Iceland Travel: Best Places to Stay in Reykjavik

Where to Stay in Reykjavik

It's time for another accommodation round-up of real travellers' reviews of hotels, hostels, B&Bs and more, and this time it's all about the best places to stay in Reykjavik. If you've read this fantastic itinerary for spending a day in Reykjavik, but actually you are going to have more time in the city so if you now want to know where to stay in Reykjavik, especially in the centre of Reykjavik so you can walk everywhere, this is the post for you.

The Best Places to Stay in Reykjavik - Reviewed!

Below you'll find a list of honest reviews of various types of Reykjavik accommodation to suit all budgets.

All of the places to stay in Reykjavik listed here are centrally-located so you can walk to and from everything you want to see (because Reykjavik is a very small city), and indeed it's arguably the best place to go for shopping and to get your Icelandic souvenirs.

That said, there is one accommodation listing which is about an hour away, BUT I had to include it because it's such a special place to think about staying, especially if you want to see the Northern Lights. But more about that later (it's the last accommodation review on this list if you want to scroll down and start there! I know, I'm a bit of a tease!).

The reviews below for where to stay in Reykjavik have been submitted by other travel bloggers so you can consider them near-enough experts on recommending great value for money places to stay in Reykjavik. They are different types of travellers too - from budget travellers through to those who (like me!) like a little luxury, they're solo travellers, couple travellers and some who travel with kids too - so I hope you will definitely find some of the best Reykjavik hotels, hostels, Airbnbs and more in this list.

DISCLOSURE:This post contains affiliate links. I make a small commission off any purchases made but they don't cost you anything extra, and often I do a lot of research to find you the best possible deal in the link - yay!

The Best Hotels in Reykjavik

Here's the deal with the best hotels in Reykjavik; there aren't that many big hotels in the centre of Reykjavik but there are lots of smaller hotels scattered around the city, and most are still easy walking or rolling distance from the key sights you may want to see. Some of these hotels are more like guesthouses or B&Bs too so that's why you'll see a few of them on this list of the best hotels in Reykjavik.

It's also another reason why I think these honest reviews are so important so you can really get a sense of what to expect from these hotels that are independent and a bit unknown, especially if you're used to staying only in some of the big hotel chains because they are known quantities. That said, there are still some familiar big hotel brands on this list!

Hlemmur Square Hotel by Mostly Amélie

Hlemmur Square is centrally located in the building that used to be Reykjavik's Natural History Museum, on Langavegur street, right by the Hlemmur Square bus terminal.

The beautiful Art Deco building is in a perfect location for exploring most of the city by foot, just a few blocks from the waterfront, yet far enough from the noisy nearby night-life area that goes on until the wee hours of the night at the weekend.

Hlemmur Square is both a fancy hotel and an upscale hostel under one roof. The 18 spacious and elegant hotel rooms are located on the fifth floor, whilst the dorms are on the third and fourth floor with shared bathrooms and kitchens. While I was staying in Reykjavik having somewhere to cook can be a great way to save money or to make something to suit your food preferences, although I did find out that you can enjoy vegan food in Reykjavik!

The ground floor features a vast lobby with several common relaxing areas and lounges, a cocktail bar and a cute restaurant. Perfect for flashpackers!

Find out the best prices for Hlemmur Square on HostelWorld or Booking.

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Radisson Blu Saga by Freedom Not Fate

The Radisson Blu Saga Hotel in Reykjavik is a unique place to stay. This hotel was built in the 1960’s by Icelandic farmers. It’s still owned by the Icelandic Farmer cooperation and each year they have a conference in the hotel.

Located just out of the city center, next to the campus, you can easily walk to Reykjavik Tourism Information (800m), the National Museum of Iceland (300m) and the BSI Terminal bus station is only a 10-minute walk. Rooms at this 4-star hotel start at $150 a night for a standard double or twin. Rooms are spacious and those on higher floors offer a lovely view over Reykjavik.

The beds are very comfortable and after camping for a week during our Iceland winter road trip, having a bathroom with a bath was an absolute delight. The breakfast buffet is extensive and has many options to choose from. There is a bar (Vesturbær), an indoor swimming pool, a spa and wellness center as well as a fitness center.

