The Best Cheap Hotels in Reykjavik

Budget-Friendly and Affordable Places to Stay in Reykjavik

Reykjavik, Iceland Reykjavik, Iceland

Does Reykjavik have cheap hotel rooms? Yes, it does. Reykjavik, Iceland is an active destination filled with fun activities and sites. For travelers on a budget, finding an affordable place to stay is often a priority. So, if you're looking for where to stay in Reykjavik on a budget, don't worry, as we have analyzed the best hotel deals in the area based on price, amenities, guest ratings, location, and nearby activities to find the best values. There are plenty of cheap stays available in the area that offer comfortable and relaxing accommodations at low prices, and many of these hotels have great features, too. From budget-friendly motels to hotels with a variety of amenities, there is something for everyone. So, how do you find cheap rooms in Reykjavik? When searching for the best low-cost hotels, travelers should look for good options that offer a balance of price and comfort, with plenty of opportunities for relaxation. And that's exactly what you'll find with our suggestions below. Some of the best bargain and budget-friendly hotels in Reykjavik also feature pools and other terrific amenities, providing guests with a great place to relax after a long day of exploring the area. Whether you're traveling solo or with a group, there are plenty of cheap places to stay available that will meet your needs and offer a price range that won't break the bank. With our researched guide below, you can find the best affordable hotels in Reykjavik, ensuring a comfortable and enjoyable stay at an unbeatable price. So, let's get to it: here's where to sleep cheap in Reykjavik.

(Prices are listed in U.S. Dollars.)

CenterHotel Thingholt

4-star Hotel with prices starting at $163 (before taxes) - See All Prices
A Fantastic Bargain in Reykjavik
  • Great Value: the price is lower than average for 4-star hotels.
  • Family-Friendly

Located at Thingholtsstraeti 3-5, CenterHotel Thingholt has great rooms from $163 (before taxes). It offers room service, a restaurant, a fitness center, a bar, and breakfast. It has a terrific 8.50 rating out of 10 from previous guests who have stayed here. Only 0.4 km from the city center, budget travelers will especially love laundry services, a free breakfast, a hot tub, a spa and wellness center, and a spa at this affordable hotel. We love the convenience of room service, and it's really nice here.

Budget Hotel Amenities
  • Free breakfast
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Fitness center
  • Bar/Lounge
  • Breakfast included
  • Laundry service
  • Hot tub
  • Bicycle rental
  • Air-conditioned
  • Airport shuttle
  • Family-Friendly


Apotek Hotel Reykjavik by Keahotels

4-star Hotel with prices starting at $125 (before taxes) - See All Prices
Among the Best Values in Reykjavik
  • Great Value: the price is lower than average for 4-star hotels.
  • High Quality: guest ratings are higher than average.
  • Family-Friendly

A great place to stay is Apotek Hotel Reykjavik by Keahotels which has nice rooms starting at $125. Offering room service, a restaurant, a fitness center, a bar, and parking, it also has a great guest rating of 9.10 out of 10 from many previous guests. It's located at Austurstraeti 16. This relaxing hotel is also nice because it offers child care, laundry services, city views, laundry facilities, and bicycle rental which visitors will enjoy. Also, it's just 0.2 km from the city center. Unwinding at the restaurant after sightseeing is a nice way to end the day. It's also less than the average price for budget hotels, so it's a great value.

Budget Hotel Amenities
  • Parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Fitness center
  • Bar/Lounge
  • Laundry service
  • Bicycle rental
  • Airport shuttle
  • Family-Friendly


CenterHotel Arnarhvoll

4-star Hotel with prices starting at $145 (before taxes) - See All Prices
One of the Best Inexpensive Hotels in Reykjavik
  • Great Value: the price is lower than average for 4-star hotels.
  • Family-Friendly

We found CenterHotel Arnarhvoll to be a great place to stay, and the price starts at $145. We loved that is has room service, a restaurant, a bar, breakfast, and laundry services, and it also has a terrific guest rating of 8.20 out of 10 from previous guests. It's located at Ingolfsstraeti 1. You'll also find a free breakfast, a hot tub, a spa and wellness center, a spa, and laundry facilities which travelers will love. And this comfortable hotel is just 0.7 km from the center of town. We love relaxing in a hot tub after a long day, and the one here is really nice. It's a great value, too, because it's less than the average price for budget hotels.

