The Best Luxury Hotels in Reykjavik, Iceland

Reykjavík

Reykjavík is where Nordic cool meets geothermal warmth, where colorful houses line snow-dusted streets, and where the Northern Lights dance above cozy cafés. From boutique hotels with harbor views to luxury retreats with geothermal spas, Reykjavík blends Icelandic design with comfort and intimacy. Whether you dream of soaking in a rooftop hot tub under the aurora, exploring art-filled streets, or sipping locally roasted coffee while glaciers loom in the distance, this guide will help you find your perfect stay. Let these handpicked hotels frame your sunrise strolls along the harbor and your late-night dips in geothermal pools. Here are the Top 10 Luxury Hotels in Reykjavík for your Iceland escape. Let’s find your perfect Reykjavík stay! 🇮🇸✨

1. The Reykjavik EDITION

📍 Location: Harpa area, downtown waterfront
💰 Price: ~$600–$800/night
⭐️ Rating: 9.0
🔗 Book here with Flexible Cancellation

A contemporary luxury landmark on Reykjavík’s harbor, The Reykjavik EDITION combines sleek Nordic design with warm hospitality and stunning ocean and mountain views. Enjoy a rooftop bar perfect for Northern Lights spotting, a world-class spa with geothermal-inspired treatments, and rooms with minimalist Icelandic luxury. The location places you steps from Harpa Concert Hall and the lively downtown restaurants, allowing you to explore the best of Reykjavík on foot. After glacier tours or whale-watching trips, return for cocktails by the fireplace in the lobby lounge. It’s a top choice for travelers seeking both modern elegance and Icelandic warmth.

2. Hotel Borg by Keahotels

📍 Location: Austurvöllur Square, downtown
💰 Price: ~$400–$650/night
⭐️ Rating: 8.8
🔗 Book here with Flexible Cancellation

An Art Deco icon overlooking Austurvöllur Square, Hotel Borg offers classic elegance in the heart of Reykjavík. Rooms feature parquet floors, designer furnishings, and luxurious marble bathrooms, providing a refined retreat after your Icelandic adventures. The spa includes a sauna, steam bath, and hot tub, perfect for warming up after winter walks. You’ll be within steps of Reykjavík’s best restaurants, shops, and cultural sites, making it easy to explore on foot. The in-house restaurant, Borg Restaurant, serves Icelandic and European cuisine in a stylish setting, ideal for unwinding with a locally inspired dinner.

3. Sand Hotel by Keahotels

📍 Location: Laugavegur shopping street, downtown
💰 Price: ~$350–$550/night
⭐️ Rating: 9.0
🔗 Book here with Flexible Cancellation

A boutique gem in a historic building on Laugavegur, Sand Hotel offers chic rooms with sleek Icelandic design and cozy touches. The on-site bakery serves fresh bread and pastries daily, perfect for a warm start to your morning. Its prime location allows you to step out into Reykjavík’s lively streets, filled with galleries, coffee shops, and boutiques. Inside, the calm, warm aesthetic provides a relaxing retreat after days spent exploring Iceland’s rugged landscapes. The staff is known for personalized service, ensuring you feel well cared for throughout your stay. It’s a perfect blend of local character and modern comfort.

4. Canopy by Hilton Reykjavik City Centre

📍 Location: Downtown, near Laugavegur
💰 Price: ~$350–$600/night
⭐️ Rating: 8.9
🔗 Book here with Flexible Cancellation

This stylish boutique hotel blends Icelandic design with comfort, featuring rooms with warm textiles, local artwork, and modern amenities. The on-site Geiri Smart restaurant serves fresh, locally sourced dishes in a relaxed yet refined setting. You’ll love the complimentary evening tastings of local treats, creating a cozy communal vibe. The central location places you near Reykjavík’s best attractions while maintaining a quiet, peaceful atmosphere. After a day exploring waterfalls or soaking in the Blue Lagoon, return to relax in the hotel’s inviting lounge or grab a locally roasted coffee in the lobby café.

5. Tower Suites Reykjavík

📍 Location: Höfðatorg Tower, near waterfront
💰 Price: ~$700–$800/night
⭐️ Rating: 9.4
🔗 Book here with Flexible Cancellation

For a unique luxury experience, Tower Suites offers eight exclusive suites with floor-to-ceiling windows and panoramic views of Reykjavík, the ocean, and nearby mountains. Each suite is designed with minimalist Nordic décor, providing a bright, airy feel while ensuring maximum comfort. Breakfast is delivered to your suite, allowing you to enjoy morning views of Mount Esja or the Northern Lights from your bed. The personalized service includes attentive hosts who can help plan your Iceland adventures with ease. This stay is perfect for travelers seeking privacy, exclusivity, and the best views in Reykjavík.

