Hotels
Hotels in Reykjavik: eight places to stay, from harbour to lava field
It is a winter afternoon and already dark when the streetlights come on along Laugavegur. Steam rises from the cafés, and somewhere above the harbour a faint green band is beginning to move. Reykjavik is small enough to walk end to end, so choosing a hotel mostly means choosing which street you want to wake up on.
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Reykjavik is home to roughly 140,000 people, about the size of Cambridge, and you can cross the centre on foot in half an hour. Between the old harbour, Laugavegur and Hallgrímskirkja, the tall concrete church at the top of the hill, you will find almost all the restaurants, bars and museums you need.
Many visitors use the city as a base for day trips along the Golden Circle and the south coast. It pays to stay close to where the tour buses collect. Others would rather sleep out in the landscape with the northern lights beyond the window. We have chosen seven hotels in town and one out in the lava fields. Links go to Hotels.com, and we always choose the hotel before the link.
In short: where to stay in Reykjavik
Stay in 101 Reykjavik, the postcode for the centre, between the old harbour and Laugavegur. You can walk to restaurants and museums, and most tour pickups are close by. For northern lights and nature from your bed, The Retreat at Blue Lagoon is the option outside town.
Our first choice: Hotel Borg. Check availability and prices
Best for romance: The Retreat at Blue Lagoon
Best for a first visit: Hotel Borg
Best for value: Hotel Eyja
How to choose a hotel in Reykjavik
Stick to 101: postcode 101 is the centre. Further out you will often need a bus or taxi in the evening, and taxis here are not cheap.
Check the pickup point: tour coaches rarely enter the narrow central streets. Ask which numbered bus stop your hotel uses, so you are not dragging a suitcase into the wind.
Blackout blinds in summer: in June it barely gets dark at all. If light keeps you awake, make sure the room has proper blinds.
Darkness for the aurora: streetlights wash out all but the strongest displays in town. To see the northern lights properly, head out on a tour or sleep outside the city.
Breakfast matters: eating out in Iceland is expensive, so a good breakfast included in the rate does more for your budget than you might think.
The building
Hotel Borg from the outside.
The old town around Austurvöllur
Around the small square of Austurvöllur stand the parliament building, the cathedral and some of the oldest houses in the city. It is as central as Reykjavik gets, with the harbour on one side and Laugavegur on the other.
Hotel Borg: art deco facing parliament
Hotel Borg looks straight across Austurvöllur at the Althing, Iceland's parliament. The building is one of the city's best-known art deco landmarks, and the rooms keep the period feel with dark wood, black and white details and tall windows.
It is classic without feeling stuffy, and the position is hard to beat: step outside and you are in the middle of everything. It is a strong pick for a first visit and anyone who likes a hotel with a sense of history. Rooms facing the square can pick up some noise from the bars at weekends, so ask for the back if you sleep lightly.
Book your stay: Check availability and prices at Hotel Borg
The building
Konsulat Hotel from the outside.
Konsulat Hotel: an old merchant street, freshly furnished
Konsulat Hotel sits on Hafnarstræti, the street linking the old town and the harbour, in a building that once held shops and offices. Inside it is modern and cosy, with greens and greys and plenty of soft textiles.
It works well for couples and for travellers who want a little more personality than the big chains offer. Harpa and the harbour are just below, and dinner is a short stroll in any direction. As part of the Hilton group, it lets you earn and spend points, and the bar is a calm place to thaw out after a day on the road.
Book your stay: Check availability and prices at Konsulat Hotel
The building
Kvosin from the outside.
Kvosin: a quiet base in the oldest quarter
Kvosin overlooks a small square just behind Austurvöllur, in the oldest part of the city. Rooms are spacious and simple, with Nordic timber furniture and pale colours.
It is a sensible pick if you want room to spread out while staying right in the centre, and it works for groups travelling together. There is no big hotel lounge or buzzing bar, so evenings are spent out in town. In Reykjavik that is hardly a hardship, with some of the best kitchens only a few streets away.
Book your stay: Check availability and prices at Kvosin
The balcony
The view from one of the balconies at The Reykjavik EDITION.
By the old harbour and Harpa
The old harbour has been reworked with restaurants, whale-watching boats and Harpa, the concert hall with its glass facade. Stay here for views across the water to Esja, the mountain on the far side of the bay.
The Reykjavik EDITION: Harpa on one side, mountains on the other
The Reykjavik EDITION stands right beside Harpa, facing the harbour. Rooms are large and pared back in greys and warm browns, and many look out over the water towards Esja.
This is the city's most contemporary luxury hotel, with a rooftop bar, a basement club and a spa. It appeals to travellers who want a big-city hotel with somewhere to go after dinner. If you prefer quiet and cosy, the smaller old-town hotels will feel more like Iceland. Rates are among the highest in town, so watch for offers outside summer.