Budget Hotel Amenities
  • Free breakfast
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Breakfast included
  • Laundry service
  • Hot tub
  • Air-conditioned
  • Family-Friendly


Hotel Borg by Keahotels

4-star Hotel with prices starting at $158 (before taxes) - See All Prices
A Great Low Cost Hotel
  • Great Value: the price is lower than average for 4-star hotels.
  • High Quality: guest ratings are higher than average.
  • Family-Friendly

With terrific rooms from $158, Hotel Borg by Keahotels, at Posthusstraeti 11 provides room service, a restaurant, a fitness center, a bar, and parking. Its terrific guest rating is 8.70 out of 10 from previous guests staying here. Budget travelers will really like this budget-friendly hotel which also offers child care, laundry services, a hot tub, a spa and wellness center, and a spa. It's located just 0.2 km from the city center, too.

Budget Hotel Amenities
  • Parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Fitness center
  • Bar/Lounge
  • Laundry service
  • Hot tub
  • Bicycle rental
  • Family-Friendly


City Center Hotel Reykjavik

3-star Hotel with prices starting at $99 (before taxes) - See All Prices
A Very Affordable Hotel
  • Great Value: the price is lower than average for budget hotels.
  • High Quality: guest ratings are higher than average.

City Center Hotel Reykjavik has a great guest rating of 8.80 out of 10, and offers room service, a restaurant, a bar, parking, and laundry services. The great rooms here start at $99 before taxes and depending on the season. It can be found at Austurstraeti 6. Furthermore, it also offers city views, laundry facilities, a tour desk, a multi-lingual staff, and a coffee shop, which is nice for visitors. Just 0.2 km from the city center, this low-cost hotel is a terrific choice. We found the price of this hotel to be a great value because the price is less than average for budget hotels.

Budget Hotel Amenities
  • Parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Laundry service


Icelandair Hotel Reykjavik Natura

4-star Hotel with prices starting at $178 (before taxes) - See All Prices
A Terrific Cheap Hotel
  • Family-Friendly

The great guest rating of Icelandair Hotel Reykjavik Natura is 8.30 out of 10. This place has room service, a restaurant, a fitness center, a bar, and a kid-friendly buffet. Prices for the terrific rooms are from $178, and it's located at Nautholsvegur 52. We also love the hiking, laundry services, a hot tub, a spa and wellness center, and a spa which are great for travelers. And since it's just 1.8 km from the center of the town, the location is great, too.

Budget Hotel Amenities
  • Free parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Fitness center
  • Bar/Lounge
  • Kid-friendly buffet
  • Laundry service
  • Hot tub
  • Bicycle rental
  • Family rooms
  • Refrigerator
  • Family-Friendly


Sand Hotel by Keahotels

4-star Hotel with prices starting at $165 (before taxes) - See All Prices
A Nice Budget Stay
  • Great Value: the price is lower than average for 4-star hotels.
  • High Quality: guest ratings are higher than average.

A cool place is Sand Hotel by Keahotels because it has great rooms that start at $165. It has a fitness center, a bar, breakfast, rooms with kitchenettes, and laundry services, it also earned a great guest rating of 9.10 out of 10 from people who have stayed here before. It's found at Laugavegur 34. Only 0.8 km from the city center, budget travelers will especially love a free breakfast, city views, free parking, kids meals, and laundry facilities at this affordable hotel. Being able to prepare food in the room is also very convenient.

