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Top 9 Luxury Hotels in Reykjavik – Book a 5-Star Stay in Iceland’s Capital

Top 9 Luxury Hotels in Reykjavik – Book a 5-Star Stay in Iceland’s Capital

Treat yourself to a luxurious 5-star stay in the stunning land of fire and ice by staying at one of these incredible luxury hotels in Reykjavik, Iceland.

When planning where to stay in Reykjavik for a truly indulgent and memorable experience, you’ll likely come across many amazing 5-star hotels, exclusive city center guest rooms, and deluxe historic buildings in Iceland’s capital.

That’s because Reykjavik is the first base many travelers visit before their adventures in Iceland! However, with over 2 million yearly visitors, you’ll want to book in advance! In this guide, I’ll break down the best luxury hotels in Reykjavik, including 5-star and 4-stay downtown accommodations and some great boutique hotel picks.

Olly gaspar

By Olly Gaspar, traveler, travel blogger & photographer for 5+ years with 600+ published travel guides. I visit every place I write about & share real tips from what I learn.

The Quick Answer: The Best Luxury Accommodation in Reykjavik

In a rush? Below are my top three picks for the best luxury accommodation in the capital city of Iceland. For more options, and a breakdown of each area of the city, don't miss my more comprehensive guide to where to stay in Reykjavik.

  • The Reykjavik Edition - This is a spectacular hotel that offers its guests ultimate relaxation and luxury. From its beautiful interior design to its incredible onsite restaurant, it ticks all of the boxes.
  • ION City Hotel - Boasting incredible floor-to-ceiling windows with a private hot tub this hotel is a great pick for couples wanting a relaxing and romantic stay in Reykjavik.
  • Apótek Hotel - A true historic experience can be had at this 1917-built hotel. It offers its guests comfortable beds and great views over the surrounding city.
Infographic for the best luxury hotels in reykjavik

Reykjavik Accommodation Map

Below is a useful interactive map to help you find the best luxury hotels to stay in Reykjavik at the latest prices across booking platforms. It includes some of the important places of interest, as well as all of the hotels recommended here, labeled in orange.

Top 5-Star Luxury Hotels in Downtown Reykjavik (City Center)

If you love staying in the center and being close to restaurants, cafes, and tourist sites when you travel, then Downtown Reykjavik is the coolest places for you to stay. When it comes to Reykjavik hotels, you won't find very many 5-star ones– but they do exist!

Here are the best 5-star hotels in the city.

The reykjavik edition bedroom view with sea viewsThe Reykjavik Edition$$$$
Black pearl apartment hotel in reykjavík, icelandBlack Pearl Apartment Hotel$$$$

1. The Reykjavik Edition

If you're searching for the best 5-star hotels in Iceland, Reykjavik has a couple to choose from. Located in the city center, The Reykjavik Edition is one of the most beautiful Reykjavik luxury hotels worth staying at– and my top pick for the number one place.

Situated on the harbor, The Reykjavik Edition features concierge services, free Wi-Fi, a restaurant, and a bar. The 5-star hotel also boasts a spa and wellness center, a fitness center, a sauna, a hot tub, and a terrace.

All of the stunning guest rooms at this property feature a seating area, a flat-screen TV, and a safety deposit box. All rooms have a private bathroom, while some units boast beautiful city views.

Each morning before a big day of exploring, guests can enjoy a fresh and delicious à la carte breakfast.

Popular points of interest worth visiting near the accommodation include Hallgrímskirkja Church, Harpa Concert Hall & Conference Center, and Reykjavik Old Harbor.

The nearest airport, Reykjavik Domestic Airport, is 2 km from the accommodation.

2. Black Pearl Apartment Hotel

Located in the heart of the city, Black Pearl Apartment Hotel is one of the best luxury hotels in Reykjavik that you must add to your bucket list.

