While many travelers to Iceland opt to rent a vehicle and travel the Ring Road or the New Westfjords Way, if you’re lacking the time or the motivation for a road trip, it’s perfectly acceptable to stick around Reykjavík. There is plenty to do in the Icelandic capital to keep you busy: museums to visit, local cuisine to try out, and even nearby hikes if you want to spend time in nature. Book yourself into one of the best hotels in Reykjavík’s city center and you’ll be able walk from one attraction to the next without breaking a sweat.
Traveling to Iceland? Check out Matador’s Iceland accommodations guides:
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- These Reykjavik Airbnb Rentals Make for the Perfect Iceland Basecamp
- Jaw-dropping Iceland Airbnbs for a bucket list summer vacation
- 3 Airbnbs in Selfoss, Iceland where you can see the Northern Lights
- This lakeview retreat Airbnb is the ideal way to experience’s Iceland’s natural beauty
Where the best hotels in Reykjavík located?
The seven best hotels in Reykjavík
We hope you love the hotels in Reykjavík 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.
The Reykjavík EDITION
The Reykjavík EDITION is a modern, five-star hotel facing the Old Harbor and located next door to the beautiful Harpa Concert Hall. The property is just three minutes on foot from the world-famous Phallological Museum (also know as the Penis Museum), 10 minutes from Rainbow Street (one of the main streets in downtown Reykjavík), and less than 20 minutes from Hallgrimskirkja, the city’s iconic church. While the hotel’s location is top-notch, it’s not its only good quality. The decor is best defined as luxuriously minimalist, with beautiful, high-quality pieces of furniture, and a color palette that’s very restrained, inspiring tranquility. Each of the 253 rooms and suites have their own contemporary, monochrome bathrooms fitted with expensive toiletries, and some of the rooms have a balcony while other have been set up so the beds face the large windows for views of the area. There are six food and drinks options on site, including a bar that doubles as an atmospheric night club and rooftop venue offering great views, but the cherry on top of this property is its wellness center. There is a 24-hour gym, and a spa with a steam room, sauna, thermal pool, and even a lounge and a bar! Of course, body and facial treatments are available for booking so guests can fully relax.
Where: Austurbakki 2, 101 Reykjavík, Iceland
Price per night: $726
Kvosin Downtown Hotel
The Kvosin Downtown Hotel may be hard to pronounce, but it’s easy to enjoy. Like its name indicates, this four-star boutique property dating back to 1901 is located in the city center of the Icelandic capital, next door to the country’s parliament and Reykjavík’s city hall. The hotel is also located just a few minutes’ walk from three great museums: The Settlement Exhibition, the Punk Museum, and the Penis Museum. There are 22 rooms and apartments of varying size in this property, all of which as simply but tastefully decorated to create a homely and cozy atmosphere. There is a bar on site for cocktails and beers, but no restaurant — you’ll find whatever you need for food options in the nearby city center streets.
Where: Kirkjutorg, 101 Reykjavík, Iceland
Price per night: $434
Reykjavik Konsulat Hotel
A former department store dating back to early the 1900s, the Reykjavik Konsulat Hotel is a very stylish four-star property located in the city center. The hotel is about five minutes on foot to the Harpa Concert Hall, and around 10 minutes away from the famous art piece Sun Voyager. The Reykjavik Konsulat Hotel makes extensive use of warm, autumnal colors, padded leather furniture, soft lights, and natural material (wooden floor, stone walls) to create a sophisticated, yet intimate atmosphere in all of its 50 guest rooms and suites. The lobby is extremely inviting, with comfortable sofas, beautiful light fixtures, and even a fireplace, but you’ll want to check the on-site wine bar for adult beverages and light bites. Guests at the Reykjavik Konsulat Hotel can enjoy the therapeutic effects of the fitness center and spa, including a small pool and a sauna.
Where: Hafnarstræti 17-19, 101 Reykjavík, Iceland
Price per night: $396
ION City Hotel
The ION City Hotel is a four-star boutique property located just six minutes on foot from the famous Hallgrimskirkja, the largest church in Iceland and one of the tallest (and coolest) structure in the entire country, which can be seen from some of the property’s 18 rooms and suites. The decor in this hotel is simple, contemporary, with a mostly neutral color palette, but if you get a room with a view (or one with a sauna), you won’t care much about the lack of reds and oranges. The on-site restaurant, Sumac, serves Middle Eastern and Mediterranean cuisine, 80 percent of which is made from locally sourced ingredients.
Where: Laugavegur 28, 101 Reykjavík, Iceland
Price per night: $326
Alda Hotel Reykjavík
The Alda Hotel Reykjavik is a four-star boutique property located on Reykjavik‘s main shopping street, Laugavegur. Just six minutes away on foot from Hallgrimskirkja, the city’s famous Lutheran church, and less than 10 minutes from Rainbow Street, this property is ideally located if you want to see the city on foot. The 90 rooms and suites are modern, decorated in neutral colors (like most hotels around the city), and are equipped with upscale toiletries and tea/coffee-making facilities. There is a restaurant-bar on site so you don’t have to traipse around the city to find what you need when hunger strikes. The property has a gym, hot tub, and sauna for your wellness needs, and there’s a barber in case you need a haircut.
Where: Laugavegur 66-68, 101 Reykjavík, Iceland
Price per night: $308
Apotek Hotel
As its name hints at, the Apotek Hotel used to be an apothecary — actually, it was the city’s main pharmacy. Designed by Guðjón Samúelsson, the architect behind Hallgrímskirkja, and built in 1917, the structure has been renovated and modernized but the best details have been kept: Art Nouveau features, curved walls, marble staircase, sculptures, etc. The property consists of 45 rooms, varying in sizes and amenities, but all which are decorated in shades of gray. And those who noticed that the building has a tower will want to know if guests can stay in it, and the answer is a resounding yes — just make sure to ask for a tower room. The beautiful on-site restaurant-bar attracts locals and tourists with cocktails that nods at the building’s past: How about a Painkillers or Stimulants to start the night? The property is home to a full-service spa for facials, manicure/pedicures, and body treatments.
Where: Austurstræti 16, 101 Reykjavík, Iceland
Price per night: $296
Exeter Hotel
The Exeter Hotel is a four-star hotel that mixes luxury, comfort, and industrial design. In the 106 rooms, expect concrete walls, metal railings for headboards, metal light fixtures, dark wood floors, and very few colors besides gray. While the lobby, restaurant-bar, and the gym have undergone the same industrial decor treatment, the spa has been spared and is welcoming and relaxing. The on-site DEIG Bakery is a mandatory stop for guests — everything is made from scratch and tastes heavenly — and the patio is a good place to enjoy the sun if it makes an appearance during your stay in the Icelandic capital. 
Where: 12, Tryggvagata, 101 Reykjavík, Iceland
Price per night: $218