11 Best Hotels in Reykjavik (2025 Recommendations in Iceland)
If you’re on the hunt for the best hotels in Reykjavík with an awesome vibe and a prime location — you’re in the right place!
Reykjavík might be smaller than you’d expect, but there’s no shortage of great places to stay. When I first visited Iceland, our itinerary was packed with epic adventures, so finding the perfect hotel was key. We wanted somewhere comfortable, stylish, and well-located—a place that felt like a home base to recharge after each day of exploring.
I’ve hand-picked these hotels for their trendy atmosphere, unbeatable location, and top-rated reviews. No matter what season you visit Iceland, these spots are always a solid choice.
Short on Time? These are the top 3 hotels in Reykjavik:
📍Sandhotel by Keahotels
📍 Exeter Hotel
📍 ION City Hotel
And if you’re visiting Iceland in the summer, these hotels are perfect for strolling the city streets and soaking up the midnight sun—or unwinding in a nearby lagoon.
Why Should You Trust Me?
Great question—especially since we’ve probably never met. 😜 Traveling is my passion, and Iceland is hands down one of my favorite places. I love helping fellow travelers find the best places to stay in Reykjavík so they can have an unforgettable trip.
I’ve had my fair share of travel wins… and, let’s be real, a few hotel fails along the way. That’s why I’m all about paying it forward. These hotels aren’t just random picks—I’ve seen them, visited them, researched them, and done all the digging so you don’t have to.
Best Hotels in Reykjavik
Reykjavík has incredible hotels that stand out for their service, style, and unbeatable locations. I’ve picked these based on top-rated experiences, high-end amenities, and unique touches that make a trip extra special.
Some are perfect for city exploring, others offer front-row seats to the northern lights, and all have easy access to airport transportation.
1. The Reykjavik EDITION
✔️ Rooms here are sleek, modern, and effortlessly cozy, with floor-to-ceiling windows where you can see city and harbor views.
✔️ An on-site spa, a state-of-the-art gym, and a rooftop bar.
✔️ The lobby lounge and Tides Restaurant serve up Nordic-inspired dishes, cocktails, and the perfect atmosphere.
✔️ For a next-level experience, check out the hotel’s private geothermal lagoon—because Reykjavík luxury should always come with a side of relaxation.
2. Hotel Borg by Keahotels
✔️ Located in the heart of Reykjavík, overlooking Austurvöllur Square. Classic luxury with a touch of old-world glamour.
✔️ Elegant rooms with plush furnishings, heated marble bathrooms, and high-end toiletries.
✔️ Features a full-service spa, sauna, and hot tub—perfect after a long day of exploring.
✔️ Borg Restaurant & Bar serves elevated Icelandic cuisine, plus top cocktail spots like Apótek and Dillon Whiskey Bar are nearby.
3. Exeter Hotel
✔️ Prime location by Reykjavík’s Old Harbour with a stylish, industrial-chic vibe. Steps from top bars like Kaffibarinn and Pablo Discobar for weekend fun.
✔️ Sleek, modern rooms with cozy beds and some with harbor views.
✔️ Amenities include a sauna, a small gym, and the Exeter Bakery, serving top-tier cinnamon buns, sourdough, and doughnuts.
✔️ Trendy yet comfortable, with great staff and a perfect spot for exploring the city.
4. Canopy by Hilton Reykjavik City Centre
✔️ Trendy boutique hotel in the heart of downtown, steps from Laugavegur’s best shopping, cafés, and nightlife. Stylish, modern vibe with an Icelandic touch.
✔️ Cozy, design-forward rooms with plush bedding, local artwork, and a calming Nordic aesthetic.
✔️ Complimentary artisanal breakfast with fresh-baked goods, plus Canopy Central Café serves Icelandic-inspired bites and craft cocktails.
5. Iceland Parliament Hotel by Hilton
✔️ Elegant and historic, set in a restored 19th-century building right next to Alþingi (Iceland’s Parliament). The perfect mix of old-world charm and modern luxury.
✔️ Spacious, stylish rooms with plush bedding, sleek Nordic decor, and city or courtyard views.
✔️ On-site Hjá Jóni Restaurant & Bar serves Icelandic cuisine with fresh, local ingredients. The cocktails? Next-level.
✔️ Relax in the serene spa with a sauna and steam room—ideal after a long day of exploring.
6. Sandhotel by Keahotels
✔️ Stylish boutique hotel on Reykjavík’s iconic Laugavegur Street, blending sleek Nordic design with a warm, welcoming vibe.
✔️ Spacious, beautifully decorated rooms with soft bedding and thoughtful details.
✔️ The breakfast? Legendary. Freshly baked sourdough from the Sandholt Bakery, creamy Skyr with berries, flaky croissants, smoked salmon, and the best coffee to start your day right.
7. 101 City Hotel, a Member of Design Hotels (Marriott)
✔️ Marriott perks? Yes, please—hello, Bonvoy points! Stay stylish and rack up those rewards.
✔️ Killer downtown location, perfect for walking Reykjavík’s coolest streets, from Harpa Concert Hall to the city’s best shops and bars.
