Top-Rated Reykjavík Hotels for an Unforgettable Stay in Iceland

Where to stay in the colourful, friendly and cool capital of ‘the land of fire and ice’, and see volcanic mountains, oceans, and even the Northern Lights at the end of its streets.

Friendly, artistic, and relatively safe, Reykjavik encapsulates naturally stunning landscapes and is now home to an increasingly smart, forward-thinking hotel scene. It’s little wonder Reykjavik has become one of the world’s most desirable travel destinations. Its architecture is diverse, showcasing multi-coloured, surprisingly low-rise buildings, complemented by walls and pavements adorned with street art. The city’s predominantly locally sourced food and drink scene offers an array of fermented creations and boundary-pushing concoctions from eateries such as restaurant-meets-greenhouse Friðheimar and the upscale, waste-combating Artson Cocktail Bar. Moreover, the fresh-aired city has earned a reputation as a pioneer in sustainability and responsible tourism, supported by its long-term focus on low-carbon transport, green energy sources, and a total ban on single-use plastics. Consequently, there are numerous eco-friendly activities such as enjoying geothermal pools (or nearby Blue Lagoon) and camping in the lush Laugardalur Valley, where temperatures reach 14°C in July and August. However, for the best chance of seeing the Northern Lights, consider visiting between November and March. For those seeking boutique accommodation, here’s a curated hotel shortlist.

  • The Reykjavik Edition Hotel Reykjavik
    Nikolas Koenig

    The Reykjavik Edition hotel

    Best for: Experiencing the one everyone talks about

    Opened in 2021 amid warranted international clamour, this Icelandic sibling of Ian Schrager and Marriott’s Edition family is for many, the best yet. Typically design-forward, sleek, and located in one of the most desirable neighbourhoods, this hotel offers stunning views of ‘only-in-Iceland’ glaciers and mountains through floor-to-ceiling windows. Hygge-infused rooms come kitted with local products and art, including exquisite furnishings and refreshing fragrances. For dining options, there’s a restaurant or bar for every hour of the day, from post-night-flight coffee to dressed-up Nordic suppers, and splendid cocktails at the trendy bar. Moreover, the spa, with its unique amenities, appeals to all guests. To top it all off, the roof terrace presents an opportunity to witness the Northern Lights.

    Address: The Reykjavik Edition hotel, Austurbakki 2, 101 Reykjavik, Iceland
    Price: From £345 per night

  • Gunnar Bjarki

    The Exeter Hotel

    Best for: Industrial chic by the Old Harbor

    The Exeter offers a unique atmosphere, reminiscent of a Manhattan loft in the waterfront Old Harbor district. With polished concrete floors and a striking industrial feel, it features deliciously comfortable beds and a popular restaurant serving tasty street food. Enjoy craft beers at the stylish bar, accompanied by nourishing pastries made fresh in the hotel’s bakery. The hotel also boasts views of Mount Esja and Snæfellsnes Peninsula, making it a fantastic starting point for countryside adventures.

    Address: The Exeter Hotel, Tryggvagata 12, 101 Reykjavik, Iceland
    Price: From approx £138 per night

  • Hotel Von

    Best for: Design-led cool

    Hotel Von, located in a historical space on Reykjavik’s main shopping street, is sharpy designed with sleek decor. Enjoy hearty French-inspired dishes at its aptly named restaurant alongside an impressive selection of wines.

    Address: Hotel Von, Laugavegur 55 101, Reykjavik, Iceland
    Price: From approx £148 per night

  • Iceland Parliament Hilton Hotel

    Best for: History and heritage fans

    Comprising seven buildings, the Iceland Parliament Hotel houses 163 rooms and features a restoration of the old Landsímahúsið. With various amenities, including a buzzy bar and a restaurant serving Icelandic dishes, this hotel allows guests to experience true local culture.

    Address: Iceland Parliament Hotel, Curio Collection by Hilton, Thorvaldsenstraeti 2-6, 101 Reykjavik, Iceland
    Price: From approx £223 per night

  • 101 Hotel

    Best for: Achingly hip design

    A member of the esteemed Design Hotels group, 101 Hotel features a fashionably curated interior, blending local art and modern amenities. Luxurious dining options, a steam room, and various wellness facilities round out the experience at this trendy hotel.

    Address: 101 Hotel, Hverfisgata 10, Reykjavik 101, Iceland
    Price: From approx £257 per night

  • Sand by Keahotels

    Best for: Experiencing a little gem amid the buzz

    Located on lively Laugavegur, Sand by Keahotels offers understated comfort with modern furniture and chic decor. Delight in healthy cuisine at the relaxed restaurant, surrounded by the vibrant atmosphere of Reykjavik.

    Address: Sand by Keahotels, Laugavegur 34, 101 Reykjavik, Iceland
    Price: From approx £125 per night

  • Kvosin Downtown Hotel

    Best for: Living space and location

    Kvosin Downtown Hotel boasts a prime location and a stunning facade. With high ceilings and contemporary rooms, guests can enjoy self-catering options alongside attentive service from the onsite bar.

    Address: Kvosin Downtown Hotel, Kirkjutorg, 101 Reykjavik, Iceland
    Price: From approx £463 per night

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