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Best Hotels in Reykjavik (2026)

Most visitors are best off staying in or near Miðborg, the old town, where almost everything is within walking distance and many tour pick-ups start close by. For a luxury stay, The Reykjavik EDITION sits on the waterfront beside Harpa, while Hotel Borg, opened in 1930, faces Austurvöllur square with Art Deco interiors and its own spa. Hotel Holt, in the quiet Þingholt district below Hallgrímskirkja, offers classic rooms and a large private art collection.

In the mid-range, Sand Hotel is right on Laugavegur and CenterHotel Plaza overlooks Ingólfstorg, both ideal for walking everywhere, while Fosshotel Reykjavík in Borgartún is a large tower hotel with sea views and easier parking for drivers. On a budget, KEX in a former biscuit factory and Loft HI Hostel on Bankastræti offer dorms and private rooms with sociable bars. Hotels fill up quickly in summer and over New Year, so book early. Light sleepers should note that central streets can be noisy on weekend nights, and in summer the midnight sun makes good blackout curtains or an eye mask essential. Many hotels include breakfast, which helps with food costs.

8 places · Updated October 27, 2026

Our top 3 hotels in Reykjavik

  1. The Reykjavik EDITION Luxury harbourfront hotel, Old Harbour / AusturbakkiFive-star harbourfront hotel beside Harpa with 253 rooms and suites, the TIDES seafood restaurant, a rooftop bar and a social spa looking out over the bay.
  2. Hotel Borg Historic Art Deco hotel, Austurvöllur / MiðborgHistoric Art Deco hotel on Austurvöllur square, opened in 1930 as Iceland's first luxury hotel, with 99 rooms, a Tower Suite and the Borg Spa.
  3. Hotel Holt Classic art-filled boutique hotel, ÞingholtClassic four-star hotel in the quiet Þingholt district, established in 1965 and home to what it describes as Iceland's largest private art collection.

Hotel

2. Hotel Borg

Historic Art Deco hotel$$$$Austurvöllur / Miðborg

Historic Art Deco hotel on Austurvöllur square, opened in 1930 as Iceland's first luxury hotel, with 99 rooms, a Tower Suite and the Borg Spa.

View details — Hotel Borg

Hotel

3. Hotel Holt

Classic art-filled boutique hotel$$$Þingholt

Classic four-star hotel in the quiet Þingholt district, established in 1965 and home to what it describes as Iceland's largest private art collection.

View details — Hotel Holt

Hotel

4. Sand Hotel

Boutique hotel on Laugavegur$$$Laugavegur

Boutique hotel with 78 rooms on Laugavegur, Reykjavik's main shopping street, with contemporary artwork, a gym and a complimentary breakfast buffet of fresh bread and pastries.

View details — Sand Hotel

Hotel

7. KEX Hostel

Social hostel and hotel$Skúlagata / Miðborg

Social hostel and hotel in a former biscuit factory on Skúlagata, with dorms and private rooms, breakfast at BAXTUR and a bar serving local beers.

View details — KEX Hostel

Hotel

8. Loft HI Hostel

Eco-labelled hostel with rooftop terrace$Bankastræti / Miðborg

Central Hostelling International hostel on Bankastræti with dorms, private and family rooms, a guest kitchen, a bar and café and a rooftop terrace over the old town.

View details — Loft HI Hostel