Affordable Boutique Hotels in Reykjavik

Last updated on March 23rd, 2024 at 10:20 pm


Reykjavik. The capital city of Iceland known for its breathtaking landscapes, colorful buildings, and quirky boutique hotels. The small country out to sea has so much to offer its residents and visitors. While many tourists opt to road-trip the Ring Road, there’s a lot to be seen in Reykjavik too.

Making the charming capital your base during your trip will allow you to experience the Icelandic culture through its vibrant street art, locally-sourced dishes, and variety of boutique hotels in Reykjavik.

Center hotel laugavegur boutique hotel in iceland

Center Hotels Laugavegur

★ Rating: 4 Stars
✇ Standouts: Lóa Restaurant & Bar, Balconies, Buffet Breakfast
✈︎ Location: 95-99 Laugavegur 95 – 99, 101, Reykjavik Iceland

With a casual eatery through the lobby and elegant restaurant inside, Laugavegur is the ideal hotel if you want to be close to everything with the bonus of enjoying relaxing evenings. The hotel is located on the quieter side of the main shopping street, within a 5-10 minute walk of the popular bars and restaurants. 

Rooms have balcony spaces with stunning views of the city center and snow-capped mountains in the distance. (I actually saw the northern lights for the first time on the rooftop of Center Hotels Laugavegur) Read the full re-cap of my stay here.

Rooms at center hotel midgardur boutique hotel in reykjavik

Midgardur by Center Hotels

★ Rating: 4 Stars
✇ Standouts: Jörgensen Kitchen & Bar, Buffet Breakfast, Miðgarður Spa
✈︎ Location: Laugavegur 120, 101 Reykjavík, Iceland

Located towards the end of the city’s shopping street, Midgardur by Center Hotels sits in a quieter part of town within steps from the hustle and bustle. Every Thursday night, enjoy live music from local performers at the restaurant and bar area. Take a dip under the Icelandic Sun or Northern Lights at the hotels spa.

Read the full recap of my stay here!

Views from the suite at center hotel plaza in iceland

Center Hotels Plaza

★ Rating: 4 Stars
✇ Standouts: Plaza Bar, Buffet Breakfast, Suites with Balconies
✈︎ Location: Aðalstræti 4- 6, 101 Reykjavík, Iceland

This hotel is located right in Ingólfur Square, which is conveniently home to numerous restaurants, bars, and shops. If you walk through the square and follow the street straight down, it’ll lead you to the Rainbow road, authentic street-lined shopping stalls, and many more attractions nearby.

center hotel thingholt

Center Hotels Thingholt

★ Rating: 4 Stars
✇ Standouts: Þingholt Bar,  Ísafold Spa, Breakfast
✈︎ Location: Þingholtsstræti 5, 101 Reykjavík, Iceland

The hotel is conveniently located right near the famous rainbow road. It’s the ideal location if you want to be right in the middle of everything that’s going on- restaurants, bars, shops, etc. The on-site spa is a nice treat after a long day exploring Reykjavik.

center hotel grandi

Center Hotels Grandi

★ Rating: 4 Stars
✇ Standouts: Héðinn Kitchen & Bar, Breakfast Buffet
✈︎ Location: Þingholtsstræti 5, 101 Reykjavík, Iceland

Grandi is located steps from the old harbor, and a few minutes walk from the center of the downtown area, at Seljavegur 2, 101 Reykjavík. It’s the perfect location if you don’t want to be right in the middle of the hustle and bustle, and is its own perfect oasis across from the sea.