because the real beauty of Iceland is found outside the city. Reykjavik is a quirky and cool little city, but you don’t need more than a couple days here.
Like the rest of the country, Reykjavik is very expensive, and even very basic hotels often run $200+ per night, especially if you’re traveling in the peak summer season. You can usually find better deals in the off season. October through May is less popular with tourists, so you can find cheaper prices.
It’s also a good idea to book your accommodations for Iceland well in advance, because limited availability means many places get fully booked. This is especially true in smaller towns, but also in Reykjavik.
Best Hotels in Reykjavik, Iceland
I recommend choosing a hotel or hostel in the central part of Reykjavik. It’s a pretty compact city, and you can easily get around on foot to the main tourist attractions and the popular streets.
Here are my top picks for where to stay in Reykjavik, Iceland:
- Best luxury: The Reykjavik EDITION
- Best mid-range: Center Hotels Plaza
- Best on a budget: Loft – HI Eco Hostel
And here’s a full breakdown of the best places to stay in Reykjavik for every budget:
Tip: I use and recommend Booking.com for getting the best deal on hotels. If you book directly through a link on this page, I may earn a small commission at no cost to you. Thank you for supporting Stay to Wander!
Best Luxury Hotels
The Reykjavik EDITION
If you’re looking for a splurge-worthy luxury hotel in Reykjavik, look no further than The Reykjavik EDITION. This five-star hotel is situated on the waterfront, right across from the iconic Harpa Concert Hall.
You have easy access to downtown Reykjavik on foot, and many rooms offer views of the Harpa or the waterfront. The luxe rooms at this hotel have every comfort you could want, and the hotel offers amenities including a fitness center and a sauna. There’s also an on-site restaurant with amazing views.
Iceland Parliament Hotel
Another one of the best luxury hotels in Reykjavik is the Iceland Parliament Hotel. This centrally located hotel features elegant, comfortable rooms, making it the perfect base in the heart of the city.
Guests who are staying at this hotel will also be able to take advantage of the relaxing spa center, which includes an indoor geothermal swimming pool, a sauna, a steam room, and a cold mist room.
Black Pearl Apartment Hotel
If you’re looking for a luxury property that offers good value for money, Black Pearl Apartment Hotel is the perfect choice. This centrally located hotel offers suites and apartment-style accommodations, making it a great choice for families or groups of friends who want some extra space on their trip.
Each of the suites and apartments here includes a private kitchen, so you can prepare and cook your own meals. There’s also a separate living and sleeping area, and laundry facilities available on-site.
Best Mid-Range Hotels
Center Hotels Plaza
If you’re looking for a comfortable mid-range hotel in Reykjavik, Center Hotels Plaza is a great option. This hotel offers clean and bright rooms in a central location in the bustling heart of Reykjavik.
Single and double rooms are available. One of the highlights of staying here is the free breakfast buffet, which is an excellent way to save some money since buying food in Iceland is so expensive.
Hotel Klettur
I personally stayed at Hotel Klettur in Reykjavik, and while I would recommend it, it didn’t completely blow me away. The rooms are simple and comfortable, and there’s a free buffet breakfast included each morning during your stay, which is definitely a perk because of how expensive food is in Iceland.
But the location is slightly outside the city center (about a 15-minute walk to get most places) so it wasn’t the most convenient. Overall, though, this is still a solid mid-range hotel choice in Reykjavik.
Alda Hotel Reykjavík
One more good place to stay in Reykjavik if you’re looking for a nice mid-range hotel that won’t blow your budget is Alda Hotel Reykjavík. It’s in a good location very close to the heart of the city.
You’re just a short walk away from the top tourist attractions in Reykjavik, as well as shopping, restaurants, and nightlife. Guests also get access to the hotel’s fitness center, hot tub, and sauna.
Best Budget Hotels
Loft – HI Eco Hostel
If you’re looking for a cheap place to stay in Reykjavik, Loft – HI Eco Hostel is one of the top-rated options. This hostel is right in the center of Reykjavik, making it a very convenient base for your trip.
There are dorm rooms with shared bathrooms and private rooms with en-suite bathrooms, depending on your budget. The hostel also offers social events, a guest lounge, and a spacious shared terrace.
Refurinn Reykjavik Guesthouse
Refurinn Reykjavik Guesthouse is a cozy and quiet place to stay if you’re looking for budget-friendly options. This quaint guesthouse offers clean and bright rooms at prices that won’t break the bank. You’re a little outside the city center, but you can still get everywhere you’ll want to go within 15 minutes or so.
A major perk of staying here is that the hotel offers free parking in case you have already picked up a rental car. There’s also a shared guest kitchen and self-service laundry facilities on-site.
KEX Hostel and Hotel
Finally, one of the best budget properties in Reykjavik is KEX Hostel and Hotel. Accommodations here range from a massive 42-bed dorm room (for hardcore budget travelers) on up to private family suites.
The hostel has an on-site restaurant and bar, and a shared lounge and heated outdoor terrace for guests to enjoy. There are also social events happening most nights, making it ideal for solo travelers.
Where to Stay in Reykjavik, Iceland
This guide showed you where to stay in Reykjavik, Iceland for every budget.
To recap, my top picks for where to stay are:
- Best luxury: The Reykjavik EDITION
- Best mid-range: Center Hotels Plaza
- Best on a budget: Loft – HI Eco Hostel
Have a great trip and enjoy your stay in Reykjavik!
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