The Best Hotels in Reykjavik for Different Types of Travellers
Here’s my curated list of Reykjavik’s best places to stay, handpicked for travellers seeking a unique slice of Icelandic hospitality. As a travel writer, I’ve explored each of these spots myself, experiencing everything from the vibe of the rooms to the amenities offered.
I've picked out a few different traveller categories - so whether you're into design, luxury, or nightlife, there's a hotel here for you. 🏨
💎 For Luxury Travellers
For those who like to travel in style and don’t mind a little extra sparkle in the budget, these are Reykjavik's most luxurious hotels.
Cool Nordic style gets a bold, theatrical twist at The Reykjavik Edition, Marriott’s latest luxury Edition hotel, which has been turning heads since it opened. Designed by the legendary Ian Schrager, this hotel sits stylishly beside the iconic Harpa Concert Hall, wrapped in a charred timber façade that’s a nod to Iceland’s lava fields. Inside, rooms are all about warm ash wood, plush wool throws, and sleek, modern lines. And the food scene? It’s big. The hotel’s restaurant, Tides, helmed by Iceland’s own culinary star Chef Gunnar Karl Gíslason, is already a hot spot, with daring dishes like habanero-grilled salmon and a rye bread ice cream that’ll change the way you think about dessert.
This hotel takes location seriously—right next to Iceland’s Parliament House and the main square, you’ll have Reykjavik’s historical heart at your doorstep. Iceland Parliament Hotel brings a modern Scandinavian aesthetic with clean lines and big, comfy beds that feel like a hug after a day of exploring. On-site, you’ll find a casual bistro and lounge perfect for unwinding with local craft brews. Plus, they know how to do a hearty breakfast spread, setting you up for a day of tackling Iceland’s crisp air and volcanic landscapes.
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✨ For Design Gurus
If you’re the type who’d choose a hotel based on its furniture line-up, these spots are like eye candy meets cosy Nordic comfort. Get ready to love every stylish detail.
Reykjavik Konsulat Hotel: A Boutique Time Capsule ($$$$$)
Reykjavik Konsulat Hotel, Curio Collection by Hilton
If you’re after a stay with character, Reykjavik Konsulat Hotel blends old-world charm with Icelandic soul in one seriously stylish package. Housed in a beautifully restored historic building, this hotel brings together plush furnishings and vintage touches that nod to Reykjavik’s 19th-century merchant past and the bombastic Danish Consulate that once gallivanted about town and opened Iceland's first department store (inside this building no less). Located just off Laugavegur, Reykjavik’s main shopping and dining street, it’s ideal for those who want to explore the city’s best spots right from their doorstep. The underground spa offers a cosy retreat on frosty days.
his Reykjavik icon, known for its sleek design and bold art, is a magnet for creatives and style-seekers alike. At 101 Hotel, black-and-white interiors meet striking modern art, with a moody yet sophisticated ambiance throughout. Rooms feature oversized beds, heated floors, and open-plan bathrooms. The chic bar and lounge, with its eclectic furnishings and impressive cocktail menu, makes for a cosy gathering spot, while the location places you close to the city’s top galleries, boutiques, and Harpa Concert Hall.
Hotel Borg combines Art Deco elegance with a distinctly Icelandic charm right in the heart of Reykjavik. Overlooking Austurvöllur Square, this iconic hotel has been a fixture of the city’s skyline since 1930. Inside, you’ll find polished marble floors, custom-made period furniture, and plush rooms that blend classic style with modern touches. The on-site Borg Spa offers a luxurious retreat with a hot tub, sauna, and steam bath.
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🍹 For Nightlife Seekers
Ready to dive into Reykjavik’s nightlife? These hotels put you close to the action so you can stay out into the wee hours without a worry.
Canopy by Hilton: Luxury, Location, and Live Music ($$$$$)
At Canopy, sleek Icelandic design meets a welcoming, urban vibe in the heart of downtown. Built across six restored houses, this Hilton property merges Reykjavik’s modernity with its historical roots, offering minimalist interiors, cosy woollen blankets, and locally inspired artwork. With bikes to borrow and a rooftop terrace with city views, it’s a perfect base for exploring. Evenings see the Canopy bar buzz with live music and craft cocktails.
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Kvosin Downtown Hotel: Home of the Klaustur Bar ($$$)
Kvosin Downtown Hotel combines the comforts of home with the style of a boutique stay. Set in a historic building near Reykjavik’s Parliament, it’s known for its spacious, apartment-style rooms complete with kitchenettes, perfect for families or longer stays. Rooms are bright, with Scandinavian decor touches and views over the charming square below. Downstairs, the lively Klaustur Bar is a favorite with locals, offering a curated list of Icelandic beers and spirits.
