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Capital Region Hotels for Your Next Holiday

Why Tourists Visit Capital Region

  • • Explore Hallgrímskirkja Church and its views of Reykjavik.
  • • Relax in the iconic Blue Lagoon near Grindavik.
  • • Visit Harpa Concert Hall for cultural events and stunning architecture.
  • • Take whale-watching trips departing from Reykjavik Harbor.
  • • Discover the fascinating Perlan Museum and its ice cave exhibit.

The Capital Region boasts over 150 hotels, mainly centered in Reykjavik, ranging from budget guesthouses to luxury stays with 3-star hotels averaging $140–$200 per night and 5-star hotels reaching $400+. Popular areas include downtown Reykjavik, known for Kvosin Downtown Hotel, and waterfront zones with newer hotels such as The Reykjavik Edition, offering high-end amenities and scenic views.

The Capital Region of Iceland, anchored by Reykjavik, is known for its stunning mix of natural wonders and vibrant city life, drawing the majority of Iceland’s visitors each year.

Major attractions include Hallgrímskirkja Church, Harpa Concert Hall, and the geothermal Blue Lagoon, located just a short drive away.

With easy access to waterfalls, lava fields, and whale-watching tours from the harbor, it’s a prime destination for all types of travelers.

Capital Region Tips You Must Know

• Book hotels 2–3 months in advance for lower rates, especially in summer (June–August).

• Avoid delays by checking morning shuttle services or walking options; many downtown hotels are near essential spots.

• Choose accommodations near bus stops for easy access to day tours such as the Golden Circle.

• Pack waterproof gear when traveling in autumn or winter as weather can change rapidly.

• Look for local offers like free breakfast or Reykjavik City Card discounts included with some hotels.

Reykjavik

Reykjavik, Iceland's capital, blends Nordic charm with urban culture, featuring iconic landmarks like Hallgrímskirkja and a vibrant cultural scene at Harpa. Street art and geothermal pools add character, while the Saga Museum showcases the city’s Viking history. Whale watching tours depart right from Reykjavik Harbor.

Discover the best hotels in Reykjavik for a blend of culture, convenience, and stunning views.

Kópavogur

Kópavogur, Iceland's second-largest city, surprises with its modern Kópavogskirkja Church and Gerdarsafn museum dedicated to Icelandic art. Smáralind Mall provides unmatched shopping opportunities, and nearby geothermal hiking trails promise unique outdoor adventures just outside the urban bustle.

Explore hotels in Kópavogur for a mix of urban convenience and outdoor escapes.

Hafnarfjörður

Hafnarfjörður, known as the 'town in the lava,' is famous for its Viking culture and annual Viking Festival. Fjörukráin Viking Restaurant offers medieval-style dining, while the Hellisgerði Lava Park enchants visitors with its rumored hidden elf homes. Local galleries spotlight unique Icelandic craftsmanship.

Stay at welcoming hotels in Hafnarfjörður and immerse yourself in Viking lore and local art.

Garðabær

Garðabær combines seaside serenity with modern design, featuring the Vídistaðatún park for breathtaking ocean views. The town is home to Hofsstadir Historic Park, offering insights into Iceland's early agricultural settlements. An upscale shopping district adds a touch of sophistication.

Check out the top hotels in Garðabær to enjoy a peaceful and stylish retreat.

Mosfellsbær

Mosfellsbær, often called the 'green town,' entices nature lovers with nearby Mt. Esja hiking trails. The Álafoss Wool Store shares Iceland's knitting heritage, while Mosfellskirkja Church reflects the town’s serene atmosphere. Locals also recommend the thermal pool experiences.

Browse cozy hotels in Mosfellsbær for easy access to nature and local history.

Central Comfort with City Vibes

Find more Central hotels in Reykjavik with unbeatable accessibility to the city’s best sights.

