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Capital Region Hotels for Your Next Holiday

Why Tourists Visit Capital Region

• Explore the art and history exhibits at the National Museum of Iceland.
• Relax in the world-famous Blue Lagoon or other geothermal pools like Nauthólsvík.
• Walk the streets of Reykjavík to discover street art and local coffee shops.
• Witness whales, puffins, and other wildlife on a boat tour from Reykjavík Harbor.
• Join a Northern Lights tour during winter for a magical experience.

The Capital Region is home to over 50 hotels, ranging from budget hostels to boutique luxury accommodations, with most located in Reykjavík offering quick access to top attractions. 3-star hotels average around $150–$200 per night, while 5-star options like The Reykjavik EDITION start from $450 and above. Recently, Grandi by Center Hotels has added a modern option with stylish design near the Old Harbor area, making it an excellent choice for travelers wanting a contemporary stay.

The Capital Region of Iceland, centered around Reykjavík, is known for its vibrant cultural scene, geothermal pools, and proximity to natural wonders like Þingvellir National Park and the Blue Lagoon.

This region offers a perfect blend of urban life and raw nature, making it a top destination for travelers seeking a mix of adventure and city exploration.

Visitors can stroll along Laugavegur Street, enjoy panoramic views from Perlan, or take day trips to iconic sites like the Golden Circle.

Capital Region Tips You Must Know

• Book hotels at least 3–6 months in advance for travel during summer or winter to secure the best rates.

• Take advantage of Reykjavík’s excellent public transport system or opt for rental cars for flexibility on day trips.

• Many hotels offer free breakfast, which is a great way to save time and money before heading out.

• Winter stays might include Northern Lights wake-up calls; check your hotel’s policy on this.

• Always plan around Iceland’s unpredictable weather—pack layers and confirm if your hotel offers shuttle services to key spots during storms.

Reykjavík

Reykjavík, Iceland's capital, boasts Hallgrímskirkja Church, whose design mimics volcanic basalt formations. The Harpa Concert Hall dazzles with its glass architecture, while street art and lively events like Culture Night reflect the city's creative spirit beautifully.

Explore the top hotels in Reykjavík to enjoy the perfect mix of culture, history, and modern comfort.

Kópavogur

Kópavogur offers Iceland's second-largest municipal swimming pool, with geothermal baths overlooking scenic landscapes. Gerðarsafn Museum displays cutting-edge modern art, while Smáralind, Iceland's largest shopping center, caters to those in need of retail therapy.

Discover the best hotels in Kópavogur for an unforgettable mix of relaxation and modern experiences.

Hafnarfjörður

Hafnarfjörður, known as the 'Town of Elves,' combines rugged lava fields and a charming harbor. The Viking Village hosts themed festivals celebrating Icelandic heritage, while Hellisgerði Park offers a mystical ambiance with purported elf dwellings.

Find unique hotels in Hafnarfjörður and immerse yourself in its magical folklore and history.

Garðabær

Garðabær is famed for the Álftanes Peninsula, offering stunning views and Bessastaðir, the President's official residence. Enjoy a peaceful hike at Heiðmörk Nature Reserve or visit Hofsstaðir Archeological Park, showcasing Iceland's Viking Age roots.

Browse hotels in Garðabær for a peaceful retreat with a touch of Viking history.

Mosfellsbær

Mosfellsbær, known as the 'Green Town,' is a paradise for outdoor enthusiasts with trails like Esjan Mountain for hiking. It also supports local craftsmanship, with Álafoss Wool Store preserving Icelandic wool-knitting culture for generations.

Stay in the most scenic hotels in Mosfellsbær to enjoy nature and Icelandic craftsmanship.

Central Hotels for the Heart of Reykjavík

Find more appealing Central hotels in Reykjavík and stay in the vibrant city center.

Hotel Name

Description

Price per night

Center Hotels Plaza

Downtown Reykjavík

Hallgrímskirkja (1 km)
Harpa Concert Hall (800 m)
Sun Voyager (900 m)

This hotel is located at Ingólfstorg Square, where Iceland's first settlers are believed to have arrived in 874. Its location makes it ideal for exploring Reykjavík’s downtown nightlife and seasonal markets.

Centrally located
Breakfast included
Fantastic city views

$150-$250/night

Reykjavik Natura - Berjaya Iceland Hotels

Öskjuhlíð

Perlan (450 m)
Nauthólsvík Geothermal Beach (1.3 km)
Reykjavík Art Museum - Kjarvalsstaðir (1.8 km)

Situated next to Öskjuhlíð Hill, this eco-friendly hotel is powered partly by geothermal energy. Guests staying here have convenient access to walking paths surrounded by local flora.

Proximity to nature
On-site sauna and spa
Eco-friendly operations

$130-$200/night

Reykjavik Marina - Berjaya Iceland Hotels

Old Harbor

Whales of Iceland Museum (500 m)
Saga Museum (600 m)
Harpa Concert Hall (1 km)

This hotel incorporates Icelandic maritime heritage, with quirky shipyard-inspired décor that reflects its harbor location. Guests can spot fishing vessels just outside their window.

Harbor view rooms
Funky interior design
Handy for whale-watching tours

$140-$220/night

Luxury Hotels with Unique Icelandic Flair

Search for high-end Luxury hotels in Reykjavík to enjoy exclusive accommodations with refined comforts.

Hotel Name

Description

Price per night

Center Hotels Arnarhvoll

Downtown Reykjavík

Harpa Concert Hall (400 m)
Sun Voyager (200 m)
Reykjavík City Hall (1.3 km)

This hotel has a rooftop terrace with panoramic views of the Faxaflói Bay and Mount Esja, which makes for a luxurious dining experience paired with amazing scenery.

