From Malta to Montenegro, Europe is filled with some of the trendiest hotels in the world, and Iceland’s capital is no different. From quirky stays in heritage houses to modern mansions where you’ll want for nothing, these are the best boutique hotels in Reykjavik for people who appreciate beautiful design.
The best boutique hotels in Reykjavik, Iceland
1. Eyja Guldsmeden Hotel
Hotel: Eyja Guldsmeden Hotel
Location: Brautarholt 10–14, 105 Reykjavík, Iceland
Neighbourhood: Hlíðar, near central Reykjavík
Rooms: 65 rooms
Style: Modern Nordic-Bohemian design with four-poster beds, Balinese wood details and natural materials
Family-friendly: Yes, with larger room options suitable for families
Wellness: Fitness room and bicycle hire
Pool: No swimming pool
Dining: Hotel restaurant and breakfast buffet with vegetarian, vegan and gluten-free options
Best for: Design-conscious travellers, couples and exploring central Reykjavík
Prices starting from: ISK 30,000 per room per night, depending on room and season
Eyja Guldsmeden Hotel
If it’s modern Bohemian vibes you’re after, you’ll want to book in at one of the 65 rooms on offer at Eyja Guldsmeden Hotel. Conveniently located just off the main shopping street downtown, it’s the perfect place to base yourself while exploring Iceland’s capital.
The rooms here feature whimsical four-poster beds, Balinese wood details, and organic Guldsmeden soaps, cream, and shampoo.
Hungry? The signature breakfast is a highlight and includes lactose-free, gluten-free, and vegan options alongside a huge selection of breads and croissants, fresh cheeses, sliced fruit, and homemade cakes and yoghurts. There’s a gym to keep you fighting fit and the hotel even offers bicycle hire so you can get to know the city.
Read our full review of Eyja Guldsmeden Hotel here.
Learn more about Eyja Guldsmeden Hotel or Book through Booking.com
2. Berjaya Reykjavik Marina Hotel
Hotel: Berjaya Reykjavik Marina Hotel
Location: Mýrargata 2, 101 Reykjavík, Iceland
Neighbourhood: Old Harbour, Grandi
Rooms: 154 rooms, including suites and family accommodation
Style: Colourful maritime-inspired interiors with contemporary Icelandic design and reclaimed harbour details
Family-friendly: Yes, with dedicated family rooms and Studio 6 accommodation for larger groups
Wellness: Gym and on-site hair salon
Pool: No swimming pool
Dining: Slippbarinn restaurant and cocktail bar, serving breakfast, drinks and contemporary dishes
Best for: Harbour views, families and exploring Reykjavík’s creative waterfront district
Prices starting from: ISK 30,000 per room per night, depending on room and season
Berjaya Reykjavik Marina Hotel
Just steps away from downtown Reykjavik, Berjaya Reykjavik Marina Hotel marries contemporary design with stellar service. Sitting next to the historic and still fully functioning dry dock called Slippur, here you can really immerse yourself in the dynamic landscape of the city.
Rooms are bathed in plenty of natural light and design cues have been taken from the surrounding harbour area, with highlights such as local photography and even fishermen’s knots on display. Guests can enjoy an ever-changing menu of craft cocktails at Slippbarinn, and this is also where you’ll find a selection of creative dishes made with the freshest ingredients.
When it comes to boutique hotels in Reykjavik, it’s no wonder that this one is a hit, as it even has a cinema, a hair salon, and a gym on site.
Discover more about Berjaya Reykjavik Marina Hotel or Book through Booking.com
3. Exeter Hotel
Hotel: Exeter Hotel
Location: Tryggvagata 12–14, 101 Reykjavík, Iceland
Neighbourhood: Old Harbour, central Reykjavík
Rooms: 106 rooms
Style: Industrial-chic interiors combining exposed concrete, contemporary furniture and mid-century design
Family-friendly: Yes, with larger room options and suites
Wellness: Sauna and fitness centre
Pool: No swimming pool
Dining: Le Kock restaurant, Deig bakery and Tail Bar
Best for: Food lovers, design enthusiasts and exploring the Old Harbour
Prices starting from: ISK 35,000 per room per night, depending on room and season
Exeter Hotel
Opened in 2018, Exeter Hotel can be found right in the heart of Reykjavik. Located in a complex crafted from both new and refurbished buildings, the hotel was designed by Richard Blurton and Sigurður Halldórsson from local studio Gláma-Kím Architects.