Hotel Name
Description
#
Price per night

Center Hotels Plaza

Reykjavik City Center

  • Hallgrímskirkja (1.2 km)
  • Harpa Concert Hall (0.5 km)
  • Reykjavik Art Museum (0.3 km)

Located at Ingólfstorg Square, this hotel is famously steps away from Reykjavik’s oldest square and offers a view of the city buzz year-round.

  • Central location

  • Modern interiors

  • Great breakfast variety

$150-$200/night

Reykjavik Natura - Berjaya Iceland Hotels

Öskjuhlíð

  • Perlan Museum (1 km)
  • Nauthólsvík Beach (1.5 km)
  • Reykjavik City Center (3 km)

This eco-friendly hotel lies near the Öskjuhlíð hill and offers direct access to Reykjavik’s outdoor haven and a hidden WWII bunker trail.

  • Eco-certified accommodations

  • Proximity to nature trails

  • On-site geothermal spa

$180-$220/night

Hotel Fron

Reykjavik City Center

  • Hallgrímskirkja (0.7 km)
  • Harpa Concert Hall (0.8 km)
  • Sun Voyager (0.9 km)

A cozy budget-friendly stay on Laugavegur Street, Fron is famed for its Scandinavian simplicity and proximity to Reykjavik’s nightlife scene.

  • Affordable pricing

  • Central shopping district location

  • Spacious apartment options

$120-$180/night

Luxury Living by the Harbor

Explore top-tier Luxury hotels in Reykjavik for indulgence with a local flair.

Hotel Name
Description
#
Price per night

Reykjavik Marina - Berjaya Iceland Hotels

Old Harbor

  • Reykjavik Maritime Museum (0.2 km)
  • Harpa Concert Hall (0.9 km)
  • Whale Watching Tours (0.4 km)

This waterfront gem offers ship-inspired interiors and direct views of Reykjavik’s harbor activity, combining maritime charm with modern luxury.

  • Harbor views

  • Quirky design

  • Proximity to boating tours

$250-$400/night

Midgardur By Center Hotels

Reykjavik City Center

  • Sun Voyager (0.5 km)
  • Hallgrímskirkja (0.8 km)
  • Laugardalur Park (2 km)

Midgardur exudes Icelandic elegance with locally inspired decor and a private courtyard for quiet escapes amid Reykjavik’s bustling main street.

  • Luxe modern rooms

  • Central location

  • Relaxing courtyard

$220-$300/night

Center Hotels Arnarhvoll

Reykjavik City Center

  • Harpa Concert Hall (0.4 km)
  • Sun Voyager (0.6 km)
  • Old Harbor (0.8 km)

Known for its panoramic views from the rooftop terrace, this hotel offers a prime spot to catch the northern lights in winter.

  • Rooftop bar

  • Scandinavian interiors

  • Superb harbor views

$200-$280/night

Boutique Retreats with Local Charm

Uncover hidden gems and charming stays among Boutique hotels in Reykjavik.

Hotel Name
Description
#
Price per night

Hotel Viking

Hafnarfjörður

  • Hellisgerdi Park (0.5 km)
  • Hafnarfjörður Harbor (1 km)
  • Reykjavik City Center (10 km)

True to its name, this unique hotel in Hafnarfjörður is decked out in Viking-era decor and even hosts annual feasts inspired by Norse traditions.

  • Full Viking experience

  • Quaint atmosphere

  • Close to lava fields

$140-$190/night

Hotel Local 101

Downtown Reykjavik

  • Hallgrímskirkja (0.8 km)
  • Harpa Concert Hall (0.9 km)
  • Tjörnin Pond (0.6 km)

Situated in Reykjavik’s art district, this hotel doubles as a gallery space for emerging Icelandic artists.

  • Artistic vibe

  • Central galleries nearby

  • Cozy boutique interiors

$150-$200/night

The Swan House By Heimaleiga

Reykjavik City Center

  • Laugavegur Street (0.3 km)
  • Sun Voyager (0.5 km)
  • Hallgrímskirkja (0.8 km)

This hotel offers Scandinavian chic design blended with apartment-style accommodations, perfect for longer stays in Iceland’s capital.

