Iceland, a land famous for strongmen, northern lights, breathtaking landscapes and chilling winters as the name suggests. Reykjavik is the capital of Iceland and the area where you are most likely to spend a majority of your time in Iceland. So that naturally brings us to the question of what are the best places to stay in Reykjavik? More specifically, what are the best places to stay in Reykjavik to witness the northern lights? best centrally located lodging which makes it convenient to cover the whole city without a struggle? Keep reading to know all of this and more.

Just like any other destination, the place you choose to stay depends mostly on what you expect out of your place of stay. Therefore, we will provide choices for all low, high and mid-range budgets. So this means if you require a luxury, merely bed and breakfast or a cheap hostel, we got you covered. Just make sure to book in advance because although there are many choices, they fill up pretty quick.

Luxury Places to Stay in Reykjavik-4 Star Grade Premium Hotels

Although Iceland currently has no five-star hotels in the country, the 4 star hotels will definitely meet your needs for comfort and luxury. Listed below are some of the best 4 star hotels in Reykjavik.

Grandi by Center Hotels

One of the best rated luxury hotels in terms of location, cleanliness, overall service and many other aspects. The location is at the center of Reykjavik which means you can cover major attractions by foot. Equipped with plenty of facilities such as lively bars and restaurants and all the features required from a luxury grade room. You can choose between suites, city view rooms and non-smoking rooms. The hotel is a mixture of stylishness, functionality and grandeur. The staff is super friendly, nice, supportive and always ready to help and can even assist you in covering the nearby attractions. There are quite a few attractions close to the Grandi such as Reykjavik Maritime Museum and Cinema No. 2 at the Old Harbour Village.

Black Pearl Apartment Hotel

Spacious suites of various caliber, parking garage, self-catering and many more premium features to experience at the Black Pearl. Also located right in the middle ideal for hotspots, sights and activities. Now here is the good news for the ones looking out for a luxurious place closer to the northern lights. If you choose to reside at the Black Pearl, you can also go whale spotting and you watch the famous Northern Lights just around the corner. A large variety of restaurants and pubs to choose from are nearby the Black Pearl since it is at the city centre. This actually is one of the highest rated hotels in Iceland.

Harpa - Reykjavik, Iceland

Fosshotel Reykjavík

Boasting some spectacular views, the Fosshotel Reykjavík offers great value to the price you pay. The tower suites offer the best views and as you can guess they are pretty expensive. The hotel’s bar has a beautiful beer garden which is a popular hangout in the summer. It also has the premium features of any high class hotel such as personal concierge service, meeting rooms and conference halls etc.

Listed above are a few of the best premium hotels in Reykjavik for tourists who prefer the luxury grade service. Additionally, you can also take a look at the following which are equally popular among local and international tourists;

  • Canopy by Hilton Reykjavik City Centre
  • Reykjavik Konsulat Hotel, Curio Collection By Hilton
  • Apótek Hotel Reykjavík by Keahotels

Mid-Range Places to Stay in Reykjavik-Comfortable Hotels

So what we are about to suggest now aren’t exactly mid range budget nor are they as expensive as the ones above. These suggestions are for businessmen and other travelers who still prefer comfort excluding the extravagant features. So you’d still have quality service, private bedrooms and stuff but without spas or such premium addons.

City Center Hotel

City Center Hotel is located on the west end of Reykjavik, with six floors on Austurstræti, one of the oldest streets in Reykjavik. The location makes this hotel so convenient for those aiming to cover the city by foot. It possesses 30 well equipped rooms with all the amenities to make your stay enjoyable. The superior rooms are the largest and the ones that provide the best views over the parliament square and the city itself. The more affordable standard rooms are categorised into single , double rooms and twin rooms. Features such as soundproofing, blackout curtains and windows that open offer better value. You also have facilities such as a gym and a bar which is open from 12:00 to 00:00.

Reykjavik northern lights

Hotel Klettur

Hótel Klettur has 166 rooms, of which there are 143 Standard rooms and 20 Superior rooms. Situated closer to downtown Reykjavik , Hotel Klettur is a modern day hotel. The rooms are well furnished with all the facilities required for any individual. These include refrigerator, telephone, satellite TV, hair dryer, ironing board and tea maker. A unique thing about this hotel is the interior design. It was inspired by the remarkable rock formations found across Iceland and it engraves the special Icelandic nature to this hotel. This hotel too has rooms with balconies that present glorious views of the city. The hotel also has a lounge area and game room and a bar open from 16:00 to 22:00.

Hotel Fron

Offers excellent value for travelers with a mid-range budget. The reason that most travelers opt for Hotel Fron(besides the excellent service of course) is the great location. Almost all major attractions are within a short walking distance from the hotel. Therefore, if you are on a mid range budget but still opt for comfort and considering a location right at the heart of the city, look no further. The studio rooms with the kitchen area are especially popular among tourists. According to most, the breakfast is splendid and the staff is very pleasant and helpful. So you can be assured that you are going to be well taken care of.

