The Best Luxury Hotels in Reykjavik, Iceland
Reykjavík’s Nordic magic is best experienced with the comfort and style of these luxury stays
EUROPE
Guess Where Hotels Editorial Team
10/1/202611 min read
Reykjavik: Small Capital, Big Skies
Reykjavik is known for its candy-colored rooftops, geothermal warmth in the dead of winter, and a downtown small enough to explore entirely on foot. From the glass-ribbed Harpa Concert Hall on the harbor to the quiet residential streets behind Hallgrímskirkja, the city rewards travelers who pick a base close to its walkable core. Hotels here range from minimalist design landmarks to converted historic buildings, and the right one can shape how easily you move between the city and Iceland's wider natural attractions.
Best Time to Visit Reykjavik & When to Book Your Hotel
Reykjavik may be a small capital, but where you stay can change the shape of your entire trip. The city's best luxury hotels range from harborfront landmarks with mountain views to intimate design hotels tucked into the historic center, each putting you within reach of a different side of the city — the glass-ribbed Harpa Concert Hall on the water, the quiet streets behind Hallgrímskirkja, the geothermal warmth that cuts through the dark winter months. Pick well, and the whole city opens up on foot.
The 10 Best Luxury Hotels in Reykjavik
1. The Reykjavik EDITION
📍 Location: Old Harbour, adjacent to Harpa Concert Hall
💰 Typical Price: ~$450–$1,800/night particularly in summer)
⭐ Guest rating: 8.9/10, Booking.com, checked October 2026
🔗 Book here: The Reykjavik EDITION on Booking.com
The Reykjavik EDITION rises in glass above the Old Harbour, its floor-to-ceiling windows catching the shifting light off the bay and the mountains beyond. Inside, it plays the part of an international flagship — 253 rooms, Michelin-starred dining at Tides, a spa built for slow mornings. Higher floors and corner suites hold the best of that view. Up on the seventh-floor rooftop bar, the outlook stretches wide enough to catch a long midnight-sun glow in July or a flicker of aurora come October. As evening settles in, the bar fills with a mix of guests and locals over cocktails, the water turning silver below. The one cost of that harborfront perch is distance — Laugavegur and Hallgrímskirkja sit a brisk 15–20 minutes away on foot. It's built for travelers who want full-service polish over quiet intimacy.
Pros
Standout harbor and mountain views from upper-floor rooms
On-site Michelin-starred dining at Tides restaurant
Rooftop bar with panoramic city and water views
Cons
Room rates and add-ons (breakfast, minibar) run noticeably higher than the rest of this list
The Old Harbour location adds a 15+ minute walk to the main shopping street
Best for: Travelers who want a landmark, full-amenity hotel and are comfortable paying a premium for it.
2. Tower Suites Reykjavik
📍 Location: Hlíðar, on the 20th floor of a glass office tower near Katrínartún
💰 Typical Price: ~$450–$1,300/night
⭐ Guest rating: 9.6/10, Booking.com, checked October 2026
🔗 Book here: Tower Suites Reykjavik on Booking.com
Every suite here occupies the same top floor of a glass tower, so the view arrives the moment you step inside — city lights or open bay, framed in ceiling-height windows. Corner suites go further still: soaking tubs sit right beneath the glass, turning bath time into its own quiet lookout over the rooftops. A telescope by the window and breakfast delivered rather than served lean toward the feel of a borrowed apartment rather than a hotel. So does the self-serve honesty bar downstairs. That privacy has a price — no restaurant beyond breakfast, no spa, no pool, so dinner means heading into the city. The ground floor is a working office building, less grand on arrival than a dedicated lobby, and parking means a call ahead to reception. What the small room count buys instead is attentive, personal service.
Pros
Unmatched panoramic views, arguably the best in the city
Genuine suite-scale space rather than standard hotel rooms
Personal, high-touch service given the small number of rooms
Cons
No restaurant, spa, or pool on-site
Underground parking access requires phone coordination with reception
Best for: Couples who prioritize a dramatic view and private, suite-style space over hotel amenities.