In the interests of full transparency, it's true that during our stay at the Radisson Blu Saga Hotel we did have some issues with the Wi-Fi, perhaps it was due to the location of our room. The staff was very accommodating and helped us reset the router, which solved the problem. Altogether I loved our stay here and would gladly stay again when in Iceland.

Find more reviews and the best deals on Booking or TripAdvisor.

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The Canopy by Hilton Reykjavik City Centre by Toddling Traveler

The Canopy by Hilton Reykjavik City Centre is a newly updated hotel and one of the best accommodations in Reykjavik. The Canopy is located right in the heart of Reykjavik, right off Laugavegur Street. The location makes it easy to access a variety of tour operators and local sights, which is perfect if you only have 3 days in Iceland or less.

The rooms at the Hilton Canopy are cozy and comfortable, with a unique mix of artwork and furnishings sourced locally from Iceland. If you’re not familiar with the Canopy line of hotels by HIlton, they’re known as “lifestyle hotels.” They have a neighborhood feel and really pull from the surrounding neighborhoods, which couldn’t be more evident at this Reykjavik hotel.

As part of the neighborhood feel, the Canopy by Hilton Reykjavik offers a nightly happy hour with complimentary tastings of local foods and drinks for its guests. Another highlight of the hotel is the amazing buffet breakfast at the Geiri Smart Restaurant. It’s filled with locally sourced foods, including Icelandic specialties like Skyre and smoked fish. The breakfast is also complimentary with your stay, which is an awesome perk given how expensive food can be in Reykjavik.

With the location in central Reykjavik, the Canopy by Hilton is a short walk to attractions like the Harpa Concert Hall, Hallgrímskirkja Church, and shopping and nightlife on Laugavegur Street. The Canopy by Hilton in Reykjavik also provides complimentary bikes for guests, which is a great way to experience the city like a local.

See more photos and reviews on Booking and TripAdvisor.

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Hotel Centrum Reykjavik by Gourmand Trotter

Hotel Reykjavik Centrum is a centrally-located hotel in the Icelandic capital that has walking distance to most of the city's attractions. It's a 4-star hotel that is located in an old and very cute house in green color and is found on one of the oldest street's in the city. Guests can choose between hotel rooms or self-service studios and all of them are decorated with modern decor and features fresh bathrooms.

Next door, you have the award winning restaurant Fjalaköttur, which serves traditional food from Iceland. The hotel is just 200 meters away from the Reykjavik art museum and hold a unique Viking exhibition center as well. It was actually built on the site of an ancient Viking longhouse.

Hotel Reykjavik Centrum is one of the best-reviewed hotels in town, and the staff is very friendly and helpful. The cost per night is around 200-300 USD depending on the room type, which is very reasonable for the standard that you get and considering the generally high price-level in Reykjavik. The breakfast is great too and features a big continental buffet that gives you a great start to the day.

Solo travelers can also book single rooms here for about 180-200 USD with breakfast included. I stayed in a studio apartment, which was very nice with plenty of space for two people.

See more reviews and find the best rates on Booking and TripAdvisor.

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Icelandair Hotel Natura by Flashpacking Family

As a travelling family with small kids, there are certain things that we look for in a hotel, but mainly we’re looking for a comfortable family room where the kids don’t have to share our bed. Surprisingly, it’s harder than you might think to find suitable family-friendly accommodation in Iceland and our initial search only threw up a few hotels in Reykjavik with family rooms. Icelandair Hotel Natura was one of the few.

It’s located just out of the city centre next to Reykjavik airport. If you’re renting a car in Iceland which we highly recommend doing, the on-site car park comes in handy, and it was only a 5-minute drive to the city centre. Finding decent, cheap accommodation in Iceland, in general, is not easy, which is why Icelandair Hotel Natura was a nice surprise.

While it could not be classed as cheap, in terms of Iceland accommodation, it was pretty reasonable and would sit comfortably in the mid-range budget despite oozing Scandi chic and appearing high-end. Our room was very spacious and easily accommodated a family of 4 with the seating area along the wall converting into 2 single beds for the kids.

One of the best things about the hotel was their breakfast. They serve a sumptuous buffet breakfast which is just what you need before setting out for a day of sightseeing. Look on their website for special offers. In a city where eating is not cheap either, we love their ISK 2500 credit to spend on food and drink, and that kids between 0-12 years old get free breakfast with a paying adult.

