Where to Stay in Reykjavik: Editor’s Picks


For those looking to travel to Iceland, Reykjavik is a great base for exploring this diverse country. Not only is it the capital, it is also the largest city in Iceland and home to many cultural attractions and activities to include: nightlife, dining, theaters, parks, and even geothermal swimming pools. The city also has quite an upbeat and artsy feel and you will immediately be taken in by the rows of boldly colored houses that resemble Monopoly pieces. Get to know the creative side of Reykjavic at the National Gallery of Iceland, photograph ariel views of the city from the Hallgrímskirkja church tower, go shopping on the lively street of Laugavegur, or relax and enjoy a concert or poetry performance at the Nordic House. 

4 Star Hotels in Reykjavik

Grettisborg Apartments Reykjavik
Grettisborg Apartments Reykjavik is located in the downtown area of the city, within walking distance to major tourist attractions, funky cafes, top restaurants, hip nightclubs, and public transportation. The accommodation itself is suitable for all types of travelers as there is free wireless internet for business travelers, large apartments with built-in kitchens for families, free laundry opportunities for backpackers, and budget-friendly pricing with rooms for under 100 Euros per night. And to help you get acquainted with the culture, Icelandic art created by local professionals adorns the walls of the apartments.
Grettisgata 53b
101 Reykjavík, Iceland

101 Hotel
101 Hotel is a chic boutique accommodation located right in the city center. It is located near museums, art galleries, the main shopping area, picturesque parks, excellent restaurants, the port, and the National Opera where you can see local and international performers take the stage. There is also a lot to do at the hotel, as they feature an expansive art collection with it’s creative works from the country’s most talented. You will also enjoy the casual yet sleek bar and restaurant where you can eat cheeseburgers while still feeling elegant. At night, all you need to do is walk out your door and you will be surrounded by myriad choices for hip nightlife.
Hverfisgata 10
101 Reykjavik, Iceland

Borg Hotel
This art deco hotel from the 1930‘s offers guests only the best; from handmade furniture to elegantly set up breakfasts, to a staff that goes above and beyond for it’s guests. Located right in the city center, you will be near all of the bars, clubs, cafes, restaurants, tourist attractions, and cultural sites. The hotel is also located across the street from Althingi, the nation’s parliament building. And for a bit of added luxury in the already spacious rooms, Borg Hotel features heated towel racks and hot tile floors in their bathrooms.
Posthusstraeti 11
101 Reykjavik, Iceland 

Grand Hotel Reykjavik
If you’re the type of traveler who only wants the biggest and the best a city has to offer, the Grand Hotel Reykjavik is for you. The property boasts being the largest hotel in Iceland and is about a 20-30 minute walk from the city center or a quick shuttle ride, which the hotel offers free to its guests. If you want to help the environment while also seeing Reykjavik with the wind blowing through your hair, the hotel offers bike rentals as well as pre-planned routes (18 Euros for a half day and 29 Euros for a full day). While all of the sites in Reykjavik are easily accessible, the included buffet breakfast, spacious rooms with satellite television, nearby spa with locally-sourced products, and the fresh seafood dishes at the hotel’s Restaurant Brasserie Grand may make it difficult to leave the property.
Sigtún 38
105 Reykjavík, Iceland

3 Star Hotels in Reykjavik

Fosshotel Baron
For those who want to experience the beautiful coast and scenic mountain views of Reykjavik, Fosshotel Baron is located adjacent to the water and just meters away from popular shopping streets as well as a 5-10 minute walk to the trendy bars and restaurants of the city. Many of the rooms also have built in kitchens which provides a great opportunity to save money and eat a “home cooked” meals. Plus, the hotel is located in close proximity to a 24-hour grocery store. You can also take advantage of the hotels unlimited soup and bread dinner special for just 850ISK, as well as a free breakfast of cereal, waffles, fruits, bread, and meats in the morning.
Sigtún 38
IS 105 Reykjavík, Iceland

