Reykjavik is a city always on the rise, combining a unique, laid-back vibe with a love of partying and a very sharp sense of style – which shines through in its trendy, design-forward hotels. From my time spent exploring, and from quirky boutiques to Insta-worthy stays, these are the spots in town that completely wowed me…
1. Eyja Guldsmeden Hotel
This romantic 4-star boutique gem — part of the Guldsmeden eco-hotel chain — completely charmed me. The décor mixed Nordic minimalism with Balinese-inspired warmth, creating a space that felt elegant, cozy, and very ‘hygge.’
With reclaimed wood, retro-modern furniture, and eco-friendly touches, it felt like a warm, stylish retreat. My standard double room was compact but cleverly designed, with a four-poster bed, wooden floors, the hotel’s own organic toiletries, and stunning views of Esja mountain — my favorite feature.
I loved the on-site restaurant serving local organic dishes (with great veggie and vegan options), the welcoming bar, modern gym, and bike rentals perfect for exploring. Its location was another highlight — just a block from buzzing Laugavegur Street, where I browsed indie boutiques, cozy cafés, and art galleries.
- To book, check prices or availability for Eyja Guldsmeden Hotel
My favorite highlights…
- I especially loved curling up with a comforting Hibiscus & Rosehip Tea in the plant-filled lobby after a breezy cycle around the nearby harbor – it was the perfect way to unwind!
Address: Brautarholt 10, 105 Reykjavík, Iceland
2. The EDITION
I was really won over by this sleek, modern 5-star design hotel with its inviting, Nordic-inspired style. Clean lines, warm wood, muted tones, and floor-to-ceiling windows framing stunning coastal and mountain views made it feel both stylish and cozy.
My standard King room had retro-modern furniture, hardwood floors, and harbour views through expansive windows. The hotel felt like a destination — Tides restaurant, led by Iceland’s first Michelin-star chef Gunnar Karl Gíslason, served superb modern Icelandic cuisine, and the spa offered Nordic-inspired treatments and a state-of-the-art gym.
I sipped cocktails at the rooftop bar with its sweeping views, relaxed at TÖLT and the lobby bar, and grabbed coffee and fresh pastries at Tides Café. Its downtown location near the old harbour, Laugavegur Street, and Harpa Concert Hall made exploring Reykjavík effortless.
- To book, check prices or availability for Edition Hotel
My personal highlights…
- I loved unwinding in true Icelandic style in their mineral-rich geothermal plunge pool – it felt invigorating and very relaxing at the same time!
Address: Austurbakki 2, 101 Reykjavík
3. CenterHotel Thingholt
Staying at this chic and creative hotel was a great choice — it had a cozy, cocoon-like vibe with dark tones, natural materials, and local art that created a striking boutique haven with black-and-white rugs and reclaimed wood furnishings. My Deluxe Double room had a huge, comfy bed, monochrome design, retro-modern furniture, a large window, and curated art prints.
I relaxed in the modern spa with its sauna, hot tub, and steam room, sipped drinks in the stylish bar and lounge, used the fitness center, and enjoyed the complimentary Icelandic breakfast buffet. The location was perfect — right in the city center, within walking distance of lively bars, nightclubs, and excellent restaurants.
- To book, check prices or availability for Centerhotel Thingholt
My highlights…
- I loved how helpful the staff were with guests trying to spot the Northern Lights, I was offered a wake-up call when the lights were visible outside and they sounded a bell in there too!
Address: Þingholtsstræti 5, 101 Reykjavík, Iceland
4. Hotel Von
I thought this was a chic new boutique hotel with a laid-back yet stylish vibe. Its Scandinavian-inspired design featured warm earthy tones, custom-made furniture, parquet floors, and modern art — similar in style to its sister hotel, Eyja Guldsmeden, just around the corner.
My standard double room had soft-toned décor, a wooden four-poster bed, Varmi organic toiletries, a rainfall shower, and a beautiful granite stone sink — my favorite detail.
I enjoyed the cozy lounge, inviting bar, excellent French-inspired restaurant, and the daily breakfast buffet made with locally sourced ingredients. Its central location on Laugavegur Street put me in the heart of the city, with the Sun Voyager and Hallgrímskirkja Church just steps away.
