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Budget hotels & hostels
Guesthouses and B&Bs
Icelandair Hotel Reykjavik Marina
A gorgeous addition to the capital’s accommodation scene sits next to the Old Harbour, with excellent sea views from the even-numbered rooms on the 4th floor...
Icelandair Hotel Akureyri
Opened in 2011, this brilliant hotel showcases Icelandic designers and artists amongst its fresh, white-and-caramel-toned room decor...
A lovely young couple have opened this petite five-room guesthouse in a prime harbourfront locale, and filled it with charm and good cheer: rich colours, record player and vinyl selection, delicious breakfasts, outdoor deck and good local knowledge to...
This wonderful hotel is shared across three old wooden buildings: reception and the bar-restaurant (where breakfast is served) are at the Norðurgata location...
Bold statement alert: this might just be our favourite little inn in all of Iceland...
The Herring Guesthouse
Þorir is a charming, knowledgeable host (he’s a former town mayor) at this comfy new four-room guesthouse, with guest kitchen. He also offers a two-bedroom apartment, plus a nearby five-bedroom house that sleeps nine (check it out on www.580.is).
For those leaning towards private digs rather than hotel stays, REY is a very handy choice with a huge cache of apartments scattered across several Escher-like stairwells. It’s a full service affair, and easily trumps the growing Airbnb market.
Hotel Reykjavík Centrum
This central hotel has striking architecture – mezzanines and a glass roof unite two buildings, giving the whole place a spry, light feel...
Center Hotel Plaza
A full service hotel guarding an enviable spot in the Old Reykjavík quarter, this fresh-faced member of the CenterHótel chain has business- oriented rooms with polished wooden floors, and great views from the higher levels.
More of a large, homey guesthouse than an airport hotel, Berg’s common spaces benefit from charming personal touches and an eclectic selection of old furniture, including stacks of tattered paperbacks on the shelves...
Hilton Reykjavik Nordica
Bring your autograph book to the Nordica – visiting celebs often stay here. Cool Scandinavian chic oozes from every part, with amenities such as 24-hour room service, gym, spa and the gourmet restaurant Vox...
A sure-fire stunt double for the Icelandair Hotel when it books out, this reliable spot, just half a block away, has a rather gaudy lobby but the rooms are perfectly serviceable. Book online and you’ll find discounts of up to 40%...
The city’s most historic hotel was completely overhauled in 2007...
The aptly named Dimmuborgir Guesthouse is the only accommodation in the area...
Hótel Hellnar is the area’s choice sleeping option. The twin-bedded rooms are sun-filled and simple (cards with self-esteem mantras are inexplicably placed on the pillows in lieu of the usual chocolate)...
For a comfortable stay, check into the Hótel Hellissandur , a well-run place offering bright, modern rooms with contemporary interiors and sparkling bathrooms...
In the peaceful old town, within a few blocks of the city’s core, the Metropolitan received a top-to-toe makeover in 2004...
Set away from the harbour up on a hill, this boxy hotel feels almost as out of place as the modern church nearby. Rooms are spread across two wings – the old hall has the views, but the newer annexe has modern furnishings...
Legend has it that Marlene Dietrich once stayed at this charming boutique hotel, which dates from 1884. The individually decorated rooms blend period furniture and modern style...
Compact, well-equipped rooms are found at this hotel close to the bus station. Front rooms have watery views, back rooms have an outlook on lush greenery...
4th Floor Hotel
Close to Hlemmur bus station, the 24 rooms at this ‘hotel’ (really a guesthouse) are a mixed bag...
Run by the same couple that runs the hostel and Höfn Inn, Hvammur is a large rabbit warren containing 30 simple rooms (most with washbasin and TV) down by the harbour.