There are a surprising number of types of accommodations in Iceland for such a small country. From super cheap options like camping and hostels to family-run guesthouses and luxury apartments, you can find something for every kind of traveler. When we hit the road, we favor budget hotels in the central city, but finding a room under $100 a night can be tricky in Reykjavik, and even more difficult once you get out in the countryside.
But good deals do exist, and with so many new accommodations opening in the past few years (many of the affordably hip variety), the choices are better than ever. Do a search now, or check out these favorites in Reykjavik that all offer an excellent location and score high ratings from guests.
Note: This article is part of our budget travel guide to Iceland.
Our favorite cheap hotels in Reykjavik
With free breakfast and a fantastic location just steps from the famous Hallgrímskirkja church, this popular budget stay has rooms starting at just over $100.
A contemporary mix of hotel and hostel, this recently opened accommodation along the waterfront features 250 rooms. Bunks in the hostel start at $39 per night while tiny “Pods” give you a touch more privacy with an ocean view for around $65 per night.
Spotless rooms in a building from the 1920s and a location just five minutes from the main shopping street make this hotel an excellent option. Well-equipped kitchens in studios are perfect for travelers that like to cook. Rates start at $85 for a double.
Located right next to the Iceland Parliament, this homey stay offers 12 bright rooms with wooden floors. Perks include free coffee and Wi-Fi. Quadruple rooms are a good value for groups with rates around $150 per night.
Located right on the main pedestrian drag, you can’t get more central than this friendly budget stay. They offer a variety of accommodations from single rooms to large apartments with doubles starting around $130 per night.
Clean and comfortable dorm rooms with linens and lockers are a super cheap option, but this hostel with a rooftop cafe also has rooms with private bathrooms. Deluxe doubles can be found for around $140.
Just steps from the harbor, this eco-friendly place features an organic breakfast buffet each morning, bike rentals on site, and a communal kitchen. Rooms with shared facilities start around $100, but for just a little bit more you can book one with a private bathroom.
Being cool doesn’t have to cost you a fortune in Reykjavik. Kex offers hip touches throughout the property and features everything from women-only dorms and family rooms that hold four-to-six guests. A Double Room Plus even includes breakfast and start around $120, while Double Standard rooms go for $70.
Rooms come with private or shared bathroom facilities at this easygoing guesthouse down the street from Hallgrímskirkja Church. If you like a good view, you can request a studio that looks out onto the sea.
With a homemade breakfast included, free Wi-Fi, and location in the heart of the city, this affordable hotel fills up fast. A helpful staff can help you plan sightseeing excursions. Double rooms start at around $100 per night.
All rooms come with a private bathroom and desk in this popular hotel situated across the street from Hallgrímskirkja Church. A dining room serves a breakfast buffet each morning that is included in the price.
Nestled in the quiet residential neighborhood a few blocks from downtown, this homey stay has a communal kitchen, terrace, and garden. Prices for double rooms can be found for $120.
Tip: Book hotels ahead of time
Just remember, with so many people flocking to Iceland now, make sure you book early or you might be shut out. And once you head out of Reykjavik, the number of overnight stay options drop dramatically. Some towns only have a handful of guesthouses, so plan ahead if you want to visit places a bit off-the-beaten-path.