Find more reviews and photos on TripAdvisor or Booking.

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Room with a View by ToSomePlaceNew

For our 3 days in Iceland, we stayed in the downtown Reykjavik area.  The hotel – Room with a View Apartment-Hotel – is perfect for short term as well as long term accommodation in Iceland.

Located in the heart of downtown Reykjavik and close to the Laugavegur-street - the Room with a View is an apartment style living, with spacious rooms, bathroom and a kitchenette. These rooms are perfect if you are carrying gear, tons of luggage or traveling with a baby – there is enough room for everybody. The kitchenette was super handy to cook or warm up meals – and help you save money in Iceland!

Grocery stores and restaurants were located pretty close to the hotel. If you are venturing out with day tours – this hotel can arrange for those, or if you have them pre-booked, this hotel located conveniently for tour pick ups. The highest church in Iceland the Hallgrímskirkja is located in the next lane, from the hotel.

This hotel has free wifi and luggage storage options as well. There is no room service. There are room options with shared bathrooms as well for less than $100 USD in off seasons. 

Read more reviews and see more photos on TripAdvisor and Booking.

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Sandhotel by Champagne on Arrival

Located on Laugavegur, the main street running through the centre of Reykjavik, is the lovely boutique hotel, Sandhotel, where we stayed during our Iceland trip.

Occupying one of a group of refurbished historic buildings, Sandhotel is in great company with a men’s clothing store that has been operating for over 100 years on one side and a fifth generation bakery, rumoured to be one of the best in Iceland, on the other. Laugavegur is one of Reykjavik’s oldest streets and is great for browsing boutique shops, restaurants and cafés and the majority of the city’s main sites are within easy walking distance.

The central location is one of the great things about Sandhotel, with the added bonus of heavily restricted traffic on the road itself, so there is very limited street noise. One of the few luxury hotels in Reykjavik, the décor at Sandhotel is beautiful; very cozy Art Deco in style with a large and welcoming lobby. Floor to ceiling windows on one side and some very comfy sofas will encourage you to spend a pleasant couple of hours curled up with a blanket, hot chocolate and a good book.

The style continues into the bedrooms that also come equipped with modern luxuries such as Marshall bluetooth speakers, flatscreen TV and Nespresso machine. There are also lots of lovely local touches in the form of the art hanging on the walls, Soley Organics toiletries and interesting looking cushion covers, some of which are made from fabric provided from the next door menswear boutique.

The staff is relaxed but can’t do enough for you and are a great source of restaurant and tour recommendations, as well as being happy to arrange any [Icelandic itinerary] you wish. Don’t leave without visiting the in house restaurant, Sand Bar & Bistro for some nordic style tapas and a glass of wine. Grab a seat by the window for one of the top people watching spots in Reykjavik. Rooms from £120 per night, including breakfast.

See more photos and find the best deal on Booking or TripAdvisor.

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Icelandair Hotel Reykjavik Marina by Helen on Her Holidays

The Icelandair Hotel Marina is a welcoming and funky place to base yourself on a trip to Iceland. I stayed here for four nights when I visited Iceland on a 40th birthday trip for my partner and found it a fun, super-convenient and comfortable place to stay.

The location’s great. It’s right on the water in Reykjavik city centre, and as soon as you step out of the door, you’ll see ships in dry dock right in front of you. Almost everything you’d want to visit in Reykjavik is within a few minutes’ walk of the hotel - Ingólfur Square is five minutes away, Harpa is ten, Hallgrimskirkja about 20. We went on several excursions while we were in Reykjavik and for each one we got picked up at the hotel.

The rooms are fairly small but comfortable, and have quirky decor on a maritime theme - ours had a giant mural above the bed of a boy holding a headless fish which was a somewhat interesting design choice! Downstairs in the lobby and restaurant the fun design continues. In the hotel lobby there’s a large open fire which gives the whole place a warm and welcoming vibe. You can also meet one of the permanent residents, a sculpture of a wooden man who sits beside the fire.

