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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...
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...
Icelandair Hotel Akureyri
Opened in 2011, this brilliant hotel showcases Icelandic designers and artists amongst its fresh, white-and-caramel-toned room decor...
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).
Hotel Leifur Eiriksson
This hotel glories in one of the best locations in Reykjavík: it’s slap on the end of arty Skólavörðustígur, and more than half its 47 rooms have inspiring views of Hallgrímskirkja...
Reykjavik City Hostel
Reykjavík’s original hostel is a large, ecofriendly complex that retains a fun backpacker vibe despite being 2km out of the city centre.
In an industrial estate towards Njarðvík, off busy Rte 41, this hostel feels a bit rough around the edges, but it’s the cheapest option near the airport for penny-pinchers...
Reykjavik Downtown Hostel
Squeaky clean and well run, this effortlessly charming hostel gets such excellent reviews by the backpacker crowd that it regularly lures large groups and an older legion of penny-pinchers.
A major player in the capital’s hostel scene, this place has spic-and-span rooms (try to score one on the upper floors), quirky bus seats in the lobby, a fantastic roof deck, and a climbing wall tucked in the back.
The town’s only hotel has dated decor and a slightly neglected air, but will do in a pinch. It’s popular with visiting anglers. Nearby is the hotel’s cheaper annexe, the Old Post House , with shared facilities.
This exceptional little guest house, on a quiet street close to Tjörnin and the BSÍ bus terminal, stands out thanks to the care and kindness of its owners...
From the same owners (a group of brothers) as the nearby Cape Hotel, this comfy guesthouse has seven rooms and shared bathrooms, but no kitchen access. Check-in and breakfast are at the Cape Hotel.
Like some kind of unofficial headquarters of backpackerdom, KEX is a mega-hostel with heaps of style (think retro Vaudeville meets rodeo) and sociability...
Supremely placed in the heart of town, this new backpackers has a chilled travellers vibe and includes a tour-booking service and popular cafe-bar...
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...
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...
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...
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%...