3. Reykjavik Konsulat Hotel, Curio Collection by Hilton
📍 Location: City center, on Hafnarstræti near Austurvöllur Square
💰 Typical Price: ~$400–$950/night
⭐ Guest rating: 9.1/10, Booking.com, checked October 2026
🔗 Book here: Reykjavik Konsulat Hotel on Booking.com
Once an early-1900s department store, the Konsulat kept enough of its bones intact — high ceilings, worn stone, an old façade — to stand apart from Reykjavik's sleeker new builds. A wine room and a full bath house add weight to the property. Its lobby bar pulls in as many locals as guests on a given evening, giving the place the feel of a neighborhood fixture rather than a hotel passing through. Location does the rest: a minute from Austurvöllur Square, an easy walk from the harbor, the cathedral, and Laugavegur — about as central as the city gets. Breakfast is the one place it pulls back, served continental rather than as a full spread, which some guests find modest for the price. Still, it's a hotel built for travelers who want history and design without sacrificing walkable convenience.
Pros
Genuinely central location, steps from Austurvöllur Square
Distinctive historic building with a full-service bath house
Consistently rated among the highest in the city for service
Cons
Continental-only breakfast at this price tier disappoints some guests
Best for: Couples who want a walkable, design-rich base right in the historic heart of downtown.
4. Canopy by Hilton Reykjavik City Centre
📍 Location: City center, two minutes from Laugavegur shopping street
💰 Typical Price: ~$400–$750/night
⭐ Guest rating: 9.2/10, Booking.com, checked October 2026
🔗 Book here: Canopy by Hilton Reykjavik City Centre on Booking.com
Canopy is younger than most of its downtown neighbors, and that shows less in any single grand feature than in the quiet consistency of its rooms — clean, Icelandic-toned, no surprises. The on-site kitchen leans local. The address puts Laugavegur, Harpa, and Hallgrímskirkja within a ten-minute walk, tucked onto a calmer side street rather than the main strip itself. That mix of reliability and location makes it an easy hotel to settle into for four nights or more, without the higher price tag of flashier boutique options nearby. It won't be the hotel you remember for its architecture, but its review scores are consistently among the strongest in the city. For couples weighing cost against convenience, it often lands as the sensible middle ground.
Pros
Strong price-to-location ratio for the downtown core
Consistently high review scores across categories
Locally inspired restaurant menu on-site
Cons
Less architecturally distinctive than nearby historic-building alternatives
Best for: Couples who want a reliable, well-located luxury stay without paying flagship-hotel prices.
5. Hotel Borg by Keahotels
📍 Location: City center, overlooking Austurvöllur Square
💰 Typical Price: ~$400–$750/night
⭐ Guest rating: 8.6/10, Booking.com, checked October 2026
🔗 Book here: Hotel Borg by Keahotels on Booking.com
Hotel Borg carries a formality most of Reykjavik's newer hotels don't attempt — Art Deco lines, Philippe Starck chairs, dark polished floors that creak faintly underfoot. Opened in 1930 and facing Austurvöllur Square, it sets the Parliament building and cathedral just outside the window, with the rest of downtown an easy stroll from the door. Few hotels here pair a century of history with a full spa. Borg's sauna, hot tub, and steam room set it apart from the smaller boutique conversions nearby. The square draws foot traffic and the occasional gathering, so rooms facing it pick up more evening noise than those looking onto the quiet interior courtyard. It leans toward candlelit, old-world luxury rather than sleek minimalism — a style either exactly what you came to Iceland for, or one to seek out only if it appeals.
Pros
Distinctive Art Deco architecture and interiors
Full spa with sauna, hot tub, and steam room included
Prime, unmistakably central square-front location
Cons
Square-facing rooms can pick up street noise on busy evenings
Best for: Couples drawn to a formal, historic atmosphere with genuine spa facilities on-site.
6. 101 Hotel, a Member of Design Hotels
📍 Location: City center, just off Laugavegur shopping street
💰 Typical Price: ~$400–$800/night
⭐ Guest rating: 8.4/10, Booking.com, checked October 2026
🔗 Book here: 101 Hotel on Booking.com
Black-and-white interiors, Eero Saarinen curves, a restaurant-bar that hums as loud with locals as guests — 101 Hotel has been Reykjavik's defining design address for years, and little about it has dated. Rooms run tighter than the city's newer luxury builds. The stark minimalism can feel more austere than cozy through the darker winter months. Amenities stay lean too — restaurant, bar, and a small spa area, nothing more — but the location just off the main shopping street keeps everything else within easy reach. What it lacks in space, it makes up for downstairs, where the bar scene spills late into the evening. This suits design-conscious travelers who care as much about how a stay looks as what it includes.