Inside, you’ll find a number of spaces that are complemented by a range of textures and sharp colours that ooze modernity. The property is home to 106 rooms, including the gorgeous Harbor View Suite that offers views of Mt. Esja and the Old Harbor from its balcony. Each room is tastefully decorated with an industrial vibe and includes all the mod-cons you need to enjoy your stay.
Onsite amenities include a gym and a sauna, and we love that the hotel is built around a courtyard where guests can mingle or relax. Sample local street food at Le Kock, indulge in pastries at Deig bakery, or cheers to a day of exploring at Tail Bar.
Find out more about Exeter Hotel or Book through Booking.com
4. Grandi by Center Hotels
Hotel: Grandi by Center Hotels
Location: Seljavegur 2, 101 Reykjavík, Iceland
Neighbourhood: Grandi, Reykjavík’s creative quarter
Rooms: 195 rooms
Style: Industrial-inspired contemporary design with raw materials, clean lines and spacious interiors
Family-friendly: Yes, with twin rooms and larger accommodation options
Wellness: Spa facilities, hot tubs and massage treatments available through the hotel’s spa offering; confirm access arrangements when booking
Pool: No swimming pool
Dining: Héðinn Kitchen & Bar, serving seasonal dishes and drinks
Best for: Design lovers, food enthusiasts and exploring the Old Harbour district
Prices starting from: ISK 30,000 per room per night, depending on room and season
Grandi by Center Hotels
In the middle of the city’s creative quarter, Grandi by Center Hotels is a boutique hotel that offers stylish industrial vibes. The rooms here have all the mod cons (including free WiFi) and cater to all groups, from twin to the gorgeous suite located on the top floor of the property, with a private balcony for views of the surroundings.
Enjoy dishes made from high-quality seasonal ingredients at Héðinn Kitchen & Bar, a dining hot spot for both locals and tourists alike. Relax in the open-air hot tub at Miðgarður Spa, pump it up at the gym, or book in for a massage to get you ready for a day of exploring.
Find out more about Grandi by Center Hotels or Book through Booking.com
5. The Reykjavik EDITION
Hotel: The Reykjavik EDITION
Location: Austurbakki 2, 101 Reykjavík, Iceland
Neighbourhood: Old Harbour, beside Harpa Concert Hall
Rooms: 253 rooms and suites, including a penthouse
Style: Contemporary luxury with Icelandic design influences, ash wood, bespoke furniture and volcanic-inspired exterior detailing
Family-friendly: Yes, with connecting rooms and family accommodation options
Wellness: Luxury spa with hammam, sauna, steam room, plunge pool and treatment rooms; 24-hour fitness centre
Pool: Spa plunge pool; no conventional swimming pool
Dining: TIDES restaurant, TIDES Café, ROOF bar and other cocktail and lounge venues
Best for: Luxury city breaks, waterfront views, fine dining and spa experiences
Prices starting from: ISK 90,000 per room per night, depending on room and season
The Reykjavik EDITION
Located in the middle of downtown Reykjavík, The Reykjavik EDITION is home to 253 cosy rooms and suites, some of which offer views of Mt. Esja, the harbour, and the Snæfellsjökull glacier.
The hotel was designed in partnership with local architecture firm T.ark and New York-based studio Roman and Williams, with guidance from Ian Schrager Company, and guests will be struck by spectacular design details right from the façade of shou sugi ban timber that references the country’s dramatic lava landscape.
Interiors here feature a warm palette of ash wood and pale grey oak that balance out highlights such as copper detailing, faux fur rugs, bespoke furniture, and artwork by local designers.
Helmed by Iceland’s first Michelin-star Chef, Gunnar Karl Gíslason, Tides serves modern Icelandic cuisine crafted with the finest local ingredients, while drinks inspired by Icelandic culture using local Icelandic spirits can be devoured at Tolt.
The spa includes a hammam, steam room, sauna, and plunge pool alongside three treatment rooms, and guests can enjoy Viking shakes and volcano bread with black lava salt after working out at the on-site fitness centre.
