Home Hotels Mid-range Where To Stay In Reykjavik, Iceland – Hotel Guide From Budget To Luxury

Where To Stay In Reykjavik, Iceland – Hotel Guide From Budget To Luxury

Where To Stay In Reykjavik, Iceland – Hotel Guide From Budget To Luxury


Welcome to Reykjavik, the vibrant capital city of Iceland. Known for its stunning landscapes, geothermal wonders, and vibrant culture, Reykjavik is a popular destination for travelers from around the world. Whether you’re planning a budget-friendly trip or seeking a luxurious escape, Reykjavik offers a range of accommodation options to suit every traveler’s needs. In this comprehensive hotel guide, we’ll explore where to stay in Reykjavik, from budget accommodations to mid-range options and luxurious hotels.

Reykjavik is a city that offers something for everyone. From the iconic Hallgrimskirkja Church to the buzzing streets of Laugavegur, you’ll find plenty of attractions and activities to keep you entertained. The city is also a gateway to Iceland’s breathtaking natural wonders, such as the Golden Circle, Blue Lagoon, and the picturesque South Coast.

When it comes to choosing accommodation in Reykjavik, you’ll find a wide range of options to cater to different budgets and preferences. Whether you’re a budget-conscious traveler looking for affordable yet comfortable lodging, a mid-range traveler seeking a balance between affordability and amenities, or a luxury seeker in search of lavish accommodations, Reykjavik has it all.

In the following sections, we’ll delve into the different tiers of accommodation options available in Reykjavik, along with the best neighborhoods to stay in. We’ll also provide some handy tips for choosing the perfect hotel. Whether you’re planning a short city break or an extended stay, this guide will help you make informed decisions and ensure a pleasant and memorable trip to Reykjavik.


Budget Accommodation Options

If you’re traveling on a tight budget, don’t worry – Reykjavik offers a range of budget-friendly accommodation options that won’t break the bank. While these options may not have all the bells and whistles of luxury hotels, they provide comfortable and affordable lodging for budget-conscious travelers.

One popular choice for budget accommodations in Reykjavik is the guesthouse or hostel. These establishments offer shared dormitory-style rooms or private rooms at affordable prices. You’ll often find communal kitchens where you can prepare your meals, saving even more money on dining out. Hostels are a great option for solo travelers, backpackers, or anyone looking to socialize and meet fellow travelers.

Another option for budget travelers is budget hotels or guesthouses. These properties typically offer basic yet comfortable rooms with essential amenities like private bathrooms, Wi-Fi, and a convenient location. You may not find extravagant amenities or fancy lounges, but budget hotels provide a comfortable and affordable base for exploring Reykjavik.

If you prefer a more unique and adventurous experience, consider staying at a campsite or a camping cabin. Reykjavik offers several campsites with facilities like communal kitchens, showers, and laundry facilities. This option is ideal for those who enjoy the great outdoors and want to experience Iceland’s natural beauty up close.

Lastly, you can also consider renting an apartment or a room through vacation rental websites. This option allows you to have your own space and often comes with the added benefit of a kitchen, which can help you save money on meals.

When choosing budget accommodations, it’s important to consider the location and proximity to the city center or attractions you plan to visit. While some budget accommodations may be a bit further away from the city center, Reykjavik has excellent public transportation that can easily bring you to your desired destinations.

Though budget accommodations may not offer the same level of luxury as higher-end options, they provide a comfortable and cost-effective solution for travelers who are more focused on exploring the city and its surroundings rather than indulging in luxurious amenities.


Mid-range Accommodation Options

If you’re looking for a step up in comfort and amenities without breaking the bank, Reykjavik offers a variety of mid-range accommodation options that provide a balance between affordability and quality. These options cater to travelers who seek a bit more comfort and convenience during their stay.

One popular choice for mid-range accommodations in Reykjavik is the boutique hotel. These charming and stylish properties typically offer a higher level of personalized service and attention to detail. They often feature unique designs, cozy common areas, and comfortable rooms equipped with modern amenities such as flat-screen TVs, mini-fridges, and complimentary Wi-Fi.

Another option in the mid-range category is the aparthotel or serviced apartment. These accommodations provide the convenience of a hotel with the added benefit of a kitchenette or full kitchen, allowing you to prepare your meals and save on dining expenses. Aparthotels are a fantastic choice for families or travelers who prefer the comfort and flexibility of a home-like setting.