Budget Hotel Amenities
  • Free breakfast
  • Free parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Fitness center
  • Bar/Lounge
  • Breakfast included
  • Kitchenette
  • Laundry service
  • Family rooms
  • Refrigerator


101 Hotel

4-star Hotel with prices starting at $231 (before taxes) - See All Prices
One of the Best Deals in Reykjavik
  • Family-Friendly

101 Hotel offers room service, a restaurant, a fitness center, a bar, and laundry services which we really like. The terrific rooms here start at $231 (before taxes). It's located at Hverfisgata 10 and has earned a guest rating of 8.40/10. This relaxing hotel is also nice because it offers city views, a hot tub, a spa and wellness center, a spa, and free parking which visitors will enjoy. Also, it's just 0.5 km from the city center.

Budget Hotel Amenities
  • Free parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Fitness center
  • Bar/Lounge
  • Laundry service
  • Hot tub
  • Bicycle rental
  • Family-Friendly


Radisson Blu 1919 Hotel Reykjavik

4-star Hotel with prices starting at $175 (before taxes) - See All Prices
A Fantastic Bargain in Reykjavik
  • Family-Friendly

Located at Posthusstraeti 2, Radisson Blu 1919 Hotel Reykjavik has great rooms from $175 (before taxes). It offers room service, a restaurant, a fitness center, a bar, and laundry services. It has a terrific 8.20 rating out of 10 from previous guests who have stayed here. You'll also find city views, car rentals, laundry facilities, a tour desk, and a multi-lingual staff which travelers will love. And this comfortable hotel is just 0.3 km from the center of town.

Budget Hotel Amenities
  • Laundry facilities
  • Budget
More Great Amenities
  • Restaurant
  • Fitness center
  • Bar/Lounge
  • Laundry service
  • Air-conditioned
  • Family-Friendly


Central Guesthouse Reykjavik

Guest House with prices starting at $91 (before taxes) - See All Prices
Among the Best Values in Reykjavik
  • Great Value: the price is lower than average for 2-star hotels.

A great place to stay is Central Guesthouse Reykjavik which has nice rooms starting at $91. Offering rooms with kitchens, rooms with kitchenettes, free parking, horse riding, and laundry facilities, it also has a great guest rating of 8.50 out of 10 from many previous guests. It's located at Ranargata 10. Budget travelers will really like this budget-friendly hotel which also offers bicycle rental, fishing, family rooms, a microwave, and a refrigerator. It's located just 0.4 km from the city center, too. Having a kitchen in the room is a great way to make meals and save money, too. We found the price of this hotel to be a great value because the price is less than average for budget hotels.

Budget Hotel Amenities
  • Free parking
  • Laundry facilities
  • Budget
More Great Amenities
  • Kitchen
  • Kitchenette
  • Bicycle rental
  • Family rooms
  • Microwave
  • Refrigerator


Also, you might be interested in the nearby budget hotels in Keflavik.

For more terrific hotel ideas in Reykjavik, make sure you also see Best Family-Friendly Hotels in Reykjavik, Best Luxury Hotels in Reykjavik, Best Pet-Friendly Hotels in Reykjavik, Best Hotels for First Time Visitors in Reykjavik, Best Hotels for a Weekend Getaway in Reykjavik, Best Hotels for One Week in Reykjavik, Best Hotels for One Night in Reykjavik, Best Romantic Hotels for Couples in Reykjavik, or Best Business Hotels in Reykjavik.


Is it expensive to spend the night in Reykjavik?

Reykjavik Average Budget Hotel Price
$157

Visitors will find a large range of terrific budget hotel choices when planning a visit to Reykjavik, Iceland. The price of these budget hotels can vary according to location, type, and amenities. The average budget hotel price in Reykjavik, Iceland based on data from 14 hotels is an affordable $157. If you're interested in more information about hotels here, see our guide to hotel prices in Reykjavik.

The average prices of our suggested budget hotels by star rating:

  • 4-star hotels: $166
  • 3-star hotels: $99
  • 2-star hotels: $135


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