Reykjavik Skyline

Where to Stay in Reykjavik

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Reykjavik’s theme is ‘effortless cool’, and our guide on where to stay in Reykjavik helps you find yours. The world’s northernmost capital’s pleasant and surprisingly cosmopolitan streets exude a wealth of creativity. Our city guide explains the different areas and their vibes for first-timers.

Once not much more than a fishing village, it is now Iceland’s biggest city. Still one of the smallest in Europe, Reykjavik manages to combine a relaxed and unhurried ambiance. It boasts a thriving design scene we highlight in our design guide, and a smorgasbord of cafes, restaurants, and bar options. The much talked of nightlife is diverse enough to suit pretty much every taste. If none of the hotels below fit you, you’re welcome to look at the other hotels we recommend in Reykjavik.

Reykjavik is also an ideal base for hopping out of the city. Whether you’re just in town for a stopover or planning a full-blown Icelandic adventure, this hotel list has got you covered.


Just east of Downtown, the neatly-planned and well-spaced streets of Hlíðar are predominantly residential. As such, it lacks the nightlife of Miðborg, a short walk away. Its main draw is its overall tranquility and impressive green spaces and attractions, including the Perlan museum and planetarium. Its also home to the Nauthólsvík Geothermal Beach, the only one of its kind in Iceland. Overall, Hlíðar is a great choice for those traveling as a young family, or couples seeking a more laid-back scene than can be found Downtown. For a great family or romantic escape, why not try our New Year’s Eve bonfire tour, perfect for kids of all ages!

101 Hotel

101 reykjavik
A chic room at the 101 Hotel

Next to the Icelandic Opera House and just a few hundred meters from Hallgrímskirkja and the shopping area of Downtown Reykjavik, 101 Hotel manages to be both clean-lined and maintain a sense of luxuriousness at the same time. Priding itself on its status as a design hotel, no feature, however small, has been left untouched by the careful hands of its design team, who have created a wonderland of contrasting white and black interiors that perfectly offset the harbor views on offer from some of the rooms. The 101 Hotel also boasts a spa, and small gallery displaying the work of local artists.

Hverfisgata 10, 101 Reykjavík, Iceland

ION City Hotel

Ion Reykjavik
The chic bar at ION City Hotel

The simply yet tastefully designed wood-filled interiors of the four-star ION City Hotel demonstrate the best of modern local design and act as the perfect accompaniment to any stay in Reykjavik. From the use of green Icelandic birch to curtains made from the wool of Icelandic sheep, the hotel seeks to give visitors a sense of place and be the antithesis to the identikit chain hotels we all dread. Situated on Laugavegur shopping street in the ever-bustling Downtown district, a stone’s throw from the soaring heights of Hallgrímskirkja, the bar area is a particularly lavish retreat to return to after a day’s exploration, while the ION City also provides guests with access to their first-rate fitness center.

Laugarvegur 28, 101 Reykjavík, Iceland

Sand Hotel

Sand Reykjavik
One of the unique rooms at Sand Hotel Reykjavik

Situated on Laugavegur shopping street a short hop from the ION City Hotel and the city’s main sights, Sand Hotel blends subtle yet cozy design with excellent facilities. The stylish individually-finished rooms each contain a fridge, coffee machine, and trendy Marshall speaker, alongside large windows that allow the exquisite Icelandic light to flood in. What’s more, a buffet breakfast is included, with the pastries coming from the Sandholt Bakery on the ground floor, which has been supplying the city with sweet treats for more than a century. Interested in what other culinary delights Reykjavik has to offer? Go on a food tour that highlights all the local specialties.

Laugavegur 34, 101 Reykjavík, Iceland

Downtown Reykjavik

The historic heart of Reykjavik, the Downtown district is the pin around which the rest of the Icelandic capital pivots. You’ll also hear it called Miðborg and 101 (after its postal code designation). Its often tastefully simple buildings sit beneath one of the city’s main sights, the mighty mid-twentieth century spire of Hallgrímskirkja. This Lutheran church’s stylized buttresses make it look like a just-launched rocket reaching for the heavens. Home to many of Reykjavik’s most important museums, as well as the majority of its entertainment venues, bars, and nightclubs, Downtown provides the perfect walkable base from which to take in all this majestic northern city has to offer. If the hustle and bustle get too overwhelming, head out for a tour of southern Iceland.

