Cheap Hotels in Reykjavik from $118

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Our top choices for Reykjavik cheap hotels

Restaurant
Hotel Von

Hotel Von

3.5 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (1001)
"Wonderful stay"
United States
David
$164 nightly
The price is $188
Dec 23 - Dec 24
Total with taxes and fees
Hotel Von
Sauna, hot tub, 3 treatment rooms, massages
Grandi by Center Hotels

Grandi by Center Hotels

4.0 star property
Vesturbær
9.4 out of 10, Exceptional, (1401)
"Good location, great spa"
United States
Juan Sebastian
$164 nightly
The price is $189
Dec 14 - Dec 15
Total with taxes and fees
Grandi by Center Hotels
Lobby sitting area
Fosshotel Barón

Fosshotel Barón

3.0 star property
Downtown Reykjavik
8.6 out of 10, Excellent, (1005)
"Very beautiful hotel near downtown "
United States
Nahui
$135 nightly
The price is $156
Jan 6 - Jan 7, 2026
Total with taxes and fees
Fosshotel Barón
Suite, Harbor View (with Sauna & Gym Access) | View from room
Exeter Hotel

Exeter Hotel

4.0 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (1004)
"Great place to stay"
United States
Dana
$100 nightly
The price is $118
Dec 11 - Dec 12
Total with taxes and fees
Exeter Hotel
Property entrance
Alda Hotel Reykjavik

Alda Hotel Reykjavik

4.0 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (1119)
"Great hotel!"
United States
Alena
$183 nightly
The price is $209
Dec 11 - Dec 12
Total with taxes and fees
Alda Hotel Reykjavik
Front of property
Hotel Reykjavík Grand

Hotel Reykjavík Grand

4.0 star property
Laugardalur
9.0 out of 10, Wonderful, (1003)
"Great location loved my stay. "
United States
Shirley
$156 nightly
The price is $180
Jan 4 - Jan 5, 2026
Total with taxes and fees
Hotel Reykjavík Grand
Couples treatment rooms
Miðgarður by Center Hotels

Miðgarður by Center Hotels

4.0 star property
Tún
9.4 out of 10, Exceptional, (1230)
"Clean and everyone was so friendly "
United States
Paige
$177 nightly
The price is $203
Jan 3 - Jan 4, 2026
Total with taxes and fees
Miðgarður by Center Hotels
Terrace/patio
Center Hotels Arnarhvoll

Center Hotels Arnarhvoll

4.0 star property
Downtown Reykjavik
9.0 out of 10, Wonderful, (1032)
"Perfect location for the views, room was comfortable and spotless. The staff were absolutely amazing. Would definitely stay there again "
United Kingdom
Elaine
$177 nightly
The price is $203
Dec 12 - Dec 13
Total with taxes and fees
Center Hotels Arnarhvoll
Room, 1 King Bed, Terrace, City View | View from room
The Reykjavik EDITION

The Reykjavik EDITION

5.0 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (547)
"Great location, friendly staff"
United States
Jochen
$366 nightly
The price is $413
Jan 3 - Jan 4, 2026
Total with taxes and fees
The Reykjavik EDITION
Lobby sitting area
Hotel Reykjavik Centrum

Hotel Reykjavik Centrum

4.0 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (1000)
"Hotel is clean, quiet, amazing staff, wonderful breakfast, perfect location. This is my second time staying here and I already have it booked for a third time. I love Reykjavik and look forward to coming back!!"
United States
Brett
$157 nightly
The price is $180
Jan 6 - Jan 7, 2026
Total with taxes and fees
Hotel Reykjavik Centrum
Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.
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Find out more about Reykjavik

Discover cheap things to do in Reykjavik

Reykjavik, the vibrant capital of Iceland, is a paradise of experiences that won’t break the bank. Start your adventure at Hallgrímskirkja, the iconic church that offers free access to its beautiful grounds and stunning views of the city from its tower for a small fee. Just a short stroll away, the Harpa Concert Hall captivates visitors with its striking architecture and often hosts free events, making it a perfect spot to soak in the local culture. For a taste of Reykjavik's history, the National Museum of Iceland offers a discount on entry for families, providing a fascinating overview of Iceland’s past. The city's picturesque waterfront is ideal for a leisurely walk, and you can enjoy the sight of the Sun Voyager sculpture without spending a dime. Don’t miss exploring the Old Harbour area, where you can find affordable eateries like the famous Icelandic hot dog stands, offering a delicious meal for just a few dollars. For budget-friendly accommodation, consider staying in the lively downtown area, which boasts a variety of cheap hotels that place you within walking distance of these attractions, ensuring convenience and a vibrant atmosphere. You'll find yourself surrounded by charming cafes, friendly locals, and the buzzing energy of Reykjavik, setting the perfect backdrop for an unforgettable family trip.