The Icelandair Hotel Reykjavik Marina has its own cocktail bar and restaurant Slippbarinn, which is popular with locals as well as residents. There’s live music on Wednesdays and a daily happy hour. We ate in the restaurant a couple of times and had breakfast there each morning - everything was delicious with plenty of choice for two vegetarians. The rooms were a little noisy and the hotel was a little too warm (even though we visited Iceland in February) but I’d definitely recommend Icelandair Hotel Marina for a stay in Reykjavik.

See more reviews and photos on TripAdvisor or Booking.

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Hotel Frón by The Flashpacker

Are you searching for a centrally-located good value for money hotel in Reykjavik? If so, look no further than Hotel Frón.

This hotel really is in the thick of things. Located on Laugavegur, the main shopping street in Reykjavik, its neighbours are restaurants, boutiques and bars. Despite its central location, noise was never an issue when I stayed there. But, just to be sure, request a room towards the rear of the property when booking.

Unusually for Reykjavik, Hotel Frón’s room rates include a decent continental breakfast. In a country as expensive as Iceland, this is a huge bonus. I liked that the room, which was modern and squeaky clean, had a small fridge to store food and drink. The heating was efficient, possibly brutally so at times. However, this is an essential requirement for a winter visit to Reykjavik.

Considering its location and the breakfast-inclusive rate, Hotel Frón is a bargain mid-range hotel by Icelandic standards. Current room rates (2020 prices) are from £90, including taxes and charges. For a small premium, studio apartments with limited cooking facilities are also available. This is worth considering, as the ability to prepare your own food is a great way to save money when visiting Reykjavik as a solo traveller.

Find the best deals on Booking or TripAdvisor.

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Hotel Holt by FamiliesGo!

If you’d like a hotel that’s centrally located, with some good local character, consider a stay at the Hotel Holt, where we stayed during our Iceland babymoon. The most unique feature of this boutique hotel is the art that’s everywhere: in the lobby, the hallways, the rooms, the restaurant.

The couple who own the hotel also own more than 1,500 pieces of mostly Icelandic art, the biggest private collection in the country. About one third of the collection is on display at the hotel at any given time. Guests who are interested in learning more can ask at the front desk for a tour of the hotel’s art.

The lobby and dining room are a bit dark but the rooms have plenty of windows and daylight (they also have dark curtains for summer nights). Solo travelers can book a single room, which start at about $140 USD winter and can be nearly double that in summer.

Families can choose a junior suite with two bathrooms (one with a bathtub) and a small living room with a pull-out sofa. These start at about $260 and rise to around $375 in peak season. You can choose a rate that includes breakfast, which is a typical European spread of cereals, breads, pastries, cold cuts and boiled eggs. If you prefer not to, you’ll easily find morning coffee nearby.

The Hotel Holt is on a quiet street that’s centrally located halfway between the waterfront and the rambling Hljómskáli Garden park. You’ll find a good shopping street, restaurants, cafés, bakeries, museums and the iconic Hallgrímms Church all within a short walk.

See more photos and read more reviews on TripAdvisor and Booking.

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Ion City Hotel by Fly Stay Luxe

Sister property to the award-winning, insta-famous Ion Adventure Hotel near Selfoss, the Ion City Hotel is an understated boutique city version, located in the heart of downtown Reykjavík. A member of Design Hotels™, the Ion City Hotel is simply stunning.

Much like its sister-property, it takes the cool Nordic luxe design inspiration to the next level. Featuring contemporary designer lighting in the hallways, walls made out of Icelandic birch and a hanging cocoon chair in the lobby covered in Icelandic sheepskin. Even the staff wear uniforms by Icelandic designers!

Ion City Hotel is only small - 18 rooms to be exact. But what it lacks in size, it makes up for in other offerings - a gym, private dining room, suites with private sauna and the lively restaurant Sumac, serving North African cuisine made from organic produce.

Ideally located on the main shopping street in Reykjavík, Ion City Hotel is within walking distance to many Reykjavík attractions, such as Hallgrímskirkja church and Harpa Concert Hall. The Ion City Hotel is the perfect place to stay for a city break or to kick off an Iceland itinerary, just like we did!

Read many 9/10 reviews for this hotel on Booking and see more photos on TripAdvisor.