Find out more about The Reykjavik EDITION or Book through Booking.com
6. Apotek Hotel
Hotel: Apotek Hotel
Location: Austurstræti 16, 101 Reykjavík, Iceland
Neighbourhood: Austurvöllur, central Reykjavík
Rooms: 45 rooms and suites
Style: Contemporary boutique interiors within a restored 1917 landmark designed by Icelandic architect Guðjón Samúelsson
Family-friendly: Yes, although its central location and compact room options suit couples and smaller groups particularly well
Wellness: No dedicated spa or wellness centre
Pool: No swimming pool
Dining: Apotek Kitchen + Bar, serving contemporary cuisine, pastries and pharmacy-inspired cocktails
Best for: Architecture enthusiasts, food lovers and exploring central Reykjavík on foot
Prices starting from: ISK 40,000 per room per night, depending on room and season
Apotek Hotel
Revered as one of the most remarkable buildings in the capital, Apotek Hotel finds its home in what was once Pharmacy Reykjavikur Apotek (Apothecary). It was originally designed by Guðjón Samúelsson, former State Architect of Iceland, in 1917 and was carefully restored to now house 45 guestrooms and suites.
We love the three-floor Tower Suite that includes a writing desk, bath, and all the mod-cons. Enjoy a hearty breakfast at Apotek Kitchen + Bar on the ground floor before heading out and exploring the neighbourhood.
Learn more about Apotek Hotel or Book through Booking.com
7. 101 Hotel
Hotel: 101 Hotel
Location: Hverfisgata 10, 101 Reykjavík, Iceland
Neighbourhood: Þingholt, central Reykjavík
Rooms: 38 rooms and suites
Style: Minimalist Nordic design with monochrome interiors, contemporary furniture and Icelandic artwork
Family-friendly: Limited; selected suites accommodate up to three guests
Wellness: 101 Spa with Jacuzzi, steam bath, sauna, gym and massage treatments
Pool: No swimming pool
Dining: 101 Hotel Restaurant, serving modern Icelandic and international cuisine, plus a lounge bar
Best for: Couples, art enthusiasts and design-led city breaks
Prices starting from: ISK 55,000 per room per night, depending on room and season
101 Hotel
Originally built in the 1930s as an office block, 101 Hotel is now one of the trendiest boutique hotels in Reykjavik. Offering stunning harbour views, inside you’ll find a monochrome palette that exudes Nordic cool, with spaces filled with extraordinary local artworks.
Rooms put an emphasis on both comfort and style and feature Bang & Olufsen Beoplay speakers, Quagliotti linens, and bathroom amenities by Aveda. But if you’re in the mood for ultimate relaxation, be sure to take advantage of the Jacuzzi and steam bath at 101 Spa, or even book in for an in-room massage.
101 Hotel Restaurant is a popular foodie spot, serving up a combination of modern Icelandic and international cuisine. The lounge also offers the opportunity to relax with a drink and unwind after a busy day of getting to know the capital.
Discover more about 101 Hotel or Book through Booking.com
8. Ion City Hotel
Hotel: ION City Hotel
Location: Laugavegur 28, 101 Reykjavík, Iceland
Neighbourhood: Laugavegur, central Reykjavík
Rooms: 18 rooms and suites
Style: Contemporary Nordic design featuring Icelandic birch, wool textiles, custom furniture and dramatic finishes
Family-friendly: Limited; most accommodation is designed for two guests
Wellness: Private saunas in selected suites
Pool: No swimming pool
Dining: Sumac, serving Middle Eastern-inspired cuisine and Mediterranean cocktails
Best for: Couples, design enthusiasts and travellers wanting to stay on Reykjavík’s main shopping street
Prices starting from: ISK 45,000 per room per night, depending on room and season
Ion City Hotel
A boutique design property in the heart of the capital, Ion City Hotel offers a warm getaway for tourists in Reykjavik. The use of fine materials such as Icelandic Birch, woollen curtains, and custom-made furniture gives off a modern luxe vibe here. A selection of rooms and suites are available, but we are big fans of the Panorama Suite with its sweeping views over both the city and the bay.
The on-site restaurant Sumac takes inspiration from the atmosphere of the city of Beirut, serving up Middle Eastern cuisine and delightful Mediterranean cocktails.
