When it comes to experiencing the magic of Iceland’s capital there’s no better way to do it than by staying in one of the best boutique hotels in Reykjavik.
These intimate and unique Reykjavik accommodations offer a personalized and unforgettable experience that you won’t find at larger chain hotels.
From charming historic properties to sleek and modern design hotels, the coolest hotels in Reykjavík each offer its own style and personality, ensuring that your stay in this vibrant city will be truly unforgettable.
Here are our top Reykjavik hotel picks for first-timers visiting this wondrous northern city!
This post contains affiliate links. If you book or buy something through one of these links, we may earn a commission at no extra cost to you. You can read our full disclosure here.
Planning your trip to Reykjavík last minute? Here are the tours and hotels we recommend. Our 7 Day Iceland Itinerary, the 12 Most Unique Hotels in Iceland and 15 Must-See Iceland Waterfalls will also be very helpful.
- TOP EXPERIENCES & TOURS IN REYKJAVIK
- BEST HOTELS IN REYKJAVIK
- PRACTICAL INFORMATION FOR REYKJAVIK
Where to stay in Reykjavík, Iceland
If you’re looking for the best Reykjavík, Iceland hotels, you’ll be met with a variety of potential neighborhoods to base your stay, So, here are some of the best areas to stay in Reykjavík.
Old Town (Austurvellir)
Old Town is the heart of Reykjavík, with charming streets lined with colorful houses, boutiques, and restaurants. The area is also home to many historical landmarks, including Hallgrímskirkja, Iceland’s largest church.
101 District (Miðborg)
Miðbor is the hip and trendy neighborhood of Reykjavík’s city centre, with a lively nightlife, art galleries, and unique shops.
It’s also home to many of Reykjavík’s most iconic landmarks, such as Harpa Concert Hall and the Sun Voyager sculpture. So, it’s usually the best area to stay in Reykjavík as a first-time visitor.
Located just east of downtown, Laugardalur is a peaceful residential area with plenty of green spaces, including the lush botanical garden and Laugardalslaug, Iceland’s largest swimming pool complex.
Best Boutique Hotels in Reykjavik Iceland
The Reykjavik EDITION (Best of Luxury Hotels in Reykjavik with Ocean Views)
Right on the North Atlantic Coast, The Reykjavik EDITION (9.1) is a sleek and stylish 5 star hotel in Iceland’s capital. With its modern design and luxurious amenities, guests can enjoy a truly indulgent stay.
The rooms are chic with wall art and faux fur rugs, featuring floor-to-ceiling windows, rainfall showers, and contemporary furniture.
Take advantage of amenities like Bluetooth speakers, minibars, and designer toiletries during your stay.
They have either courtyard or harbor views, and high floor rooms have private terraces with views of the cityscape.
The hotel also offers a fitness center and a spa, as well as a signature restaurant, bakery, and two bars (including a rooftop bar and terrace) serving craft cocktails.
If you’re looking for the best 5 star hotels in Reykjavik, we highly recommend this one.
What guests like most: exceptional staff, great location, quality • Consideration: some facilities are seasonal
Eyja Guldsmeden Hotel (Best Reykjavík Hotel for an Eco Stay)
Located around the corner from the city’s main shopping street Laugavegur, Eyja Guldsmeden Hotel (9) offers an amazing eco hotel in Reykjavik’s city centre.
Rooms are uniquely designed with natural materials and boast comfortable beds, flatscreen TVs, writing desks, and private bathrooms with organic toiletries.
During your stay, enjoy a Nordic-inspired breakfast buffet, workout at the green gym, and unwind with a drink at the hotel’s bar or in the warmly-lit dining hall. There’s also city bikes for hire.
What guests like most: exceptional staff, great location, quality • Consideration: some facilities are seasonal
Tower Suites Reykjavík (One of the Best Boutique Hotels Reykjavik Offers)
Tower Suites Reykjavik (9.5) is a lavish suites-only hotel on the 20th floor of a glass building with stunning views of the city and the surrounding mountains.