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Eric the Red Guesthouse by The Fearless Foreigner

Reykjavík is known as a very expensive city to visit. If you don’t want to spend a fortune on accommodations consider staying at Eric the Red Guesthouse as recommended by The Fearless Foreigner. Prices range from about $100 - 150 USD a night. The guesthouse is clean and well-kept with both private rooms with ensuite bathrooms and private rooms with a shared bathroom.

Every morning a delicious breakfast is available. The warm, home-made bread was the highlight for me. As everyone sits at a shared table during breakfast, it is a great opportunity to meet other travelers and receive recommendations from the wonderful hosts.

There is a refrigerator in the downstairs hallway next to all of the rooms. If you are not able to make breakfast at the set time, the hosts will prepare a breakfast to go for you and stick it in the refrigerator the night before.

The location is perfect for both exploring Reykjavík and taking day tours. The center of Reykjavík is only about a 15 minute walk away. You can easily reach the museums, restaurants and any of the other main sights of the city by foot. One of them the Hallgrimskirkja (a church) is practically across the street.

If you plan on going on any day trips you will need to be picked up at one of the city’s 14 designated pick-up points. The Hallgrimskirkja church is one of them! Eric the Red Guesthouse offers a great location in Reykjavík with wonderful accommodations at reasonable costs.

Read more reviews and see more photos on TripAdvisor.

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The Best Hostels in Reykjavik

As already mentioned by a few travellers, the best places to stay in Reykjavik can cost a lot of money. The good news, however, is that there are also really great hostels in Reykjavik which offer value for money, plenty of comfort and still fantastic locations from which to explore the city. Below you'll find some great Reykjavik hostel recommendations, again by real travellers - including myself. 

Bus Hostel by Me!

Yes, shock horror! I stayed in a hostel! In fact, staying in this hostel was something of a turning point for me as it opened my eyes to the many benefits of staying in a hostel in an expensive location like Reykjavik, AND I found out that hostels aren't exactly what I expected them to be. 

Because Bus Hostel is a really stylish (with lots of vintage and retro touches), well-thought out and welcoming place. I had my own private room (but not bathroom though I know other Reykjavik hostels will offer this) and there was a great open public space where you could be as sociable - or not! - as you wish.

The location of Bus Hostel - housed in the city's old bus station, hence the name - initially feels a bit out of the way up on the hill behind Hallgrimskirkja but actually after wandering into the city centre a few times I realised that I was less than a five-minute walk from the famous cathedral and the top of Laugavegur which is the main shopping street in Reykjavik.

There were kitchens on every floor, more bathrooms than you needed to queue for, and everything was really well looked after and clean. The international staff (but at the time with Icelandic management) was very friendly and helpful and so I felt very informed about many of the best things to see and do in Reykjavik during my time there. There was also a car hire company directly next door so we could easily get a car to then go and explore places like the Westman Islands.

I have recommended Bus Hostel to a lot of people since that visit to Reykjavik, and will continue to do so!

Find out more and get the best rates on Booking or TripAdvisor.

Student Hostel by World in Paris

Student Hostel is a great accommodation option if you visit Reykjavik during the summer. During the year, this is a student residence set on the University of Iceland’s campus but when students go home for the holidays the residence turns into a hostel for travelers proposing decent prices ( around 100€ for a room in the peak season of July).

Student Hostel has an excellent location in the heart of Reykjavik. Lake Tjörin is just 50 m away and the National Museum of Iceland is next door. We could go everywhere downtown on foot and that was key for us when booking Student Hostel.

The hostel provides simply furnished twin rooms with basin and cupboard inside the room and shared bathrooms on the floor. Apart from the rooms, there’s a well equipped shared kitchen, a beautiful and cozy common room and on the other floors, there are other rooms to relax, play some games or doing yoga lessons.

Student Hostel is beautifully decorated with care for the detail, especially in the common rooms. It is very nice to stay in the common rooms for a while for reading, listening to music or chatting with other travelers. Student Hotel does not provide breakfast but you can prepare it yourself in the kitchen. Alternatively, during the weekdays the cafeteria of the campus offers good breakfast combos for decent prices.

See more photos and get the best deals on TripAdvisor.

