Picolo recommends · Hotel in Reykjavik, Iceland
Hotel Eyja
Four-poster beds, wooden floors and an organic breakfast, a short walk up from the busy part of Laugavegur where prices start to fall.
Walk east along Laugavegur and the souvenir shops thin out. Around Hlemmur, a few minutes further on, Hotel Eyja feels more like a guesthouse with good taste: four-poster beds, wooden floors and a style that mixes Scandinavian calm with Balinese touches.
Breakfast is organic and a reason to linger. Hlemmur itself, the old bus station, has been turned into a food hall full of small counters, which solves dinner on a night when you do not want to walk far.
Picolo’s verdict
Why we chose Hotel Eyja
Eyja is our value pick in Reykjavik. You get a boutique hotel with real warmth at a lower price than in the heart of 101, the central postcode, and the walk into town is short and pleasant.
You are outside the very centre, so bars and late nights mean a walk back. If you want to step out of the door into the old town, stay closer in. Those who dislike walking in wind and rain should weigh that too.
What you get
- Four-poster beds and wooden floors
- Organic breakfast
- Scandinavian and Balinese style
- Hlemmur food hall nearby
- Easy walk to Laugavegur
A day at Hotel Eyja
- Morning
- A slow organic breakfast while the city wakes up.
- Midday
- A walk down Laugavegur into the old town.
- Afternoon
- A swim at Sundhöllin, the old public baths, on the way back.
- Evening
- Small plates from the counters at Hlemmur food hall.
Location
Hlemmur, Reykjavik, Iceland
Open in MapsQuestions about Hotel Eyja
How far is Hotel Eyja from the centre of Reykjavik?
It lies east of the centre near Hlemmur, about ten minutes on foot from Laugavegur, so the old town is an easy walk.
Is Hotel Eyja good value?
Yes. It is a boutique hotel with character at lower prices than most hotels in the middle of town, which is why we rate it as a value pick.
What is near Hotel Eyja?
Hlemmur, where the city buses once terminated, is close by. Today it houses a food hall with small counters, handy for a relaxed dinner.
Other hotels nearby
Updated 6 Nov 2026All articles
How Picolo chooses
Our editors pick every hotel themselves, and most of them we have stayed at. No hotel can pay to be included or ranked higher. When you book through our links, Hotels.com pays Picolo a small commission. It never changes the price you pay, and it never decides what we write.