The suites are spacious and elegantly decorated, featuring floor-to-ceiling windows, comfortable seating areas, soaking tubs, and modern amenities such as a complimentary minibar and a Nespresso machine.
There are also iPads and telescopes available for stargazing at the Northern Lights.
Onsite amenities include a bar, restaurants, and cafes on the ground floor plus complimentary continental breakfast served daily. This is definitely one of the best Reykjavik hotels for a unique stay!
What guests like most: minibar, great breakfast, amazing location • Consideration: no spa or gym
ION City Hotel (Top Hotels in Reykjavik, Iceland with Private Saunas)
As one of the best boutique hotels in Reykjavík, ION City Hotel (9) is a luxurious eco-friendly hotel that offers a central location for exploring the city. Plus, it’s just a short walk from the iconic Harpa Concert Hall.
The room’s tall windows offer beautiful city and landscape views. Each also offers complimentary minibars, plus smart TVs, Nespresso machines, sitting areas, and king-sized beds. Suites have private saunas and balconies,
Soak up amenities like a restaurant that serves organic cuisine, a cozy bar with a wide selection, and a fitness center with upscale equipment.
What guests like most: bathroom saunas, friendly staff, central • Consideration: no breakfast
Reykjavik Konsulat Hotel (Best of Luxury Hotels in Reykjavik with a Spa Area)
Reykjavik Konsulat Hotel (9.1) is one of the coolest hotels in Reykjavik’s historic district. The hotel offers a stylish and contemporary atmosphere with a nod to its past as a former 1900s consulate building.
The rooms and suites are elegantly designed with modern amenities such as flat-screen TVs, minibars, and luxurious bedding. Some suites even feature private balconies with wonderful views.
Hotel perks include a fitness center, a small spa, a restaurant serving Icelandic cuisine, and a trendy bar serving handcrafted cocktails. There’s a breakfast buffet served daily.
What guests like most: perfect location, lovely rooms, spa facilities • Consideration: basic breakfast
Exeter Hotel (Best of Cool Hotels in Iceland for an Industrial-Chic Stay)
This renovated 1904 storage building by the Old Harbour has been transformed into a trendy industrial-chic Exeter Hotel (8.8). If you’re looking for the coolest hotels in Reykjavik, we found one.
Characteristic rooms boast cement walls and mid-century modern furniture, and come equipped with smart TVs, minifridges, and tea and coffee making facilities.
Then, suites offer an open-plan living and dining area, panoramic views, and a rooftop balcony.
Take advantage of a sauna, gym, relaxed restaurant, bar with occasional live music, and a bakery that uses Icelandic potato dough. There’s also complimentary breakfast and a greenhouse.
What guests like most: wonderful breakfast, helpful staff, bar atmosphere • Consideration: sauna & gym cost extra
Reykjavik Marina (Best Reykjavik Boutique Hotel for Families)
Located on the bustling harbor and just a short walk from the famous concert hall, Reykjavik Marina – Berjaya Iceland Hotels (8.5) is a lively boutique hotel set in a charming 4-story stone building.
The hotel boasts cosmopolitan rooms with wood floors and colorful accent walls. Some rooms feature private balconies with sea views and sitting areas.
We stayed here in a king sized bunk bed room. The kids thought it was the coolest thing they had ever seen and you could easily fit a family of 6 in those gigantic beds.
Airy suites come with fridges, separate sitting rooms, and additional perks like free-standing tubs.
Amenities include whimsical common areas and an industrial-style restaurant that hosts pop-up concerts, a bar, and a 20-person screening room, as well as a gym.
There are great dining options in the hotel and a place where you can quickly grab food to go for a day trip.