✔️ Sleek, modern rooms with ultra-comfy beds and a massive walk-in shower—because after a day of Icelandic adventures, you deserve it.
✔️ Chill vibes in the evening with craft cocktails, curated playlists, and a cool crowd. The bar here is a whole mood.
8. Hotel Frón
✔️ Smack in the middle of Reykjavík, which makes it ridiculously easy to explore—walk to the best coffee shops, bars, and street art without breaking a sweat.
✔️ Breakfast worth waking up for. Fresh-baked bread, local jams, and strong coffee that’ll kickstart your day the Icelandic way.
✔️ Bonus points: The kind of low-key, welcoming vibe that feels less like a hotel and more of a place you want to hang out.
9. Reykjavik Marina – Berjaya Iceland Hotel
✔️ Wake up to harbor views, fishing boats, and crisp sea air right outside the door. This spot puts you within walking distance of Reykjavík’s best seafood, whale-watching tours, and Harpa Concert Hall.
✔️ Rooms with character. Thoughtfully designed with bold colors and a playful touch of Icelandic charm. Some even have balconies facing the marina for an extra scenic wake-up.
✔️ A bar that brings the energy. Slippbarinn serves top-tier cocktails and Icelandic craft beer and has a lively crowd most nights.
10. Radisson Blu 1919 Hotel
✔️ A piece of Reykjavik’s past with all the right updates. The hotel is set in a 1919 building and kept its old-charm on the outside, but everything inside has been upgraded. The high ceilings, large windows, and solid architecture make it feel timeless, but the amenities are fully modern.
✔️ Step outside the hotel and you are immersed in the city’s best bakeries, cafes, and bars are within minutes.
✔️ Well-designed rooms with extra space. Unlike some of Reykjavik’s smaller hotels, this one gives you room to spread out.
✔️ Laid-back restaurant and bar. No need to wander far if you’re hungry or need a drink—the hotel’s in-house spot serves solid food and even better cocktails.
My Favorite Travel Resources
– Best Hotel Rates: Booking.com
– Best Rental Cars: Rentalcars.com
– Best Tour Services: Viator
11. ION City Hotel
✔️ The hotel has a minimalist design with sleek lines, dark wood, and floor-to-ceiling windows. ION City Hotel is all about the modern aesthetics that feel uncluttered and sharp, and some even come with private balconies overlooking the city.
✔️ Located on Laugavegur, Reykjavik’s main shopping and dining street, you’re steps away from top-tier restaurants, cozy coffee shops, and boutique stores. Try Sandholt Bakery next door for fresh pastries and amazing vanilla lattes.
✔️ Wellness, but make it low-key. Select rooms have private saunas (yes, really), so you can warm up Iceland-style without leaving your space.
✔️ A hotel restaurant worth staying in for. Sumac Grill, the on-site restaurant, delivers bold flavors inspired by Lebanese and Moroccan cuisine—think fire-grilled meats, fresh seafood, and vibrant spices. Perfect for ending a day of exploring with a glass of wine in hand.
Sumac Grill is, hands down, one of my favorite restaurants in the world. Every time I plan a trip to Iceland, this restaurant is on my list. As someone who is gluten-free, I found the staff to be kind and knowledgeable about what I could and couldn’t eat.
How to get to Reykjavik from KEF airport
So, you’ve landed at Keflavik International Airport—now what? Luckily, getting into Reykjavik is pretty straightforward, with a few solid options depending on how you roll:
🚗 Airport Buses: The most budget-friendly choice. Flybus and Airport Direct both run regular shuttles from KEF to downtown, with drop-offs at select hotels and bus stops. You can book in advance or grab a ticket at the airport.
🚗 Hotel Shuttles: Some hotels offer their own airport transfers, so check before you book.
🚗 Taxis & Rideshares: No Uber or Lyft here, but traditional taxis are available outside arrivals. They’re convenient but not cheap.
🚗 Rental Car: Renting a car is a solid move if you’re planning road trips (or just want ultimate freedom).
>> Related Posts: How to Get Around Iceland – Transport Tips & Guide
Hotels in Reykjavik: FAQ
✅ What is the best part of Reykjavik to stay in?
Downtown Reykjavik.
✅ Is 3 days in Reykjavik enough?
Yes! If you have a desire to escape the city for a few hours or a day, there are plenty of attractions nearby.
✅ What is the best luxury hotel in Reykjavik?
The Reykjavik EDITION
✅ What is the best time to visit Iceland?
September through March to see the Northern Lights, or between June and August for summer activities.
Hotels in Reykjavik Concluded
Final Thoughts
Reykjavik has some incredible places to stay, from sleek modern spaces to historic spots packed with character. Where you stay sets the tone for your trip—maybe it’s starting your morning with an amazing breakfast, stepping outside into the heart of downtown, or unwinding with a drink after a day of exploring.
Now’s the time to lock in your stay, find the perfect spot, and get ready to experience Iceland. Book your hotel here.
Happy Trails,
Mindful PNW Travels
