Best Hotels in Iceland

From its volcanic landscape to numerous azure-blue lagoons, Iceland is a country full of jaw-dropping sights and otherworldly features. Not only does it offer up some of the world’s most awe-inspiring natural wonders, but its capital city, Reykjavik, is a cosmopolitan hot-spot, with incredible dining and brilliant nightlife. As part of your Icelandic holiday, you get two excursions included: a Northern Lights trip and a day-long Golden Circle tour. To help ensure your trip is as magical as possible, here are some of our favourite hotels.

Reykjavik Lights

Base yourself at the Reykjavik Lights and you’ll get a quirky taste of Iceland’s culture. This attractive hotel is based on the edge of Reykjavik, meaning the city centre is just a half-hour walk away. There’s also a bus that stops right outside the hotel, to take you straight in. The modern rooms are themed, each celebrating Iceland’s varying source of light and you’ll see gorgeous local artwork depicting events like the Northern Lights and the Midnight Sun.

Klettur Hotel

Get to truly understand Iceland’s mythical past at the Klettur Hotel. On the first floor you’ll find a rock bursting through the wall, as it couldn’t be disturbed when the hotel was built. Legend has it, it’s home to elves! Hotel Klettur’s prime location means you’re close to the Hlemmur food court, the Laugavegur shopping area and gorgeous harbour. There’s also an in-house bar and it’s a short walk to the bars and restaurants in Reykjavik city centre.

Fosshotel Baron

Guests at the Fosshotel Baron get to take in some of Reykjavik’s most glorious sights. As you step outside of the hotel, you’ll be greeted by the majestic sea and the snow-capped mountains in the distance. Located in the centre of the city, you’re close to vibrant bars and restaurants and the Fosshotel Baron is also incredibly close to the picturesque harbour, so you can explore Reykjavik in all its glory.

Skuggi Hotel

For comfortable, spacious rooms and a great location, stay at the Skuggi Hotel. You’ll be close to all of Reykjavik’s most popular areas, making it easy to see everything on your to-do list. Located by one of the city’s oldest streets, you can soak up Reykjavik’s history and culture and you’re only a short walk from the main shopping district, as well as its bars, restaurants and nightlife. The big, modern rooms are welcoming and the hotel’s décor is smart and contemporary.

Icelandair Hotel Reykjavik Marina

For an unforgettable trip, stay at the Icelandair Hotel Reykjavik Marina. Once a paint factory, this modern, quirky hotel has a theme of maritime décor running throughout the whole building. You’ll also find excellent examples of Icelandic paraphernalia, such as sailor-knot display cabinets and vintage prints of the docks. The hotel’s fantastic harbour position means you’re close to Reykjavik’s nicest bars and restaurants. Inside the hotel, you’ll find a popular cocktail bar and even a climbing wall in the gym.

Grand Hotel Reykjavik

The Grand Hotel Reykjavik is ideally located for trips into the city centre as well as to Laugardalur Park, which is home to geothermal pools, botanical gardens and a zoo. The smart, modern hotel offers views across to Mount Esja and its atmospheric lighting and glass-roofed atrium create a serene, relaxing vibe. If you don’t fancy nipping into the city centre – which you can get to via the free shuttle bus – you’ll find a bar and cafe in the hotel.

Storm Hotel

If you want a super stylish hotel in a great central location, look no further than the Storm Hotel. Inside, there’s a clean, classy Nordic theme running throughout, with wooden floors and bright white walls. Outside, you’re just five minutes from Reykjavik’s main shopping and nightlife area – Laugavegur Street. The hotel puts on a grand buffet for breakfast, so make sure to pop in for a bite before spending your day exploring the city.

22 Hill Hotel

This fresh, modern hotel is just ten minutes away from Reykjavik’s central street, putting you in the best location for getting around the city. The 22 Hill Hotel has comfy furniture and cosy bed linens, and some rooms on the higher floors have gorgeous views over the sea and the snow-capped mountains. You can get to the famous Laugavegur Street in no time at all, where you can wander in and out of all the restaurants, themed bars and quirky boutiques.

CenterHotel Arnarhvoll

There’s no better place to enjoy an evening drink than the CenterHotel Arnarhvoll, as its rooftop bar overlooks one of Reykjavik’s most iconic buildings, the space-age Harpa Concert Hall. Set on the harbour, you’re in a prime position to enjoy everything the city has on offer, from its shops and restaurants to bars and clubs. The hotel itself runs with a contemporary Scandinavian theme, so think minimalism, monochrome colours and bright feature walls.

CenterHotel Midgardur

Stay at the heart of Reykjavik, in the CenterHotel Midgardur. It’s located on the main road running through the city, giving you incredible access to the vibrant bars, cafes and restaurants. From eateries to nightlife, you’re in the best place to experience it all. This new hotel features an exquisite design ethos, with laidback rooms, warm timber furniture and fresh colours. The CenterHotel Midgardur is small yet elegant, giving it an intimate and welcoming atmosphere. The hotel’s bar offers brilliant cocktails too, so be sure to spend a little time there, in the evenings.