Find the best cheap hotels in Reykjavik

For budget travelers visiting Reykjavik, these accommodations offer comfort and essential amenities without breaking the bank. Each hotel ensures a pleasant stay with excellent reviews and convenient features.

Freyja Guesthouse & Suites

  • Why it's great for a budget-friendly vacation: Freyja Guesthouse & Suites is a top choice for budget-conscious travelers, an impressive review rating of 9.4. Located in Downtown Reykjavik, this guesthouse offers essential amenities such as free WiFi and nearby parking, ensuring guests have a straightforward stay. The shared kitchen facilities allow for easy meal preparation, making it perfect for those looking to save on dining costs.
  • Other amenities: Guests can enjoy complimentary toiletries and a crib available at no charge. The hotel features a terrace for relaxation and offers bicycle rentals onsite for exploring the city. With easy access to the historical district and nearby hot springs, Freyja Guesthouse provides an ideal base for discovering all that Reykjavik has to offer while sticking to a budget.
  • Neighborhood: Downtown Reykjavik
  • Nearby attractions: Laugavegur - 0.49 miles, Hallgrimskirkja - 0.2 miles, Reykjavik Free Church - 0.64 miles

Hostel B47

  • Why it's great for a budget-friendly vacation: Hostel B47 is a fantastic budget option for travelers, earning a remarkable review rating of 9.4. Situated in Downtown Reykjavik, it provides free WiFi and self-parking, making it a practical choice for those looking to explore the area. The shared kitchen facilities allow guests to prepare meals conveniently, keeping costs down during their stay.
  • Other amenities: The hostel features daily housekeeping and a shared refrigerator, ensuring a clean and comfortable environment. With easy access to local museums and shopping districts, guests can immerse themselves in the vibrant culture of Reykjavik. The garden area offers a peaceful retreat, while the hotel’s art deco design adds a unique charm to the budget-friendly experience.
  • Neighborhood: Downtown Reykjavik
  • Nearby attractions: Laugavegur - 0.23 miles, Hallgrimskirkja - 0.27 miles, Reykjavik Free Church - 0.93 miles

Reykjavik Domes

  • Why it's great for a budget-friendly vacation: Reykjavik Domes offers a unique and budget-friendly lodging experience with a review rating of 9.2. Located in the Grafarvogur neighborhood, this hotel features free WiFi and self-parking, making it easy for guests to travel around. The cozy accommodations include stocked minibars with complimentary items, enhancing the value of the stay.
  • Other amenities: Guests can enjoy a peaceful garden and terrace, as well as a private hot tub for relaxation. The onsite mini-golf provides entertainment, while the stunning mountain views create a tranquil setting. With premium bedding and bathrobes available, Reykjavik Domes ensures a comfortable and enjoyable budget stay for all travelers.
  • Neighborhood: Grafarvogur
  • Nearby attractions: Grasagardur Botanical Garden - 4.43 miles, Reykjavik City Museums - 2.2 miles, Kringlan Shopping Mall - 4.79 miles

Kex Hostel Reykjavík

  • Why it's great for a budget-friendly vacation: Kex Hostel Reykjavík is an excellent option for budget travelers, rated 8.4 by guests. This vibrant hostel is situated in Downtown Reykjavik, providing easy access to local attractions. It features free WiFi and shared kitchen facilities, allowing guests to cook and socialize in a lively atmosphere.
  • Other amenities: The hostel offers a communal refrigerator and terrace, perfect for unwinding after a day of exploration. Guests can enjoy ocean views and take part in live shows or concerts hosted at the hotel. With daily housekeeping and a garden area, Kex Hostel combines comfort with a fun, youthful vibe that budget travelers will appreciate.
  • Neighborhood: Downtown Reykjavik
  • Nearby attractions: Laugavegur - 0.21 miles, Hallgrimskirkja - 0.63 miles, Harpa - 0.54 miles

Guesthouse Aurora

  • Why it's great for a budget-friendly vacation: Guesthouse Aurora is a charming and affordable option for travelers seeking comfort on a budget, with a solid review rating of 8.4. Located in Downtown Reykjavik, this guesthouse offers free WiFi and free self-parking, making it convenient for those traveling by car. The shared kitchen facilities allow guests to prepare their own meals, enhancing their experience without overspending.
  • Other amenities: The hotel features complimentary cribs and concierge services for added convenience. With nearby parking options available, guests can easily explore the city. The welcoming atmosphere and helpful staff make Guesthouse Aurora a great choice for those looking for a budget-friendly stay in Reykjavik.
  • Neighborhood: Downtown Reykjavik
  • Nearby attractions: Laugavegur - 0.29 miles, Hallgrimskirkja - 0.26 miles, Reykjavik Free Church - 0.35 miles

How can I get cheap hotels in Reykjavik?

