Top 12 Best Hotels in Reykjavik Iceland – 2025 Picks

Have you ever dreamed of watching the Northern Lights dance across the sky from the comfort of your hotel room, or soaking in a geothermal hot tub while snow falls gently around you?

Welcome to Reykjavik, Iceland’s magical capital city where these dreams can come true! Finding the best hotels in Reykjavik Iceland is an important step in planning your perfect Icelandic adventure. The right hotel can make your trip extra special with amazing views, helpful staff who know all the local secrets, and cozy spaces to warm up after exploring this land of fire and ice.

Whether you’re visiting to see the Northern Lights, explore volcanoes and waterfalls, or soak in the famous Blue Lagoon, the best hotels in Reykjavik Iceland offer comfortable places to rest between adventures. Let’s explore the top places to stay in this unique Nordic city!

Luxury Downtown Hotels

1. Hotel Borg

When talking about the best hotels in Reykjavik Iceland, Hotel Borg always makes the list. This elegant Art Deco hotel stands proudly on Austurvöllur Square in the heart of the city. Built in 1930, Hotel Borg combines old-world charm with modern luxury.

What makes Hotel Borg special:

• Beautiful Art Deco design throughout the building
• Spa with steam bath, sauna, and hot tub
• Excellent restaurant serving Icelandic specialties
• Spacious rooms with custom-made furniture
• Perfect location near shops, restaurants, and the cathedral

Guests love being able to step outside and immediately be in the middle of Reykjavik’s vibrant downtown scene!

2. The Reykjavik EDITION

For travelers seeking the newest luxury option among the best hotels in Reykjavik Iceland, The Reykjavik EDITION opened its doors in 2021. This sleek, modern hotel offers stunning harbor views and sophisticated design.

The EDITION features:

• A rooftop with panoramic views of the city
• Geothermal pool and wellness area
• Multiple restaurants and bars
• Rooms with floor-to-ceiling windows
• Icelandic artwork throughout the property

The blend of international luxury standards with distinct Icelandic elements makes this hotel truly special.

Boutique Hotel Experiences

3. Sand Hotel

Among the best hotels in Reykjavik Iceland for boutique lovers, Sand Hotel offers stylish rooms in a perfect location on Laugavegur, the main shopping street. The hotel is built around three historic buildings, including the location of the famous Sandholt Bakery.

Guests enjoy:

• Complimentary breakfast featuring treats from Sandholt Bakery
• Beautifully designed rooms with Nordic simplicity
• Free smartphone for use during your stay
• Excellent soundproofing despite the central location
• Art by local Icelandic artists

The attention to design details and the central location make Sand Hotel a favorite choice.

4. 101 Hotel

For travelers who love art and design, 101 Hotel ranks high among the best hotels in Reykjavik Iceland. This boutique property features an on-site art gallery and ultra-modern interiors.

Special touches include:

• Free access to the hotel’s spa area with hot tub and steam bath
• In-room freestanding bathtubs in some rooms
• Restaurant serving modern Icelandic cuisine
• Black and white design theme with pops of color
• Heated bathroom floors (a wonderful luxury in Iceland!)

Family-Friendly Options

5. Icelandair Hotel Reykjavik Marina

Families searching for the best hotels in Reykjavik Iceland often choose the Icelandair Hotel Reykjavik Marina. Located in the trendy harbor district, this colorful hotel offers rooms that can accommodate families.

Kids and parents love:

• Bright, playful design with maritime themes
• Some rooms with bunk beds for children
• Lively common areas with games and books
• Harbor views with interesting ships to watch
• Easy walking distance to the Maritime Museum

The hotel’s fun atmosphere and great location make it perfect for families exploring Reykjavik.

6. Fosshotel Reykjavik

As Iceland’s largest hotel, Fosshotel Reykjavik offers plenty of options for families among the best hotels in Reykjavik Iceland. The hotel features:

• Spacious family rooms and suites
• On-site restaurant with children’s options
• Central location but slightly away from nightlife noise
• Tour booking service in the lobby
• Modern design with plenty of space

The hotel’s size means they can often accommodate last-minute bookings, even during busy seasons.

Budget-Friendly Choices

7. Center Hotel Midgardur

Travelers looking for quality without breaking the bank will find Center Hotel Midgardur among the best hotels in Reykjavik Iceland for value. Located at the beginning of the main shopping street, it offers:

• Complimentary breakfast buffet
• Small spa area with hot tub and sauna
• Modern, comfortable rooms
• Northern Lights wake-up service (they’ll call your room if the lights appear!)
• Helpful staff who can arrange tours

8. Skuggi Hotel

Another excellent mid-range option among the best hotels in Reykjavik Iceland is Skuggi Hotel. The name means “shadow” in Icelandic, and the hotel’s design is inspired by Icelandic nature photography.