Tower Suites

Panoramic views Reykjavik
Panoramic views of the city below at Tower Suites

Located on the eastern edge of Reykjavik’s Downtown area, Tower Suites offer just a handful of penthouse apartments on the twentieth floor of the city’s tallest building. Large floor-to-ceiling picture windows offering unrivaled views of the city and the bay combine with contemporary Icelandic style rich in textural detailing. Each suite boasts a complimentary minibar and the use of an iPad, while a telescope adds a touch of old-world charm. Tower Suites also offer on-site parking and free Wi-Fi.

Katrínartún 2, 105 Reykjavík, Iceland

Kvosin Downtown Hotel

One of the plush seating areas in the rooms at Kvosin Downtown

Set within an attractive turn-of-the-century building just a couple of minutes’ walk from Lake Tjörnin, the interior of Kvosin Downtown Hotel is fully modernized with high-speed internet and suite-like rooms. The majority incorporates a kitchenette with a fridge and cooking hobs as well as a dedicated dining space. Its boutique styling is matched by excellent attention to detail and friendly, knowledgeable staff passionate about meeting guest’s individual requirements.

Kirkjutorg 4, 101 Reykjavík, Iceland

Icelandair Hotel Reykjavik Marina

Marina Reykjavik
One of the clean and spacious rooms at the Icelandair Hotel overlooking the harbor

A faint nautical theme unites the interiors at Icelandair Hotel Reykjavik Marina. It sits on the Downtown harbor-side, while large windows, different colored woods, and vivid artworks add color into the mix. A certified Green Hotel less than five minutes’ walk from the city’s Art Museum, guests here might equally prefer to indulge beside the warm fire of high-ceilinged lobby space, pick from the menu of the Slippbarinn Restaurant, or sit back to take in an indie Icelandic film in the on-site cinema.

Myrargata 2, Vesturbær, 101 Reykjavík, Iceland

Outside the City

The nearby village of Selfoss, a charming town on the banks of the Ölfusá river, is less than an hour from the city and the perfect place for those looking to explore from a more peaceful base. Surrounded by thick woods perfect for hiking in the summer or snowshoeing in the winter, and with a town center bursting with quaint shops and restaurants, this may be the perfect spot to relax after long days of exploring. If you’re looking to get out of the city without having to stay there, our Golden Circle and secret lagoon tour from Reykjavik might be just your thing!

360 Hotel & Thermal Baths

Outside of Reykjavik
The stunning scenery beyond a room at the 360 Hotel Selfoss

While it’s 45 minutes from Reykjavik, we couldn’t resist the charms of 360 Hotel and Thermal Baths in Selfoss. Large expanses of glass make the most of the stunning and ever-changing landscapes of the pristine wilderness beyond. Warmth oozes from the hotel’s guest lounge and spacious rooms. Guests are also able to take advantage of the geothermally heated pool and traditional sauna. You can also enjoy a three-course set menu of farm-to-table ingredients and authentic Icelandic recipes that change daily.

Mosató 3, 801 Selfoss, Iceland

Reykjavik and Beyond

This fascinating city has tons to give to visitors, with tons to offer design lovers, foodies, and history buffs. As the capital city, it’s a can’t-miss location, and its elegant charm will capture your heart. There are a ton of experiences to be had while spending a couple of days in the city, but an insider city tour led by a local guide is ideal for discovering the real gems in Reykjavik. For the more magically inclined, this unique tour takes you through the capital while delving into Iceland’s mythology and folklore.

Reykjavik is the perfect springboard for a host of trips out of the city to take in Iceland’s glorious natural wonders. The options of fun tours in, around, and outside of Reykjavik are virtually limitless. We offer a range of complete tour packages which use Reykjavic as a base, giving you ample time to explore the city and beyond, like our Blue Lagoon and the Northern Lights tour. Whether you choose to spend most of your time in Reykjavik or you’re heading out for an adventure, you’re sure to enjoy our thoughtfully curated hotel picks.

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