← Travel Hub · Things to Do · Restaurants · Day Trips
Stop wasting your Reykjavik stay on tourist traps. Stay in the old town (10-min walk to Harpa) for $120/night, or near the Blue Lagoon ($250/night) if you prioritize views over buzz. Avoid hotels near the airport (too far for city access) and skip "luxury" hotels with fake reviews.
Best for: First-timers, nightlife, walking to cafes & museums
Budget ($100-150/night):The Kex Hostel – Not a hotel, but the spot for young travelers. 10-min walk to Harpa, rooftop sauna, $25/bed. Real travelers only stay here.
Mid-Range ($150-250/night):Hotel Borg – Iconic 4-star on the harbor. Historic charm, free hot chocolate at 3 PM, 5-min walk to the cathedral. No tourist noise.
Why it works: You’ll see Reykjavik as locals do – no tour groups, just real coffee shops and street art.Best for: Northern Lights seekers, art lovers, calm evenings
Budget ($80-120/night):The Reykjavik Residence – Family-run guesthouse 2 blocks from Harpa. Breakfast with fresh local bread, $90/night. Skip the "luxury" hotels here – they’re overpriced and noisy.
Mid-Range ($200-300/night):Harpa’s design hotel – Modern, floor-to-ceiling views of the bay. Book only if you want to watch the sunset from your room (not for sightseeing).
Why it works: You’ll wake up to the sound of the harbor, not tour buses. The Blue Lagoon is a 20-min drive away – not worth the hotel price premium.Best for: Spa lovers, families, avoiding city crowds
Budget ($120-180/night):Hotel Rok – Quiet, family-owned, 10-min walk to a hidden hot spring. Not the Blue Lagoon, but free mineral baths on-site. $130/night.
Luxury ($300-500/night):The Retreat at Blue Lagoon – Only stay here if you’re doing the Lagoon every day. Otherwise, it’s a $500 hotel for a $100 experience.
Why it works: You’ll avoid Reykjavik’s real tourist trap: the Blue Lagoon itself. Pay $70 for a single Lagoon visit – don’t pay $250/night for a hotel next to it.Reykjavik’s best hotels aren’t in the city center or near the Lagoon. They’re in old town – because that’s where the locals live. You’ll get:
This is how Reykjavik locals travel.
Price note: All price ranges are indicative estimates based on typical market rates. Actual prices vary by season, availability and booking platform. Always check the hotel's direct website for current rates.
🏢 Own a hotel in Reykjavik?
We feature boutique and independent hotels to our audience of business and leisure travellers. Get listed.
Get Your Hotel Listed →Compare hotel prices in Reykjavik across 200+ booking sites
🏨 Search Hotels in Reykjavik →Affiliate link · we earn a commission if you book
Book Your Hotel
🏨 Search Hotels in Reykjavik on Trip.com →Best prices · Free cancellation · Instant confirmation · Travelpayouts partner
Was this helpful?
About · Contact · Editorial Policy · How We Make Money
Reykjavik's hotel prices vary widely, with budget options starting at €35 per night in hostels and €65 for basic hotels, while luxury stays exceed €250 during peak season.
| Category | Price per Night | What You Get |
|---|---|---|
| Budget | €35 | Basic dorms or private rooms, shared bathrooms, free breakfast |
| Mid-range | €100 | Comfortable rooms, private bathroom, breakfast included |
| Luxury | €250 | Spa, premium amenities, city views, gourmet breakfast |
| Booking Tip | Book 3-6 months ahead for best rates, especially in summer. |
For the best deals, avoid peak summer months (June-August) and consider staying slightly outside the city center for lower rates without sacrificing convenience.
Navigate Reykjavik's hotel neighborhoods with this interactive map. Click to explore the city.
Built in 1912, Hotel Borg anchors the city centre near Harpa Concert Hall. Rooms start at 25,000 ISK/night, with historic suites featuring original woodwork and views of the harbour. Standout features include the 1920s-inspired lobby bar and a 24-hour sauna. Room types range from standard doubles (18,000 ISK) to the Grand Suite (45,000 ISK). Best for couples seeking a blend of history and modern comfort. Insider tip: Book the 'Harpa View' room for free access to the hotel’s private terrace overlooking the concert hall’s glass facade.
Located in the arts district near Hafnarstræti, The Reykjavik Edition offers 200+ rooms with minimalist Nordic design. Rates begin at 14,000 ISK/night for a standard double, with suites up to 28,000 ISK. Standout features include a rooftop bar with panoramic city views and a curated art collection by local Icelandic artists. Room types include compact singles (12,000 ISK) and the 'Sky Suite' (26,000 ISK). Best for solo travelers and business guests. Insider tip: Reserve the rooftop bar for sunset cocktails—tables fill up by 6 PM daily.
Situated in the city centre near Austurvöllur Square, Canopy offers 180 rooms with a focus on comfort. Prices start at 12,000 ISK/night for a standard double, with premium rooms at 18,000 ISK. Standout features include a 24-hour fitness center and a breakfast buffet featuring Icelandic smoked salmon and skyr. Room types range from compact doubles (10,000 ISK) to the 'City View' double (15,000 ISK). Best for families and budget-conscious business travelers. Insider tip: Request a room on the 10th floor for the best views of the city skyline without the premium price tag.
Nestled in the historic old town near Arnarhóll Hill, this aparthotel offers self-catering units starting at 8,500 ISK/night for a studio. Standout features include fully equipped kitchens, free laundry, and a communal lounge with a wood-burning stove. Room types include studios (8,500 ISK), one-bedroom apartments (12,000 ISK), and a two-bedroom family suite (18,000 ISK). Best for solo travelers and budget families. Insider tip: Book the 'Kitchen Suite' for a full kitchen—saves 30% on food costs compared to eating out daily.
Located in the riverside area near the old harbor, The Kex Hostel combines luxury with a 200m² spa and a rooftop bar. Rates start at 16,000 ISK/night for a standard double, with the 'Spa Suite' at 32,000 ISK. Standout features include a geothermal spa with ocean views, a 24-hour bar, and a restaurant serving langoustine and lamb. Room types range from standard doubles (14,000 ISK) to the 'Spa Suite' (32,000 ISK). Best for couples and wellness-focused travelers. Insider tip: Use the 'Spa Package' (2,500 ISK extra) for a private sauna session and a complimentary drink.
In the historic old town near Harpa, Hotel Holt offers 40 rooms starting at 6,500 ISK/night. Standout features include a 24-hour breakfast with fresh bread and local cheese, and a central location within walking distance of all major attractions. Room types include singles (5,500 ISK), doubles (6,500 ISK), and a triple room (8,500 ISK). Best for solo travelers and budget backpackers. Insider tip: Book the 'Breakfast Package' (1,000 ISK extra) for a full Icelandic breakfast with smoked salmon and skyr, saving 20% compared to eating out.