Updated: 2026
Under $500/nightFinding a great hotel in Reykjavik under $500 per night is easier than you think. We've curated 7 hand-picked high-end 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.
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...
Laugavegur
Reykjavik's most celebrated city hotel, Hotel Borg has anchored Austurvöllur square — directly opposite the Althing parliament — since 1930 with Art Deco elegance and genuine historic grandeur. The prime location, sophisticated rooms, and the enduring quality of Iceland's first luxury hotel make it the...
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....
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...
Laugavegur
A magnificently restored early-20th-century pharmacy building on Austurstræti, Apotek is one of Reykjavik's most atmospheric boutique hotels — a place where the original apothecary shelving, marble counters, and tiled floors have been incorporated into an elegant contemporary design. The best-value luxury stay on the main...
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...
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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Yes — the hotels on this page all fall within the Under $500/night range and offer genuine quality at this price point. You can expect clean, comfortable rooms with reliable amenities. In many cities, the high-end 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 high-end 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 high-end 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.