Where to Stay in Reykjavik: Best Luxury Hotels

Where to stay in Reykjavik, Iceland — the best hotels and luxury neighbourhoods, reviewed on the ground, with dining and how long to go for. No sponsored placements.

Where to stay in Reykjavik: the best hotels and neighbourhoods

Discover Iceland's vibrant capital, where geothermal wonders meet sophisticated Nordic charm.

Reykjavik, the world's northernmost capital, offers a unique blend of cosmopolitan culture and raw natural beauty. Explore avant-garde architecture, indulge in a burgeoning culinary scene, and use it as a luxurious base to experience Iceland's iconic landscapes, from the Golden Circle to the Blue Lagoon.

Best neighbourhoods to stay in Reykjavik

Miðborg (Downtown)

Vibrant, historic, cultural hub. Best for First-time visitors, nightlife, museums. Where to stay: Hallgrímskirkja Church for panoramic city views.

Vesturbær

Chic, local, community-focused. Best for Foodies, families, authentic experience. Where to stay: Local swimming pools like Vesturbæjarlaug.

Laugardalur

Recreational, green, family-friendly. Best for Active travelers, nature lovers, spa seekers. Where to stay: Botanical Garden and Reykjavík Park and Zoo.

Hafnarfjörður

Elfin, charming, coastal suburb. Best for Folklore enthusiasts, tranquil escapes, harbor walks. Where to stay: Hellisgerði Park, known for its hidden 'elf' dwellings.

Where to eat near your hotel in Reykjavik

Local intel: what to do in Reykjavik

A 3–5 nights plan for Reykjavik

Day 1

Morning: Arrive at Keflavík; head directly to the Blue Lagoon for a relaxing soak and rejuvenation. Afternoon: Check into your luxury hotel in downtown Reykjavik; explore Laugavegur for local boutiques and art galleries. Evening: Dinner at Dill, followed by a cocktail at Apotek bar.

Day 2

Morning: Embark on a private Golden Circle tour: Þingvellir National Park, Geysir, and Gullfoss waterfall. Afternoon: Visit the Secret Lagoon for a quieter geothermal experience than the Blue Lagoon. Evening: Enjoy dinner at Fiskmarkaðurinn, followed by a stroll along the Old Harbor.

Day 3

Morning: Explore the Harpa Concert Hall and then ascend Hallgrímskirkja for panoramic city views. Afternoon: Visit the National Museum of Iceland to delve into the country's rich history. Evening: Indulge in a final Icelandic meal at Matur og Drykkur; consider an evening Northern Lights hunt (seasonal).

Getting around Reykjavik

Reykjavik's city center is very walkable. For excursions outside the city, a private car with a driver or guided tours are recommended for comfort and convenience. Public buses are available but less frequently used by luxury travelers. Taxis are present but can be expensive. Many hotels also offer shuttle services.

Travel tips for international visitors to Reykjavik

What to skip in Reykjavik

The best luxury hotels in Reykjavik, Iceland cluster in a handful of districts, and the district matters more than the name on the door. Plan on 3–5 nights to do Reykjavik properly.

Reykjavik city guide · reviewed luxury hotels · best time of year to go · destinations across Northern Europe · luxury hotels by city · compare Reykjavik with other cities

Published by Peters Signature Travel.