Discover the best hotels in downtown Reykjavik and explore the exceptional amenities and facilities awaiting you. Here’s a guide to not only where to stay but also to the nearby attractions that make Iceland unforgettable.
As the capital of Iceland, Reykjavik serves as the primary entry point for travelers eager to discover this remarkable country. Many visitors choose to stay in the city for easy access to breathtaking adventures on the South Coast and at the awe-inspiring Jokulsarlon glacier lagoon.
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When planning your Reykjavik getaway, securing the right hotel should be a priority. With a vast array of accommodations—from luxurious stays to budget-friendly options—the choices can feel overwhelming.
To streamline your search, begin with downtown Reykjavik. Its central location makes it an ideal starting point for your exploration. Here, you’ll find everything from budget accommodations to family-friendly hotels and cozy guesthouses, catering to solo travelers and couples alike, whether for business or leisure.
Is Downtown Reykjavik a Good Place to Stay?
Reykjavik is a vibrant city overflowing with cultural and natural attractions. Despite its relatively small size compared to major global cities, it offers an exceptional blend of nature, culture, history, and modern comforts. If you’re planning a trip here, lodging in the heart of the city is your best bet for experiencing all that Iceland has to offer.
Known as 101 Reykjavik, the downtown district is the beating heart of the capital. This area is home to the city’s finest accommodations, restaurants, shops, and cultural monuments. Staying here provides unparalleled access to iconic sites, such as the stunning Hallgrimskirkja church and the renowned Harpa Concert Hall.
For shopping enthusiasts, Laugavegur street beckons with its local boutiques, souvenir shops, and a chance to savor Icelandic cuisine—all within easy walking distance from your hotel. Additionally, many key tourist attractions are just a stone’s throw away.
Moreover, downtown hotels are conveniently located near bus stops for organized tours. If you’re considering a sightseeing expedition to the Golden Circle or a relaxing day at the Blue Lagoon, a dedicated bus stop is likely just a short walk from your accommodation.
Are Hotels in Reykjavik City Center More Expensive?
Reykjavik does have a reputation for being pricier, especially in the downtown area. While it’s true that hotels in the city center generally carry a higher price tag, they may not be as steep as you might imagine.
Hotel prices vary widely, influenced by factors such as seasonality and available amenities. On average, mid-range hotels hover around $250 per night, while budget options can be found starting at $150, and luxurious stays may exceed $500.
However, the advantages of staying in city center accommodations often outweigh the costs. Many hotels feature superb amenities, including on-site restaurants, fitness centers, and spas, allowing you to relish the comforts of your hotel without straying far.
Moreover, with the city’s compact design, you can conveniently walk or utilize public transportation to explore its attractions, saving on transportation costs.
The Best Hotels in Downtown Reykjavik
From budget-friendly options to those that cater to luxury-seekers, the top-rated hotels in downtown Reykjavik promise to make your Icelandic holiday extraordinary. Below, we’ve ranked our selections based on their average ratings on Google Reviews.
8. Black Pearl Hotel
The Black Pearl Hotel, a chic four-star apartment hotel situated in the heart of Reykjavik, offers the perfect blend of accessibility and tranquility, thanks to its proximity to the city harbor. It stands out for travelers seeking both proximity to the city’s lively atmosphere and the comfort of spacious suites.
Rated 4.5/5 by more than 100 reviews, the hotel offers a range of rooms accommodating between two and six guests. The Economy Suite is ideal for couples, while the Penthouse and Deluxe Suites cater to families, with options to add extra beds upon request.
For travelers looking to keep dining costs down, each suite features a fully-equipped kitchen complete with modern appliances, allowing for easy meal preparation.
Additional amenities include private bathrooms, cozy bathrobes, satellite TV, and complimentary Wi-Fi. Notably, the hotel’s location puts you within a mile of the award-winning Harpa Concert Hall, a stunning architectural marvel renowned for its design, inspired by Iceland’s natural beauty.
Address: Tryggvagata 18, 101 Reykjavik, Iceland
7. Kvosin Downtown Hotel
Kvosin Downtown Hotel is a boutique establishment that welcomes a diverse array of guests, particularly families and groups. With room capacities of up to six, it’s an excellent choice for those traveling together or hosting clients.
With a commendable rating of 4.5/5 from over 160 guests, Kvosin’s spacious rooms and homey atmosphere make it a budget-friendly option without sacrificing comfort.
Room types range from Cozy Rooms to expansive Top Floor Suites, ensuring there’s something to meet every need. Most have kitchenettes, flat-screen TVs, and daily housekeeping, while breakfast is served each morning at the hotel.
Centrally located, Kvosin allows for easy access to shops and restaurants, including favorites like Icelandic Street Food and 101 Bistro. Beyond accommodation, the beautiful Tjornin lake and the historic Althing, one of the oldest parliaments in the world, are just a leisurely stroll away.
Address: Kirkjutorg, 101 Reykjavik, Iceland
6. CenterHotel Laugavegur
CenterHotel Laugavegur stands out as a top choice for couples and budget-conscious groups. With a rating of 4.6/5 from over 300 guests, this four-star establishment offers inviting accommodations at a competitive price.
