Reykjavik — Traveler Guide
There's something transformative about waking up to water. These waterfront hotels in Reykjavik offer front-row seats to the city's most beautiful waterscapes — from river promenades and harbour panoramas to lakeside serenity.
Quick Answer
There's something transformative about waking up to water. These waterfront hotels in Reykjavik offer front-row seats to the city's most beautiful waterscapes — from river promenades and harbour panoramas to lakeside serenity.
6 hotels reviewed · Price range: $$$, $$$$, $$ · Last updated March 2026
About This Guide
Reykjavik offers exceptional options for travellers seeking waterfront hotels, and we've curated the very best. Each property has been selected for its outstanding facilities, prime location, and the quality of experience it delivers. Leading our list, Sandhotel excels with its exceptional attention to detail and commitment to the waterfront experience. The Retreat at Blue Lagoon offers a compelling alternative with its unique approach and distinctive character. Whether you're a first-time visitor to Reykjavik or returning for another stay, these hotels represent the gold standard for waterfront accommodation in the city. Each has been independently evaluated for quality, location, and value.
Insider Tips
Book directly with the hotel for the best rate guarantee and potential upgrades.
Read recent guest reviews for the most up-to-date assessment of facilities.
Consider visiting during shoulder season for better rates and fewer crowds.
Ask the concierge for local recommendations — they know Reykjavik better than any guidebook.
Our Picks
6 hotels · Updated February 2026
Laugavegur
Reykjavik's most sophisticated boutique hotel sits at the top of Laugavegur, the city's famous shopping street, with beautifully designed rooms incorporating Icelandic craft materials — sand, lava stone, and driftwood. The rooftop hot tub with Hallgrímskirkja views and the warm, personal service make it a consistent favourite.
Laugavegur
One of the world's great hotel experiences, The Retreat is literally built into the lava field around the Blue Lagoon geothermal spa, with private lagoon access from many suites and an extraordinary volcanic landscape setting. The 62-room property delivers an otherworldly experience that is uniquely Icelandic — nowhere else on Earth can match it.
Vesturbær
One of the tallest buildings in Iceland, Fosshotel Reykjavik is a reliable modern four-star hotel with exceptional panoramic views from its upper floors — on a clear day the views extend to the Snæfellsjökull glacier and across the entire Reykjanes Peninsula. A solid choice for travellers who want comfort, views, and easy parking.
Laugavegur
Jutting from a lava field beside Iceland's Golden Circle, Ion Adventure Hotel is the country's most architecturally extraordinary property — glass walls opening to tundra and geothermal hot springs, a Northern Lights bar that must be seen to be believed, and activities ranging from glacier hikes to dog sledding. An utterly unique experience 45 minutes from Reykjavik.
Hlemmur
Canopy Reykjavik is the most design-forward new hotel in the city, occupying a striking contemporary building in the Hlemmur food hall district with Nordic-minimal interiors, a rooftop hot tub with mountain views, and a genuine connection to the local neighbourhood rather than the tourist strip. Consistently one of the city's best hotel openings.
Laugavegur
Named for Reykjavik's most fashionable postcode, 101 Hotel is the city's definitive style hotel — a minimalist black-and-white design statement on Hverfisgata with locally commissioned art, exceptional beds, and a bar-restaurant that serves as one of the city's social anchors. A perennially cool address.
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Common Questions
Not all rooms in waterfront hotels face the water. Request a water-view room when booking, and consider upgrading if the standard room doesn't include it.
Waterfront hotels tend to be centrally located near major attractions, restaurants, and transport links, making them excellent bases for exploring.
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Prices and availability change daily. Lock in the best rate by booking early — most of our top picks offer free cancellation.
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