A cityscape with a prominent church, a body of water, and snow-capped mountains in the background.

Cheap Hotels & Resorts in Downtown Reykjavik from AU$146

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Check availability on Downtown Reykjavik Cheap Hotels

Our top choices for Downtown Reykjavik cheap hotels

A modern living room with a dark sofa, a round coffee table, and several potted plants.

1. Old Town Reykjavik

Old Town Reykjavik
3.0 star property
Downtown Reykjavik
7.4 out of 10, Good, (322 reviews)
"I loved my stay here! The location in the heart of the Old Town is amazing, and you can easily walk to all the beautiful sights. The rooms were spotless and the atmosphere was so warm and cozy."
Canada
Tatiana
The price is AU$112
includes taxes & fees
18 Nov - 19 Nov
Old Town Reykjavik
A restaurant with wooden flooring, a bar area with bottles, and a view of the street.

2. Hotel Von

Hotel Von
3.5 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (1,008 reviews)
"It was a great stay!!"
United States
Paulo
The price is AU$227
includes taxes & fees
9 Nov - 10 Nov
Hotel Von
Bar (on property)

3. KEX Hotel and Hostel Reykjavik

KEX Hotel and Hostel Reykjavik
2.0 star property
Downtown Reykjavik
8.6 out of 10, Excellent, (991 reviews)
"Friendly staff a wonderful location."
United States
Alex
The price is AU$170
includes taxes & fees
20 Oct - 21 Oct
KEX Hotel and Hostel Reykjavik
A building with multiple windows and a tower with a spire.

4. Hostel B47

Hostel B47
2.0 star property
Downtown Reykjavik
8.4 out of 10, Very good, (317 reviews)
"Great place for hostel."
United States
Thomas
The price is AU$140
includes taxes & fees
27 Oct - 28 Oct
Hostel B47
A restaurant interior with high ceilings, hanging plants, and a bar area.

5. Nordic Hostel

Nordic Hostel
2.0 star property
Downtown Reykjavik
9.8 out of 10, Exceptional, (11 reviews)
"Super clean and felt safe as a female solo traveler, in a shared 13 bed hostel"
United States
brianna
The price is AU$201
includes taxes & fees
26 Oct - 27 Oct
Nordic Hostel
A two-story house with a snow-covered roof and a white picket fence.

6. Refurinn Reykjavik Guesthouse - Hostel

Refurinn Reykjavik Guesthouse - Hostel
2.0 star property
Vesturbær
9.0 out of 10, Wonderful, (44 reviews)
"It's very clean and the kitchen is well equipped! They offer some food which is very nice. You need to go around to find parking lot."
United States
Justina
The price is AU$188
includes taxes & fees
1 Nov - 2 Nov
Refurinn Reykjavik Guesthouse - Hostel
A modern bedroom with a black bed, a wooden floor, a fur rug, a bedside table with a vase, and a hanging light fixture.

7. Bus Hostel Reykjavik

Bus Hostel Reykjavik
3.0 star property
Hlíðar
8.2 out of 10, Very good, (354 reviews)
"Accessible to the city"
United States
Deborah
The price is AU$154
includes taxes & fees
2 Nov - 3 Nov
Bus Hostel Reykjavik
A building with multiple windows and a flat roof, under a night sky with green aurora lights.

8. Hostel Fjordur

Hostel Fjordur
1.0 star property
Hafnarfjörður
8.8 out of 10, Excellent, (16 reviews)
"Wonderful stay ! Love the layout on different floors, availability of amenities, comfortable rooms and location"
United States
Kanchan
The price is AU$132
includes taxes & fees
18 Nov - 19 Nov
Hostel Fjordur
A modern hotel room with a bed, bedside tables, a desk with chairs, a potted plant, and a door.

9. Iceland Comfort Apartments Studio for 5

Iceland Comfort Apartments Studio for 5
Digranes
6.0 out of 10, (1 review)
"Not a bad place but not a great place.It was spacious, clean and with comfortable beds. Room has a huge wall of windows that have terrible curtains that are not wide enough to cover all the width of the room and therefore you will not be able to cover all the windows and get 100% of privacy.Plus the room is facing a street and other buildings across the street so you will be seen! That was my really the only complain."
United States
Lukas K.
The price is AU$346
includes taxes & fees
18 Nov - 19 Nov
Iceland Comfort Apartments Studio for 5
A modern hotel room with a large bed, a nightstand with a lamp, a view of a cityscape through a window, and a painting on the wall.

10. Sif Apartments Reykjavik - 2 Bedrooms with balcony

Sif Apartments Reykjavik - 2 Bedrooms with balcony
Laugardalur
9.4 out of 10, Exceptional, (10 reviews)
"The apartment was the perfect home base for all our Iceland adventures. Well furnished, comfortable beds, washer/dryer, and quiet but still in the heart of the city and right around the corner from a bus stop. Our family of 4 felt right at home and would certainly stay again in the future. "
United States
Audrea L.
The price is AU$523
includes taxes & fees
18 Nov - 19 Nov
Sif Apartments Reykjavik - 2 Bedrooms with balcony
Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.
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Top Downtown Reykjavik Hotel Reviews

Alda Hotel Reykjavik

Alda Hotel Reykjavik

10/10 Excellent
"Location was convenient, staff was friendly and helpful, breakfast buffet was plentiful with delicious options, and we even enjoyed the hot tub and sauna. Great place to stay!"
Casey 3-night trip
Posted 6 hours ago
Alda Hotel Reykjavik

Frequently asked questions

What is Downtown Reykjavik like for travellers on a budget?
Downtown Reykjavik offers a variety of cheap accommodation options and things to do, making it a great holiday choice for budget-conscious travellers. You can find ways to save money while getting to know this destination, which is home to attractions such as Hallgrimskirkja, Reykjavik Pond and Parliament House.
What's the best budget-friendly accommodation in Downtown Reykjavik?
Based on reviews, Old Town Reykjavik is a popular hotel for our travellers in search of a less expensive place to stay, and it offers free Wi-Fi. Other options to stay on the cheap include KEX Hotel and Hostel Reykjavik and Hotel Von.
How many budget hotels are there in Downtown Reykjavik?
Expedia has 8 hotels in Downtown Reykjavik that are ideal if you are watching your pennies.
What is there to see and do in Downtown Reykjavik?
You don't need to spend a lot to find things to see and do in Downtown Reykjavik. You can budget for the top local attractions that interest you most, such as Reykjavik Harbour, and then look for sights and activities that cost little or nothing at all. Enjoy the local natural beauty at Reykjavik Pond and Tjornin, or check out the area's cultural spots like Harpa.
How can I get to Downtown Reykjavik and get around on a budget?
Scoping out the transportation options in Downtown Reykjavik can help keep you on budget. The nearest airport is Reykjavik (RKV-Reykjavik Domestic), 0.9 mi (1.4 km) away. However, if that doesn't suit your budget, the next closest is 23.3 mi (37.4 km) away: Keflavik International Airport (KEF). Downtown Reykjavik might not have very many public transport options to choose from so a car rental could be an economical alternative to see more of the area.

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