A lively, social hub in downtown Reykjavik, Loft Hostel is a top choice for travellers who want to connect and explore the city’s nightlife scene. The rooftop terrace, often buzzing with events or live music, provides a fantastic spot to kick off the evening with a drink, soaking in views of the city below. Inside, common areas are chic yet cosy, making it easy to meet fellow adventurers before heading out. Plus, its central location means you’re just steps away from Reykjavik’s popular bars and music venues.
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🍽️ For Foodies
These hotels all feature some of the city's best restaurants, perfect for anyone who believes a trip's worth is measured by what was on the plate.
Apotek Hotel: Modern Icelandic & Craft Cocktails ($$$)
Housed in a former pharmacy, Apotek Hotel is a dream for food lovers with its chic restaurant, Apotek Kitchen + Bar. Helmed by award-winning chefs, the restaurant is a local favourite for its inventive Icelandic dishes and craft cocktails that embrace fresh, seasonal ingredients. Located in Reykjavik’s buzzing centre, the hotel makes it easy to experience the city’s top culinary spots. Plus, with breakfast, lunch, and dinner all served in-house, you’re never far from another indulgent bite.
Housed in a former warehouse by the old harbour, the Exeter Hotel radiates industrial chic with an Icelandic twist. Rooms showcase exposed concrete and metal accents, balanced by warm textiles and soft lighting. The bustling bakery in the lobby called Deig serves bagels that rival New York City and freshly made donuts, and the on-site gastropub, Le Kock, draws in locals for its highly-rated burgers. Step outside, and you’re minutes from the city’s seafood restaurants, galleries, and the striking Harpa Concert Hall.
Set along Reykjavik’s lively Laugavegur Street, Sand Hotel is a stylish retreat rooted in Icelandic heritage. Once the site of a famed local tailor’s shop, it nods to the past with vintage photos and custom furniture. Rooms are a calming blend of soft neutrals and luxury linens, and some offer private balconies perfect for soaking in the city’s rhythm. Breakfast is a treat with freshly baked bread from the adjacent Sandholt Bakery, one of Reykjavik’s oldest and most beloved.
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👨👩👧👦 For Families
Families, I've got you covered as well. These hotels are kid-friendly, parent-approved, and make sure everyone has a comfy place to unwind after a day of exploring.
With spacious, elegantly furnished apartments in the old harbour area, Black Pearl is a gem for families needing room to unwind. Each suite offers kitchen facilities, a rarity in Reykjavik, so you can prep meals for the kids or enjoy breakfast at your own pace. Located within walking distance of museums, restaurants, and the harbour, it’s a great base for family outings. Plus, the attentive staff can help arrange activities and provide insider tips tailored for travellers with kids.
Offering the convenience of apartment-style living in the heart of Reykjavik, Reykjavik Residence Hotel is an excellent pick for families. Suites include full kitchens, spacious living areas, and even high chairs or cribs on request, making it easier to travel with little ones. The hotel’s location near the main shopping streets and family-friendly attractions like Tjörnin Pond ensures you have everything you need within reach. Breakfast can even be delivered to your room, a thoughtful touch for mornings with the kids.
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💸 For Budget Travellers
Iceland on a budget? It can be done (kind of!). These places make sure you stay comfy without eating into your fund for hot springs, volcano tours, and road trips.
Halló! I'm James Taylor, a travel writer and Iceland expert with over a decade of experience sharing Iceland’s wonders.
Born in Australia, I've been lucky enough to have crafted a career out of exploring Iceland’s stunning landscapes and fascinating culture for years,
✍🏻 In that time, I've written feature articles and travel guides for publications like National Geographic Traveller, Conde Nast, Lonely Planet, Intrepid Travel, Trip Advisor, Viaot,r Culture Trip, World Nomads, Easy Jet, and many, many others.
✨ With my Digital Travel Guides, you’ll find my hand-picked, must-see spots across Iceland.
My guides include everything you need for an unforgettable Icelandic journey:
Natural Wonders 🌋 – geysers, glaciers, volcanoes, hot springs
Cosy Cafés ☕️ – from Reykjavik’s hidden gems to scenic fjord-side stops
Local Eats 🍲 – iconic seafood, the country's best meat soup, and vegan options
Geothermal Baths 💦 – natural hot springs and iconic Blue Lagoon alternatives
Cultural Sites 🏛 – Viking history, contemporary art, festivals, and more
Stunning Landscapes 🌌 – Northern Lights, black sand beaches, and volcano hikes
If Iceland feels like a lot to take in, you're in the right place. Check out my free guides for a taster and some free gems, or dive into my more detailed itineraries and guides that cover must-visit spots, hidden gems, seasonal tips, and local advice to make planning easy.
Takk fyrir og góða ferð!