6. Reykjavik Konsulat Hotel, Curio Collection by Hilton

📍 Location: Downtown, near Old Harbor
💰 Price: ~$400–$650/night
⭐️ Rating: 9.2
🔗 Book here with Flexible Cancellation

Housed in a beautifully restored historic building, this boutique luxury hotel offers contemporary Icelandic design with a warm, welcoming atmosphere. Rooms feature plush beds, thoughtful design, and modern comforts, while the on-site spa includes a geothermal bath and sauna for post-adventure relaxation. The hotel’s restaurant, GOTT Reykjavik, serves Icelandic cuisine with a modern twist. Located near the Old Harbor and city center, you’ll have easy access to Reykjavík’s vibrant dining scene and local shops. The exceptional service and cozy yet sophisticated feel make it a perfect choice for your Icelandic escape.

7. Alda Hotel Reykjavík

📍 Location: Laugavegur, downtown
💰 Price: ~$300–$500/night
⭐️ Rating: 8.9
🔗 Book here with Flexible Cancellation

Alda Hotel blends a boutique feel with modern amenities, featuring rooms with minimalist Icelandic style and views of the sea or mountains. The rooftop terrace and outdoor hot tub offer spaces to relax while taking in the crisp Icelandic air. Guests enjoy complimentary smartphone use during their stay for easy navigation around the city. The on-site Barber Bar serves excellent cocktails, adding a social element to your evenings in Reykjavík. Its location on Laugavegur makes it ideal for exploring the local dining and shopping scene while providing a peaceful retreat at the end of the day.

8. Apótek Hotel Reykjavík by Keahotels

📍 Location: Downtown, Austurvöllur Square
💰 Price: ~$350–$600/night
⭐️ Rating: 8.8
🔗 Book here with Flexible Cancellation

Set in a beautifully restored pharmacy building, Apótek Hotel offers a stylish boutique experience with warm wooden interiors and luxurious touches. Rooms feature sleek décor with comfortable beds, rainfall showers, and views of the city. The hotel’s restaurant, Apótek Kitchen + Bar, is a local favorite, serving Icelandic and European cuisine in a lively setting. Located near Reykjavik’s main attractions, you can easily explore the harbor, galleries, and shops on foot. The staff’s attention to detail ensures a personalized stay, making you feel welcome from the moment you arrive.

9. Hotel Ódinsvé

📍 Location: Downtown Reykjavík
💰 Price: ~$300–$500/night
⭐️ Rating: 8.6
🔗 Book here with Flexible Cancellation

A cozy boutique hotel in a quiet downtown location, Hotel Ódinsvé offers stylish rooms with Icelandic design and a warm, intimate feel. Many rooms have balconies with city views, perfect for a morning coffee or a late-night look at the stars. The on-site SNAPS Bistro serves French-inspired Icelandic dishes, making it easy to enjoy excellent dining without leaving your hotel. The location provides easy access to cultural sites while maintaining a peaceful atmosphere for restful nights. It’s an excellent choice for travelers looking for a blend of comfort, style, and local character.

10. Black Pearl Apartment Hotel

📍 Location: Near Old Harbor, downtown
💰 Price: ~$500–$800/night
⭐️ Rating: 9.3
🔗 Book here with Flexible Cancellation

Offering spacious, luxurious apartment-style suites, Black Pearl combines the comfort of home with boutique hotel service. Each suite includes a fully equipped kitchen, a spacious living area, and modern design with warm touches. The central location allows you to explore Reykjavík’s best dining, shopping, and cultural sites while having a private retreat to return to after your adventures. Daily housekeeping and attentive staff ensure a seamless stay, providing the flexibility to dine in or out as you wish. It’s an ideal option for travelers seeking both independence and luxury in Reykjavík.

Time to Book Your Dream Stay

Reykjavík’s Nordic magic is best experienced with the comfort and style of these luxury stays. Whether you wish to watch the aurora from a rooftop hot tub, explore glaciers during the day, or warm up in a geothermal spa by night, these hotels will transform your Iceland adventure into an unforgettable memory. Each stay on this list has been carefully chosen for its boutique luxury feel, prime location, and ability to elevate your experience.

✨ These properties fill quickly, especially during Northern Lights and summer months. Book early to secure your ideal stay.

🇮🇸 Ready to discover Reykjavík in style? Book your Icelandic escape now and let your adventure begin!