Guests can enjoy amenities like complimentary Wi-Fi, a 24-hour service desk, and an in-house restaurant serving Icelandic and international cuisine, including exciting options from the local street food scene.
Room choices include everything from cozy doubles to spacious deluxe options, all with private bathrooms for added convenience. The hotel’s strategic location places you right on Laugavegur street, the city’s bustling shopping hub.
Noteworthy attractions nearby include the iconic Sun Voyager sculpture, a striking representation of a Viking ship located half a mile from the hotel’s doorstep.
Address: Laugavegur 95-99, 101 Reykjavik, Iceland
5. Sand Hotel
Centrally located, the Sand Hotel is a stylish boutique option that offers guests a warm and inviting atmosphere, positioned above a renowned local bakery.
With a rating of 4.6/5 from more than 360 guests, this accommodation features 78 luxurious rooms replete with modern amenities, such as en-suite bathrooms, coffee-making supplies, and free Wi-Fi.
Room options include Standard Family Rooms accommodating up to four guests, while the more luxurious Tower Room offers breathtaking city views.
Perhaps the highlight of your stay will be the Sandholt bakery situated on the hotel’s ground floor. Established in 1920, it’s one of Iceland’s oldest bakeries, renowned for its sourdough bread and delectable pastries.
Close by, visitors will find Hallgrimskirkja, Iceland’s tallest church, which offers stunning panoramic views and an architectural style inspired by local nature.
Address: Laugavegur 34, 101 Reykjavik, Iceland
4. Exeter Hotel
The Exeter Hotel pairs a modern aesthetic with functionality, located near Reykjavik’s Old Harbor. With a solid rating of 4.6/5 from nearly 400 reviews, it’s quickly becoming a popular choice in downtown Reykjavik.
Guests can select from over 100 well-appointed rooms featuring modern comforts like smart TVs, a minibar, and complimentary breakfast. The range of accommodations includes everything from Superior Doubles to luxurious suites with stunning views of Faxafloi bay.
After a day of exploring, unwind at the hotel’s wellness facilities, which include a sauna and a gym, perfect for rejuvenation.
With its proximity to trendy eateries like Kaffivagninn and Coocoo’s Nest, the Exeter Hotel is equally suited for those looking to explore Reykjavik’s culinary scene.
Address: 12, Tryggvagata, 101 Reykjavik, Iceland
3. Alda Hotel
The Alda Hotel is a four-star gem located along the upper stretch of Laugavegur street, boasting a commendable rating of 4.6/5 from over 530 reviews. This hotel offers an enviable blend of convenience for shoppers and food enthusiasts alike.
It provides a variety of room options—including standard guest rooms, family rooms, and luxurious suites—catered to solo travelers, couples, and families. Comfort is paramount, with complimentary breakfasts and en-suite bathrooms.
Guests can unwind in the hotel’s fitness center or soak in the outdoor hot tub while gazing at the dazzling northern lights in winter.
Dining at the hotel is a delight, with both the Brass Kitchen and Bar serving up a fantastic array of European and Icelandic cuisine, ensuring you won’t have to venture far for a meal.
Convenience is key at the Alda Hotel, with the bustling shopping district right at your doorstep, providing ample opportunities to find souvenirs and local crafts.
Address: Laugavegur 66-68, 101 Reykjavik, Iceland
2. Canopy Hotel by Hilton Reykjavik City Centre
The Canopy Hotel by Hilton is a sophisticated accommodation option situated in downtown Reykjavik, ideally located for both leisure and business travelers alike. With a stellar rating of 4.6/5 from over 800 guests, this hotel combines modern design with a nod to its historical roots as an arts hub.
Boasting 112 rooms set in six interconnected buildings, each room features elegant Scandinavian designs and essential amenities, including private bathrooms and complimentary Wi-Fi. Guests can opt for a range of room types from standard singles to spacious junior suites.
Additional amenities include a fitness center, meeting rooms, and a charming café that’s perfect for those early-morning coffee runs.
With Laugavegur shopping street and attractions like Arnarholl Hill within walking distance, the Canopy Hotel provides easy access to enjoy all that Reykjavik has to offer.
Address: Smidjustigur 4, 101 Reykjavik, Iceland
1. Hotel Reykjavik Saga
Hotel Reykjavik Saga opened its doors in 2022, and it’s already garnered an impressive 4.8/5 rating, making it a top choice in the city center. Nestled next to the tranquil Tjornin lake, this four-star hotel caters to a variety of travelers, from families to solo adventurers.
The hotel offers an extensive selection of rooms, including standard doubles, superior options, and luxurious suites, ensuring every guest finds a comfortable space. Each room is equipped with essential amenities, including private bathrooms and free Wi-Fi.
Beyond the comforts of your room, guests can relax in the hotel’s lounge or take in views from the roof terrace overlooking Reykjavik’s charming streets.
Nearby attractions like Tjornin lake and the historic Domkirkjan cathedral offer an inviting glimpse into Reykjavik’s cultural landscape, providing travelers with both relaxation and exploration.
Address: Laekjargata 12, 101 Reykjavik, Iceland
We hope this guide helps you navigate your options for accommodation in downtown Reykjavik. Feel free to leave your thoughts or experiences in the comments below!
