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9 Luxury Hotels in Reykjavik With Historic Charm

9 Luxury Hotels in Reykjavik With Historic Charm

Olly Gaspar

By Olly Gaspar, full-time traveler for 6 years. I visit every place I write about & share real tips, photos, & advice from my trips.

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 downtown Reykjavik, Iceland.

Reykjavik is the first base many travelers visit before their adventures in Iceland! However, with over 2 million yearly visitors, it’s important to note that accommodations book out quickly.

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

Book: My top picks are the Reykjavik Edition for its ultimate luxury and central location and the Apótek Hotel for its unique historical designs that date back to early 1917.

In this guide, I break down the best luxury hotels in Reykjavik, including 5-star and 4-star downtown accommodations and some great boutique hotel picks.

Infographic for the best luxury hotels in reykjavik
Map showing the location in Reykjavik for the best luxury hotels

Top 5-Star Luxury Hotels in 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 place for you to stay.

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

1. The Reykjavik Edition

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 5-star hotel 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.

To save on money be sure to book your stay well in advance!

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.

Guests can enjoy complimentary tea and Nespresso coffee in their rooms. An in-suite breakfast package can also be ordered and delivered to the apartment.

The beautifully decorated rooms each have a private bathroom and wifi, TV and a fully equipped kitchen can be found with a fridge, oven, and dining area.

The Reykjavik Art Museum, Harpa Concert Hall, Hallgrímskirkja Church, Old Reykjavik Harbor, and Reykjavik Swimming Pool can all be found nearby.

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 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 for location and value for money.

It features a wellness spa, a complimentary fitness center, a restaurant, and a lobby bar. Each room features a private bathroom and a balcony with panoramic views over Reykjavik city.

Guests can also enjoy a daily continental breakfast.

4. Iceland Parliament Hotel

Reykjavik has stunning 4-star hotels and one worth mentioning is the Parliament Hotel.

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 restaurant and a bar.

The deluxe rooms come with air conditioning, a flat-screen TV, a minibar, a coffee machine, and a private bathroom. Davey a fellow traveler from the UK mentioned in a review, "I definitely recommend including breakfast during your stay".

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 a popular shopping street, ION City Hotel is one of the best places to stay in Reykjavik for those who enjoy spending money.

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 comfortable beds.

Guests can enjoy the facilities in the hotel such as the hot tub, sauna, steam room, and gym, or explore the surrounding area.

Some rooms overlook the historic Asuturvollur Square.

Tip: Hotel Borg has been a chosen hotel by many celebrities so keep your eyes peeled when staying here for a chance to say hello.

Unmatched Luxury at Historic 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

Reykjavik Residence Apartment Hotel is another top pick for those who value more freedom and would rather an apartment style stay!

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

The hotel is situated in the heart of downtown Reykjavik. Meaning you're within walking distance of the city's best shops, restaurants, museums, and the iconic harbor.

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 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.

It's central location is great for those with mobility limitations and along with this Apótek Hotel has rooms which specifically cater to disabled guests.

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 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

Blue Lagoon Retreat

When you think of Iceland, one of the first things that comes 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?

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 rooms feature a private bathroom with spectacular lava field views.

Guests at the hotel have unlimited access to the Retreat Spa, the Retreat Lagoon, the Blue Lagoon, and the Blue Lagoon Ritual.

Be sure to explore Iceland's volcanic landscape by joining one of the daily guided hikes.

My Hotel Selection Process

  • Accommodation Criteria: When selecting the top luxury places to stay in Reykjavik, I prioritized reviews, location, and value for money. Each listed accommodation meets this criteria, guaranteeing an unforgettable visit.
  • My Experience: I only choose hotels that offer the best for your money. I have not stayed in all of the selected luxury hotels listed above however, I have read through hundreds of reviews, comments, and resources to help with my selection process.
  • Top Reviews: All hotels on this list have earned a high customer rating across booking sites such as, Expedia, and I consistently check my options and update them accordingly.
  • Local Insights: I gathered reviews from other travelers who recommend hotels based on location and nearby activities in Reykjavik.

Read more about how I review & select hotels & accommodations.

Years Traveling
Hotels Stayed
Olly gaspar

I'm Olly, a full-time traveler since 2018. Each accommodation option in this guide is handpicked by me. Read my travel review ethics statement.

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.

Northern lights in iceland
I spotted the northern lights during my visit!

FAQ About Staying in Reykjavik's Luxury Hotels

Are Reykjavik luxury hotels expensive?

Yes, to be truthful, luxury accommodations in Reykjavik are expensive, especially during peak season Summer, and when the Northern Lights are visible. With this though you are getting the best-rated accommodation in the area. You can often find deals by booking in advance, considering the shoulder seasons of Spring & Autumn.

Is it worth staying outside Reykjavik for a luxury experience?

Yes! The Blue Lagoon Retreat offers an unmatched level of luxury. If you're looking for spa experiences and stunning nature, it's a fantastic option!

How many days should I stay in Reykjavik?

A minimum of 2-3 days is ideal for exploring Reykjavik's highlights and enjoying the luxurious hotel experience. However, if you plan to take day trips or explore more of Iceland, 5-7 days would allow you to get through everything without feeling rushed.

What's the best time to visit Reykjavik?

Budget: Aim to visit during the shoulder seasons (April-May, Sept-Oct) for lower prices and fewer crowds.
Northern Lights: Plan your trip between September and March for the best chance of seeing the aurora borealis. However, this can be a busy time so book well in advance!
Midnight Sun & Warmer Weather: Visit during the summer months (June-August) for long daylight hours perfect for hikers or those looking to explore the volcanic island it is also a time with milder temperatures.

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 traveler from Australia. I’ve spent the last six years traveling the world full-time, sharing my first-hand experiences & photography in over 700 travel guides on We Seek Travel. I visit every destination I write about to bring you unique travel itineraries, epic hiking routes, fun tour ideas, travel & photography gear ideas, & interesting places to stay.

I only make genuine, worthwhile recommendations based on my experience, expertise, & research. If you buy through my links, I may get a commission, supporting this website at no extra cost to you. Read my Publishing Ethics Statement.