Iceland’s capital, Reykjavik, is a city of colorful rooftops, steaming geothermal pools, and a creative energy that punches far above its weight. While it serves as the gateway to the island’s dramatic natural wonders, the city itself has evolved into a sophisticated hub of Nordic design and high-end hospitality. From historic landmarks to sleek glass-fronted modernism, Reykjavik’s hotel scene offers a refined way to experience the Land of Fire and Ice.
Finding the right base is essential in a city where the wind can be biting and the nights long. Whether you are looking for a spa-centric retreat to soothe muscles after a glacier hike or a chic boutique hotel in the heart of the shopping district, these top hotels provide the perfect blend of Icelandic warmth and international luxury.
Below are our top recommendations for the best hotels in Reykjavik, curated for every type of traveler.
1. THE REYKJAVIK EDITION
$450-900 per night
The Reykjavik Edition brings a new level of cosmopolitan cool to the North Atlantic. Located in the emerging historical district by the Harpa Concert Hall, this 5-star property is a masterpiece of understated luxury. The lobby, with its basalt stone floors and central fireplace, feels like a high-end Icelandic living room, setting the tone for a stay that is both chic and incredibly cozy.
The guest rooms feature floor-to-ceiling windows that frame stunning views of the Faxaflói Bay or the city’s iconic Hallgrímskirkja church. Expect custom-designed furniture, faux-fur throws, and oversized Italian marble bathrooms with rainforest showers. The on-site TIDE restaurant, led by Iceland’s first Michelin-star chef, serves elevated seafood, while the rooftop bar remains the city’s most exclusive spot for catching the Northern Lights with a cocktail in hand.
2. HOTEL BORG BY KEAHOTELS
$280-550 per night
For those who appreciate history and Art Deco glamour, Hotel Borg is the undisputed choice. Established by an Icelandic strongman in 1930, this landmark building overlooks the historic Austurvöllur square and the Parliament. It remains one of the most prestigious addresses in the city, blending old-world prestige with modern 4-star comforts.
Rooms are decorated in a consistent Art Deco style, featuring custom-made furniture, silk upholstery, and polished wood floors. The beds are notably plush, ensuring a restful night in the heart of the city center. The hotel’s spa is a subterranean sanctuary offering a steam bath, sauna, and hot pool, echoing the thermal traditions of the country. It’s an ideal base for couples seeking a romantic, timeless atmosphere.
3. EYJA GULDSMEDEN HOTEL
$190-320 per night
Eyja Guldsmeden is located just off Laugavegur, the main shopping street, offering a Bohemian-chic retreat that prioritizes sustainability. The hotel follows the “Guldsmeden” signature style, which mixes Nordic minimalism with Balinese-inspired warmth. Think reclaimed wood, four-poster beds, and lush organic cotton linens.
What makes Eyja stand out is its commitment to an eco-friendly lifestyle without sacrificing luxury. The bathrooms are stocked with the brand’s own organic products, and the breakfast is almost entirely organic and locally sourced. The service is exceptionally personal and unpretentious, making it a favorite for solo travelers and design enthusiasts who want to feel like they are staying in a stylish local residence rather than a large hotel chain.
4. CANOPY BY HILTON CITY CENTRE
$300-500 per night
Spread across six interconnected houses, Canopy by Hilton is a tribute to Icelandic culture and neighborhood living. The interiors are inspired by the ocean and volcanic landscape, using shades of slate gray and ocean blue. It’s a hotel that feels fresh and energetic, perfectly positioned for those who want to step out of their door and into Reykjavik’s best cafes and galleries.
The “Just-Right” rooms live up to their name, featuring memory foam beds and the “Canopy” canopy over the bed. Unique touches abound, such as a vinyl record library where you can borrow LPs to play on the portable turntables in your room. The hotel offers complimentary evening tastings of local beverages and snacks, making it an excellent bridge for business travelers or social couples who want an upscale, interactive environment.
5. REYKJAVIK RESIDENCE APARTMENT HOTEL
$250-600 per night
Reykjavik Residence offers the perfect middle ground between a luxury hotel and a private apartment. By taking over several historic houses in the city center, they have created a series of self-contained suites that range from studios to three-bedroom apartments. This is the gold standard for families or long-term travelers who need the convenience of a kitchen and extra living space.
The décor is classic and high-end, featuring hardwood floors, crisp white linens, and modern Icelandic art. While you have the privacy of your own apartment, you still enjoy full hotel services, including daily housekeeping and a 24-hour reception. The soundproofing is excellent, providing a quiet sanctuary for children even though the city’s main attractions are just a block away.
- Best Luxury Hotel – The Reykjavik Edition: The Edition sets a new bar for luxury in Iceland, combining world-class dining, a stunning rooftop bar, and sophisticated design. It is the ultimate choice for travelers who want a five-star, cosmopolitan experience with breathtaking harbor views.
- Best Hotel for Couples – Hotel Borg: With its stunning Art Deco interiors and historic location, Hotel Borg offers a sense of romance and timelessness. The central spa and plush room details make it the perfect retreat for a special getaway.
- Best Boutique Hotel – Eyja Guldsmeden: Eyja offers a unique, sustainable boutique experience with Balinese-Nordic fusion décor. Its warm atmosphere and organic focus make it a standout for design lovers seeking a personalized stay.
- Best for Families – Reykjavik Residence Apartment Hotel: Providing the space of an apartment with the service of a hotel, this property is ideal for families. The full kitchens and multi-bedroom options offer comfort and flexibility in the heart of downtown.
- Best for Business Travelers – Canopy by Hilton: Offering high-speed connectivity, comfortable workspaces, and a central location near the financial district, Canopy blends professional needs with local Icelandic character and great social spaces.
EDITOR’S PICK: BEST HOTELS IN REYKJAVIK
Conclusion
Reykjavik is a city where hospitality is taken seriously, and its hotels are a testament to the country’s love for design, comfort, and nature. Whether you choose the modern luxury of a harbor-side suite or the historic charm of an Art Deco landmark, these properties ensure your time in Iceland is spent in total comfort. By choosing the right hotel, you gain more than just a place to sleep—you gain a gateway to the unique spirit of the north.
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