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Hotels in Iceland
72 Hotels
Atlantic Apartments & Rooms
Grensasvegur 14

It's difficult to get more bare-bones than Atlantic Apartments & Rooms, though for those on a budget, its clean, hostel-like rooms and studio apartments might do the trick at a price lower than what one will generally find in Reykjavik. It's a 14-minute drive from the center of town. Although it's fine for a couple nights' stay, those looking to be closer to the center of the action might want to go for a property in the city center proper, as the units can be on the drab side and for those not intent on self-catering, there aren't as many cafes or restaurants in the area. If being central is more important than bargain rates, the CenterHotel Klopp is a value property that might fit the bill. 

The Capital-Inn
Sudurhlid 35d

The Capital-Inn is a 30-room budget hostel offering shared dorms and private bedrooms, around a 10-minute drive to downtown Reykjavik. The decor is modern and functional, from the communal kitchen to the rooms. The on-site restaurant and bar is a highlight, with its local Icelandic menu, and the kitchen is spacious and well equipped, with large appliances and dining-hall style seating. There’s a lounge with flat-screen TV and pool table, plus handy extras like a laundry area and a pleasant garden with picnic tables. Keep in mind that breakfast isn't included in rates. As an alternative, Bus Hostel Reykjavik is another budget-friendly option, though it adds a free light breakfast and has a more central location. However, rates there will be higher.

22 Hill Hotel
Brautarholt 22-24

The mid-range 22 Hill Hotel is located in the Holt neighborhood, an 10-minute walk to shopping along buzzing Laugavegur. Other city-center sights will take up to 20 minutes to reach on foot. The hotel is fresh and modern, from the lobby to the 50 rooms, which feature TVs with international channels, desks, coffeemakers, and free Wi-Fi. There’s a large restaurant serving a free continental breakfast each morning, and it’s also open for lunches and evening meals for a range of traditional Icelandic fare and international dishes. Prices are fair for the area, but visitors with a bigger budget wanting to be in the heart of downtown might try Kvosin Hotel, which lacks a restaurant, but offers kitchenettes in rooms and a wine bar with happy hour. 

Hotel Odinsve Apartments
Odinstorg Thorsgata 1, Odinstorg

Hotel Odinsve is an upper-middle-range contemporary hotel on the edge of Reykjavik’s city center, within a five-minute walk of restaurants, shopping, and some top attractions. At 50 rooms, it’s an intimate property with modern and sleek decor. The trendy rustic restaurant and bar attract guests and locals, but that’s about the extent of the amenities here, beyond the one meeting room and free Wi-Fi. Rooms offer a good variety of features like minibars, flat-screen TVs, and tea/coffee facilities, though they might be small for some and complaints have been made concerning bothersome noises. Suites and apartments with separate living rooms and kitchens offer more space. For more spacious rooms, travelers should check out the nearby Room with a View Apartments, though there's no on-site restaurant or bar.

Hotel Klettur
Mjoelnisholt 12-14

Although Hotel Klettur is within walking distance of Reykjavik's famous Hallgrimskirkja cathedral, downtown is a bit too far to get to on foot, which is one reason this mid-range property has reasonable rates. Interiors have a minimalist Scandinavian style, and the 86 guest rooms are clean and spare, with perks like LCD TVs, tea/coffee facilities, and free Wi-Fi. Some are small, however, and bathrooms have showers only. Breakfast is free, but it gets mixed reviews. Guests can play pool and foosball in the game room, while drinks are available at a small on-site bar (with limited hours). Travelers might also want to check out the nearby 22 Hill Hotel, which offers comparable rates and has a restaurant.

Hotel Cabin
Borgartun 32

The 249-room Hotel Cabin is a budget hotel that's a five-minute drive from Reykjavik's downtown. It has views of the waterfront from upper floors, but walks to the city center will take 20 to 30 minutes. The utilitarian rooms are geared toward tour groups opting for affordable rates over amenities, and we saw some rooms that still have old tube TVs. A simple buffet restaurant and lounge bar provide the bare necessities, along with a free continental breakfast. For something closer to the city center, travelers might want to consider Hotel Holt, though rates are more expensive.

CenterHotel Thingholt
Thingholtsstraeti 3-5

The 52-room CenterHotel Thingholt is an upscale boutique property around the corner from the city's main shopping street and a short walk to cool cafes, restaurants, and bars. The moody, Nordic-minimalist design is inspired by Iceland's stark natural beauty, and there's seasonal cuisine and whisky flights available at the on-site restaurant and bar. Industrial-chic rooms have large rainfall showers and modern amenities. A buffet breakfast is included in room rates, and there's a stylish spa on-site, though the one-time spa entry fee isn't included in the hotel's somewhat pricey rates. Travelers looking for even more of a splash might also want to check out the Hotel Borg, a shimmery and sober downtown option.

Centerhotel Arnarhvoll
Ingolfsstraeti 1

The 104-room Centerhotel Arnarhvoll is a stylish, modern, mid-range hotel just a three-minute walk from Reykjavik's main shopping street and in walking distance of most of the city's sights. The small rooms and bathrooms are what make this a mid-range spot, but they're tasteful and modern with minibars, flat-screen TVs, and free Wi-Fi. The hotel has a top-floor bar, a lounge, and a restaurant offering up a nice free breakfast buffet and excellent views of the city and sea. There's also a small basement spa, though it costs an extra fee for guests in Standard Rooms. It's worth comparing rates with other mid-range downtown hotels, which can be cheaper --such as the City Center Hotel or the CenterHotel Plaza.

Alda Hotel Reykjavik
Laugavegur 66-68

The 64-room Alda Hotel Reykjavik is an upper-middle-range hotel on the eastern side of the popular Laugavegur shopping street. It's about a 15-minute walk to the heart of downtown and the Nautholsvik Geothermal Beach is 11 minutes by car. Modern Scandinavian-style decor can be found throughout the hotel, from the lobby through to the restaurant/bar and guest rooms. Guest rooms range from Single Rooms to larger sized suites, and all include flat-screen TVs, tea- and coffee-making facilities, and free Wi-Fi. The fun and lively Barber Cafe is open for drinks and all three meals, as well as extensive buffet breakfast each morning, though it's not included in room rates. Additional features include a fitness center and in-room massages upon request. City Center Hotel is a more budget-friendly option with an even more central location for the city's nightlife.

Icelandair Hotel Reykjavik Natura
Nautholsvegur 52

Located next to Reykjavik's domestic airport, the four-pearl Icelandair Hotel Reykjavik Natura is a contemporary property convenient for business travelers and visitors in transit. Its 220 rooms, with airport and city views, range from tight-fitting spaces to rambling suites that once hosted chess grand master Bobby Fischer. There is a cozy lobby with a fireplace, a bar and restaurant with a wood-burning pizza oven, and wellness facilities that include a spa and an indoor saltwater pool. Free Wi-Fi and bus passes are part of the perks here, as is a stylish on-site movie theater. But the hotel is removed from the downtown area; for lodging closer to the city center, travelers could try the Radisson Blu Saga Hotel, though rates are pricier.