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Hotels in Iceland
72 Hotels
Luna Hotel Apartments
Spítalastígur 1, 101 Reykjavík, Iceland

Couples and families looking for a reasonably priced option in a very expensive city flock to Luna Hotel Apartments. Luna’s 19 stylishly decorated and well-stocked apartments are in three buildings with a few blocks between them. All have fantastic locations on quiet residential streets within walking distance of sights and the restaurants, cafes, and shopping of bustling Laugavegur Street. There’s no lobby or on-site staff at this mid-range option, though, and guests are left to their own devices for food, but the low rates -- not to mention the ability to save even more by preparing meals -- and the stellar locations make Luna a popular choice. Travelers who prefer to have staff on-site should consider Reykjavik4you, a similar configuration of apartments at a somewhat higher price.

ION Adventure Hotel
Nesjavollum vid Thingvallavatn

ION Luxury Adventure Hotel's concrete and glass facade rises from the Icelandic landscape like a set piece in a science fiction fantasy. Geothermal power and sustainable building materials are as pretty as they are practical at this four-pearl property, where 45 rooms are chic and include organic amenities, modern technology, and frequently gorgeous views. The restaurant serves New Nordic cuisine and the lovely bar offers seasonal glimpses of the Northern Lights -- there's also a spa with a gorgeous outdoor hot tub. The location might not suit all, but design nerds, romantic couples, and thrill seekers looking for excursions can fulfill a dream or two. Northern Light seekers might also want to consider the Frost and Fire Hotel.

Hotel Grimsborgir
Asborgir 30

Hotel Grimsborgir is an upscale, 64-room hotel in a secluded location that’s great for viewing the Northern Lights. The location means there is little to do around the hotel, beyond taking personal day trips by car or with the hotel’s sightseeing tour bus (for a fee). Rooms are sophisticated, with flat-screen TVs and minibars, while apartments have two to four bedrooms, lounge areas, and full kitchen -- some also have private hot tubs. Features include an expensive restaurant and bar, communal hot tubs, massages upon request, and free breakfast -- but no full spa. Those looking for an on-site spa should consider the Ion Luxury Adventure Hotel.

Reykjavik Residence Hotel
Hverfisgata 45

The mid-range Reykjavik Residence Hotel provides relaxed apartment-style living near Reykjavik's downtown attractions. Its contemporary Studios and One- to Three-Bedroom Apartments with kitchenettes cater to couples and families who want a bit of independence. Modern appliances are included and fridges are stocked with some free refreshments. Ground floor units can be noisy with the area's foot traffic, and the property lacks on-site facilities like a restaurant or fitness center, but the homey atmosphere and attention to detail are hard to top for apartment-style digs in the center of town. Travelers looking for a traditional hotel should consider CenterHotel Thingholt, which has industrial-chic style at lower rates.

CenterHotel Skjaldbreid
Laugavegur 16

The 33-room CenterHotel Skjaldbried is a two-and-a-half-pearl property located on the city’s main shopping street and a short walk from lots of hip cafes and bars. Decor is sober throughout, with just a touch of color here and there. Rooms vary in size – some are small and some are more spacious – and all have flat-screen TVs, minibars, and free Wi-Fi. The restaurant only serves a free continental breakfast, but there’s lots of dining options nearby. There’s a cozy lounge area with a single computer terminal for guest use. Keep in mind that the central location does translate into some intense weekend noise. Guests looking to splash out may try Hotel Borg, which has a sauna, spa and fitness center, but no free breakfast. 

Center Hotel Plaza
Adalstraeti 4

The 200-room mid-range CenterHotel Plaza is situated directly on the town square in the heart of Reykjavik in walking distance to restaurants, bars, and sights. The hotel is spread over three different (but adjoining) buildings, and room quality varies from small and dated to more spacious and modern. Common areas are sleek and modern and include plenty of lounge areas plus a bar with a daily happy hour. There's a decent free breakfast buffet, but the hotel lacks a proper restaurant. For a smaller spot with more consistent rooms, travelers may want to try the City Center Hotel across the square. 

Reykjavik Lights by Keahotels
Sudurlandsbraut 12

The 105-room Reykjavik Lights hotel is a mid-range property that offers modern and minimalistic decor with Icelandic-themed accents at a value price. Located a five- to 10-minute drive from Reykjavik's city center, this fresh property was built in 2012. Rooms are simple and compact but chic with light wood floors, colorful accent walls, Scandinavian furniture, and nice amenities including electric kettles, flat-screen TVs, and free Wi-Fi. The hotel has a stylish lobby lounge and small bar, and serves a free continental breakfast. The hotel has no fitness center or on-site restaurant, but is a good price for the quality -- as long as guests are willing to drive or take a long walk to the city center. Travelers that don't mind stay outside of the city center could also compare rates with the nearby Hotel Island. 

Apotek Hotel by Keahotels
Austurstraeti 16

The Apotek Hotel is an upscale, historic boutique property in the center of Reykjavik. Its 45 elegant, understated rooms have high ceilings, sitting areas, parquet floors, and city views that overlook Austurvollur Square, but they lack storage space. White-tile bathrooms are large, and some include wet room-style showers. The design-centric restaurant bar on the ground floor showcases a backlit wall of pharmacy shelves, hinting at the building's past as an apothecary in 1917. The Apotek has neither a gym nor spa, but guests who book online can use the fitness center and spa at the club next door. Travelers might want to also check out the Alda Hotel, a similar property in the city center, which has a fitness center and chocolate shop on-site.

Kvosin Downtown Hotel
Kirkjutorg 4

The mid-range Kvosin Downtown Hotel sits next to Iceland's Parliament, a short walk from some of Reykjavik's best shopping and dining. It's a boutique apartment hotel, ideal for tourists who value style over facilities, and families who will make use of the generous square footage in each of the 24 units. Even the smallest rooms have kitchenettes, with decor befitting a modern Scandinavian apartment. Free breakfast is offered at a cafe around the corner and the hotel has its own sharp wine bar, but few other amenities. The nearby Hotel Borg lacks an included breakfast, but has style to match the Kvosin plus a fitness center and spa at similar rates.