Reykjavik hotels: how to choose
A Reykjavik hotel decision is mostly location vs. value, plus setting expectations: rooms are small, prices are high, and the best-value places downtown sell out early for summer. Here’s how to read the options.
What hotels are like, by area
101 downtown
Boutique and design hotels within walking distance of everything; small rooms.
Nightly feel: High, and highest in June–August.
Old Harbour / Grandi
A few larger and design hotels near Harpa and the boats.
Nightly feel: High; slightly calmer than the main drag.
East 101 (Hlemmur area)
Solid mid-range hotels a short walk from the centre — the value sweet spot.
Nightly feel: Mid-to-high.
Near the airport road (departure night)
Airport-area hotels for a very early flight; not for sightseeing.
Nightly feel: Mid; convenience-only.
What surprises first-time hotel bookers
- Rooms run small and prices are high by European standards — filter for size if it matters.
- You do not need air-conditioning; you WILL want good blackout curtains for the near-24h summer daylight.
- Hot tap water carries a faint sulfur smell — that’s the geothermal supply, completely normal and safe.
- Breakfast is often included and genuinely worth taking given how expensive cafés are.
- Book far ahead for June–August — the best-value downtown rooms go first.
When to book
For summer (June–Aug) book 3–5 months ahead; downtown value rooms sell out first. Shoulder season (Feb–Mar, Sep–Oct) is easier and cheaper and still gets you the Northern Lights window. Prefer free-cancellation rates so you can re-book if prices drop closer to the date.
Check live prices & availability
See current rates for Reykjavik hotels on Expedia.
Check Reykjavik hotel availability on Expedia →Some booking links are affiliate links — if you book through them we may earn a small commission, at no extra cost to you. It never changes which options we recommend.
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