8 Best Hotels in Reykjavik City Center: Best Areas & Places to Stay

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Looking for the best hotels in Reykjavik city center? Staying downtown is one of the easiest ways to experience Iceland’s capital, especially if you only have a day or two before heading out on a road trip.

We love being able to walk from our hotel to restaurants, shops, Harpa Concert Hall, the waterfront, and many of Reykjavik’s main attractions. Instead of worrying about parking or driving around the city, you can step outside and start exploring.

In this guide, I’ve rounded up 8 of the best hotels in Reykjavik city center, from luxury and boutique properties to more affordable options. I’ve also included a map so you can see exactly where each hotel sits in relation to Reykjavik’s top attractions.

Disclaimer: Links may contain affiliate links. This means I may get a small commission from the sale at no cost to you.

Reykjavik Hotel Map: Where to Stay Near the Main Attractions

For easy reference, here’s a map of hotels in Reykjavik city center. These are within walking distance to restaurants and attractions, offering guests a prime spot for enjoying the best of the city.

A map showing Reykjavik's city center hotels and location to attractions.
A map of Reykjavik’s city center and hotels that are within walking distance to restaurants and attractions.

Best Hotels in Reykjavik at a Glance

HotelBest ForLocationPrice
Hotel BorgLuxuryDowntown$$$
Center Hotel PlazaValueIngólfstorg$$
Canopy by HiltonBoutique feelDowntown$$$
Reykjavik KonsulatCouplesDowntown$$$
Hotel Reykjavik CentrumHistoric stayOld Reykjavik$$
Alda HotelShopping & diningLaugavegur$$$
ION City HotelDesignLaugavegur$$$
Apotek HotelBoutique luxuryDowntown$$$

1. Hotel Borg by Keahotels: A Luxury Stay in the Heart of the City

Hotel Borg is a luxury hotel in Reykjavik city center, located near the city’s major attractions. Though it isn’t the cheapest option, the pristine location and elegant Art Deco style make it stand out among boutique hotels in Reykjavik. Furthermore, guests can enjoy spacious rooms, a full-service spa, and an onsite restaurant.

This makes it one of the top choices for anyone seeking hotels near Reykjavik’s attractions. Its prime location within walking distance of landmarks like the National Cathedral and the Reykjavik Art Museum also makes it ideal for those wanting hotels within walking distance of reykjavik attractions.


2. Center Hotel Plaza

A favorite among travelers for its prime location and excellent value, Center Hotel Plaza sits on Ingólfstorg Square. It offers easy access to Reykjavik’s Old Harbor, Harpa Concert Hall, and a range of shops and restaurants, making it one of the best hotels in Reykjavik city center for couples. The hotel features comfortable rooms, a cozy lobby bar, and a hearty breakfast buffet. Its location also makes it one of the best hotels near Reykjavik’s attractions.


3. Canopy by Hilton Reykjavik City Centre: Boutique Hotels in Reykjavik

Canopy by Hilton offers a modern, chic stay right in the map of hotels in Reykjavik city center. This stylish hotel offers rooms designed with Icelandic influences.

It has amenities like a fitness center, complimentary breakfast, and a trendy bar. Its proximity to Laugavegur Street, Reykjavik’s main shopping and dining thoroughfare, makes it an ideal choice for tourists looking for boutique hotels in Reykjavik. Guests love being steps away from the city’s best restaurants and attractions, making it one of the best hotels in Reykjavik city center for couples.


4. Reykjavik Konsulat Hotel, Curio Collection by Hilton

This unique boutique hotel in Reykjavik combines historical charm with contemporary luxury in a restored 1900s building. Located centrally, the Reykjavik Konsulat Hotel offers elegantly furnished rooms, a spa, and an Icelandic restaurant. Its central location places guests close to Parliament House, City Hall, and numerous cultural attractions, making it one of the hotels near Reykjavik’s attractions. For those looking to stay in style while being close to all the city has to offer, this is one of the best hotels in Reykjavik city center for couples.

Hint: When touring the Golden Circle in Iceland, find some the best restaurants along the Golden Circle that are worth the stop.


5. Hotel Reykjavik Centrum

Hotel Reykjavik Centrum is on one of Reykjavik’s oldest streets, Adalstraeti, making it not only comfortable but also historically significant. Built over the ruins of a Viking longhouse, it offers well-appointed rooms.

It also has an onsite restaurant, and easy access to popular spots like the Settlement Exhibition and Icelandic Parliament. Furthermore, this hotel is ideal for visitors looking for hotels near Reykjavik’s attractions, as it combines cultural charm with budget-friendly options in the map of hotels in Reykjavik city center.


6. Alda Hotel Reykjavik: Hotels within Walking Distance of Reykjavik Attractions

Situated on Laugavegur, Reykjavik’s main shopping street, Alda Hotel is known for its contemporary design and comfortable atmosphere. The hotel offers stylish rooms, a fitness center, a sauna, and a barber shop.

Alda Hotel is within walking distance of Reykjavik attractions location means guests are just steps away from Reykjavik’s best shops, restaurants, and nightlife, making it one of the best hotels in Reykjavik city center for couples.

Pro Tip: Use this guide to find some of the best boutique hotels in Iceland, especially if you plan to stay outside of Reykjavik.


7. ION City Hotel: Boutique Hotels in Reykjavik

ION City Hotel is a boutique hotel in Reykjavik that offers a unique blend of luxury and sustainability. While it may not be the cheapest option, it’s ideal for those seeking high-end service in hotels near Reykjavik’s attractions. This sleek, modern hotel features Icelandic design elements and high-end amenities, including a fitness center and a renowned restaurant. Located on Laugavegur Street, it provides easy access to Reykjavik’s top attractions and dining spots, making it a great option for those wanting hotels within walking distance of Reykjavik attractions.


8. Apotek Hotel by Keahotels

Housed in a historic pharmacy building, Apotek Hotel merges classic charm with modern comfort, making it one of the top boutique hotels in Reykjavik. The hotel’s chic rooms and suites come with a top-notch restaurant and bar. It’s ideal for those wanting hotels near Reykjavik’s attractions and the character of staying in a place with a historical backstory.

Pro Tip: If you’re looking for free or cheap things to do in Iceland, here is a guide for some of the best budget-friendly attractions.

Conclusion

If this is your first trip to Iceland, I’d stay in central Reykjavik. Being able to walk out of your hotel and find a restaurant, coffee shop, store or major attraction without getting in a car makes a short stay much easier.

For couples looking for a special stay, I’d lean toward one of the city’s boutique or luxury hotels. If location matters more than amenities, choose a hotel close to Laugavegur or the harbor. And if you’re using Reykjavik as the starting point for a longer Iceland road trip, staying downtown for your first night can be a fun way to experience the city before heading out on the road.

Reykjavik may be small, but choosing the right hotel can make a surprisingly big difference in how much you see—and how much time you spend getting there.

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