Best Waterfront Hotels in Reykjavik (2026)

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.

★ Our top pick

Sandhotel

★ 9.3 · Laugavegur

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Quick Answer

The Best Waterfront Hotels in Reykjavik (2026) at a Glance

1. Sandhotel · Laugavegur · ★ 9.3
2. Fosshotel Reykjavik · Vesturbær · ★ 8.7

2 hotels reviewed · Price range: $$$, $$$$, $$ · Last updated July 2026

Our Picks

Best Waterfront Hotels in Reykjavik (2026)

2 hotels · Updated July 2026

1 $$$

★ 9.3

Laugavegur

Sandhotel

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.

Boutique
Design
Views
Romance
Laugavegur

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★ 9.3 Hotelier's Choice score, 40+ criteria · Many rooms include free cancellation

2 $$

★ 8.7

Vesturbær

Fosshotel Reykjavik

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.

Views
Value
Family
Vesturbær

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★ 8.7 Hotelier's Choice score, 40+ criteria · Many rooms include free cancellation

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

1
Book directly with the hotel for the best rate guarantee and potential upgrades.
2
Read recent guest reviews for the most up-to-date assessment of facilities.
3
Consider visiting during shoulder season for better rates and fewer crowds.
4
Ask the concierge for local recommendations — they know Reykjavik better than any guidebook.

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Common Questions

Frequently Asked Questions

Do all rooms have water views?

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.