In the midst of a recent boom in tourism, new hotels are popping up all over Reykjavik. Additionally, many established hotels are adding capacity to help meet demand. As you consider where to stay during your next quick layover or extended vacation, the eight hotels below represent the best lodging in Iceland’s capital city. These are our picks for the eight best hotels in Reykjavik, updated for mid-2021.
At the end of each review below is a link to an extremely thorough, in-depth review of each property, courtesy of the Iceland In 8 Days research team. Looking for something a little less expensive and a bit more social? Check out our guide 10 Best Hostels in Reykjavik: Our Research And Selections.
Canopy by Hilton Reykjavik City Centre
Backed by one of the biggest names in hospitality worldwide, the Canopy by Hilton Reykjavik City Centre joins six painstakingly restored historic houses in the bustling area adjacent to the Laugavegur retail district.
Just a short walk or ride away, you can explore the wealth of attractions. This includes nearby museums, shops, restaurants and galleries, as well as the old harbor and Hallgrímskirkja. The hotel even provides guests with bicycles for short-term use.
Within the hotel, the comfortable rooms and suites are decorated to reflect the ocean and volcanic rock that dominate the country’s natural landscape.
Each room features a 48-inch TV, mini fridge, espresso machine, luxurious bedding and free WiFi access. For longer stays or travels with a group, consider upgrading to one of the expansive suites or loft rooms. These rooms also include a living room for additional space to relax after a long day spent sightseeing.
In the hotel’s common areas, you can admire the displays of local art, thumb through a book in the library or enjoy a world-class meal with Icelandic flair in the house restaurant, Geiri Smart.
You can also grab a quick snack or a gourmet gift in the hotel’s café. And if you’ve got an exercise regimen to maintain, the hotel offers a 24-hour fitness center with cardio machines, weights and yoga mats. These reasons and more are why this hotel tops our list of the Best Hotels in Reykjavik.
Hotel Borg by Keahotels
The first thing you’ll notice about the Hotel Borg is its striking Art Deco style, which extends through the interior décor and rooms all the way down to the typeface used in its branding.
Since its grand opening in 1930, the hotel’s imposing white tower has become a well-known landmark. It is located near the beating heart of the nation’s capital. This hotel is just steps away from the Parliament House, Reykjavik Cathedral and Austurvöllur Park.
Within walking distance, you’ll find major attractions including Harpa Concert Hall, Hallgrímskirkja church, Reykjavik City Hall, the University of Iceland, the National Museum, the National Gallery of Iceland and the shops of Laugavegur.
Among the historic hotel’s 99 rooms, your options include six suites and one dazzling two-story tower suite. Amid the Art Deco design, you’ll find modern conveniences like a flat-screen satellite TV, minibar, espresso machine, Bluetooth speaker and free WiFi access.
Unwind in a plush hotel bathrobe and slippers as you stroll across the heated bathroom floors toward a steaming shower or bath. Suites also include comfortable living areas.
If pampering yourself is high on the agenda of your Icelandic vacation, look no further. The Hotel Borg features a full-service luxury spa with hot tub, steam bath, sauna, fitness room and relaxation area. Daily access is available for a small fee. Additional services include face and body treatments, manicures, pedicures and waxing.
For convenient on-site dining, the Jamie’s Italian restaurant chain maintains a location in the hotel’s Golden Hall. This hall is famous for its unique oval mural set into the high ceiling. Enjoy top-notch pasta dishes, grilled meats and sourdough pizza as you admire the restaurant’s well-appointed interior. If you’re looking for one of the best hotels in Reykjavik, look no further than the Hotel Borg.
Alda Hotel Reykjavík
This boutique-style hotel is nestled on the upper end of the famous Laugavegur retail district, just steps away from the street’s bustling shops and nightlife and a 15-minute walk from many of downtown Reykjavik’s most popular attractions. These attractions include the harbor, Hallgrímskirkja church, Harpa Concert Hall and the national museum and gallery.
The hotel offers a wide array of room sizes and styles, including deluxe, family, double and single rooms, attic rooms and suites. All rooms include a flat-screen HDTV, free WiFi access, safe, coffeemaker, Egyptian cotton bed linens, plush robes and high-end toiletries.
Instead of a land line in the room, the hotel provides guests with a data-equipped Android smartphone. This can be used throughout their stay, including for offsite navigation and sightseeing. No other hotel in Reykjavik provides this.
The hotel’s restaurant, Brass, features upscale pub food with Icelandic flavor. Bite into one of several juicy specialty burgers, nibble on a few shared plates or sample fresh Icelandic cod or char prepared with a modern twist.
Other onsite amenities include a fitness center, hot tub, sauna and barber shop. If you want to stay at one of the best hotels in Reykjavik, you can’t go wrong here.
Located a short walk from Tjornin lake and the shops of Laugavegur, Hotel Holt is a boutique luxury hotel that prides itself on celebrating local art, history and culture.
Since opening its doors to guests in 1965, the hotel has developed a reputation for impeccable service and warm hospitality. It is also known for the unique local art that adorns the hotel walls. The hotel features the country’s largest private collection of work by Icelandic master artists.
The hotel’s 42 rooms include double and single rooms and junior and standard suites. All rooms include complimentary WiFi access, flat-screen TV, work desk, coffeemaker, minibar, safe, toiletries, bathrobe and access to the world class gym and swimming pool at Laugardalur. Suites feature a modest living area with sofa beds to accommodate extra guests.
Enjoy a meal at the Restaurant Renaissance for a close-up look at the bulk of the hotel’s impressive art collection. Select from a two- or three-course menu of dishes. These dishes combine traditional Icelandic flavor with upscale elegance.