Book your stay: Check availability and prices at The Reykjavik EDITION
The lobby
The lobby at Sand Hotel.
Laugavegur and Hverfisgata
Laugavegur is the city's longest shopping street, and Hverfisgata runs parallel with cafés, bars and design shops. This is where Reykjavik is liveliest, especially on Friday and Saturday nights.
Sand Hotel: Icelandic craft on the main street
Sand Hotel sits halfway along Laugavegur, yet the entrance keeps most of the street noise at bay. Rooms are light and dressed with Icelandic design, wool and sheepskin, and there is a bakery downstairs.
Book it if you want to be where things happen, with shops and coffee outside the door. Couples and friends on a long weekend will feel at home. Some rooms are compact, so upgrade a category if you are staying more than a couple of nights. If breakfast is not in the rate, the bakery is the obvious answer.
Book your stay: Check availability and prices at Sand Hotel
The building
Canopy by Hilton from the outside.
Canopy by Hilton: local touches and a long breakfast
Canopy sits between Laugavegur and the harbour, in a block where old and new buildings have been stitched together. The interior borrows from Iceland, from volcanic stone to knitwear, and the breakfast has a reputation for generosity.
It is a dependable choice for families and friends who want modern rooms, good service and easy access to both restaurants and tour pickups. It has a little more of the chain about it than the smallest places, but it is thoughtfully done and unfussy.
Book your stay: Check availability and prices at Canopy by Hilton
The lobby
The lobby at Hotel Eyja.
Hotel Eyja: eco boutique a short walk uphill
Hotel Eyja lies east of the centre, about ten minutes on foot from Laugavegur. Rooms have four-poster beds and wooden floors in a mix of Scandinavian and Balinese style, and the hotel is known for its organic breakfast.
This is our value pick: a warm boutique hotel for less than you would pay in the heart of 101. Couples who do not mind a short walk will like it. If you want bars on the doorstep, stay closer in. Nearby Hlemmur, the old bus terminal, is now a food hall with several small kitchens.
Book your stay: Check availability and prices at Hotel Eyja
The building
The Retreat at Blue Lagoon from the outside.
Out in the lava fields
Beyond the city you can wake up to lava, moss and mountains. It costs more and needs a car or transfer, but rewards you with dark winter skies and silence all year round.
The Retreat at Blue Lagoon: a lagoon of your own
The Retreat sits beside the Blue Lagoon on the Reykjanes peninsula, close to Keflavík airport. Rooms have floor-to-ceiling windows onto the lava, and guests use a private section of the milky blue lagoon and a large spa.
It is a romantic choice for your first or last night in Iceland, when you are heading to or from the airport anyway. Volcanic activity on Reykjanes has closed the area several times since 2023. Check the latest status shortly before you travel and book on flexible terms.
Book your stay: Check availability and prices at The Retreat at Blue Lagoon
When to book
Summer: June to August is peak season, with light nights and full hotels. Book several months ahead.
Aurora season: from September to March it is dark enough for the northern lights, and UK half-term weeks are popular.
Iceland Airwaves and Christmas: the autumn music festival and the weeks before Christmas fill central hotels. Check the dates before you book.
Our first choice in Reykjavik
Hotel Borg
We recommend Hotel Borg because the location is hard to beat: you step out of the door into the middle of town. It faces the Althing, Iceland's parliament, across Austurvöllur, in one of the city's best-known art deco landmarks. It is classic without being stuffy.
Hotels in Reykjavik: frequently asked questions
What is the best area to stay in Reykjavik?
The centre, postcode 101, between the old harbour and Laugavegur. You can walk almost everywhere and the tour pickup points are close by. Hotels in 101 cost more, but you save time and taxi fares, and in summer it is light almost all night.
Can you see the northern lights from Reykjavik city centre?
Occasionally, during strong displays, but streetlights make it difficult. Staying outside town or joining an aurora tour improves your chances considerably. The best nights are clear and dark, from September to March. Grótta lighthouse on Seltjarnarnes, west of the centre, is a popular spot to see them without travelling far.
How far is Keflavík airport from Reykjavik?
About 50 minutes by coach or car. Airport coaches drop at numbered stops, not always at your hotel door. The Flybus runs to the BSÍ terminal, where minibuses continue to most hotels in the centre. Book your ticket in advance.
Do you need a car in Reykjavik?
Not in the city itself, which is very walkable. For the Golden Circle or the south coast a car gives more freedom, though guided tours cover the main sights. In winter the roads can be icy and close at short notice, so join an organised tour if you are not used to winter driving.
Is the Blue Lagoon open?
It has closed several times after eruptions on the Reykjanes peninsula. Check the latest status with the Blue Lagoon before booking. Sky Lagoon in Kópavogur is an alternative a quarter of an hour from the centre, with warm water and sea views. Both need booking in advance.