Iceland’s capital Reykjavik is a city known for its rich history and culture and natural beauty. The vibrant city is a perfect place to base yourself when exploring the dramatic landscape of Iceland. Reykjavik can be easily explored on foot no matter where you stay, but choosing a hotel requires some research mainly due to how expensive visiting Iceland can be. That’s why staying in a boutique hotel in Reykjavik is a smart choice.
Not only can you have a luxurious stay, similar to that of a large upscale hotel, but many have kitchen facilities so you can save on eating out — even if that’s just a cup of coffee or breakfast. These boutique hotels in Reykjavik offer bags of character and local ambiance and they are all within walking distance to the city attractions such as the main shopping street in Reykjavik, Reykjavik Old Harbour, Reykjavík City Hall, and the Reykjavik Art Museum. Here are the best boutique hotels in Reykjavik.
We hope you love the boutique hotels in Reykjavik we recommend! Just so you know, Matador may collect a small commission from the links on this page if you decide to book a stay. Listed prices are accurate as of the time of publication.
Black Pearl Apartment Hotel
Photo: Black Pearl Apartment Hotel
This luxury hotel is located in central Reykjavik. The spacious suites are equipped with blackout curtains — which are key during long summer daylight hours, heated marble floors, a flat-screen TV, and a balcony that offers guests beautiful city views. The suites come with a full kitchen with built-in appliances so you can enjoy cooking in the evenings. Black Pearl Apartments are popular with couples making this an ideal booking for those on a romantic getaway.
Price per night: $299
Rey Apartments
Photo: Rey Apartments
This central property is located between the shopping street Laugavegur and the trendy Skolavordustigur district. Rey Apartments feature a lovely dining area with either a fully equipped kitchen or a small kitchenette that includes a dishwasher. The apartments are a short stroll from several restaurants and cafes and one of the city’s famous geothermal swimming pools, Sundhöllin Swimming Pool.
Price per night: $196
Eyja Guldsmeden Hotel
Photo: Eyja Guldsmeden Hotel
Eyja Guldsmeden Hotel offers beautiful views of Eja Mountain. The hotel’s rooms are soundproof and have flat-screen TVs, plush bathrooms with Guldmeden’s own organic toiletries, and views of mountains or the sea. Eyja Guldsmeden Hotel also has hypoallergenic rooms and there is a great onsite restaurant, Eyja Restaurant, that is open for both lunch and dinner.
Price per night: $180
Apótek Hotel Reykjavík by Keahotels
Apótek Hotel Reykjavík by Keahotels was designed and built in 1917 by Iceland’s former state architect Gudjón Samúelsson and is one of the oldest and most cherished buildings in Reykjavik. Each room has a seating area, mini bar, desk and a complimentary Nespresso machine. You can enjoy a meal and drink in-house at the hotel restaurant and bar. This chic restaurant serves a mix of Icelandic and European cuisine with a smoking hot Argentinean grill.
Price per night: $210
Old Charm Apartments
Photo: Old Charm Apartments
Old Charm Apartments have seven self-catering apartments that can accommodate any party size from families to smaller groups. The rooms feature a full kitchen, living room and a private terrace with a garden and picnic area. The apartments are located downtown near Bakari Sandholt, Fish Company, and Friðrik V.
Price per night: $330
Kvosin Downtown Hotel
Photo: Kvosin Downtown Hotel
This hotel was constructed in 1901 and is one of the most luxurious boutique accommodation options in the city. The rooms come with a seating area, flat-screen TV and are perfect for a family of four as it provides outdoor play equipment for kids, books and board games. Aldamót is the hotel’s in-house bar where you can enjoy a wide variety of cocktails, wines and local beers during their happy hour and there is a stunning view of the cathedral and parliament which can be seen from the ground floor terrace.
Price per night: $247
Svala Apartments
Photo: Svala Apartments
These beautiful, bright, and modern apartments are located on the main shopping street in Reykjavik. Svala Apartments have penthouse and studio apartments all with terraces offering beautiful sea or mountain views. The apartments have either hardwood or parquet floors, a private entrance, a full kitchen, and a living room area. Svala Apartments are suitable for all types of travelers from solo guests to families and groups.
Price per night: $215
House of the Snowbird
Photo: House of the Snowbird
These cozy apartments are set inside this preserved historic house that was built in 1898 by Icelandic poet Einar Ben. House of the Snowbird is located in the Old Town and is a short walk from Hallgrímskirkja Church in Reykjavik. Each room has a kitchen with a refrigerator along with a kettle and toaster. The interior design of the house is a mix of old Scandinavia and raw modern art, so if you are looking for an artistic stay in Reykjavik this is it.
Price per night: $289
Reykjavík Treasure bed and breakfast
Reykjavík Treasure B&B was built in 1876 and is one of the oldest houses in the city. Rooms come with a modern bathroom, sofa bed, and a fold-up bed — making it perfect for bigger parties and families. Reykjavík Treasure B&B provides breakfast for guests that includes freshly baked bread with local fish and meat. If you’re looking to take in some fresh air and nature you can visit their small garden and relax before taking on the city. 
Price per night: $211