If you prefer a more traditional hotel experience, you can find mid-range options that offer a range of amenities such as on-site restaurants, fitness centers, and business facilities. These hotels may not have the lavishness of high-end properties but still provide comfort and convenience at a more affordable price point.

Mid-range accommodations are often located within or near the city center, making it easy to explore Reykjavik’s attractions, restaurants, and shops. You’ll also find that many mid-range hotels offer excellent value for money, providing a comfortable stay without breaking the bank.

When choosing a mid-range accommodation, consider the specific amenities and services that are important to you. Look for properties that offer a good balance of comfort, location, and value. It’s also worth reading reviews and checking the hotel’s website for any special offers or deals that could save you money.

Mid-range accommodations in Reykjavik provide a comfortable and enjoyable experience for travelers who want a bit more than just the basics. With their convenient locations and a range of amenities, they are a fantastic choice for those looking to enhance their stay without spending a fortune.


Luxury Accommodation Options

If you’re seeking the ultimate indulgence and a touch of opulence during your stay in Reykjavik, the city offers several luxurious accommodation options that will exceed your expectations. These properties epitomize comfort, elegance, and exceptional service to enhance your travel experience.

Reykjavik boasts a range of luxury hotels, each offering its own unique style and charm. From sleek and modern design hotels to elegant and historic properties, you’ll find options that cater to different tastes and preferences. These hotels are known for their impeccable attention to detail, luxurious furnishings, and top-notch amenities.

Luxury hotels in Reykjavik often feature well-appointed rooms and suites, complete with plush bedding, stylish decor, and stunning views of the city or the surrounding landscape. These accommodations often come with additional perks such as in-room spa treatments, private balconies, and complimentary access to exclusive lounges.

In addition to comfortable accommodations, luxury hotels in Reykjavik also offer a range of premium amenities and services. You’ll find gourmet restaurants serving exquisite cuisine, elegant bars and lounges for relaxing evenings, lavish spas offering rejuvenating treatments, and state-of-the-art fitness centers for those looking to stay active during their stay.

For the ultimate luxury experience, consider staying at one of the exclusive boutique luxury hotels in Reykjavik. These properties offer a more intimate and personalized experience, with a focus on creating a memorable stay for each guest.

When choosing a luxury accommodation, consider the location and proximity to the city’s attractions and landmarks. Many luxury hotels in Reykjavik are conveniently located in the heart of the city or in close proximity to popular tourist sites.

While luxury accommodations often come with a higher price tag, they provide an unparalleled level of comfort and luxury that will make your stay in Reykjavik unforgettable. Whether you’re celebrating a special occasion or simply want to treat yourself, a stay at a luxury hotel in Reykjavik will leave you feeling pampered and indulged.


Best Neighborhoods to Stay in Reykjavik

Reykjavik is a compact and walkable city, making it easy to explore different neighborhoods during your stay. Each neighborhood in Reykjavik offers its own unique charm and attractions, so choosing the right one to stay in depends on your preferences and interests. Here are some of the best neighborhoods to consider when deciding where to stay in Reykjavik:

  1. Downtown Reykjavik: This is the heart of the city and a popular choice for many travelers. With its vibrant atmosphere, bustling streets, and close proximity to attractions such as Hallgrimskirkja Church and the Harpa Concert Hall, staying in downtown Reykjavik puts you right in the center of the action. You’ll find a wide range of accommodations options, from luxury hotels to budget-friendly guesthouses.
  2. Old Harbor: Located west of downtown Reykjavik, the Old Harbor area offers a charming maritime ambiance. It’s a great neighborhood to stay in if you’re interested in whale watching tours or exploring the city’s maritime history. The area is dotted with trendy cafés, restaurants, and boutique shops.
  3. Laugavegur: Known as Reykjavik’s main shopping street, staying in the Laugavegur neighborhood puts you right in the midst of the city’s trendy shops, restaurants, and nightlife. This area is perfect for those who want easy access to the city’s vibrant cultural scene and prefer a lively atmosphere.
  4. Grandi: Located near the Old Harbor, the Grandi neighborhood has undergone a revitalization in recent years and is now known for its thriving art scene and hip cafés. This trendy area offers a mix of modern urban living and industrial charm.
  5. Vesturbær: This peaceful neighborhood is located west of downtown and provides a more residential and relaxed atmosphere. It’s an ideal choice for those seeking a quieter stay while still being within walking distance of downtown Reykjavik’s attractions.
  6. Árbær: Located on the outskirts of the city, Árbær offers a mix of residential areas and green spaces. This neighborhood is great for those who want to explore the open-air Árbær Open Air Museum and enjoy a quieter and more suburban feel.