Chefs use locally sourced produce, meats and fish to craft each season’s menu. An extensive wine selection features all-natural and organically produced wines from Italy along with global wines hand-picked by the restaurant team. If you want to stay at one of the best hotels in Reykjavik, you can’t go wrong here.
Housed in the former location of the pharmacy Reykjavikur Apotek, the Apótek Hotel building is rich in history. Designed in 1917 by Iceland’s former state architect Guðjón Samúelsson, the building is a well-known landmark that rivals Samúelsson’s other famous designs. This includes the National Theater, Hotel Borg, Akureyrarkirkja and Hallgrímskirkja.
The hotel’s interior is decorated in a distinctive Art Nouveau style that extends to its 45 rooms and suites. The property’s crown jewel is its three-story luxury tower suite. This suite provides guests with breathtaking panoramic views of the city.
Other lodging options include single, double, superior and deluxe rooms as well as junior suites. All rooms include free WiFi access, satellite TV and a Nespresso coffeemaker. They also feature a Bluetooth speaker, minibar, robe and slippers, toiletries and writing desk.
On the hotel’s ground floor, the Apotek Kitchen + Bar is a sleek and modern space perfect for unwinding with friends or grabbing a quick bite. The menu is an inventive mash-up of Icelandic and European cuisine with the addition of a sizzling Argentinean grill.
Most dishes are envisioned as shared plates to be enjoyed alongside one of the unique cocktails on the pharmacy-themed bar menu. Bartenders act as “pharmacists” doling out drinks styled as “painkillers,” “stimulants,” “tranquilizers” and even “placebos.” If you’re looking for one of the best hotels in Reykjavik, look no further than the Apotek Hotel.
Icelandair Hotel Reykjavik Marina
This funky, fun hotel is planted in the middle of Reykjavik’s up-and-coming art district along the city’s harbor. As a reflection of the area’s rich maritime history, the hotel’s colorful décor juxtaposes modern elements with relics from the shipyard and harbor.
The harbor gives the city much of its soul. You can still watch ships bring in their daily catches and even “touch a ship in the slip.” Nearby, you’ll find the magnificent Harpa Conference Hall along with world-class restaurants, art galleries, shops and cafes.
The hotel offers a dizzying array of lodging options, from basic single rooms to deluxe rooms and suites. Six apartment-style suites are ideal for extended stays and include private patios, lounges and balconies for peak comfort.
Basic rooms include free WiFi, flat-screen TV, mini fridge and hairdryer. Deluxe rooms feature stunning views of Mt. Esja, along with coffeemakers and access to a complimentary happy hour.
The Slippbarinn restaurant and bar serves as the hotel’s entertainment hub. This restaurant has a full menu of small plates, main dishes and drinks along with daily activities for guests of all ages. These activities include nightly happy hours, live music and even movies for the kids on weekend mornings.
Environmentally concerned guests will be pleased to note that the Icelandair Hotel Reykjavik Marina places a heavy emphasis on becoming one of the most eco-friendly operations in the industry. In an effort to help preserve the pristine nature that draws millions of visitors to the country each year, the hotel pledges to reduce waste and increase recycling, choose environmentally friendly and local products and exceed national standards for environmental practices. If you want to stay at one of the best hotels in Reykjavik, you can’t go wrong here.
Kvosin Downtown Hotel
Housed in a historic 1900-era building just a stone’s throw from Iceland’s Parliament building and Old Downtown Church, the Kvosin Downtown Hotel was renovated in 2013. The hotel renovation provides the finest in modern amenities to its guests.
Each room includes a full kitchenette along with a Samsung Smart TV, Nespresso machine, organic Icelandic toiletries and free WiFi access. Many of the suites, some of which can accommodate up to six guests, also feature a private balcony.
While no onsite dining facilities are available, the Klaustur bar offers an impressive array of fine wines, beer, whiskey and gin that are difficult to find elsewhere in Iceland. Like its namesake, the bar presents itself as a “cloister”. Here, guests will find a quiet place to learn, reflect, and meet. This is definitely one of the best hotels in Reykjavik.
Offering the height of modern luxury in a convenient central setting, the stately Skuggi Hotel is perfectly located in the center of downtown Reykjavik. It’s a short walk from the Laugavegur shopping scene. It’s close to Harpa Concert Hall, Hallgrímskirkja and several galleries and museums.
The hotel’s 100 sleek rooms include single, double and deluxe options. All rooms have an emphasis on comfort and urban elegance.
Inspired by the work of Icelandic nature photographer Ragnar Axelsson, their minimalist styling creates a cozy yet contemporary atmosphere. A quote from Axelsson’s book Behind the Mountains is painted on the wall above the bed. An English version of the book is placed in each room for guests to enjoy during their stay. Other amenities include free WiFi access, satellite TV, coffeemaker, hairdryer and toiletries.
The hotel doesn’t include a restaurant, but you can find dozens of excellent restaurants nearby. Options are plentiful, including the popular Hlemmur Food Hall. Other cultural activities in close proximity include catching a film at the Bíó Paradís cinema or going for a swim in the Sundhöll Reykjavíkur geothermal pool. If you’re looking for one of the best hotels in Reykjavik, look no further than the Skuggi Hotel.
Final Thoughts on the Best Hotels in Reykjavik
Visitors’ options for lodging in Iceland’s capital city continue to expand. With this, these eight tried-and-true hotels provide guests with an unforgettable stay steeped in history and comfort at the best hotels in Reykjavik. With a wide range of price points, room sizes and amenities, one of them is sure to check every box on your list of essentials for the place you’ll call home during your visit to Reykjavik.