Best tips to find a cheap hotel in Reykjavik

  1. If you're looking to travel to Reykjavik on a budget, you'll be happy to know that you can find hotels for as low as $118. Of course, that price is affected by amenities, star rating, and even the time of year you visit. At most, hotel prices can be as high as $413. Staying a short amount of time in Reykjavik is an effective way to reduce hotel costs.

  2. When you cut your vacation down to just a few days, you don't have to worry as much about hotel prices since you don't have that many nights to stay. For budget hotels in Reykjavik, 3 to 4 days should be all the nights you need. That's generally enough to enjoy the city's top attractions, though there's certainly enough to do to warrant a week-long trip.

  3. When booking cheap hotel rooms in Reykjavik, it's typically best to book about 3 weeks in advance. Book further in advance than that and you could be paying too much for your room, as hotels will often overestimate future demand. However, if you wait too long, you might find that the hotel has been completely booked.

  4. When you utilize search filters on Expedia, you'll be able to narrow down your results in a flash. These search filters cover a wide variety of factors you may be interested in when it comes to finding a cheap hotel in Reykjavik, including amenities such as Free Breakfast, 2-star rating, or proximity to local attractions. You can even set filters for price limits to ensure that all the displayed results are within your budget.

Top Reykjavik Hotel Reviews

Alda Hotel Reykjavik

Alda Hotel Reykjavik

10/10 Excellent
"The room had a really nice cosy feel to it and felt spacious. We loved the balcony from which we saw the Northern lights. The bathroom had a good shower and lovely L'Occitane toiletries. Staff on reception were super friendly and helpful. The highlight for us was the breakfast which had plenty of choice and delicious coffee and sourdough which we have not stopped talking about! The Starbucks was handy in reception. We only saw afterwards that we would have got a discount by showing our room key - would have been good if this was notified to us on arrival. Location fantastic - close to bus stops for the airport and tours and walkable to everything. We didn't find it noisy as on the quieter end of the main street. The only downside was the bed - the mattress was pretty lumpy and hard and could have done with being replaced. "
Ruth 3-night trip
Posted 5 hours ago
Alda Hotel Reykjavik

Frequently asked questions

What is Reykjavik like for travelers on a budget?
Reykjavik offers cheap accommodation options and a variety of places to visit, making it a great choice for a budget-friendly getaway. In addition to its well-known attractions like Reykjavik Harbour, this destination is home to Reykjavik Pond and Oskjuhlid Hill, which you can enjoy while spending very little.
What's the best budget-friendly accommodation in Reykjavik?
Based on reviews, Hotel Von is a popular hotel for our travelers who want a more economical choice, and features free WiFi and a bar. Other options for your budget-friendly stay include KEX Hostel and Hotel Reykjavik and Hostel B47.
How many inexpensive hotels will I find in Reykjavik?
Expedia has 13 hotels in Reykjavik that are ideal if you are watching your pennies.
When is the best time for a budget trip to Reykjavik?
Weather is probably a major factor when you plan your trip to Reykjavik, and keep in mind that cheaper options are usually available when the weather isn't as good. The hottest months are usually July and August with an average temp of 50°F, while the coldest months are December and January with an average of 32°F. Average annual precipitation for Reykjavik is 50 inches.
What is there to see and do in Reykjavik?
Reykjavik attracts visitors with its top museums and abundant cafes, and offers plenty to see and do without spending a fortune. You can budget for the top local attractions that interest you most, such as Reykjavik Harbour, and then look for sights and activities that cost little or nothing at all. If you're looking to enjoy the area's natural beauty, you can get outdoors at Reykjavik Pond, Oskjuhlid Hill, or Nautholsvik Geothermal Beach.
How can I get to Reykjavik and get around on a budget?
Scoping out the transportation options in Reykjavik is a smart way to keep your trip affordable. The closest airport is 1.2 mi (2 km) away from the center in Reykjavik Domestic Airport (RKV). However, if that doesn't suit your budget, you can book a flight to Reykjavik–Keflavik Intl. Airport (KEF), located 23.2 mi (37.3 km) away. Reykjavik might not have very many public transportation choices so a car rental could be a reasonable alternative to see more of the area.

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