Ultimately, the best neighborhood for you to stay in Reykjavik will depend on your preferences, budget, and what you want to experience during your visit. Consider the atmosphere, proximity to attractions, and the type of accommodations available in each neighborhood to make an informed decision.


Things to Consider When Choosing a Hotel in Reykjavik

When it comes to choosing the right hotel in Reykjavik, there are several factors to consider to ensure a comfortable and enjoyable stay. Here are some important things to keep in mind:

  1. Location: Consider the location of the hotel and its proximity to the attractions and activities you plan to explore in Reykjavik. Staying in a centrally located hotel can save you travel time and make it easy to explore the city on foot.
  2. Amenities: Take into account the amenities offered by the hotel. Consider what facilities are important to you, such as on-site restaurants, fitness centers, spa services, or room service. Choose a hotel that provides the amenities that will enhance your stay.
  3. Reviews and Ratings: Read reviews and check ratings of the hotel on reputable travel websites. This will give you insights into the experiences of previous guests and help you gauge the quality and service provided by the hotel.
  4. Price and Value: Set a budget for your accommodations and compare prices of different hotels in Reykjavik. Consider the value you will receive for the price paid, such as the location, amenities, and quality of service provided by the hotel.
  5. Hotel Brand: Consider staying at a reputable hotel brand that you are familiar with if brand loyalty or trust is important to you. Established hotel brands often have a consistent level of service and quality across their properties.
  6. Special Offers and Packages: Keep an eye out for special offers or packages provided by hotels in Reykjavik. These can include discounted rates, added amenities, or bundled deals that provide extra value for your money.
  7. Accessibility: If you have specific accessibility requirements, ensure that the hotel can accommodate your needs. Check if they have accessible rooms, elevators, and other necessary facilities.
  8. COVID-19 Safety Measures: In these uncertain times, it’s important to consider the hotel’s COVID-19 safety measures. Look for hotels that prioritize the health and well-being of their guests by implementing proper cleaning protocols and safety measures.

By considering these factors and conducting thorough research, you can make an informed decision when choosing a hotel in Reykjavik. Keep in mind your specific needs and preferences to ensure a memorable and comfortable stay in this beautiful city.



Choosing the right accommodation is an essential part of planning a successful trip to Reykjavik. Whether you’re on a budget, looking for mid-range options, or seeking a luxurious experience, Reykjavik offers a diverse range of hotels to suit every traveler’s needs.

Budget travelers can find comfort and affordability in guesthouses, hostels, or camping options. These accommodations provide a cost-effective solution without compromising on basic amenities.

For those seeking a balance between affordability and quality, mid-range options such as boutique hotels, serviced apartments, and budget-friendly hotels offer comfort and convenience without breaking the bank.

Those who desire luxury and indulgence have a plethora of high-end hotels to choose from. Reykjavik’s luxury accommodations boast top-notch amenities, impeccable service, and exquisite surroundings for an unforgettable stay.

When deciding on the best neighborhood to stay in, consider the atmosphere, proximity to attractions, and the type of experience you want to have. Downtown Reykjavik, Old Harbor, Laugavegur, and Grandi are all popular choices that offer their own unique charm.

As you make your decision, remember to consider important factors such as location, amenities, reviews, price, and special offers. By taking these into account, you can ensure a comfortable and enjoyable stay in Reykjavik.

Whether you’re exploring the city’s vibrant streets, soaking in its geothermal pools, or venturing into the awe-inspiring Icelandic landscapes, choosing the right accommodation in Reykjavik will enhance your overall experience and create lasting memories.

Ultimately, the choice of where to stay in Reykjavik depends on your personal preferences, budget, and the type of experience you want to have. No matter which accommodation you choose, Reykjavik will captivate you with its natural beauty, unique culture, and warm hospitality. So start planning your trip and get ready to immerse yourself in all that Reykjavik has to offer!


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