Pros
Iconic, still-relevant design identity after years in operation
Central location just off the main shopping street
Lively on-site bar-restaurant with a strong local following
Cons
Smaller rooms than comparably priced newer hotels
Minimalist aesthetic won't suit travelers wanting a warmer, softer look
Limited amenities beyond the restaurant, bar, and small spa area
Best for: Travelers who want Reykjavik's most recognizable design hotel and are comfortable trading room size for style.
7. Iceland Parliament Hotel, Curio Collection by Hilton
📍 Location: City center, opposite Austurvöllur Square
💰 Typical Price: ~$400–$850/night
⭐ Guest rating: 9.1/10, Booking.com, checked October 2026
🔗 Book here: Iceland Parliament Hotel on Booking.com
Built in 2021 directly across from Iceland's Parliament building, this hotel pairs one of downtown's most central addresses with a detail rare at this price point: dedicated couples' treatment rooms in the spa. There's also a sauna guests can use without booking anything at all. It's the kind of touch that shows up often in reviews from travelers marking an anniversary. The square-front position puts the cathedral, city hall, and Harpa within five minutes on foot. Rooms are comfortable and modern rather than showpieces, and the hotel's event space makes it a practical base for a longer Iceland itinerary. Breakfast isn't included in most standard rates, and there's no direct street drop-off given the square-front setting — small details worth planning around.
Pros
Couples' spa treatment rooms, uncommon at this price point
Directly on Austurvöllur Square, extremely walkable
Modern rooms with reliably good amenities
Cons
Breakfast is not included in most standard rates
On-site parking is limited, and street drop-off isn't possible directly outside the hotel
Best for: Couples who want a central, spa-focused stay with treatment options built specifically for two.
8. ION City Hotel, a Member of Design Hotels
📍 Location: City center, on Laugavegur shopping street
💰 Typical Price: ~$400–$880/night
⭐ Guest rating: 8.7/10, Booking.com, checked October 2026
🔗 Book here: ION City Hotel on Booking.com
ION City admits no children, and that single fact shapes everything about the stay — eighteen design-forward rooms, memory-foam beds, espresso machines, and in some categories, a private balcony sauna tucked against the Reykjavik sky. Sitting right on Laugavegur puts the hotel in the thick of things. Restaurants and bars spill out the front door, which suits travelers who'd rather be close to the noise than tucked away from it. That same energy is the trade-off: only 18 rooms means the hotel books out fast, especially in summer, and the pedestrianized street below still carries sound up to some windows. Evenings here tend to drift outward, guests as likely to end up at a nearby bar as staying in. It's a small, deliberate hotel built around one clear idea rather than trying to please everyone.
Pros
Adults-only atmosphere throughout the property
Distinctive Icelandic design details, including in-room balcony saunas in some categories
Unbeatable position on Laugavegur for walking to restaurants and nightlife
Cons
Only 18 rooms, so availability is limited, especially in summer
Street-level noise reaches some rooms given the busy location
Best for: Couples who specifically want an adults-only stay in the middle of the city's liveliest street.
9. Sand Hotel by Keahotels
📍 Location: City center, on Laugavegur near Sandholt Bakery
💰 Typical Price: ~$400–$750/night
⭐ Guest rating: 8.7/10, Booking.com, checked October 2026
🔗 Book here: Sand Hotel by Keahotels on Booking.com
A memorial stone out front marks the birthplace of Nobel laureate Halldór Laxness, and that thread of local history runs through the hotel in the form of Icelandic art hung across its rooms and public spaces. It shares its stretch of Laugavegur with ION City nearby, so the same trade applies. Nightlife sits at the doorstep, and street noise on weekends comes with it. Higher-category suites solve part of that by facing a quiet inner courtyard rather than the road, worth the upgrade for light sleepers. Downstairs, Sandholt Bakery makes for an easy, unhurried breakfast without needing to go far. The rooms themselves won't win on view, but the art and history threaded through the building give it a character harder to find in the city's newer hotels.
Pros
Local art and history woven throughout the property
On-site bakery-café access via Sandholt next door
Courtyard-facing rooms offer a genuinely quiet alternative
Cons
Street-facing rooms can be noisy on weekend nights
Best for: Couples who want a boutique, art-forward stay with strong local character.