Those are our top 3 choices for the best mid-range budget hotels. Additionally, you can also consider the following;

  • Centerhotels Plaza
  • Sand Hotel by Keahotels
  • 201 HotelOpens
attraction in Iceland

Budget Places to Stay in Reykjavik- Hostels

Now this is the exact topic that we adventure travelers are looking for right? or at least part of what we are looking for in terms of accommodation. Here on starts the adventure travelers search for best places to stay in Reykjavik. This next part is for those of who aren’t interested in quality lodging and rather spend that money on exploring every inch of Iceland. So the ones listed below are focused more on location and less on reviews.

Loft Hostel

Located at the end of Reykjavík’s main shopping street, Bankastræti 7, Loft hostel is extremely popular among budget travelers primarily because of its balcony that enables you to witness the glorious northern lights in winter. It is 5 minutes away from the City Cathedral, the City Pond and Harpa Concert Hall. They have shared rooms with bunk beds as well as private rooms with attached bathrooms. The common room has different events keeping the place as lively as possible.

Igdlo Guesthouse

15 minutes’ walk away from the city centre, Igdlo guesthouse is another budget tourist’s best available choice for quality stay at a lower price. It is located 1.2 km from Laugavegur and has complimentary parking and a picnic area. The rooms with shared bathrooms are the cheapest during the peak season. Svarta Kaffid and Old Iceland Restaurant are some nearby venues for you to enjoy the local cuisine. You can experience the overall basic amenities at Igdlo Guesthouse including continental breakfast, Wi-Fi and Television. It is quite a reasonable choice for tourists aiming to spend more time outdoors.

4th Floor Hotel

Another perfect spot for budget travelers keen on exploring the city starting off from right at its centre. The precise location is at the corner of the main shopping/restaurant street Laugavegur and bus station square. There are a variety of rooms available such as budget double, single, twin rooms to economy, standard and superior categories. Parking and Wi-Fi are free for all guests.

Reykjavík Hostel Village

Okay so this hostel isn’t as conveniently located as the ones that we’ve been discussing so far, but still you can reach major avenues in less than half an hour. The hostel is located close to Sundhollin Public Baths, 20 minutes’ walk to National Museum of Iceland and in close proximity to Lutheran parish “Hallgrimskirkja”. Hostel facilities include Concierge, Wi-Fi, BBQ Grills and business centre. Reykjavik, Iceland (RKV-Reykjavik Domestic) is located 0.72mi from the hostel. So this is one of the closest places to the airport that you can choose to stay.

Hallgrímskirkja Church Reykjavik Iceland

Guesthouse Galtafell

Situated 500 metres from Hallgrímskirkja Church, the Guesthouse Galtafell is an excellent choice for those with a low budget looking for quality service paired with a convenient location for sightseeing. Facilities include and not limited to free public parking,  TV with satellite channels in all rooms and unlimited free Wi-Fi. They provide double or twin rooms with shared or private bathrooms and one bedroom apartments. 

Best Neighbourhoods in Reykjavik

We’ve pretty much covered the most popular hotels and hostels for different levels of budget and we hope that it was helpful in making a choice worthy of your money and satisfies your requirements. Another popularly asked question is “what are the best neighborhoods in Reykjavik?” Now for most tourists, this means the best places to stay in Reykjavik to experience most of what the city has to offer.

If you are a first timer then look no further than Midborg (Miðborg) because that is where you get all the action and the events of the city. Most of the restaurants, museums, bars and shops are in this part of the city. Reykjavik Residence Apartment Hotel and Guesthouse Galtafell are situated in this neighborhood.

Hlídar is the neighbourhood close to downtown Reykjavik and it is only 15 minute by foot. Also this is the area if you are looking for budget stay and a little more peace and quiet at night. Stay Apartments Bolholt and Hlemmur Square Hostel are some of the best lodging options that this neighbourhood offers.

3km away from Midborg is the Vesturbær neighbourhood, where you can find many sightseeing places such as The Living Art Museum and the Whales of Iceland. The famous Black Pearl Apartment hotel is situated in Vesturbær, so is Refurinn Reykjavik Guesthouse for budgeteers.

Finally we have Laugardalur where the Grand Hotel is located and where thermal baths are found in abundance. Grasagardur Botanical Garden, Húsdýragarðurinn Park & Zoo are some attractions found in this neighbourhood. This area is well recommended for family travels given the vast variety of activities they offer.

Can You Camp in Reykjavik?

Was this not what you were looking for my fellow adventure travelers? The answer is YES! you can camp in Reykjavik. However, there is only one campsite located at Laugardalur Park which is roughly an hours walk from downtown. Situated right beside the pool and spa and the best season to camp is the summer although it is open throughout the year. The park hosts the Secret Solstice festival every year in June so you can plan your trip with that included as well. You can rent caravans, tents in the city and you have cabins available if you are staying for more than 3 nights. The capacity allowed is around 600 travelers in tents, campers and caravans. So you might want to check out our recommendations for lightweight tents and other travel gear and clothing if you are planning to camp.

Conclusion

So there you have it! Our top recommendations for the best places to stay in Reykjavik. Make sure to book in advance as the tourist industry is incrementing mostly because of its lush landscapes and of course the northern lights that never fade away. Please ensure to have your winter clothing on point.

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