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Find exceptional hotels in Iceland's captivating capital. From volcanic landscapes to colourful harbour fronts, discover the perfect base for your Reykjavik stay.
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About Hotels in Reykjavik
Reykjavik is one of the world's most distinctive capitals, blending geothermal energy, Viking heritage, and a remarkably vibrant cultural scene. Whether you're visiting to see Hallgrímskirkja's panoramic tower, explore the National Museum of Iceland, catch a game at Laugardalsvöllur, or indulge in Icelandic lamb and skyr at the city's inventive restaurants, Reykjavik rewards every kind of traveller.
From design-led hotels in the buzzing 101 Reykjavik district to characterful guesthouses in the residential streets of Vesturbær, the city's accommodation spans a broad range of styles and budgets. Reykjavik is largely walkable, and the Strætó bus network connects outer neighbourhoods with ease.
Where to Stay in Reykjavik
101 Reykjavik
The city's vibrant centre and the ideal base for first-time visitors. Hallgrímskirkja, Harpa Concert Hall, the Old Harbour, and the main restaurant and shopping streets are all within easy walking distance.
Þórunnartún & Borgartún
Reykjavik's sleek business corridor, home to upscale hotels and contemporary dining. Well-placed for the Harpa concert hall and quick access to the domestic airport, with a polished, cosmopolitan atmosphere.
Laugardalur
A lively, creative neighbourhood anchored by the city's celebrated geothermal pools, Laugardalur Park, and the Kringlan shopping centre. Popular with younger travellers and those seeking a more local, everyday Reykjavik experience.
Vesturbær
A quieter, residential district favoured by those wanting a genuine neighbourhood feel. Close to Seltjarnarnes peninsula and Nauthólsvík geothermal beach, with good bus links and a relaxed pace away from the tourist bustle.
Airport and Transport Guide
Reykjavík is served by Keflavík International Airport (KEF), Iceland's primary international gateway with direct routes to destinations across Europe and North America. The Flybus and Flybus+ coach services connect the airport to the BSÍ Bus Terminal and city-centre hotels in around 45–50 minutes, with departures timed to meet every arriving flight, including late-night services.
Within the city, Strætó operates Reykjavík's public bus network, covering all main areas. A multi-ride Klippikort card offers better value than single fares for a multi-day stay, and the Strætó app allows mobile ticketing. Taxis are metered and a typical city-centre journey costs 2,000–3,500 ISK; there is no surge pricing but fares rise at night. Hreyfill is the main taxi operator; ride-hailing apps such as Uber do not currently operate in Reykjavík.
Tips for Finding the Best Hotel Deal in Reykjavik
- Book at least 8–10 weeks ahead for stays during Iceland Airwaves in November or the Reykjavík Arts Festival in May, when rooms fill rapidly.
- Neighbourhoods such as Hlíðar and Laugardalur offer calmer surroundings and lower nightly rates, with easy Strætó bus access to the city centre.
- Look for hotels that include breakfast — dining out in Reykjavík is expensive, and a hotel breakfast can save a meaningful amount each morning.
- Opt for free cancellation when booking, as Reykjavík weather and Northern Lights conditions can shift travel plans unpredictably at short notice.
- Midweek stays are generally cheaper than weekends in Reykjavík, particularly in shoulder months when leisure travellers dominate weekend demand.
- Join loyalty programmes at Keahotels or Fosshótel, both of which have a strong Reykjavík presence and offer member rates and priority availability.
When to Visit Reykjavik for Lower Prices
Winter (High Season)
November to February draws visitors hoping to see the Northern Lights and experience Iceland's dramatic winter landscape. Demand is strong, particularly around Christmas and New Year, and mid-range hotels typically command premium rates throughout the period.
Spring (Value Season)
March to May sees longer daylight hours returning and a quieter city before the summer surge. Weather remains cool but rewarding, and hotel prices have not yet reached their peak — a good balance of value and atmosphere.
Summer (High Season)
June to August is Reykjavík's busiest and most expensive period, driven by near-continuous daylight and a packed festival calendar. Accommodation prices peak sharply; booking well in advance is essential to secure reasonable rates.
Autumn (Low Season)
September and October bring the Northern Lights back, cooling temperatures, and noticeably lower prices as summer crowds depart. Mid-range hotels can be found from around £90–£130 per night — strong value for an increasingly atmospheric city.
Popular Areas to Stay in Reykjavik
Miðborg (City Centre)
The beating heart of Reykjavik, within walking distance of Hallgrímskirkja, Harpa Concert Hall, and the main shopping street Laugavegur. Expect the highest hotel rates and the liveliest atmosphere.
Vesturbær
A quiet residential district west of the centre, popular with families and long-stay visitors. Close to Nauthólsvík geothermal beach and offering better value than the tourist core.
Fossvogur / Háaleiti
Reykjavik's main business corridor, convenient for Keflavik Airport bus connections and corporate offices. Practical, well-priced, and calmer than downtown without sacrificing easy city access.
Hlíðar
A creative, up-and-coming neighbourhood with independent cafés, art studios, and a genuine local character. Offers affordable mid-range stays just a short walk from the city centre.
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