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Best Cheap Hotels In Reykjavik Under $80 A Night

Finding cheap hotels in Reykjavik is essential if you ever hope to travel Iceland on a budget. Iceland has shot to the top of dream destination lists in the past few years and more people than ever before are visiting this fantastic arctic country. Whether you decide to take a 5 day Iceland road trip or are only in the country for a quick stopover, you are in for a real treat! Traveling Iceland on a budget takes research and a little bit of planning, but finding cheap hotels in Reykjavik doesn’t have to be hard and isn’t impossible in the least. Make no mistake, just because these hotels in Reykjavik are cheap, doesn’t mean they sacrifice comfort for affordability! 

Best Cheap Hotels In Reykjavik Under $80 A Night


Centric Guesthouse

Centric Guesthouse is located in the heart of Reykjavik and only minutes away from the iconic national cathedral. Travelers will love the homey guest rooms with chandeliers, on-site bar and restaurant, free wifi, luggage storage, and more. One of the more popular cheap hotels in Reykjavik, Centric Guesthouse is less than ten minutes walking distance from the majority of the capital’s most popular sites and tons of vegan and vegetarian restaurants. There are just fifteen rooms at this guesthouse in downtown Reykjavik so you can be sure you will be treated like family. If you are visiting Reykjavik Iceland with kids, this is a great hotel choice for you as it is intimate and not a party hotel. 

Rate: Prices from $79 per night 

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The Capital Inn

Are you looking to stay at a cheap hotel in Reykjavik where you will truly feel at home? The Captial Inn is just the place for you! This cozy guesthouse is nestled just 2.2 miles from the city center of Reykjavik so prices are a little bit cheaper if you are looking to go out and buy food. If you want to eat on property, the Captial Inn has a restaurant. Many hotels in Reykjavik, Iceland don’t offer visitors room options, but you have plenty of choices at the Captial Inn based on your budget requirements. Enjoy daily housekeeping, free parking, and maybe some Northern Light’s viewing! 

Rate: Prices from $33 per night

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Arcturus Guesthouse Reykjavik

This cheap hotel in Reykjavik is loved by guests who enjoy the proximity to downtown. The majority of the most popular tourist spots in Reykjavik are within 3-15 minutes away walking, and even shorter by taxi. Have your own car? Not to worry! Arcturus offers free parking so you don’t have to pay the high price of parking when exploring downtown. Honestly, this is a huge perk but the free wifi and comfortable and modern rooms aren’t bad either! To really make you feel like you are an Icelander, Arcturus offers free coffee and tea to greet you. Who said cheap hotels in Reykjavik have to sacrifice comfort? 

Rate: Prices from $80 per night

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Hostel B47

When searching for where to say in Reykjavik, don’t let the word “hostel” scare you off into thinking you have to share a room with a zillion people. In addition to the traditional shared dorm, Hostel B47 offers private rooms so you can be all alone. This means Hostel B47 is just like a regular hotel in the way that you have your own space. They have single private rooms if you are traveling alone and go all the way up to family rooms if you bring the kids along too. The price can’t be beaten and Hostel B47 is walking distance from downtown!

Rate: Prices from $39 per night

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Fancy an ocean-view room in Iceland that doesn’t break the bank? Lucky for you, ODDSSON is one of the cheap hotels in Reykjavik that offers just that! They allow you to start checking in at 5:30am which is a major plus if you are arriving on a red eye flight. Most hotels in Iceland, even luxury ones, don’t allow check-in until 2pm, which means you have to wander around with all your luggage. The location is great and the price is affordable.

Rate: Prices from $39 per night 

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32 Tungata

Located in the heart of downtown Reykjavik, 32 Tungata is one of the cheap hotels in Iceland that is walking distance from literally everything you will want to visit. With free wifi and free parking, you will have somewhere to stow your car and stay connected to your friends back home. The multilingual staff are friendly and welcoming so you feel at home immediately. Plus, we think this is one of the cuter accommodations in Reykjavik, just look at the building! 

Rate: Prices from $69 per night 

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Atlantic Apartments and Rooms

Located just two miles from the heart of downtown, Atlantic Apartments and Rooms offers Scandinavian style and comfort to guests looking to save on cheap accommodations in Reykjavik. They truly understand that Iceland is an expensive country and you are looking to save some money. Like many of their competitors, they offer free parking and wifi, but Atlantic Apartments and Rooms also offers help with planning tours and concierge services for guests.

