In this guide · 5 sections
Reykjavik accommodation is expensive, and it's only getting more so. Tourism has grown fast here over the last decade, squeezing hotels and driving prices higher than you'd expect for the North Atlantic. They're not cheaper than Western Europe. Budget more than you think, and book early, especially for summer or Pride week.
Where to stay
The city center—around Laugavegur, Austurstraeti, and the old harbor—is the obvious spot for nightlife and sightseeing. You can walk everywhere; the center's small, and most visitors stick to this area for their whole trip. Hotels here range from budget guesthouses to boutique places and a few high-end options. Mid-range quality has really improved as tourism has grown.
Stay a little outside the immediate center (the 101 postal district) and you might save some money without adding much travel time. The city's small enough that it's rarely more than a 15-minute walk. Some places in the 104 or 105 districts offer better value and still keep you close to everything.
Pride week booking
Reykjavik Pride in August is a huge event for a city this size. Hotels sell out weeks, even months, ahead. Don't leave it to chance. If you plan to go to Pride, book as soon as dates are announced, usually four to six months out. Prices during Pride week hit their yearly high.
Summer vs winter
Summer (June-August) is the priciest time for accommodation. That's because of tourist demand and the midnight sun, which makes the city especially appealing then. Winter accommodation can be quite a bit cheaper, and the northern lights offer a different kind of draw. Shoulder season (May and September-October) is a good compromise: lower prices than peak summer, decent weather, and the city still works without the extreme light of midsummer or midwinter.
The hotels
Practical notes
All hotels take cards; you'll rarely need cash in Iceland. Air conditioning is uncommon in Reykjavik hotels because it's rarely hot enough to need it. But blackout curtains are crucial in summer if you want to sleep. Check if your room has them. For the bigger picture, see the Gay Reykjavik Guide.