Centerhotel Arnarhvoll
This sophisticated hotel located in Reykjavik’s city center is a family-run accommodation with elegant style. The decor is quite modern, and flat screen TVs, pristine black desks, and sleek furniture enhance the clean, comfortable ambiance. Dine in their Panorama Restaurant for mountain, city, and Faxafloi Bay views while enjoying world-renowned wines and immaculately presented plates in a sleek and modern setting. If you need to relax, the hotel offers one of the best spas in the city, featuring Turkish Baths, Finnish saunas, and a luxurious stone and candlelit jacuzzi. When you are ready to explore Reykjavik and it’s, bars, cafes, nightlife, restaurants, and sites like The Culture House and The National Theatre, you will be within close walking distance.
Aðalstræti 4
101 Reykjavik, Iceland

Hotel Fron
This hotel, located right in the heart of the city, is close to the best cafes, restaurants, nightlife, historical sites, museums, and art galleries, like Gallery i8 and Kling and Bang. Moreover, it is very near the main shopping street of the city, with opportunities to buy locally produced clothing, crafts, jewelry, souvenirs, watches, food, bath and body products, and more. Some top shops to visit include ELM for ‘Icelandic-inspired women’s’ clothing, Gullkúnst Helgu for unique jewlery, and Cintamani for high quality outerwear to keep you warm in the cold weather. Another reason to stay at Hotel Fron is that they make most everything accessible to you, from daily sightseeing and adventure tours to laying out an expansive buffet breakfast each morning to featuring an array of comfortable rooms based on the guest’s preference. Want to try local Scandanavian food in a fine-dining setting? Their brand new restaurant, Scandinavian Smørrebrød and Brasserie, offers delicious and beautifully presented dishes like prime lamb, roasted garlic lobster tails, and “spaghetti of the north” with seafood and rich parsley and garlic sauce.
Laugavegur 22A
101 Reykjavik, Iceland

Guesthouse 1912
For a bit of old world charm, stay in this centrally-located 1912 guesthouse, which features modern amenities with classic character. Take your learning of Iceland’s past even further by visiting the Natural History Museum and the National Museum, both of which are within walking distance of the property. The Guesthouse also offers various amenities to its visitors, like free wireless internet, free local calls, a communal kitchen, free maps, 20% off breakfast at the luxurious Borg Hotel, and a staff that goes above and beyond to meet the needs of their guests. If you’re looking for a place that feels more like home than a hotel, Guesthouse 1912 is the perfect choice.
Skólabrú 2
101 Reykjavik, Iceland

Budget Hotels in Reykjavik

Hotel Phoenix
A stay at Hotel Phoenix will put you right in the middle of all the action for a very reasonable price. You will be on the main shopping strip where art galleries, hip restaurants, eclectic cafes, and upbeat nightlife abounds. The hotel is also a short walk from the Old Town, where you can visit an array of education museums, the city’s main square of Austurvöllur, or Domkirkja, a 1970’s Lutheran cathedral with a surprisingly modern look. While the 9-room Hotel Phoenix may be small, each room comes with modern amenities, high-quality linens, free high-speed wireless internet, and bathrooms adorned with shiny Italian marble.Laugavegur 140-105
Reykjavik IS-105  Iceland

Reykjavik Downtown Hostel
This modern hostel is not only clean and spacious; it’s also centrally located in Reykjavik’s Old Town near restaurants, cafes, bars, shopping, nightlife, tourist sites, and the cultural center. The hostel itself also makes travel convenient and fun for guests. With a game room, lounge, breakfast service, washing machines, in-room lockers, a tour desk, computers, and free wireless internet; you’ll have virtually all you might need.  For those looking to stay somewhere that is eco-friendly, Reykjavik Downtown Hostel is Swan Eco-Certified, which is the official Nordic sustainability award.
Vesturgata 17
101 Reykjavík, Iceland

 Written by Jessie Festa for EuropeUpClose.com



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  1. says

    Wonderful blog.  I am new here and enjoying the way you organized the whole blog structure about accomodations. We are also accomodations site in Armenia, and I just admire your blog here, so organized and so well done.
    If you allow I will visit you frequently and communicate with you

  2. Roman Terry says

    Always have wanted to go here. Place I learned about in the show Pretty Little Liars.

    Regards, Desiree

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