Updated: 2026
Under $150/nightFinding a great hotel in Reykjavik under $150 per night is easier than you think. We've curated 3 hand-picked budget-to-value properties that deliver genuine quality at this price point — ideal for budget travellers, short city breaks, and families looking to stretch their travel budget without sacrificing comfort. Every hotel on this list has been selected for its location, guest ratings, and value for money in 2026.
Hand-curated for quality and value. Updated 2026.
Old Harbour
Iceland's most beloved hostel, Kex occupies a former biscuit factory on the Old Harbour waterfront with an extraordinary industrial-chic interior, an excellent bar-restaurant serving some of Reykjavik's best burgers, and a social atmosphere that has made it a global design hostel benchmark. An exceptional value...
Hlemmur
A sleek, design-driven boutique hotel at the eastern end of Laugavegur near Hlemmur square, Alda delivers Nordic-minimal interiors, well-proportioned rooms, and excellent value at the quieter end of the main shopping street. One of the city's best boutique options for independent travellers who want design...
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...
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Yes — the hotels on this page all fall within the Under $150/night range and offer genuine quality at this price point. You can expect clean, comfortable rooms with reliable amenities. In many cities, the budget-to-value segment represents excellent value, especially when you choose properties in well-connected neighborhoods.
At this price range in Reykjavik, you'll typically find well-maintained rooms, helpful staff, and good transport links. Many budget-to-value hotels include breakfast options, free WiFi, and easy access to the main sights. The properties listed here have been selected for their quality-to-price ratio specifically.
The hotels on this page are spread across Reykjavik's most visitor-friendly neighborhoods. Each listing includes the neighborhood name so you can match your location preferences. Staying slightly outside the main tourist center often unlocks better rates while keeping you close to transit.
Absolutely. The best-value properties in any city sell out quickly, especially during peak season and local events. Booking 3‑6 weeks in advance for Reykjavik is generally recommended to secure the best rates at these budget-to-value properties.
Every hotel on Hotelier's Choice is hand-curated based on guest review scores, location quality, value for money, and overall reliability. We only list properties with consistently strong ratings and verified quality at the listed price tier.