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Loft HI Hostel by Live in 10 Countries

What you really want from a great hostel is a relaxed sociable vibe, good clean rooms and a location right by the action. Oh and super fast WiFi, that's critical. Loft Hostel honestly has all of that. It's very central in the Icelandic capital - close to a few bars and cheap supermarkets for those food runs.

It feels pretty chic inside with trendy rooms (immaculately clean) and a bar that's popular even with people who aren't staying there - which was perhaps my fave thing about it. It even has a terrace where you can watch the stars or catch some sun in summer.

The local Couchsurfing meet-ups happen here. It's worth knowing that you can even rent a budget car from the staff at Loft HI Hostel too! Don't buy too much food either as lots of guests leave staples like rice and pasta behind in the communal kitchen when they check out. Accommodation is definitely pricey in Reykjavik - it's no secret!

This is a mid range hostel, pricier than camping but much, much cheaper than a hotel or guest house would be. You can juggle things a bit by choosing between a basic room with lots if room mates and a private room.

See more photos and find the best rates on HostelWorld or TripAdvisor.

Read about Schengen Visas on the Live in 10 Countries blog, and follow them on Twitter.

Reykjavik Downtown HI Hostel by Ilive4travel

When I visited Iceland to see the northern lights, I stayed in Reykjavik Downtown HI Hostel. It’s a great hostel and in an amazing location just a few minutes walk from downtown. It is very close to the Reykjavik Museum of Photography and the Reykjavik Art Museum and just a few minutes walk to Ingolfur Square where you can find many restaurants and bars.

Depending on the night you can always walk down to the harbour to see the northern lights. It is not the cheapest hostel as beds start from around 31 Euro a night, but many of the other hostels are located further out of the the centre and I liked that I could walk to everything in the centre of Reykjavik from here.

I stayed in the 10 bed female dorm when I was there though there is also the option of private rooms. The room had a private bathroom inside. There are are lockers that you can use in the rooms but you will need a big padlock because of the size of the locks and not a small padlock like I use to lock my backpack.

Bed linen is included but not towels though you can rent one. Breakfast is not included but is available at an extra 10 Euro. The hostel also has kitchen and living area for guest use, which is great as eating out in Reykjavik is very expensive.

The hostel is very clean and the staff can help you plan your trips or advise you how best to get to places yourself. I really enjoyed staying at Reykjavik Downtown HI Hostel.

Find the best prices and see more photos on HostelWorld and TripAdvisor.

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The Best Airbnbs and Self-Catering Apartments in Reykjavik

On my second trip to Iceland I was returning with my partner and our 18-month-old son so we opted for a self-catering apartment to get us more space, two bedrooms and a kitchen we could cook in if we wanted. That place is no longer listed, but there are still lots of great Reykjavik Airbnbs that you can choose from.

And if you want an extra piece of reassurance that the place you'll be staying at is worth the investment, here are some real reviews of Reykjavik Airbnb self-catering apartments worth checking out.

Reykjavík Cosy Apartment by Meandering Wild

Reykjavik Cosy Apartment on AirBnB popped up when we were looking for somewhere central to stay in Reykjavík with my two teenage children.

Needing free WiFi and easy access to facilities as well as our own space to prepare meals this two bedroom apartment ticked all the boxes. It had the added bonus of a washing machine, essential when travelling with a family and an outdoor space which meant we could enjoy the long summer evenings and relax after walking the city.

The apartment is in the mid to low range of prices for Reykjavík, but was very clean and had everything that we needed for our stay. Before we even arrived Elísa and Brooks had been in contact and given us information about parking at the apartment (its street parking but their tips helped us avoid parking tickets!) and how to navigate the city to find them. When we arrived Brooks was there to show us around and gave us a 10 minute introduction to his city and country which was invaluable on our Iceland road trip.

It is located right behind Hallgrímskirkja, the iconic church in the center of the city. Just by wandering down the steps at the rear of the church and crossing the road you are at the apartment. It really couldn’t be much closer. It is also just a two minute walk from the open air and indoor swimming pools at Sundhöllin and a local Budget supermarket for supplies. This small apartment was one of the best value places we found in Iceland and really was cosy even in the middle of summer.

