Reykjavík, Iceland Hotels
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Reykjavík is like no capital city you’ve ever been to before. It doesn’t have the ambiance of castles and old squares like Europe or the grandeur of skyscrapers and monuments like North America. Reykjavík is a capital city lying among arctic mountains and fjords, filled with natural wonders, fascinating architecture, and a burgeoning café culture. It’s not easy to plan a trip to Reykjavík on a budget, so if you’re having trouble finding cheap hotels, affordable ways to get around the city, and interesting, yet low-cost activities, you’ve come to the right place. There are plenty of free activities and great value accommodations like the Metropolitan Hotel in Reykjavík that will help you save money while having a memorable vacation.

Hipmunk's Best Hotels in Reykjavík, Iceland

CenterHotel Klopp
CenterHotel Klopp
Klapparstig 26, Reykjavik
from $4
Hotel Reykjavik Centrum
Hotel Reykjavik Centrum
|
4.3
Adalstraeti 16, Reykjavik
from $1
CenterHotel Arnarhvoll
CenterHotel Arnarhvoll
|
4.1
Ingólfsstræti 1, Reykjavik
from $2
City Center Hotel
City Center Hotel
|
4.0
Austurstraeti 6, Reykjavik
from $155
Hotel Borg by Keahotels
Hotel Borg by Keahotels
|
4.3
Posthusstraeti 11, Reykjavik
from $2
CenterHotel Skjaldbreid
CenterHotel Skjaldbreid
|
3.8
Laugavegi 16, Reykjavik
from $1
Fosshotel Raudara
Fosshotel Raudara
|
3.8
Raudararstigur 37, Reykjavik
from $1
Hotel Holt
Hotel Holt
|
4.3
Bergstadastraeti 37, Reykjavik
from $3
Hotel Odinsve
Hotel Odinsve
Odinstorg Thorsgata 1, Reykjavik
from $2
Hotel Cabin
Hotel Cabin
|
3.2
Borgartuni 32, Reykjavik
from $1
More About Reykjavík, Iceland Hotels...

The Best Time to Visit Reykjavík is All the Time

What’s great about Reykjavík is also the biggest challenge: it’s a great destination year-round so there isn’t really a "low season." Autumn in Iceland is a beautiful time when the orange and green colours stand out among the grey skies and the snowy white mountains in the background. Summer is the busiest time of year thanks to the decent weather, long days, and the fact that highland roads are open. Winter is still a popular time for visitors thanks to the Northern Lights.

Spring is potentially your best bet for the lowest prices and smallest crowds. It has the benefit of the longer days and easier travel around the country. In the spring the weather is improving which means you can partake in the famous Friday and Saturday bacchanalian pub crawl – runtur – without freezing to death.

Choose Hostels or Airbnb for the Best Value for Money

Youth hostels are a growing market and you can find over 400 Airbnb accommodations in and around Reykjavík. A night in a hostel dorm in Reykjavík starts at $20 night – and that’s just for the bed. Keep in mind that in Iceland, like other Scandinavian countries, you will be charged for bedding, sometimes up to $11 per night. Bring your own sleeping bag or sheets if you really want to save.

One of travellers’ favourite hostels is Kex – a bed in a dorm starts at $25 and it’s a very hip and social hostel, a short distance away from cafés, shops, and tourist attractions. It’s perfect if you want to party during the runtur – because of the high costs of alcohol, most young people in Reykjavík drink at home and then go out around midnight or 1AM.

If you prefer something more private, Airbnb is a great option with private rooms in the heart of Reykjavík. You can find a private room on Airbnb for $23, though stretching to $45 is recommended. You’ll have a pleasant place to sleep and a kitchen to cook your own meals – another way to save. Food and drinks can be expensive so stocking up at the grocery store is recommended.

Offset the Costs of Accommodation by Visiting Reykjavik’s Free Attractions

There are some costs that cannot be avoided like accommodation, food, transportation, and paying for the must-see attractions like the Blue Lagoon. In order to save money on your trip take advantage of the city's free attractions and activities. 

The city offers free walking tours every day during the summer and every Saturday during the winter. The two-hour tours depart from the green clock tower in Laekjartorg Square. Visitors can take a trip up to Perlan, the large dome made of steel and glass. A hike to the top offers panoramic views over Reykjavík that are absolutely stunning.

Be sure to take a walk around Tjornin Lake – it has a gorgeous park and row of colorful wooden homes to look at in the distance. The best accommodation nearby is a comfortable private room in a historical house just around the corner from the lake and the park. Rates are $65 per night.

To learn more about the arts, culture, and history of Reykjavík on a budget, visit the free museums and churches around town. Hallgrimskirkja Church is one of the city’s top attractions, and easy to see from most places in the city. The church is named after an Icelandic poet and there is a statue dedicated to Leif Eriksson, the Viking said to have discovered North America.

The National Gallery of Iceland and the Reykjavík Museum of Photography are free for visitors. The city’s Art Museum offers open admission on Mondays and Iceland’s National Museum has free admission on Wednesdays. Take a walk to the waterfront to see the shimmering façade of the Harpa Concert Hall. Inside you’ll see the intricacies of the design and maybe a free exhibit or two. If you plan on seeing some concerts and would like to stay nearby on a budget, your best option is the Reykjavík City Center Guesthouse which starts at $75 per night and includes airport transfer.

You Don’t Have to Stay in the City Centre

If you’ve chosen a layover you will most likely fly into Keflavik Airport, which is about 40 minutes outside of Reykjavík. Transfers between the airport and the city are easy with Flybus, which will cost you about $28 if you book in advance. The bus leaves the airport after every flight arrival drops passengers off at the downtown bus terminal. The downtown area is surprisingly walkable, making it easy to get around without paying for taxis.

Another option is to stay outside the downtown area and take the bus into town. The Metropolitan Hotel is one of the cheapest hotels in Reykjavík, and is only 5 minutes away from the city center. Rooms start at $58 per night. 

Alternatively, if you were planning more of a spa holiday or only staying a short while, finding accommodation near the airport and the Blue Lagoon may be preferable. Hotel Keflavik is a popular choice for those 4-star tastes. It’s close to the Blue Lagoon and the airport and an easy journey into the centre of Reykjavík for a day trip.

Guesthouses Offer Low Prices with a Personal Touch

Guesthouses have been the most popular type of budget accommodation in Iceland before the dawn of hostels and Airbnb. These bed and breakfasts offer excellent packages that include airport transfer and tours of Reykjavík and its surrounding areas. Domus Guesthouse is private and charming with cosy apartments for groups that include kitchenettes (perfect for cooking your own meals!) and washing machines for longer stays with nightly rates at $44.

Planning in advance is the best way to save money when travelling, so spend some time poring over these travel tips and you’ll have the best budget trip to Reykjavík possible!

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