best places to stay in reykjavik

The best places to stay in Reykjavík for any budget

The best places to stay in Reykjavík – suggestion from a 10 times Iceland traveller!

Having been to Iceland no less than ten times over the past thirteen years, I’ve been to Reykjavík many times. It’s a pleasant city that I always love returning to, whether it’s summer, winter or anywhere in between. I’ve written many posts on Iceland and figured that it would be a good idea to share my tips for places to stay in Reykjavík, on any budget. I’ve been staying at campsites, hostels, mid-range hotels and more luxury hotels. Here are my suggestions for accommodation in Reykjavík. If you are budget oriented, please also scroll down to also find my alternatives for staying just outside Reykjavík, sometimes offering better value for money!
Also read this guide on the best areas to stay in Reykjavík.


Low-budget places to stay in Reykjavík

Hostels are all over town but I’ve found many hostels in Iceland somewhat dodgy. I’m not very picky but when I pay quite a bit for a room, I’d like it to be fresh and clean. It doesn’t need to be large, but fresh and clean are a must. My favorite places to stay in Reykjavík for when you’re on a budget is either the Reykjavík HI City Hostel or … the campsite! Both are located in Laugardalur just outside of town. They are right next to each other. The hostel has decent rooms and a nice atmosphere. The campsite has clean facilities and is fairly quiet, for a campsite that is. Reception rents out bikes too, so you can easily move yourself around the city. Next to the facilities is the Laugardalslaug swimming pool, where you can take a plunge into a hot pool for little money.

Mid-range places to stay in Reykjavík

My place of choice to stay in Reykjavík when traveling with a friend who did not want to go low budget was the 100 Iceland Hotel, just a few minutes walking from the heart of the city. We stayed here for one night only but really thought it was good value for money. The rooms are modern and neat, but nothing fancy, and staff was friendly. Its location is perfect because it’s in fact right on the Laugavegur, which is Iceland’s most famous shopping street. A supermarket (Bonus) is not too far away so can also buy some stuff there if needed.
Looking for a boutique hotel? Then check The Swan House Iceland – a cosy boutique hotel in the heart of the city
best places to stay in reykjavík

Affordable luxury places to stay in Reykjavík

As I cannot afford to stay in five star hotels, I can’t advise any by my own experience. As I only believe in suggesting accommodations I have tried myself, I’ll give you my town best options for affordable luxury places to stay in Reykjavík.
The first option is Icelandair Hotel Natura. This four star hotel is located next to the domestic airport (Reykjavík Airport, not to be confused with Keflavík International Airport where you will arrive) and a bit of a walk out of downtown, making it rather affordable. The Reykjavík Excursions terminal is also nearby, so if you plan on exploring Iceland further onwards with them (they offer bus transportation all throughout the country and are my personal favorite choice for such) it’s a great place and just a short walk away. Downtown Reykjavík is about 30 minutes walking from Icelandair Hotel Natura.
If you want to stay in Downtown Reykjavík, then Icelandair Marina Hotel is a great option. Try to get a room facing the harbour and you will definitely not be disappointed. This hotel also offers a stylish bar and the rooms are amazing and modern. Definitely a great pick for Downtown Reykjavík!

The best places to stay just outside of Reykjavík

If you are planning on traveling along Iceland’s South Coast, then it’s a great option to stay a bit further away from Reykjavík. Generally, you’ll find more affordable accommodations in towns such as Hveragerði, Selfoss or even Hella which are all within one hour driving from Reykjavík. My best suggestion for this location is definitely Hjardarból Guesthouse, where I stayed for five nights during my most recent trip in February 2019. This former farm is run locally by a very friendly family and has hot pools for free use!
Blue Lagoon alternatives
If you want to stay in Hella which is a bit further away then you can choose Pension Cafe Arhus. They have very simple cabins but generally more affordable than staying in Reykjavík. I stayed there a couple of times during my summer trip and can recommend them!
If you have an early flight out and want to stay near Keflavík Airport, then the BASE Hostel / Hotel is a good option. I stayed here quite often as flights to The Netherlands usually leave very early and found that they have a very convenient location and are good value for money. Their communal bathrooms are very clean and the common areas are funky and cosy.

Conclusion and disclaimer

These were my suggestions for best places to stay in Reykjavík and around. I hope you found this blogpost useful! As I mentioned, I’ll only recommend accommodations I have stayed in myself. Please note that this blog contains affiliate links meaning that if you book something through my website I may earn a small commission at no extra cost. Thank you for considering!

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