- To book, check prices or availability for Hotel Von Hotel
My highlights…
- Dining in their romantic onsite Bon Restaurant – I thought the chunky Truffle Fries and their sweet (but not too sweet!) Apple Tarte Tatin dessert were just divine!
5. Grandi by Center Hotels
I thought this was a gorgeous and eclectic spot with an upbeat urban vibe. Its modern industrial-chic design mixed playful Icelandic and retro accents with bold colors, sleek lines, exposed concrete, and local artwork.
My standard double room was spacious with warm wood, colorful retro-modern furniture, a large double bed with crisp white linens, and a private bathroom with a soaking bath. I really liked the modern spa with communal hot tubs, sauna, and cozy nooks, plus the welcoming bar and lounge, stylish restaurant serving Icelandic-inspired dishes, and a coffee shop with fresh pastries — all designed to feel vibrant yet comfortable.
Its location in the Grandi Harbor District was another highlight, with scenic waterfront views and easy walking access to trendy restaurants, local galleries, and shops.
- To book, check prices or availability for Grandi by Center Hotel
My favourite highlights…
- Going for a relaxing anti-aging facial in their atmospheric onsite spa which was adorned with cozy fireplaces – I loved the innovative peel-off biphasic mask (which left my skin feeling very soft!) which was part of the treatment.
6. Center Hotels Laugavegur
I discovered this stylish retro-modern retreat with a sophisticated yet welcoming vibe. Its Scandinavian-inspired design featured clean lines, soft lighting, cozy fireplaces, earthy tones, and striking photography.
My deluxe corner room had a monochrome design, floor-to-ceiling windows with a private balcony, a retro swing chair I loved, and a modern bathroom with eco-friendly toiletries. I enjoyed cocktails in the cozy lounge bar, dined at Lóa Restaurant with its Icelandic and international menu, grabbed bites from the Street Food Station, and started each day with a locally sourced Icelandic buffet breakfast.
The location was ideal — right on the main shopping and dining street, near lively cafés, boutiques, nightlife, and within walking distance of Harpa Concert Hall and Hallgrímskirkja Church.
- To book, check prices or availability of Center Hotels Laugavegur
My personal highlights…
- I loved how helpful the staff were! One morning, I had to leave early for a tour, and they thoughtfully packed a breakfast for me to take on the go – it was such a nice, personal touch!
Address: 95-99 Laugavegur 95 – 99, 101 Reykjavík
7. Reykjavik Marina Hotel
I really liked this quirky hotel with its laid-back, contemporary vibe and playful nautical design that perfectly matched its harbor-side setting. Industrial-chic elements, vibrant colors, modern art, and ship-inspired details like ropes and boat furniture created a fun, stylish atmosphere I loved.
My funky room had a comfy double bed, playful prints, retro furniture, hardwood floors, and a balcony with beautiful harbour views. The café, bar, and restaurant were lively hubs with cozy seating, quirky décor, and roaring fires overlooking the sea and mountains.
Its Old Harbor location gave me stunning waterfront views and easy walking access to attractions, cafés, and cultural spots.
- To book, check prices or availability of Icelandair Hotel Marina
My highlights…
- I loved how my shower was naturally heated by natural geothermal energy! The water felt smooth, almost velvety with a faint mineral scent which reminded me of natural hot springs!
Address: Myrargata 2, Vesturbær, 101 Reykjavík
8. Oddsson Hotel
As well as being trendy, this was a fun and playful mid-range spot with a youthful, creative vibe and colorful retro-modern design. From the bronze palm trees in the lobby to the retro table football game and chess board, everything felt a little unexpected — in the best way.
My superior double room had a funky retro design, wooden parquet floors, city views, soundproofing for a blissfully peaceful sleep, and a modern bathroom with a glass-encased rain shower. There was no onsite restaurant, but I enjoyed the warm buffet breakfast each morning, and bike tours were available.
The location was excellent — near the city’s waterfront and within easy reach of lively bars, restaurants, and cultural attractions, making it a perfect base for exploring Reykjavík and beyond.
- To book, check prices or availability for Oddsson Hotel
My personal highlights…
- I absolutely loved the “Make Your Own Waffle” station at breakfast! The fluffy Belgian-style waffles were perfect for piling on all kinds of tasty toppings. My favourites were the homemade lingonberry jam and the Icelandic caramel syrup – both are local specialties and added an amazing flavour twist!