These luxury apartments feature free WiFi, contemporary furnishings, an iPad, large windows, blackout curtains, and heated, marble floors, as well as a balcony with city views. Each apartment's seating area also has a flat-screen TV with satellite channels. Guests can enjoy complimentary tea and Nespresso coffee in their rooms, as well. An in-suite breakfast package can also be ordered and delivered to the apartment.

There are also plenty of restaurants and bars just a short walk from the property.

Popular points of interest near the hotel include the Reykjavik Art Museum, Harpa Concert Hall, Hallgrímskirkja Church, Old Reykjavik Harbor, and Reykjavik Swimming Pool. Free private parking is available on-site.

Top 4-Star Luxury Hotels in Reykjavik

If you're looking for the best Reykjavik luxury hotels, did you know that they're not all 5-stars? Here is a breakdown of the best luxury hotels in Reykjavik that are 4-stars, and definitely worth staying at.

Reykjavik konsulat hotel bedroom suiteReykjavik Konsulat Hotel$$$$
Iceland parliament hotel room with large bed and chairIceland Parliament Hotel$$$$
Ion city hotel bedroom with bath and large window with viewsION City Hotel$$$$
Hotel borg large bedroom with coffee machine and deskHotel Borg$$$

3. Reykjavik Konsulat Hotel

If you're looking to stay in modern accommodation in a historic building, you must book Reykjavik Konsulat Hotel.

Located within walking distance from Harpa Concert Hall, this is one of the best hotels to stay in the downtown area.

This stunning hotel features a wellness spa, a complimentary fitness center, a restaurant, and a lobby bar. Each of the modern rooms features a private bathroom, a seating area, and a balcony with panoramic views over the surrounding city.

Guests can also enjoy a daily continental breakfast.

4. Iceland Parliament Hotel

Although there are plenty of 5-star hotels in Iceland, Reykjavik has stunning 4-star hotels worth staying at that have the same amount of luxury, and Iceland Parliament Hotel is one of them.

This beautiful hotel in the downtown area is the perfect place to stay as it's close to everything. The hotel features a fitness center, a shared lounge, and a restaurant and bar. It also offers room service, a concierge service, and a 24-hour front desk.

The deluxe rooms come with air conditioning, a flat-screen TV, a minibar, a coffee machine, and a private bathroom. Each morning, guests can enjoy a buffet or continental breakfast.

Points of interest worth visiting near the hotel include Hallgrímskirkja Church, Solfar Sun Voyager, and Reykjavik Old Harbor.

5. ION City Hotel

Located on Laugavegur shopping street, ION City Hotel is one of the best places to stay in Reykjavik.

This beautiful modern accommodation features a fitness center, a restaurant, an on-site bar, and a 24-hour front desk.

All of the rooms have floor-to-ceiling windows and they also have wooden floors. Some rooms have a seating area while others have balconies that boast beautiful ocean views.

Popular attractions near the accommodation include the Einar Jónsson Museum, Hallgrímskirkja Church, The Pearl, and Solfar Sun Voyager sculpture.

6. Hotel Borg

Located in a stunning historic building, Hotel Borg boasts elegance and contemporary design.

All hotel rooms at Hotel Borg feature free WiFi, smart TVs, and quality beds.

Overlooking the historic Asuturvollur Square, guests can enjoy the facilities in the hotel such as the hot tub, sauna, steam room, and gym, or explore the surrounding area.

Unmatched Luxury at These Reykjavik Historic Building Hotels

Reykjavik is home to many historic buildings that house stunning hotels. If you love staying in boutique hotels with rich histories, these are the accommodations you must add to your bucket list.

Reykjavik residence apartment hotel street viewReykjavik Residence$$$$
Apótek hotel from street view, icelandApótek Hotel$$$$
Street view of hotel reykjavík centrumHotel Reykjavík Centrum$$$

7. Reykjavik Residence Apartment Hotel

Located in central Reykjavik, Reykjavik Residence Apartment Hotel is located just steps away from the city's main street, Laugarvegur.