Find out more about Ion City Hotel or Book through Booking.com
9. Sand Hotel
Hotel: Sand Hotel
Location: Laugavegur 34, 101 Reykjavík, Iceland
Neighbourhood: Laugavegur, central Reykjavík
Rooms: 78 rooms and suites
Style: Contemporary Nordic boutique design with curated artwork, quality furnishings and understated interiors
Family-friendly: Yes, with selected larger room categories and suites
Wellness: No dedicated spa or swimming pool
Pool: No swimming pool
Dining: Complimentary breakfast buffet, hotel bar and Sandholt Bakery on the ground floor
Best for: Couples, design lovers and exploring Reykjavík’s shopping and dining district
Prices starting from: ISK 35,000 per room per night, depending on room and season
Sand Hotel
The relaxed and stylish Sand Hotel is a great choice for design lovers looking to stay in the heart of downtown Reykjavik. Home to 78 beautifully decorated guestrooms and suites, here you’ll find a blend of contemporary art pieces sitting next to high end furniture in contemporary spaces. We love the addition of luxury amenities, including Marshall speakers, Serta beds, and bath products from local brand Sóley Organics.
Enjoy a lavish breakfast filled with regional ingredients to start your day off right. There’s even a historic bakery in the building for when you’re in need of a sweet treat!
Fun fact: Nobel laureate Halldor Laxness was born in a house on the site of the hotel, and a plaque outside commemorates him.
Find out more about Sand Hotel or Book through Booking.com
10. Oddsson Midtown Hotel
Hotel: Oddsson Midtown Hotel
Location: Grensásvegur 16a, 108 Reykjavík, Iceland
Neighbourhood: Háaleiti, east of central Reykjavík
Rooms: 77 rooms
Style: Contemporary urban design with practical furnishings and flexible accommodation layouts
Family-friendly: Yes, with family rooms featuring bunk beds, sofa beds and basic kitchenettes
Wellness: No dedicated spa or wellness centre
Pool: No swimming pool
Dining: Complimentary continental breakfast buffet
Best for: Families, groups and travellers seeking practical accommodation outside the busiest city-centre streets
Prices starting from: ISK 22,000 per room per night, depending on room and season
Oddsson Midtown Hotel
With 77 hotel rooms that cater to everyone from solo travellers to families with children, Oddsson Midtown Hotel is one of the coolest boutique hotels in Reykjavik. Just a 10-minute drive from the city centre and within a short walk of the city’s best shopping mall, the property opened in 2019 with its signature style blending both style and comfort.
Every single room is a traveller’s delight, with USB charging ports conveniently located in headboards and welcoming design touches that will make you feel at home. And family rooms offer kitchenettes, bunk beds, and sofa beds. Plus, complimentary continental breakfasts are served each morning on the ground floor to fuel you for the day.
Discover more about Oddsson Midtown Hotel or Book through Booking.com
Frequently Asked Questions
Which area of Reykjavík is best for a boutique hotel?
The 101 district is ideal for first-time visitors who want to explore on foot. Laugavegur suits shopping and nightlife, while the Old Harbour offers restaurants, museums and waterfront scenery. Grandi is a good choice for a quieter creative neighbourhood.
Is it better to stay in downtown Reykjavík or near the Old Harbour?
Downtown Reykjavík offers convenient access to shops, restaurants and nightlife. The Old Harbour is slightly quieter, with waterfront walks, museums and whale-watching departures nearby. Both areas are within walking distance of major attractions.
How many days should you spend in Reykjavík?
Allow two or three days to explore the city, visit museums and enjoy its food scene. Add extra days for day trips to the Golden Circle, South Coast or nearby geothermal attractions.
What is the best time of year to visit Reykjavík?
June to August brings long daylight hours and milder temperatures. September to March offers darker skies and better opportunities to see the Northern Lights. Winter weather can affect road conditions and excursions.
Can you see the Northern Lights from Reykjavík?
Yes, although city lights reduce visibility. For better chances, join a guided Northern Lights tour outside the city or visit darker areas along the coast. Sightings depend on cloud cover and solar activity.
Is Reykjavík easy to explore without a car?
Yes. The city centre is compact and most main attractions are walkable. Public buses serve wider neighbourhoods, while taxis and organised tours are useful for destinations outside the city.
Where should you stay in Reykjavík for easy access to restaurants and nightlife?
Laugavegur and the surrounding 101 district have the greatest concentration of restaurants, cafés, bars and shops. The Old Harbour also has excellent dining options, with a slightly different atmosphere and more waterfront surroundings.
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