Guests appreciate:

• Clean, modern rooms with comfortable beds
• Excellent breakfast included in the rate
• Quiet location but still central
• Good value for money in expensive Reykjavik
• 24-hour desk service

Unique Places to Stay

9. ION City Hotel

For a truly special experience among the best hotels in Reykjavik Iceland, consider ION City Hotel. This sister property to the famous ION Adventure Hotel brings the same focus on Icelandic nature to the city center.

Standout features include:

• Some rooms with private saunas and balconies
• Floor-to-ceiling windows to watch city life
• Organic toiletries made in Iceland
• Incredible attention to design details
• Northern Lights wake-up service

10. Canopy by Hilton Reykjavik City Centre

Spread across six connected houses, the Canopy by Hilton offers a neighborhood feel among the best hotels in Reykjavik Iceland. The hotel has transformed historic buildings into a modern retreat.

Guests love:

• Complimentary bikes for exploring the city
• Local food tastings in the evening
• Record players in suites with Icelandic music
• Excellent location near museums and shops
• Warm, homey atmosphere

11. Tower Suites Reykjavik

For unforgettable views, Tower Suites Reykjavik stands tall among the best hotels in Reykjavik Iceland. Located on the 20th floor of one of Reykjavik’s tallest buildings, these eight luxury suites offer panoramic views of the city, ocean, and mountains.

Each suite features:

• Floor-to-ceiling windows
• Freestanding bathtubs with views
• Telescope for Northern Lights watching
• Complimentary minibar
• Breakfast delivered to your room

12. Kvosin Downtown Hotel

Housed in a historic building next to the Parliament and the cathedral, Kvosin offers apartment-style accommodations among the best hotels in Reykjavik Iceland. The spacious rooms make it perfect for longer stays.

Highlights include:

• Kitchenettes in all rooms
• Separate living areas
• Award-winning cocktail bar on-site
• Historic building with modern interiors
• Extra-large rooms by European standards

Best Time to Visit Reykjavik

When planning your stay at one of the best hotels in Reykjavik Iceland, consider these seasonal differences:

Summer (June-August): Enjoy the midnight sun with almost 24 hours of daylight! Perfect for exploring but book hotels far in advance as this is peak season.

Fall (September-October): Fewer tourists, fall colors, and the beginning of Northern Lights season make this a wonderful time to visit.

Winter (November-March): Dark days but magical Northern Lights and Christmas decorations. Many hotels offer special winter packages.

Spring (April-May): Gradually increasing daylight, spring flowers, and migrating birds return. A quiet season with good hotel availability.

Tips for Booking Hotels in Reykjavik

1. Book early for summer visits – The best places fill up months in advance.
2. Consider location carefully – Downtown hotels mean easy walking but more noise. Decide what matters most to you.
3. Ask about parking – If you’re renting a car, not all hotels offer parking. This can be important in the crowded city center.
4. Look for breakfast included – Food in Iceland is expensive, so a good hotel breakfast can save you money.
5. Check for airport shuttle services – Some hotels offer shuttle service to/from Keflavik Airport, which can save on expensive taxi fares.

Frequently Asked Questions

How far is Reykjavik from the airport? Reykjavik is about 45-50 minutes by car from Keflavik International Airport. Most hotels can arrange airport transfers for an additional fee.

Do hotels in Reykjavik have hot tubs? Many hotels in Reykjavik have hot tubs or access to geothermal pools. Iceland’s geothermal energy makes hot water plentiful and affordable.

Can I see the Northern Lights from Reykjavik hotels? While it’s possible to see the Northern Lights from Reykjavik when conditions are perfect, light pollution makes viewing better outside the city. Many hotels offer Northern Lights wake-up calls or tours.

Are hotels in Reykjavik expensive? Yes, hotels in Reykjavik tend to be expensive compared to many other European cities. Budget options are available, but accommodations are one of the biggest expenses when visiting Iceland.

What’s the best neighborhood to stay in Reykjavik? Downtown Reykjavik (101 district) is most popular for first-time visitors, as you can walk to attractions, restaurants, and shops. The harbor area offers great views and a trendy vibe.

Do I need to speak Icelandic to stay in Reykjavik? Not at all! Nearly everyone in Iceland speaks excellent English, especially those working in hotels and tourism.

When should I book my hotel in Reykjavik? For summer visits (June-August), book 4-6 months in advance. For winter, 2-3 months is usually sufficient except for December, which is popular for Christmas and New Year celebrations.

Do hotels in Reykjavik have blackout curtains for summer? Yes, most hotels in Reykjavik have good blackout curtains to help guests sleep during the bright summer nights when the sun barely sets.

Iceland’s capital city offers a wonderful range of places to stay, from historic properties to ultra-modern designs. The best hotels in Reykjavik Iceland provide not just comfortable rooms but also a warm welcome to this land of stunning natural beauty and rich culture. Start planning your Icelandic adventure today.