7 Best Cheap Hotels In Reykjavík, Iceland - Updated 2024

| 3 min read

Idyllic sceneries and the stunning architecture of Iceland will take your breath away. Iceland’s capital, Reykjavik, roughly translates to “Bay of Smokes.” It was given this name because the first Viking settlers noticed steam rising from geothermal vents. Hallgrimskirkja, a Lutheran parish church, Saga Museum, and Blue Lagoon, which is a spa, are attractions worth a visit. You can admire the architectural style of Hallgrimskirkja, learn about the Vikings’ past at Saga Museum, and unwind at Blue Lagoon. You can participate in other fun activities, such as horseback riding and going on a Viking cruise. If you are traveling to Iceland on a budget, you can stay at an affordable accommodation. To find one, check out the best cheap hotels in Reykjavík, Iceland.

We handpicked these listings carefully, considering (wherever possible) recent guest reviews, location, accommodation type, prices, availability of dates, decor, and amenities. The image galleries get refreshed with the latest updates regularly. They were last updated on April 11, 2024.

1. Oddsson Hotel (from USD 149)

Oddsson Hotel is a short walk away from the city centre, zoo, park, botanical gardens, Laugar, Laugardalsholl, and Laugardalslaug. It is also near grocery and clothing stores, restaurants, coffee shops, bakeries, and outlets. It used to be a storehouse, which was renovated. It offers rooms with a private bathroom and a satellite TV. It also provides family rooms and a buffet breakfast.

Stayed at this property?


Wifi Available Wheelchair accessible

Address: Grensásvegur 16a
2.78 km (1.8 mi) from Hallgrimskirkja

Parking Meeting/banquet facilities Non-smoking rooms Facilities for disabled guests Family rooms Free parking Internet services Lift

2. Grimur Hotel (from USD 130)

Grimur Hotel is situated in Fossvogur and is near Grímsbær, a shopping center, and Eldofninn and Eldofninn Pizzerias. Kringlan, Laugardalsholl, Perlan, Hallgrimskirkja, and Hljomskalagardurinn are also within reach. The hotel offers free parking and luggage storage. It features a buffet restaurant and a game room. It provides rooms that are well-designed and equipped with a fridge, coffee- and tea-making facilities, and a dining area.

Stayed at this property?

Grimur Hotel

Address: Efstaland 26, 2nd floor
3.33 km (2.1 mi) from Hallgrimskirkja

Air conditioning Fire extinguishers On-site parking Barber/beauty shop Board games/puzzles Airport shuttle (additional charge) Soundproof rooms Non-smoking throughout

3. Hotel Orkin (from USD 160)

Hotel Orkin is a comfortable hotel near the center of the city and Laugavegur. It offers free parking and Wi-Fi access. It serves freshly baked bread for breakfast in the lounge. It also offers unlimited warm tea and coffee during the day, as well as delicious cakes. It provides guest rooms, which range from twin rooms to family apartments. All rooms have a television and a bathroom with a shower. A play area and a ping pong table are available for children. Keflavik International Airport is less than an hour drive away.

Stayed at this property?

Hotel Orkin

Wifi Available

Address: Brautarholti 29
1.24 km (0.8 mi) from Hallgrimskirkja

Parking Meeting/banquet facilities 24-HOUR FRONT DESK Terrace Non-smoking rooms Airport shuttle Laundry Skiing

4. Hotel Cabin (from USD 78)

Hotel Cabin is five minutes away from Laugardalslaug, a public swimming pool. It offers free private parking, rooms equipped with a TV, and Wi-Fi access. Some rooms come with views of the sea or city. The hotel features a buffet restaurant and a lobby bar where guests can relax. It is near Reykjavík Park and Zoo, as well as Kringlan, a shopping mall. Hotel staff can speak Icelandic and English and can help you plan for outdoor activities, such as whale watching, fishing, and hiking.

Stayed at this property?

Hotel Cabin

Address: Borgartún 32
1.65 km (1.1 mi) from Hallgrimskirkja

Shops (on site) Staff follow all safety protocols as directed by local authorities Face masks for guests available Hand sanitizer in guest accommodation and key areas Guests have the option to cancel any cleaning services for their accommodation during their stay Shared stationery such as printed menus, magazines, pens, and paper removed Car hire Screens or physical barriers placed between staff and guests in appropriate areas

5. Reykjavik Downtown Hotel (from USD 56)

Reykjavik Downtown Hotel is a trendy hotel that provides a scrumptious breakfast buffet, which is served at an elegant buffet restaurant. It offers spacious, well-appointed rooms with a private bathroom. All rooms are equipped with a television, a mini kitchen, and free Wi-Fi. The hotel also provides shuttle services. Hallgrimskirkja is 45 minutes away while Sundhöllin, Laugavegur, a shopping street, and Tjörnin are a short walk away from the hotel.

Stayed at this property?

Reykjavik Downtown Hotel

Address: Skolavordustigur 42
135 meters (442.0 ft) from Hallgrimskirkja

Fire extinguishers Snack bar Non-smoking rooms Daily housekeeping Shuttle service (additional charge) Tour desk Free WiFi Car hire

6. 4th Floor Hotel (from USD 58)

4th Floor Hotel is one of the city’s best hotels. It is situated on Laugavegur, Reykjavik’s main street, and is near Hlemmur Square and Hallgrmskirkja. It has 30 rooms, which range from budget-friendly rooms to suites. Some rooms offer panoramic views of Reykjavik. You can have a long-term stay here for a reasonable rate. The hotel is well-designed with black tiles and wooden furniture. It features a cafe, which serves delicious breakfast every day.

Stayed at this property?

4th Floor Hotel

Wifi Available

Address: Laugavegur 101
530 meters (0.4 ft) from Hallgrimskirkja

Parking Non-smoking rooms Airport shuttle Internet services Lift Tour desk Heating WiFi Available

7. Arctic Comfort Hotel (from USD 225)

Arctic Comfort Hotel is budget-friendly and welcoming. It is a 15-minute walk from shops, restaurants, a sports center, a zoo, an indoor ice-skating rink, Laugavegur, and Laugardalslaug. It is also near grocery stores. It provides rooms with a telephone, a TV, and a private bathroom. Some rooms have a kitchenette. A breakfast buffet prepared with organic ingredients is available. In the hotel’s bar, visitors can use the computer with internet connection free of charge.

Stayed at this property?

Arctic Comfort Hotel

Wifi Available

Address: Sidumula 19
2.51 km (1.6 mi) from Hallgrimskirkja

Parking Bar 24-HOUR FRONT DESK Non-smoking rooms Family rooms Free parking Internet services Tour desk

Visit Reykjavík

It is expensive to visit Iceland, but it is possible to travel on a budget. You can save a lot by staying at an affordable accommodation, such as one of these best cheap hotels.

Stayed at this property?
Any must-sees we missed? Tell us about them in the comments section or write a post here to help out fellow travelers!
Disclosure: Trip101 selects the listings in our articles independently. Some of the listings in this article contain affiliate links.


Get Trip101 in your inbox

Unsubscribe in one click. See our Privacy Policy for more information on how we use your data

Nada juggles her commitments as a medical university student with her shared passion for travel. Learning about diverse locations and cultures, acquiring new languages, devising plans for future...Read more

 Want to contribute as a Local Expert?
Explore Reykjavik
Good things are meant to be shared!
Back to top
Visited any of these places? Click this button to activate our "Add a Tip" feature to share your experience.