Rooftop restaurant
Spa facilities
Modern aesthetic

$200-$350/night

Hotel Reykjavik Grand

Laugardalur District

Laugardalslaug Swimming Pool (1.5 km)
Perlan (2.5 km)
Hallgrímskirkja (4 km)

Known for its impressive Icelandic art collection displayed throughout the premises, this hotel doubles as an art gallery for guests.

Spacious rooms
On-site art displays
Free parking

$250-$450/night

Alda Hotel Reykjavik

Laugavegur Street

Sun Voyager (500 m)
Hallgrímskirkja (750 m)
Reykjavík City Hall (1.5 km)

This hotel provides free smartphones to each guest, offering instant access to maps and international calls, perfect for travelers exploring the city.

Central shopping location
Free guest smartphones
Fitness center

$220-$400/night

Charming Boutique Hotels for a Cozy Stay

Find more quaint Boutique hotels in Reykjavík to enjoy personalized charm and local character.

Hotel Name

Description

Price per night

Hotel Viking

Hafnarfjörður

Hellisgerði Park (750 m)
Þjóðminjasafn Museum (1.5 km)
Hafnarfjörður Harbor (1 km)

This hotel dedicates itself to Icelandic themes, complete with Viking-style décor, including carved wooden beds and an outdoor hot tub resembling a Norse cauldron.

Unique Viking-themed rooms
Outdoor hot tub
Close to cultural sites

$150-$220/night

The Swan House By Heimaleiga

Laugavegur Area

Hallgrímskirkja (700 m)
Sun Voyager (600 m)
Harpa Concert Hall (1.2 km)

This boutique hotel offers apartment-style lodgings with minimalist Icelandic architecture designed for extended stays and self-catering options.

Apartment-style rooms
Modern design
Great for families

$170-$300/night

City Center Hotel

Downtown Reykjavík

Reykjavík City Hall (600 m)
Hallgrímskirkja (1.3 km)
Harpa Concert Hall (800 m)

As one of Reykjavík’s oldest hotels, this building blends historical charm with updated amenities, situated on Austurstræti, the city’s entertainment hub.

Historical building
Central location
Nightlife proximity

$140-$210/night

Family-Friendly Hotels for All Ages

Check out more versatile Family Friendly hotels in Reykjavík tailored for all family sizes.

Hotel Name

Description

Price per night

Kex Hostel

Downtown Reykjavík

Sun Voyager (400 m)
Hallgrímskirkja (900 m)
Laugavegur (100 m)

Housed in a former biscuit factory, this hostel combines industrial vibes with family-friendly dorm and private room options, offering a truly quirky experience.

Budget-friendly
Child-friendly vibes
Creative interior

$50-$150/night

Hotel Fron

Laugavegur Street

Hallgrímskirkja (600 m)
Sun Voyager (600 m)
Reykjavík City Hall (1.3 km)

This centrally located hotel is ideal for families, offering rooms with kitchenettes and easy access to Reykjavík’s vibrant shopping and dining areas.

Kitchenette in rooms
Accessibility to main streets
Value for money

$120-$180/night

Center Hotels Klopp

Downtown Reykjavík

Harpa Concert Hall (700 m)
Sun Voyager (600 m)
Hallgrímskirkja (800 m)

This hotel caters to families looking for a central and cozy base, with free breakfast and close proximity to the city’s bustling entertainment scene.

Free breakfast
Family-friendly rooms
Central location

$130-$200/night

Relaxation Meets Luxury at Spa Hotels

Unwind in luxurious Spa hotels in Reykjavík, offering top-notch relaxation amenities.

Hotel Name

Description

Price per night

Grandi By Center Hotels

Old Harbor Area

Whales of Iceland Museum (550 m)
Saga Museum (700 m)
Harpa Concert Hall (1.1 km)

This hotel offers an on-site spa inspired by Icelandic geothermal energy, featuring a hot pool and serene relaxation spaces near Reykjavík’s Old Harbor.

Spa amenities
Great harbor views
Modern interiors

$180-$300/night

Midgardur By Center Hotels

Laugavegur Street

Hallgrímskirkja (850 m)
Sun Voyager (700 m)
Reykjavík City Hall (1.5 km)

Known for its luxury spa with a bubbling outdoor hot tub and steam room, this hotel ensures a tranquil experience on Laugavegur Street.

Wellness spa
Dining options
Central shopping access

$220-$350/night

Hotel Island - Spa & Wellness Hotel

Laugardalur District

Laugardalslaug Swimming Pool (900 m)
Botanical Gardens (1 km)
Reykjavík Zoo (1 km)

This wellness-focused hotel features health-oriented programs, including access to a fitness studio and an ice-cold plunge pool for skilled relaxation seekers.

Fitness facilities
Unique wellness programs
Quiet surroundings

$150-$250/night

Frequently asked question

What are the best hotels near Hallgrímskirkja Church?

Hotels like Alda Hotel Reykjavík and Kvosin Downtown Hotel are within walking distance of Hallgrímskirkja Church, offering central locations and modern amenities.

Are there family-friendly hotels in the Capital Region, and what amenities do they offer?

Family-friendly hotels such as Center Hotels Laugavegur often provide spacious family rooms, kid-friendly menus, and babysitting services.

How expensive are hotels in the Capital Region, and what is the average nightly cost?

In the Capital Region, budget hotels typically cost $100–$150 per night, mid-range options range from $180–$250, and luxury accommodations can exceed $400 per night.

What are the best boutique hotels in the Capital Region?

Sand Hotel by Keahotels and Reykjavik Residence Hotel are highly-rated boutique hotels known for their stylish design and personalized service.

Can I find hotels with easy access to the Blue Lagoon?

Hotels such as Northern Light Inn are located close to the Blue Lagoon, offering convenient access and picturesque surroundings.