Address: Grensásvegur 16a, 108 Reykjavík
9. 101 Hotel
Once awarded Leading Boutique Hotel in the World, this chic stay had an upscale, artful vibe with minimalist Scandinavian design, monochrome tones, polished leather seating, oversized windows, Icelandic artwork, and cozy natural rugs.
My hypoallergenic room featured blanched-oak floors, a silver-clawed freestanding bath, plush robes, Aveda toiletries, BOSE speakers, soundproofing, underfloor heating, and a patio with sea views.
I explored the on-site art gallery, relaxed in the spa with hot tub, sauna, and steam room, sipped cocktails in the cozy bar, and dined at the trendy restaurant (buffet breakfast was available for an extra fee). Its downtown location put me steps from Reykjavík’s lively bars, nightclubs, restaurants, and galleries.
- To book, check prices or availability for 101 Hotel
My personal highlights…
- Brunching on local specialties at their stylish Kastrup restaurant was a treat! I finally got to try pickled herrings – with a twist. They were curried here, which added an unexpected and delicious kick to the classic dish!
Address: Hverfisgata 10, 101 Reykjavík
10. Exeter Hotel by Keahotels
I thought this medium-sized hotel was both cozy and modern, with an industrial-chic design featuring exposed concrete, reclaimed wood, factory-style windows, and soft textiles.
My Urban Double room had dark hardwood floors, retro-modern furniture, courtyard views, a plush bathrobe, modern art, and a smart TV. I enjoyed the restaurant’s Icelandic-inspired dishes, the cozy bar with local beer and cocktails, the bakery’s fresh pastries and coffee, plus bike rentals, a sauna, and a modern gym — everything I needed for a comfortable stay.
Its Grandi Harbor District location was ideal — steps from the Old Harbor and within walking distance of Harpa Concert Hall, the Sun Voyager, and downtown’s buzzing shops and dining.
- To book, check prices or availability of Exeter Hotel by Keahotels
My highlights…
- The divine house-made sourdough bread from their adorable onsite bakery which was freshly baked to perfection! It was served warm with a sprinkle of sea salt, fresh herbs, and a side of tangy pickled vegetables – a treat I kept going back for!
Address: Tryggvagata 12, 101 Reykjavík
11. Tower Suites
My hypoallergenic suite had floor-to-ceiling windows with breathtaking mountain and sea views, a large bathtub, walk-in wardrobes, and thoughtful extras like an honesty mini-bar, iPad, Nespresso machine, Apple TV, and soundproofing. Breakfast was delivered to my suite each morning — a luxurious start to the day.
Its business district location offered fantastic ocean views and easy access to excellent dining, shopping, and cultural attractions.
- To book, check prices or availability for Tower Suites
My personal highlights…
- The thoughtful touches – I loved how I was greeted with a glass of champagne at reception and then taken to my suite by the friendly staff. I also really appreciated the long, extending telescope and how my bathtub faced the windows so I could gaze at the gorgeous views – it made it an extra-special experience!
Address: Katrínartún 2, 105 Reykjavík
12. Canopy by Hilton City Centre
I thought this was a funky little gem with a sociable, lifestyle-hotel vibe. The design wowed me — a mix of Scandi-chic and retro flair with warm wood accents, local artwork, and playful splashes of color that felt both stylish and welcoming.
My room had plush bedding, hardwood floors, Nordic furniture, an industrial-chic bathroom with matching bathrobes, floor-to-ceiling windows, and a coffee machine.
Each morning I enjoyed a delicious Icelandic artisanal breakfast buffet, and in the evenings the restaurant served creative seasonal dishes with cold-climate wines and handcrafted cocktails. The bike rentals and modern gym made it easy to stay active and explore. Its central location put me close to top attractions, dining, and Reykjavík’s buzzy nightlife.
- To book, check prices or availability for Canopy by Hilton City Centre
Address: Smidjustigur 4, 101 Reykjavík
My personal highlights…
- Feeling like a local in the stylish bar while sipping on very strong Icelandic Mule (which the barman told me was made with brennivín – Icelandic vodka!) and eating freshly baked rye bread garnished with sea salt!
13. Kvosin Downtown Hotel
Tradition met culture in this gorgeous boutique, which felt stylish yet homely with Nordic-inspired design, warm wood accents, soft lighting, and retro patterns.
