Hotels in Reykjavik

Hostels are the new hotels in Reykjavik, with more and more opening. Do your homework: they range from the low-cost-for-a-reason to actually-very-pricey.

The best are located along the seafront; be prepared to pay a premium for Mount Esja views. Fitting into the ‘poshtel’ (posh hostel) category, they come with colourful and artfully decorated social spaces and host regular events, with accommodation in dormitories (some women-only) sleeping 8-16 people, plus private single and double rooms.

If you’re willing to sacrifice geographical position in favour of cheap Reykjavik hotel rates, there are similarly cool and vibrant places out near Reykjavik Airport or in the Laugardalur district in the eastern part of the city.

The fringes also allow for more space as well as value. Anything on the south side of Route 49 fits into this category. In the area around domestic Reykjavik Airport, for instance, you’ll find the capital’s only indoor hotel pool plus a spa and a cinema.

The most amazing place skulks still further out. Winner of various sustainable tourism awards, the Ion Luxury Adventure Hotel (Nesjavellir vid Thingvallavatn) is an hour’s drive east of Reykjavik, set amid the Golden Circle. It’s a gleaming, startling vision of glass and steel.

Hotel rates drop by as much as 50% in winter.

Last-minute deals are also common – less so in July and August – so if you dare hold out, you might be rewarded with Reykjavik’s cheapest luxury-hotel rates, or a package with free excursions or transfers.

It’s not always a risk worth taking in Reykjavik, which continues to gain in popularity. Booking well in advance is almost always the best way to bag the best deals.