We already wrote about the 10 best hotels outside of Reykjavík, now we give you insight into our favourite hotels in Reykjavík. Whether you’re starting your Iceland adventure, ending with a few city days, or using Reykjavík as your base for day tours, these hotels deliver exceptional experiences.
These hotels aren’t necessarily the most luxurious ones. They’re the properties we believe best combine charming design, excellent dining, superior service quality, and prime location for exploring Iceland’s capital.
1. Hotel Parliament
Hotel Parliament occupies a meticulously restored historic building steps from Alþingi, Iceland’s parliament house. This boutique property transformed a 19th-century residence into refined modern accommodation while preserving architectural character. The Hotel ensures intimate service and personalized attention that larger hotels cannot match.
Each room features unique design incorporating Icelandic materials, custom furniture, and curated artwork. Bathrooms use marble and premium fixtures, while attention to detail extends to every element from lighting to linens. The small scale allows staff to remember guest preferences and provide tailored recommendations for exploring the city.
Location places you at the heart of Reykjavík’s downtown. Austurvöllur square, Hallgrímskirkja church, Harpa concert hall, and the old harbor all sit within walking distance. The neighborhood’s cafés, restaurants, and shops surround the hotel, making it ideal for those who want to explore the city on foot.
The breakfast service brings quality local products to your table each morning, with emphasis on Icelandic dairy, smoked fish, and artisan breads.
Hotel Parliament suits travelers who appreciate boutique properties where service feels personal rather than standardized. The historic building’s character combined with contemporary comforts creates a sophisticated base for Reykjavík exploration.
2. Hotel Eyja Guldsmeden
Hotel Eyja Guldsmeden brings the successful Guldsmeden hotel group concept to Reykjavík with Scandinavian design principles and sustainability focus. The property emphasizes organic materials, natural textiles, and eco-friendly practices throughout. Light wood tones, earth colors, and abundant plants create calming interiors.
The rooms range from cozy standards to spacious suites.
The hotel’s commitment to sustainability extends beyond design. Organic breakfast emphasizes local and seasonal products, housekeeping uses eco-friendly products, and the property participates in carbon offset programs. For environmentally conscious travelers, Eyja delivers comfort without compromising principles.
Location on Brautarholt street places you near Laugardalur valley with its geothermal pools, botanical garden, and walking paths. Downtown Reykjavík sits 10-15 minutes away by foot. This slightly removed position offers quieter nights while maintaining city access.
Hotel Eyja appeals to design-conscious travelers who value sustainability and Scandinavian aesthetic. The property balances eco-credentials with genuine comfort, proving that sustainable hospitality need not sacrifice quality or style.
3. Hotel Borg
Hotel Borg stands as Reykjavík’s most iconic hotel, occupying prime position on Austurvöllur square since 1930.
Tower suites offer the hotel’s finest accommodation with cathedral ceilings and square views.
Location cannot be bettered for those wanting to be at the absolute center of Reykjavík life. The hotel faces Austurvöllur, the historic square where Icelanders gather for celebrations and protests. Cafés, restaurants, shops, museums, and galleries fill the surrounding streets. Everything that defines downtown Reykjavík sits within minutes of your room.
Hotel Borg suits travelers who appreciate historic properties with genuine heritage.
4. Fosshotel Reykjavík
Fosshotel Reykjavík occupies a striking modernist tower overlooking the old harbor and downtown. This 320-room property represents Fosshotel’s flagship Reykjavík location, combining efficient service with solid comfort. The tower design means most rooms feature floor-to-ceiling windows showcasing city, harbor, or mountain views.
The breakfast buffet serves an extensive spread including hot dishes, Icelandic specialties, and international options.
Location near the old harbor places you within easy walking distance to downtown attractions while offering waterfront proximity.
The hotel bar and common areas provide comfortable spaces for evening relaxation. While Fosshotel Reykjavík might lack the intimate character of smaller properties, it compensates through reliable service, modern facilities, and views that smaller hotels cannot offer.
Fosshotel Reykjavík appeals to travelers wanting modern comfort, central location, and views without boutique pricing. The property delivers what you expect without surprises, making it a dependable choice for exploring Iceland’s capital.
5. 101 Hotel
101 Hotel occupies a converted 1930s building on Hverfisgata, one of downtown Reykjavík’s main streets. This design hotel emphasizes contemporary style and sophisticated atmosphere. The minimalist aesthetic features monochrome color schemes, designer furniture, and curated artwork throughout.
The dining room serves contemporary cuisine emphasizing Icelandic ingredients with international influences. The bar becomes a scene on weekends, with cocktails and atmosphere drawing locals and hotel guests together.
Location on Hverfisgata places you on one of Reykjavík’s most dynamic streets, full of restaurants, cafés, vintage shops, and galleries. The central position means everything downtown sits within easy walking distance. For those wanting to be where Reykjavík’s creative energy concentrates, this neighborhood delivers.
Weekend nights can bring noise from the bar and street activity, so light sleepers should request rooms facing the back. The trade-off between central location and quiet requires consideration, though most guests embrace the energy as part of the experience.
Choosing Your Reykjavík Hotel
Each of these five hotels excels in different ways, making the best choice dependent on your priorities:
Hotel Parliament for intimate boutique luxury with historic character
Hotel Eyja Guldsmeden for Scandinavian design with sustainability principles
Hotel Borg for iconic Art Deco heritage and prime square location
Fosshotel Reykjavík for modern efficiency with harbor views
101 Hotel for contemporary design and urban creative energy
All five properties share excellent downtown locations, putting Reykjavík’s attractions within walking distance. They serve as ideal bases whether you’re exploring the city’s restaurant scene, visiting cultural sites, or using Reykjavík as your starting point for day tours to the Golden Circle, South Coast, or Reykjanes Peninsula.
For accommodation outside the capital during multiday tours, check our article about the 10 best hotels outside Reykjavík.
Book well ahead during summer months (June-August) when these properties often sell out weeks in advance. Winter visits typically offer more availability and sometimes lower rates, though the best hotels maintain demand year-round for Northern Lights viewing and winter activities.
Whichever you choose, these five hotels represent the best Reykjavík offers for combining design, service, dining, and location into memorable stays in Iceland’s capital.
