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Where to Stay in Reykjavik

cozy hotel room in Reykjavik, Iceland

If you are planning to visit Iceland, you must be thinking about where to stay in Reykjavik. The country’s capital has a lot of choices for you even when you have a certain budget in mind. Iceland is becoming a popular tourist destination with many new hotels popping up to greet visitors and provide them with a memorable stay.

Best Places to Stay in Reykjavik Depending on Your Needs

Wondering where to stay in Reykjavik, Iceland? The best places to stay in Reykjavik depend on what you have in mind.

The travelers who want to enjoy the heart of the city can opt for a hotel or a guesthouse in the downtown area. It may be a little expensive due to its location, and you might have challenges finding cheap parking in downtown Reykjavik, but you will have the freedom to explore the city from inside out: Reykjavik residences, day trips, bars, and restaurants.

However, if you need a place to drop your luggage while you rent a car exploring the vastness of this country, you can find loads of good accommodation in the city’s outskirts.

3-Star Places to Stay in Reykjavik

For solo travelers, couples, families, or business trips, many hotels in Iceland have decent bedrooms with private bathrooms, basic facilities, and good customer service.

Fosshotel: The Baron, Raudara, and Lind Hotels

If you ask an Icelander where the best place to stay in Reykjavik Iceland is, chances are you will hear the word Fosshotel, which is one of the largest hotel chains in the country. It provides 15 accommodations all over the country, with 4 of them centrally located in the capital. They have a maximum of 30-minutes' walking distance from downtown. Each of its hotels has its own charm, including the three-star Fosshotels of Baron, Raudara, and Lind. All of these hotels are located near Hlemmur Square. The rooms of Baron Hotel have a breathtaking ocean view, while the entire hotel has a 20th-century theme. Fosshotel Raudara is near Klambratun park and is famous for its lively bar. Lind offers its guests a peek into the city from their hotel rooms – a view the visitors will cherish for a long time.

Hotel Klettur

If you are wondering where you should stay in Reykjavik, the clean and comfortable Hotel Klettur offers many single, double, family, and superior rooms. It is conveniently located near the Hlemmur Square bus station and offers breakfast, bar facilities, and free parking. The hotel is great for families as it has a game room where adults can enjoy table football (foosball) or a game of pool while the kids watch television.

City Center Hotel

The best area to stay in Reykjavik does not have to empty your wallet. Located in the middle of the capital amongst the city’s most popular eating and drinking places, City Centre is one of the best 3-star hotels you can find. With 30 beautiful rooms with attached bathrooms, and many superior rooms offering great views of the city (some even have balconies), this place is guaranteed to make your visit comfortable and memorable. Each room has soundproofing as well as windows that open to the freshest air you can get on the planet. The bar here opens for longer hours compared to other bars in the city. There is also a complimentary gym facility for the hotel guests, along with a delicious breakfast buffet.

Keahotel: The Skuggi, Storm, and Reykjavik Lights Hotels

The Keahotel chain offers some of the best places to stay in Reykjavik including the 3-star Skuggi Hotel, Storm Hotel, and Reykjavik Lights Hotel.

Skuggi is an elegant hotel with its interior inspired by Iceland’s volcanic beauty. It is close to downtown Reykjavik, just like Storm Hotel (the only Keahotel where you can book a balcony room). You can find the beauty of Icelandic landscapes, waterfalls, and the Northern Lights clearly in the design of Storm Hotel. Reykjavik Lights Hotel, on the other hand, is themed after the rich history of the country. The hotel focuses on the fusion between Iceland's past and its natural landscapes, especially focusing on the midnight sun and dazzling night lights that the country is famous for.

five stars hotel in Reykjavik for visitors

4-Star lodging in Reykjavik, Iceland

If you want to pamper yourself and your loved ones and are wondering where should you stay in Reykjavik, you have numerous options in the city’s capital. Although there are a few 5-star hotels that are under construction, the following four-star facilities will make your stay luxurious and memorable.

Keahotel: The Borg and Apotek Hotels

Keahotel’s historic Hotel Borg has been inviting and impressing its guests since 1930. It has esthetically appealing and spacious standard rooms, along with alluring deluxe rooms and suites. This four-star hotel offers a luxurious spa facility that includes a sauna, steam room, hot tub, and gym. If you are wondering where to stay in Reykjavik to get pampered, this is the place to stay.

Also located downtown is Hotel Apotek, which is even more historic as it was originally used as a pharmacy in 1917 before revamping it into a luxurious hotel. The hotel may not have a spa facility, but other than that, you can find all the modern state-of-the-art amenities that you can think of.

Hilton: Canopy by Hilton and Hilton Reykjavik Nordica Hotel and Spa

Hilton has some of the best luxury hotels in the world and Iceland is no exception. If you are wondering where to stay in Reykjavik, there are two Hilton hotels: Canopy by Hilton and Hilton Nordica Hotel and Spa.

Canopy by Hilton has a great location as it is just a few minutes' walk from Laugavegur shopping street. It is located between downtown Reykjavik and Hlemmur bus station. Each room has free wifi, a 48” television, a mini-fridge, and super comfortable beds. The hotel also has wheelchair-accessible rooms along with an excellent gym. You can also get babysitting services and bicycle rentals here. Hilton Reykjavik Nordica Hotel has some of the best spa facilities along with elegant rooms – not to forget the delicious Nordic cuisines that its famous VOX restaurant offers.

youth hostel option for young people in Reykjavik

Cheap Places to Stay in Reykjavik

You don’t have to spend all of your savings on hotel facilities that you probably won’t use. If you are on a budget and wondering where to sleep in Reykjavik, there are many clean and comfortable hostels.

One is Reykjavik City Hostel which has close proximity to the Botanical Gardens, Laugardalslaug (Iceland’s largest swimming pool), and the zoo. Galaxy Pod Hostel gives you a low-cost unique experience of sleeping in a ‘pod’ – an intelligently designed unit consisting of a bed, shelf, locker, and mirror.

Another affordable option is Bus Hostel, where you have the flexibility to either have a private room or share one with other travelers. Another option if you don't want to spend to much for your accomodation is to book a hotel near Keflavik airport.

Where to stay in Reykjavik depends on your needs - whether you want to pamper yourself in a luxury hotel or are just looking for a bed to sleep in. You can find all kinds of accommodation here. However, you need to book in advance as visitors flock to this beautiful island all year round. With a lot of construction going on around the city, new lodgings keep emerging and you are sure to find some good places to stay in Reykjavik.


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