Downtown Reykjavik Hotels: Cheap Accommodation in Downtown Reykjavik

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Compare popular hotels in Downtown Reykjavik

Property	Property class	Guest rating
EIR Apartments by Heimaleiga	4.0 star property	9.8 Exceptional 9 reviews	View
Kvosin Downtown Hotel	4.0 star property	9.8 Exceptional 1,015 reviews	View
Black Pearl Luxury Apartments	4.5 star property	9.8 Exceptional 723 reviews	View
Reykjavik Treasure	3.0 star property	9.6 Exceptional 223 reviews	View
Student hotel & hostel	2.0 star property	9.4 Exceptional 145 reviews	View

Our guide on where to stay in Downtown Reykjavik

Find the best Downtown Reykjavik areas for the activities you enjoy most.

Reykjavik's oldest hydro power plant by Ellidaa river

Háaleiti

When in Háaleiti, you can plan a visit to Laugardalsholl and Grasagardur Botanical Garden, some noteworthy sights in the nearby area.

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Laugardalur

Laugardalur is popular for its abundant dining options, and if you're looking for more to see and do, you might think about a trip to Grasagardur Botanical Garden or Laugardalsholl.

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Vesturbær

The abundant dining options and waterfront views are top of the list for many visitors to Vesturbær. A stop by Reykjavik Harbour or Landakotskirkja might round out your trip.

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Tún

If you're spending some time in Tún, Laugavegur and Hofdi House are top sights worth seeing.

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Row of traditional white painted houses in northern part of downtown, with sun highlights and wooded ornament details in exterior

Hlíðar

Though Hlíðar may not have many top sights, you can venture to the surrounding area to see attractions like Reykjavik Harbour and Perlan.

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Top Downtown Reykjavik Hotel Reviews

Reykjavik Residence Apartment Hotel

10/10 Excellent

"Had a wonderful stay at Reykjavik Residence Hotels. Rooms were very clean and staff was very friendly and welcoming. We ordered the breakfast basket for two days and it was more than enough food for breakfast and lunch. If you order the breakfast basket, make sure to remove the do not disturb sign or else they won’t deliver."

Center Hotels Arnarhvoll

6/10 Okay

"We stayed at the Center Hotels Arnarhvoll in Reykjavik, Iceland in June 2026. The hotel was chosen primarily due to its location. The hotel is located near the waterfront, across from the Harpa Concert Hall. So it is a nice walk to/from bus stops, historic part of town, the church, and boat pier for whale and Puffin watching tours The rooms are small, but clean. Surprisingly, the shower is nothing that we have ever encountered! It shares the floor with the rest of the small bathroom, with a curved plastic door to keep water from hitting the bathroom door. Everything else gets wet. There is a squeegee provided to move water to the drain after showering. This was our biggest disappointment at the hotel. There is no air-conditioning, so there is a small window that can be opened to let in fresh air from outside. There is no screen in the window. The room had a big crack across the ceiling and some paint was chipping. Our room had 2 twin beds, a desk, 2 strange chairs, and a small refrigerator. The TV had some channels that had weak signal scrambling problems. The Wi-Fi worked fairly well, as it does in most of Iceland. My bed sheet had a small hole in it that was clearly visible on by the pillow area. So not perfectly maintained room. It was refreshed everyday, at our request. The breakfast cost extra to the room price, and was located on the top floor bar area. It had good food and an excellent view of the harbor and music hall. The front door needs to be aut"

Fosshotel Barón

8/10 Good

"Hotel was close to the Rainbow Street, Sun Voyager and the downtown shopping area. You won’t run out of restaurants and shopping to go to. Parking was expensive and you can park in the different parking lots nearby. Room was a cramped and do not have a tap card to enter. You will get a literal key for your room. It was a good base if you are out all day exploring. I would say that its mid priced but I would explore other hotels if I were to return to Iceland."

Frequently asked questions

What's it like in Downtown Reykjavik?

Travellers will be sure to find plenty to entertain them in Reykjavik's Downtown Reykjavik neighbourhood. Make sure that you visit Hallgrimskirkja and National Theatre of Iceland as part of your Downtown Reykjavik travel plans.

Where is the best place to stay in Downtown Reykjavik?

Based on our traveller data, CityHub Reykjavik is one of the top choices for your stay in Downtown Reykjavik. This hotel is a short 1-minute walk from Laugavegur, and it offers free WiFi and a 24-hour front desk. Other good choices for your stay in the neighbourhood include Center Hotels Plaza and Exeter Hotel.

How many hotels are there in the Downtown Reykjavik area?

If you're searching for places to stay in Reykjavik, Expedia has something to meet your needs with 505 Downtown Reykjavik hotels and other accommodation options to choose from.

If I need to cancel my hotel reservation in Downtown Reykjavik, will I receive a refund?

Yes! You'll find that most room reservations are fully refundable if cancelled prior to the accommodation's cancellation deadline, which in most cases is within 24 or 48 hours of the scheduled arrival. If your reservation is non-refundable, you might be able to still cancel and get a refund within 24 hours of booking. Enter your dates, click on "Search", then use the filter option "fully refundable" to get the best deals available in Downtown Reykjavik.

What can I see and do in this Reykjavik neighbourhood?

You might want to spend some time browsing the exhibits at Reykjavik City Museums, Reykjavík 871 +/-2 or Reykjavik 871 +/- 2 The Settlement Exhibition during your stay in Downtown Reykjavik. You could also plan a visit to Hallgrimskirkja or National Theatre of Iceland while you're in the neighbourhood. A few places to visit in the area around Downtown Reykjavik include Reykjavik Harbour, Skólavörðustígur and Asgrimur Jonsson Collection. While you're out sightseeing in Reykjavik, make sure that you visit other sights such as Einar Jonsson Museum or Leifur Eiríksson statue.

Downtown Reykjavik Hotels, Reykjavik

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Our top choices for Downtown Reykjavik hotels

CityHub Reykjavik

Hotel Fron

City Center Hotel

Hotel Von

Guesthouse Sunna

Center Hotels Plaza

Guesthouse Andrea

Hotel Vera

Mjólk Hotel

Skuggi Hotel by Keahotels

Reykjavik Residence Apartment Hotel

Midtown Reykjavik

Old Town Reykjavik

Center Hotels Arnarhvoll

Guesthouse Aurora

Center Hotels Laugavegur

Hotel Leifur Eiriksson

Hotel Odinsve

Guesthouse Galtafell

Apotek Hotel by Keahotels

Compare popular hotels in Downtown Reykjavik

Our guide on where to stay in Downtown Reykjavik

Háaleiti

Laugardalur

Vesturbær

Tún

Hlíðar

Top Downtown Reykjavik Hotel Reviews

Reykjavik Residence Apartment Hotel

Frequently asked questions