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Castle House Luxury Apartments by Our Passion For Travel

Castle House Luxury Apartments Reykjavik is a perfect option for a stay in Iceland’s capital. We stayed only for the evening, but would have happily stayed for longer. Located next to the National Gallery of Finland and directly across from Lake Tjornin, it’s an easy spot to find. It’s approximately 10 minutes walk to Halgrimskirkja church and a 5 minute walk to downtown where you can find a quality array of restaurants to eat at.

Icelandic Street Food offers a friendly atmosphere and very good value soup dishes (and that’s good value not even by Icelandic standards). For those driving, off street parking is plentiful in the side streets near to the apartments and makes it easier for packing and unpacking.

If you have a car, I would recommend avoiding attempting to park on Laekjargata however which is about as busy as a road gets in Reykjavik. If you are without a vehicle, don’t despair. The Airport shuttle stops at the bus stop directly in front of the apartments. So whether you’re driving or not, these apartments are easy to find.

Arriving later in the evening, the simple self check in process with clear instructions was incredibly helpful. Do not despair if you arrive late, it’s an easy location to find and enter at any hour. The room itself was quite spacious despite being in a central location.

The bed was very comfortable and the room warm and toasty. The apartment represents great value for Reykjavik, however the name ‘luxury’ may be slightly stretching it so let that be a gentle warning to have a bit of caution about the name! The apartment is a well run, clean and useful location but there wasn’t much in the way that I would consider luxury about it. Our stay for one evening of $US130 represented a great deal. On our next trip to Reykjavik, we’ll happily return to these apartments.

See more photos and find the best deals on TripAdvisor or Booking.

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The Best Hotel NOT in Reykjavik

As hinted at above, there is one place a fellow travel blogger offered to write a hotel review of although the hotel itself is not in central Reykjavik, or even on the outskirts of Reykjavik. It's actually quite a distance away 

The Bubble Hotel by Once in a Lifetime Journey

Located about 100km from Reykjavik in the middle of dense forest near the town of Reyholt with almost no light pollution, lies one of the most magical and romantic hotels. The Bubble Hotel is set in an undisclosed location which enjoys tranquil settings in six calming clear plastic bubbles that are scattered around the forest.

Even though the accommodation is see through, the surrounding trees and bushes cover your little pod so you have complete seclusion. And when you turn off the lights and snuggle up to your partner in the dead of winter, all you can see are the glistening stars and Aurora Borealis floating magically above.

The hotel, also known as the 5 Million Star Buubble Hotel, was conceptualised by Danish entrepreneur Robert Robertsson as an off the beaten path and unique hotel in Iceland. There is a service house with a toilet and shower, but this is shared with other guests, so each room does not have en suites.

Those staying at the hotel will have to be guided by Golden Circle who will take you to other sites like Gullfoss waterfall. Even though it may sound gimmicky, the hotel far exceeded my expectations, to the point that I forgot I even had a phone as I lay watching the Milky Way.

It is pretty barebones with only a heater, wooden deck, double bed and lamp. And yes, there is wifi in the service room, but you won’t need it as you drift into the dreamy surrounding landscapes. The perfect stay for a digital detox. Expect to pay around $600 per person for a night in the Bubble with the tour.

See more real traveller photos of the Buubble here and read more reviews and find the best deals.

Read more of this review of the Bubble Hotel Iceland here, and follow Once in a Lifetime Journey on Instagram.

And that's a wrap! If you have your own Reykjavik accommodation recommendation or Reykjavik hotel or hostel tip, please do share in the comments. For more reading about Iceland, please do check out this itinerary for one day in Reykjavik, this post about a winter's day in Reykjavik, some more photos of Hallgrimskirkja, my write up of a tour of the Westman Islands, and a post about visiting East Iceland. You can read my other travel content here!

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Frances M. Thompson

Londoner turned wanderer, Frankie is an author, freelance writer and blogger. Currently based in Amsterdam, Frankie was nomadic for two years before starting a family with her Australian partner. Frankie is the author of three short story collections, and is a freelance writer for travel and creative brands. In 2017, she launched WriteNOW Cards, affirmation cards for writers that help build a productive and positive writing practice. When not writing contemporary fiction, Frankie shops for vintage clothes, dances to 70s disco music and chases her two young sons around Amsterdam.
Find Frankie on Facebook, Twitter, Instagram, Pinterest, and Google+.

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