Each of the units at the accommodation features flat-screen TVs, modern kitchen facilities, free Wi-Fi access, and tea and coffee makers. Communal laundry facilities are also available on-site.

Because of its central location, the accommodation is near many shopping, restaurant, and nightlife venues.

Keflavik International Airport is 50 minutes from the hotel.

8. Apótek Hotel

Found in the center of the city, this stunning boutique hotel is set in a historic building designed by Gudjón Samúelsson in 1917.

Apotek Hotel boasts brightly decorated rooms with free WiFi, flat-screen TVs, seating areas, and private bathrooms. Guests can eat at the hotel restaurant or have a drink at the bar. There are also other restaurants and bars within walking distance of the property.

Points of interest near the accommodation include Hallgrímskirkja Church and Reykjavik Harbor.

9. Hotel Reykjavík Centrum

Located on one of Reykjavik's oldest streets, Adalstraeti is where you can find Hotel Reykjavik Centrum.

This hotel was built above the ruins of a Viking-era longhouse. Today, an on-site exhibition center now honors this historic feature.

Offering both hotel rooms and self-service studios, all accommodations at this property feature modern decor, wooden floors, and fantastic bathrooms.

Guests can enjoy traditional Icelandic cuisine and an extensive wine list at Fjalaköttur, the hotel's award-winning restaurant.

Alternative: Stay Outside of Reykjavik at the Blue Lagoon Retreat

Blue Lagoon Retreat

When you think of Iceland, one of the first things that come to mind is most probably the Blue Lagoon. But did you know you can stay at this very popular attraction, and that this is one of the best luxury hotel options near Reykjavik?

When it comes to Reykjavik hotels, 5-star ones are easy to come by, but if you venture further south, you'll find yourself at the stunning luxurious Blue Lagoon Retreat.

Featuring a subterranean spa, a geothermal lagoon, and a restaurant featuring delicious Icelandic cuisine, this 62-suite luxury hotel is a must-stay.

All of the contemporary rooms feature free Wi-Fi, a minibar with Icelandic beer, wine, and soft drinks, a turndown service, and 24-hour room service.

Because of its spectacular location, guests at the hotel have unlimited access to the Retreat Spa, the Retreat Lagoon, the Blue Lagoon, and the Blue Lagoon Ritual.

Every morning, guests can enjoy an à la carte breakfast. Daily group hikes and yoga sessions are also available.

Can You See the Northern Lights from a Reykjavik Luxury Hotel?

Is it possible to see the Northern Lights in Reykjavik? Yes, it's possible and I saw the lights when visiting the city on the very first night. However, seeing the lights from the comfort of your hotel room might be a little tricky due to the amount of light in the city.

The thing is, you'll want to find a place with as little light pollution as possible to see the famous northern lights.

My tip is that, if you're looking for a place under the stars to see the Northern lights at their full potential it is best to head out of Reykjavik and stay at the Lighthouse-Inn which is a 50-minute drive from Reykjavic Center. You could also visit the Golden Circle from Reykjavik for a good chance in winter.

Here you will experience the Nothern Lights within the interference of the surrounding city lights. Alternatively, there's no better experience than seeing the aurora borealis in nature, so you could also check out the nightly Northern Lights tour that includes hotel pickup as well.

More Iceland Travel, Adventure, & Accommodation Guides

I hope you've enjoyed this comprehensive guide to Reykjavik's best luxury hotels! After you've chosen your accommodation, make sure to check out some of my other guides below.

I've written extensively about travel in this amazing country and I'm sure you'll find some great travel ideas for your trip.

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Thanks for Reading

I'm Olly Gaspar, adventure travel blogger & photographer. Traveling non-stop since 2018, I've published over 600 travel guides on We Seek Travel. These draw on my personal experience to share unique itineraries, accommodation tips, & fun adventure guides covering hikes, viewpoints, beaches, waterfalls, & tours. Read my Publishing Ethics Statement.

Your feedback & updates are crucial to keep my guides factual & current. Got new info or updates? Drop a comment below or contact me directly.

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