Travellers in search of a touch of luxury, should consider one of the Reykjavik’s upscale hotels, such as Ion City Hotel, which features modern Scandinavian decor and suites that offer private saunas and balconies with city and bay views.

Guests staying at Radisson Blu Hotel Saga will enjoy the hotel’s 8th floor restaurant, Grillid, which serves up Icelandic and European cuisine and offers one of the best panoramic views of the city.

One of Iceland’s top-rated luxury hotels is Ion Adventure Hotel, located in Selfoss, just under an hour’s drive east of Reykjavik. A stay at this eco-friendly hotel offers unparalleled views of Iceland’s magnificent lava fields and a chance to get a glimpse of the Northern Lights

For many travellers visiting Reykjavik, a dip in the steamy turquoise waters of the Blue Lagoon is the most memorable part of the trip. The Northern Light Inn in Grindavik is conveniently located near the Blue Lagoon.

Downtown Reykjavik is home to myriad cultural and historical sights, as well as a rich restaurant and nightlife scene. This region features a selection of upscale hotels for higher budgets, such as Hlemmur Square and the 41 A Townhouse Hotel.

Guests searching for a budget hotel in Reykjavik can try the Blue House B&B, situated on the Seltjarnarnes peninsula, which offers scenic walking paths along the shoreline.

With family rooms and triple rooms, the Hotel Odinsve is ideal for families visiting Reykjavik, as is Icelandair Hotel Reykjavik Marina, situated adjacent to the port, near the Saga Museum.

FAQs when booking a hotel in Reykjavik

KAYAK users have found double rooms in Reykjavik for as cheap as AED 59 in the last 3 days. The average price is AED 632.

In the last 72 hours, users have found Reykjavik hotels for tonight for as low as AED 82. Users have also found 3-star hotels from AED 97 and 4-star hotels from AED 458.

Search here to find similar prices.

In the last 72 hours, users have found Reykjavik hotels for this weekend for as low as AED 59 per night. Users have also found 3-star hotels from AED 90 and 4-star hotels from AED 343.

Search here to find similar prices.

Hotels in Miðborg, Vesturbær and Hlíðar have the most searches on KAYAK. For more information about Reykjavik's different neighborhoods, check out our Reykjavik's City Guide.

Take a look at our extensive hotel Heatmaps to find the best hotels near you.

Reykjavik is a small city with an electric nightlife and restaurant scene. Book a hotel on the city’s main street, Laugavegur, such as the upscale Sandhotel or more affordable Loft Hostel to be in the center of the action.

In addition to restaurants and bars, Laugavegur is home to Iceland’s best fashion and design shops, as well as a good selection of hotels. Just east of the city centre, Kringlan Mall, boasts over 150 shops and restaurants, as well as a multi-screen cinema. The City Park Hotel and Hilton Reykjavik Nordica are good options nearby.

Situated on Laugavegur shopping street, Alda Hotel Reykjavik features big picture windows and a rooftop terrace offering excellent views of the surroundings. Meanwhile, Centerhotel Arnarhvoll, which is located on the water’s edge give guests great views across the bay to the mountainous landscape beyond.

Start the day off on the right foot and full of energy for a day of sightseeing by choosing a hotel that lays on a good morning spread. There are many top hotels in Reykjavik that feature a delicious breakfast, such as the Hilton Reykjavik Nordica and the Fosshotel Reykjavik.

Reykjavik is the perfect place to unwind with a spa holiday and the city and surrounding regions are home to an array of hotels with spas that offer sublime services. Hilton Reykjavik Hotel features an award winning spa with a variety of massage and facial treatments, two hot tubs, a relaxation pool, and steam rooms.