Cheap hotels in Reykjavík

Reykjavík is small and walkable, and hotels in Iceland are expensive, so location matters. Keflavík International Airport is under an hour away, and cruise ships use the city’s harbours.

Finding cheap rooms in Reykjavík is easier when you know where to look. We compare live hotel rates across the top booking sites and point you to the neighborhoods where hotels are cheap but the location is still great.

Reykjavík is a major port for Iceland circumnavigation cruises and a departure point for Arctic expedition voyages to Greenland and beyond.

Where to find cheap rooms in Reykjavík

Downtown & Laugavegur

The main shopping street with restaurants and bars — the liveliest base.

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Old Harbour

Whale-watching boats, seafood and the Harpa concert hall by the water.

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Near Hallgrímskirkja

Quieter streets around the landmark church, still walkable to everything.

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Keflavík (near the airport)

Practical, often cheaper hotels for late arrivals or early flights.

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Map of cheap hotels in Reykjavík

Zoom and pan the map to compare hotel prices by neighborhood; rates come live from the booking sites.

When to book a cheap hotel in Reykjavík

June–August brings the midnight sun and the peak cruise season at peak prices; September–March is cheaper, with a chance of the northern lights.

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Frequently asked questions

Where should I stay in Reykjavík before a cruise?

Downtown or near the Old Harbour keeps you close to restaurants and a short taxi ride from the cruise piers.

Is it worth staying near Keflavík Airport?

For a late arrival or early flight, yes — the airport is under an hour from the city.

How can I save on hotels in Iceland?

Travel outside June–August, book early, and consider guesthouses or apartments with a kitchen.