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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...
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.
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.
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...
Like some kind of unofficial headquarters of backpackerdom, KEX is a mega-hostel with heaps of style (think retro Vaudeville meets rodeo) and sociability...
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.
The city’s most historic hotel was completely overhauled in 2007...
In the peaceful old town, within a few blocks of the city’s core, the Metropolitan received a top-to-toe makeover in 2004...
4th Floor Hotel
Close to Hlemmur bus station, the 24 rooms at this ‘hotel’ (really a guesthouse) are a mixed bag...
Just around the corner from the Andrea, this homely purple town house is also run by Siggi. Its 14 rooms are simple and clean, although there can be bathroom queues! The newly renovated apartments are the pick of the bunch here.
Like sleeping in a magazine for Scandinavian home design, these thoroughly modern apartments come in 50 shades of grey (no, not like that), sporting fine furnishing and sleek built-ins.
This guest house is run by a family of elf enthusiasts. Breakfast is a help-yourself affair in the home-away-from-home kitchen.
The corporate chain-hotel Barón is fairly central, and its 4th- and 5th-floor front-facing rooms have marvellous views of the sea and Esja – worth the extra €40. There are 31 apartments of varying sizes, with cooking facilities...
Center Hotel Arnarhvoll
A sleek hotel on the waterfront, Arnarhvoll offers unimpeded views of the bay and Mt Esja in the distance...
This bright blue hotel has lots in its favour – particularly its excellent location overlooking Laugavegur (although rooms at the front can be noisy at weekends), and the stylish apartments in a newer wing. Older rooms are less inspiring.
In a quiet residential area fairly close to Perlan, Alba is a peaceful choice. It has fresh, modern, attractive rooms (with shared bathrooms) and pleasant staff, with free wi-fi and breakfast included.
Center Hotel Klopp
Scandi-sleek detailing borders on spartan at this central sleeping option. The facade’s rather dreary and dated, but the rooms are fresh-faced; many sport bay views.