My ‘Big Room’ had parquet floors, an oversized double bed, retro-modern furniture, an industrial-chic bathroom, and a handy kitchenette with fridge, cooking hobs, and Nespresso machine — perfect for a flexible stay.
I loved the cool industrial-chic wine bar with its ambient lighting and the tasty continental breakfast made with local ingredients (though not included in the room rate). Its historic centre location was another highlight — close to Parliament, Harpa Concert Hall, and excellent dining and shopping.
- To book, check prices or availability for Kvosin Downtown Hotel
My favourite highlights…
- Their award-winning concierge team – as well as being incredibly welcoming they also helped me book discounted tours to the Blue Lagoon and Golden Circle and gave me local restaurant recommendations (one was for Apotek Restaurant which turned out to bc an awesome suggestion)!
14. OK Hotel
In my opinion, the OK Hotel was far more than just OK! This quirky, budget-friendly stay offered eco-friendly self-catering apartments with eclectic design — vintage furniture, vibrant colors, exposed brick, urban art, and antique finds that gave it loads of character.
My mini-apartment was a feast for the eyes with recycled materials, local art, and old newspapers covering the walls. It also had a mini-kitchen, flat-screen TV, and Bluetooth speakers.
The location was fantastic — right on Laugavegur, Reykjavík’s main social hub — with great extras like Korean dishes at K-bar, BBQ facilities, bike rentals, and a helpful concierge who arranged tours.
- To book, check prices or availability of OK Hotel
My favorite highlights…
- I loved the playful attention to detail this place had – I even found an old acoustic guitar tucked away in the corner of my apartment!
15. Kex Hostel
This place is a much-loved city institution with a vibe somewhere between a hostel and a budget boutique hotel — buzzy, fun, and super sociable with bold, eye-catching design. I loved the boho-retro world of vintage finds, exposed concrete, second-hand books, and reclaimed wood.
My compact room had a shared bathroom but plenty of hipster-friendly charm, with vintage décor, quirky wall art, retro furniture, and even board games and puzzles — a personal touch I happily made use of.
I discovered a heated outdoor patio, a vintage-style barbershop, an old-school gym, and a cozy café serving home-baked biscuits. With a communal kitchen and regular music, comedy, karaoke, and open-mic nights, it was hard to leave!
- To book, check prices or availability for Kex Hostel
My personal highlights…
Some great tips, and fantastic photographs by the way. Hotel Borg is my favorite hotel in Reykjavik, and by many considered maybe the best hotel in Reykjavik.
If you wan’t a truly exceptional hotel I can recommend The Retreat at Blue Lagoon Iceland. Ridiculous pricing to be honest, but one of the most unique hotel experiences there is to be had in my opinion.
Iceland amazing where a lot of interesting things. I always desire to be watching the Northern Lights. I will go to iceland soon
Those are some amazing hotels and I can’t believe that I’d never been to Reykjavik. Its time for me to do some serious planning. 🙂
Looks really cool, I hope I can visit the place someday..
Hotel Glymur sounds like a place I would really enjoy visiting. I think I would pick the nature themed cabin. I love feeling like I’m out in nature.
This is somewhere that I’ve always wanted to go, looks like they have some very cool hotels there too.
Admittedly, I’ve never actually heard of Reykjavik before. But now you’ve got me intrigued! I’ll be saving this list of hotels for hopefully a future visit 🙂
Thanks Kurt glad to be of help!
Yes me too, amazed to know about these hotels unknown to me, before this these places are not in my mind but now one visit to them is must. thanks alot for this wonderful and informative post…. and yes Merry Christmas to all 🙂
Thanks for your comment. Merry Christmas to you too!
To me, 101 Hotel looks awesome. How much is single room per night? (if I might ask).
Hi Agness 101 hotel is around £153 a night, we’ll add allthe prices up very soon 🙂
Hi Becky,
Wow this are all amazing properties.
According to your experience what is the perfect budget to be in Iceland for 2 weeks?
Whats their typical food?
Thanks for sharing! 🙂
Hi Paulina,
Thanks for your comment. Your budget really depends on how much you want to eat out and if you want to go on excursions. It can be very expensive here but we budgeted around £350 for 5 nights. We’re sticking to it but we’re only eating out once a day and travelling everywhere in a hire car.
The food is varied here you can either stick to trational Icelamdic food which is a lot of fish and meat or in the capital they have plenty of other restaurants to choose from.