The Best Hotels in Reykjavik

Commissioned and built by Icelandic wrestler Johannes Josefsson in the 1920s, Hotel Borg was one of Iceland’s first high-end hotels. Almost a century on—and despite a thoroughly modern refurbishment—it still exudes an atmosphere of old-world sophistication, with impeccably mannered staff and stately Art Deco touches such as globe lamps and brass-and-wood railings. The rooms combine comfortable leather chairs, polished parquet floors, and vintage photos of Reykjavik with modern conveniences such as Philippe Stark fittings in the marble bathrooms and Samsung smart TVs in the suites and superior rooms. The location is unbeatable: right next to the Icelandic parliament on pretty Austurvöllur Square, with ample opportunities to explore the city’s culture or world-famous nightlife.

Nicer than your average hostel, cooler than the typical chain hotel—this buzzy hybrid offers hostel-style dorms and more traditional accommodations in a 1930s Art Deco building on Reykjavik’s main drag. Designed by hotelier-owner Klaus Ortlieb (of New York’s Gotham Hotel and London’s Claridge’s), the hostel rooms are simple but smart, featuring metal-frame bunk beds, designer armchairs and sofas, and wood tables. The 18 hotel rooms are much more impressive, with elegant coffee-and-cream color schemes, king-size beds draped in Lissadell linens, and en suite bathrooms with C.O. Bigelow products. Most also come with private balconies that look out over colorful rooftops and mountain landscapes. The old-fashioned lobby and bar area—which is strewn with antique furnishings, exotic wall hangings, and leather sofas and armchairs—is a popular hangout for the city’s bright young things, but if you’re looking for something more low-key there’s an on-site movie theater with a carefully chosen selection of Icelandic films.

Despite being located just outside Reykjavik’s main center, the Hilton Nordica maintains its popularity thanks to its superb service and welcoming Scandi-mod interiors. Though working travelers tend to favor the property for its many functional conference rooms and business center, leisure visitors prefer to cozy up in a leather armchair by the fire in the plush neutral-toned lobby. The aesthetic continues in the spacious rooms and suites (the smallest is 300 square feet) with their calming, natural palettes, colorful photos of Reykjavik, and large windows that allow Iceland’s generous light to flood in; suites also enjoy separate lounge areas. The VOX restaurant serves gourmet New Nordic cuisine with an emphasis on Icelandic and Scandinavian ingredients, and the open-concept bar serves coffee, tea, and cocktails, and is a comfortable spot for lounging or mingling whether you’re coming in from a busy day of sightseeing or getting ready to hit the town.

On first glance, it would be easy to dismiss the 101 Hotel as merely a functional option. Stepping inside the austere five-story concrete building on Hverfisgata, however, guests discover an ultra-modern boutique lodging with minimal black-and-white decor—the work of owner-designer Ingibjörg S. Pálmadóttir—that gives it the feel of a chic downtown gallery. Contemporary paintings, photography, and sculptures by local artists appear througout the property, complementing the oak floors and wood-heavy Nordic furniture in the 38 rooms. Queen and king-size beds (there are no twin rooms) come topped with fine Italian linens, entertainment systems are state of the art, and open-plan bathrooms make extensive use of glass and offer Aveda bath products; deluxe rooms and suites up the ante with with claw-foot tubs. The hotel also has a moody restaurant and bar, a gym and spa, and a comfortable lounge area where you can put your feet up by the fire.