Norway offers a breathtaking blend of nature and culture. This itinerary highlights the must-visit s...
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Reykjavik, Iceland’s lively capital, welcomes over 2 million visitors each year with its unique blend of natural wonders, history, and contemporary flair. From relaxing in geothermal pools to chasing the Northern Lights, there’s an adventure for everyone. Whether you prefer a chic boutique hotel or a cozy guesthouse, Reykjavik offers a variety of stays to suit any traveler.
Reykjavik, Iceland’s vibrant and quirky capital, welcomes over 2 million annual travelers with its unique blend of Nordic charm and adventure. From boutique hotels to cozy guesthouses, the city offers a diverse range of accommodations, ensuring every visitor finds a perfect place to stay.
Whether you’re here to soak in the Blue Lagoon, explore Viking history, or hunt for auroras, we’ve handpicked the best stays for 2025—no hefty budget or luxury expertise required.
We prioritized three pillars: location (walkable access to downtown or beautiful views), amenities (geothermal spas, local design, or free bike rentals), and pricing . Every hotel on the list earned its spot through genuine guest love, unique perks, and value.
Here are some of the best hotels in Reykjavik, offering a mix of luxury, style, and comfort for every type of traveler:
Source: Ion City Hotel
Ion City Hotel, opened in 2018, blends minimalist Icelandic aesthetics with eco-conscious flair. This boutique gem wows with a rooftop geothermal hot tub, perfect for soaking under the Northern Lights. Guests rave about the locally sourced breakfast buffet and in-room yoga mats for post-hike stretches.
Marriott’s stylish new addition to Reykjavik, launched in 2023, is designed for travelers who appreciate sleek design, local art, and a social atmosphere. Located in the heart of the city, it puts guests within walking distance of Reykjavik’s top landmarks, including Hallgrímskirkja and the lively Laugavegur shopping street.
A boutique-style stay with a local twist, Canopy by Hilton blends Icelandic charm with a modern, design-forward aesthetic. Located in the heart of Reykjavik, it’s perfect for travelers who want to explore the city on foot or take advantage of the hotel’s free bike rentals to cruise through the colorful streets lined with murals and indie shops.
Opened in 1930, Hotel Borg is Reykjavik’s original luxury hotel, combining Art Deco elegance with modern comforts. Marble staircases, velvet lounges, and chandeliers nod to its Gatsby-era roots, while contemporary touches keep it fresh. The hotel’s standout Volcanic Ritual spa treatment, using Icelandic lava salts, remains a guest favorite.
This discreet, all-suite retreat, opened in 2018, offers a refined, low-key alternative to traditional hotels. With no formal lobby, check-in is handled via keypad, and breakfast arrives quietly in a private basket. Each sleek apartment features a kitchenette and floor-to-ceiling windows showcasing Mount Esja, making it an excellent choice for families or those seeking solitude.
Soaring above Reykjavik on the 20th floor of the iconic Höfðatorg Tower, this ultra-exclusive retreat—opened in 2021—offers unparalleled panoramic views of the city, ocean, and Snæfellsjökull glacier. With just four high-design suites, privacy is paramount.
Each features a private hot tub, personal butler service, and a telescope for aurora spotting. A favorite among billionaires and social media elites alike, the standout “Sky Lagoon Suite” boasts a 270-degree view—arguably the most breathtaking vantage point in the country.
A haven for music lovers, this boutique hotel—opened in 2015—lets guests borrow record players and a
curated collection of vintage long-playing records (including Björk and Sigur Rós) for in-room listening sessions. The rooftop hot tub offers a front-row seat to Laugavegur’s neon glow, while a bike repair station and free rentals make city exploration effortless.
This boutique stay combines the warmth of Icelandic wool with the elegance of Balinese four-poster beds, creating a cozy yet stylish retreat. Sustainability is key—92% solar-powered with a geothermally heated wooden hot tub in the courtyard. Mornings start with an organic breakfast, featuring skyr waffles, while each stay includes a free one-hour bike tour map for effortless exploring.
Built in 2018 around Reykjavik’s oldest bakery, Bernhöftsbakarí (open since 1834), this literary-themed hotel blends storytelling with the scent of fresh cinnamon rolls. Each room comes stocked with shelves of Icelandic novels. The Writer’s Lounge fuels inspiration with strong coffee and rhubarb cake, making it a haven for book lovers and pastry enthusiasts alike.
Set in a 19th-century building, Kvosin’s 24 apartment-style suites resemble a local artist’s loft—exposed brick, rotating gallery exhibits, and thoughtfully stocked mini-kitchens featuring Icelandic staples like smoked lamb and rye bread. The real hidden gem is the basement sauna modeled after Viking bathhouses.
Iceland may be known for its high prices, but these budget-friendly options offer comfort and quality without the hefty cost:
Hlemmur Square is a unique accommodation in Reykjavik, blending the social atmosphere of a hostel with the comforts of a boutique hotel. Located on Laugavegur, the city's main shopping street, it occupies a 1930s art deco building. The property offers both dormitory-style rooms and private hotel rooms, catering to a diverse range of travelers.
Set in a former biscuit factory, Kex Hostel blends industrial-chic design with a vibrant social scene. A favorite among backpackers and creatives, it features vintage furniture, a lively bar, and regular events, including weekly pub quizzes and live music nights. More than just a place to stay, it’s a cultural hub in the heart of Reykjavik.
Loft Hostel isn’t just a place to sleep—it’s a community hub with a strong commitment to sustainability. As an eco-certified hostel, it takes steps to reduce waste, save energy, and promote responsible tourism. The rooftop terrace offers stunning city views, perfect for spotting the Northern Lights or enjoying the midnight sun.
Staying connected during your visit to Reykjavik is seamless with eSIM technology. Here are some eSIM providers to consider:
With eSIM technology, you can enjoy hassle-free connectivity in Iceland, eliminating the need to swap physical SIM cards.
The best global eSIM provider
From $2.3/week
A reliable eSIM provider for budget travelers
From $2.4/week
The best global eSIM provider
From $2.3/week
A reliable eSIM provider for budget travelers
From $2.4/week
Our mission is simple: to make sure you never have to ask, “What’s the WiFi password?” again. All our tips come straight from personal experience — because we’d never recommend something we haven’t put to the test ourselves.
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