10. Kvosin Downtown Hotel
📍 Location: City center, behind Reykjavík Cathedral and the Parliament House
💰 Typical Price: ~$400–$800/night
⭐ Guest rating: 9.1/10, Booking.com, checked October 2026
🔗 Book here: Kvosin Downtown Hotel on Booking.com
Tucked onto a square behind the cathedral, Kvosin occupies a building dating to 1900 and holds just 24 rooms, most with a kitchenette and a private terrace — a rare pairing of hotel service and apartment-style space in the historic core. Sitting off the main thoroughfare keeps it noticeably quieter at night than several other hotels on this list, despite an equally short walk to everything downtown. A third-floor terrace looks out over the city lake, Tjörnin, a calmer counterpoint to the busier ground-floor terrace facing the square out front. That kitchenette makes it a genuinely practical choice for stays of four nights or more. The occasional home-cooked meal beats eating out every night. On-site dining otherwise stops at breakfast and the ground-floor bar, and with so few rooms, certain categories sell out early in peak season.
Pros
Kitchenette and seating area in most rooms, rare for a boutique hotel this central
Quiet square location just off the busiest streets
Rooftop terrace overlooking Tjörnin lake
Cons
Limited on-site dining beyond breakfast and the ground-floor bar
Only 24 rooms, so certain room categories sell out early in peak season
Best for: Couples who want boutique character and a bit of self-catering flexibility without leaving downtown.
Our Top Picks
Best Overall: The Reykjavik EDITION — The most complete luxury experience in the city, with harbor views, a rooftop bar, and full hotel amenities, for travelers willing to pay for it.
Best for Couples: Tower Suites Reykjavik — Panoramic private suites with soaking tubs positioned beneath floor-to-ceiling windows make this the most romantic stay on this list.
Best Location: Reykjavik Konsulat Hotel, Curio Collection by Hilton — A minute's walk from Austurvöllur Square, with a historic building and full bath house to match.
Things to Know Before Booking a Luxury Hotel in Reykjavik
Prices Can Change Significantly — Hotel rates swing sharply between summer's midnight-sun peak and the quieter winter months, and spike further around New Year's Eve, when the city's fireworks displays draw crowds.
Walkability Matters — Because central Reykjavik is compact, a hotel a few blocks off Laugavegur can mean a meaningfully longer walk to restaurants and attractions than the distance suggests on a map
Aurora Viewing Isn't Guaranteed — If a winter stay is built around seeing the northern lights, remember that visibility depends on clear skies and solar activity; a hotel doesn't guarantee a sighting, though some rooftop bars and terraces improve your odds over a street-level room.
2-Night, 3-Day Mini Itinerary for Reykjavik
Using The Reykjavik EDITION — our Best Overall pick — as a basecamp, here's a short itinerary built around its location. This is a general, location-based suggestion rather than an account of an actual stay.
Day 1 — Arrival & the Old Harbour Area After checking in, spend the afternoon exploring Harpa Concert Hall and the Old Harbour on foot, both within easy walking distance. In the evening, a relaxed dinner at the hotel's rooftop bar or one of the nearby harborfront restaurants is an easy way to adjust to the time change.
Day 2 — Golden Circle or Blue Lagoon Day Trip Head out of the city for a day trip to either the Golden Circle (Þingvellir National Park, the Geysir geothermal area, and Gullfoss waterfall) or the Blue Lagoon. Both are typically offered as half-day to full-day tours departing from downtown, so plan your morning around the tour pickup time rather than the hotel's own schedule.
Day 3 — Downtown & Departure Before checkout, use the morning to walk Laugavegur shopping street and Hallgrímskirkja church, then stop for brunch at a nearby café before heading to the airport. Since this stretch involves a fair amount of walking, it's worth leaving your luggage at the hotel and moving light until you need to head out.
Finding Your Luxury Stay in Reykjavik
For a capital this small, Reykjavik's hotels cover surprising ground — a full-service international flagship, all-suite towers with a view, boutique addresses folded into buildings older than the country's independence.
Tower Suites Reykjavik and ION City Hotel are the ones couples keep coming back to for romance. If you'd rather have the scale and reassurance of a bigger, full-amenity property, The Reykjavik EDITION covers that. And for a walkable base right in the oldest part of downtown, Reykjavik Konsulat Hotel and Kvosin Downtown Hotel both earn their reputation.
A soak in a geothermal pool after a day chasing waterfalls, the northern lights rippling green overhead if the night cooperates, a city small enough to feel like your own — Reykjavik makes a fantastic base for a trip that's really about everything around it.
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