  • Spacious apartments

  • Self-catering options

  • Stylish interiors

$160-$230/night

Family-Friendly Stays with Easy Access

Browse more Family Friendly hotels in Reykjavik for fun-filled and relaxing family vacations.

Hotel Name
Description
#
Price per night

Hotel Cabin

Reykjavik East

  • Laugardalur Park (1 km)
  • Reykjavik Art Museum (2.5 km)
  • Sun Voyager (2 km)

Known for its budget-friendly family rooms, this hotel offers a breakfast buffet so popular it’s prepared to fuel adventurous mornings.

  • Family-sized rooms

  • Child-friendly amenities

  • Affordable rates

$100-$150/night

Center Hotels Klopp

Reykjavik City Center

  • Hallgrímskirkja (0.6 km)
  • Harpa Concert Hall (0.6 km)
  • Old Harbor (1 km)

This centrally located hotel offers children’s menus and special family deals, making it convenient for sightseeing with kids.

  • Kid-friendly options

  • Central location

  • Helpful staff

$140-$200/night

Hotel Reykjavik Grand

Reykjavik East

  • Laugardalslaug Pool (1.5 km)
  • Laugardalur Park (1.8 km)
  • Perlan Museum (3 km)

This family-favorite hotel features a large breakfast hall and spacious rooms, ideal for relaxing after geothermal pool visits.

  • Spacious rooms

  • Great breakfast

  • Quiet neighborhood

$160-$220/night

Spa Escapes to Rejuvenate

Find the perfect way to relax and recharge with the best Spa hotels in Reykjavik.

Hotel Name
Description
#
Price per night

Grandi By Center Hotels

Grandi District

  • Old Harbor (1 km)
  • Harpa Concert Hall (1.5 km)
  • Whale Watching Tours (1 km)

This urban-chic hotel features a sleek wellness area and boasts proximity to Reykjavik’s funky Grandi district for foodies and shop lovers.

  • Modern spa area

  • Trendy location

  • Stylish decor

$180-$240/night

Hotel Island - Spa & Wellness Hotel

Laugardalur

  • Laugardalslaug Pool (1 km)
  • Reykjavik City Center (3 km)
  • Laugardalur Park (0.8 km)

Iceland’s pioneering wellness hotel with an on-site spa, Hotel Island indulges guests with natural therapy sessions and a Scandinavian sauna experience.

  • Full-service spa

  • Therapeutic options

  • Close to geothermal pools

$200-$280/night

Thingholt By Center Hotels

Reykjavik City Center

  • Hallgrímskirkja (0.7 km)
  • Harpa Concert Hall (0.6 km)
  • Old Harbor (1 km)

A luxury wellness boutique featuring a hot stone massage service alongside modern Iceland-inspired interiors.

  • Exclusive spa treatments

  • Designer decor

  • Great central hub

$220-$300/night

Frequently asked question

What are the best hotels near Hallgrímskirkja in the Capital Region?

Hotels like the Canopy by Hilton Reykjavik City Centre and 101 Hotel are both upscale and within walking distance to Hallgrímskirkja for easy exploration.

Are there family-friendly hotels available in Reykjavik?

Family-friendly hotels such as Reykjavik Natura Icelandair Hotel and Hotel Cabin often include amenities like game areas, cribs, and family-sized rooms.

What is the average cost of a mid-range hotel room in the Capital Region?

Mid-range hotels typically cost between $150–$250 per night, depending on the season and location within Reykjavik or nearby areas.

Are boutique hotels available in the Capital Region, and where can I find them?

Boutique hotels like Kvosin Downtown Hotel and Exeter Hotel by Keahotels are centrally located and offer stylish, unique accommodations near Reykjavik Harbor and city highlights.

Do hotels in Reykjavik offer free parking for travelers renting cars?

Many hotels, such as Icelandair Hotel Marina and Hotel Klettur, offer free or low-cost parking options for guests, but it's essential to confirm while booking.

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