What guests like most: breakfast buffet, marina views, relaxed vibes • Consideration: on the edge of city centre
Vintage Hotel Apartments (Best Apartment Hotel in Reykjavik, Iceland)
Vintage Hotel Apartments (8.9) is a charming unique accommodation in Iceland, located in the heart of the capital.
The hotel offers a selection of beautifully designed apartments and studios with vintage and Nordic-inspired interiors.
Each unit features a fully equipped kitchen, comfortable bedding, a seating area, and a private bathroom.
They all combine old-world charm with modern amenities, like antique furnishings with flatscreen TVs and sleek bathrooms.
You’ll find a shared lounge, 24-hour front desk, laundry facilities, and daily housekeeping available during your stay. There are no onsite restaurants or bars, but the area offers plenty!
What guests like most: spacious and homey, great area, nice showers • Consideration: not a lot of amenities
Canopy by Hilton Reykjavik City Centre (Cool Minimalist Icelandic Design)
Canopy by Hilton Reykjavik City Centre (8.8) is a stylish, contemporary hotel situated on Faxa Bay, spanning across 6 connected buildings.
Well-designed rooms are equipped with flat-screen TVs, Nespresso machines, and minifridges. Select rooms boast bay views and sitting areas while the suites feature living areas and some even have pull-out sofas.
There’s a gourmet breakfast buffet served each morning, along with an industrial-chic café, a bistro-style bar, and a 24-hour fitness center. Bikes are also available for rent.
What guests like most: beautiful rooms, inviting atmosphere, downtown location • Consideration: location can be noisy
Hotel VON (Best Budget-Friendly Boutique Hotel in Reykjavík)
Hotel Von (8.6) is a modern boutique hotel beautifully situated in downtown Reykjavík with 52 rooms. It’s just a few minutes from the Solfar Sun Voyager.
The hotel features cozy rooms and suites decorated in a minimalist style with a touch of Icelandic charm. The rooms come equipped with flat-screen TVs, and tile or marble floors.
Some have city views and/or balconies, Suites offer additional living spaces and free-standing tubs.
Onsite is a cozy bar and terrace, and you’ll find tea/coffee facilities in every room.
What guests like most: well-equipped rooms, convenient location, thoughtful employees • Consideration: no breakfast
Hotel Borg by Keahotels (One of the Top Spa Hotels in Reykjavik)
Overlooking Asuturvollur Square, Hotel Borg by Keahotels (8.6) is one of the best hotels in Reykjavík thanks to its art-deco style, bright rooms, and superb facilities.
Elegant rooms and suites with polished wooden floors come with modern perks like minibars, safes, Nespresso machines, and en suite bathrooms with heated floors.
Some upgraded options feature separate seating areas for added comfort.
Enjoy amenities like a tasty Italian restaurant, a sleek meeting space, and a well-equipped fitness center. One of the best reasons to stay is for its relaxing spa, featuring a sauna, steam bath, hot tub, and a relaxing lounge.
Breakfast is offered every morning, and babysitting services are available upon request.
What guests like most: very central, excellent facilities, quality rooms • Consideration: breakfast is simple
Room With a View Hotel (Best Reykjavik Boutique Hotel for Groups)
Surrounded by an array of cafes and shops, Room With a Room with a View (8.3) is one of the top hotels in Reykjavik, Iceland for a relaxed stay with great rates.
Lovely, modern rooms come with flat-screen TVs, glass showers, and some include private balconies. There’s also a triple room and quadruple room for those traveling as a group.
There’s a scenic terrace, a tour desk, breakfast, and daily housekeeping during your stay. You can also take advantage of an onsite sauna.
What guests like most: family rooms, sauna, location • Consideration: no tea/coffee facilities in rooms
Final Thoughts on Best Hotels in Reykjavik
These unique Iceland hotels will maximize your trip to Reykjavik, allowing you to fully embrace the charm of this small Icelandic capital.
Book your Iceland hotels and tours ahead of time because they do sell out. We planned our trip one month in advance and had to make sacrifices.