Rates: Prices from $64 per night 

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Hotel Hafnarfjordur

Hotel Hafnarfjordur offers FREE breakfast and that should be enough to sway you to book this place! They are one of the only cheap hotels in Reykjavik to offer breakfast which means one less meal you have to worry about in expensive Iceland! The modern hotel is about 10-15 minutes walking distance from all the popular sites and near major roadways. Click the button below to explore more about their sleek guestrooms!

Rate: Prices from $63 per night 

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Base Hotel By Keflavik Airport

Although not technically in Reykjavik proper, booking a hotel near Keflavik Airport is never a bad idea! Many flights arrive into Iceland in the middle of the night, so only heading a few miles to your hotel instead of the 45-minute journey to Reykjavik could be very convenient. Base Hotel is very comfortable and closer to the Blue Lagoon than many of the cheap hotels in Reykjavik. We wouldn’t blame you if you rested at Base Hotel and then spent the rest of the day relaxing in the Blue Lagoon!

Rate: Prices from $35 per night

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Guesthouse Keflavik

Dreaming of staying in a traditional Icelandic guesthouse? While we are on the topic of cheap hotels near Keflavik Airport, Guesthouse Keflavik is very cozy and modern. The white interior is very Scandinavian and the free breakfast is a nice perk. If you are hoping to hold a conference in Iceland or perhaps teach a photography workshop, Guesthouse Keflavik has a conference room that can be reserved. Free wifi and free parking don’t hurt either! 

Rate: Prices from $80 per night

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Reykjavik Hostel Village

Reykjavik Hostel Village is another one of the places to stay in Reykjavik that plays the part of both a hostel or a hotel so you have options. Yay choices! This place has double rooms just like any other hotel would and even studio apartments so don’t let the word “hostel” being in the name scare you away. If you don’t believe us, check out the photos of all the different options in the link below. This cute place is located right in the heart of downtown Reykjavik and the price really can’t be beat! 

Rate: Prices from $49 per night

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Kirkjuhvoll Guesthouse

If you are looking for a hotel that is between the airport and downtown Reykjavik, yet still in nature, Kirkjuhvoll Guesthouse will be perfect for you! Many wonderful Icelandic sites such as lighthouses, hot springs, lava fields and more are just a walk or short drive away and downtown Reykjavik isn’t too far away by car. Kirkjuhvoll Guesthouse even offers free bike rental to guests so they can more easily explore the surrounding area. Purchasing breakfast is an option and there is a golf course nearby if that is your thing. Bet you didn’t even know Iceland had golf courses! This Reykjavik airport hotel is perfect for both exploring or relaxing after a long flight. 

Rate: Prices from $74 per night

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Apotek Guesthouse

Located between downtown Reykjavik and the Blue Lagoon, Apotek Guesthouse is an affordable option to the more expensive lodges that populate this area of town. If you are bringing a tot, Apotek Guesthouse offers free cribs to maximize comfort for both you and your mini-me. The garden is a nice touch and the free parking and wifi are always a plus! Laundry facilities are also a huge perk if you have been traveling Iceland for a while and haven’t had time to wash your clothes. Apotek Guesthouse will have you feeling fresh and rested in no time. Don’t forget to head to the nearby beach!

Rate: Prices from $37 per night

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Start Hostel

Start Hostel is another one of those city center hotels in Reykjavik that plays the role of both a hotel and hostel, depending on your preference. For the price, the rooms are ultra comfortable, daily housekeeping is included, free breakfast, wifi, parking and more. Enjoy self-service laundry, a playground for the kiddos,  close proximity to museums and sights, luggage storage, and tour and ticket assistance. If you are looking for Scandinavian comfort for a fraction of the price, Start Hostel is the place for you!

Rate: Prices from $55 per night

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We know just how expensive Iceland can be so booking one of these cheap hotels in Reykjavik or choosing one of the hostels in Reykjavik will help you to save more money that you can spend elsewhere on the island. Good luck and don’t forget to check out our other articles about visiting Iceland on a budget and our money saving tips! 

Please note: This article contains some affiliate links which means if you click on them we make a small profit for referring you. This is at no added cost to you and helps us to continue to create content for Follow Me Away. 

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37 thoughts on “Best Cheap Hotels In Reykjavik Under $80 A Night

  1. Pingback: 23 reasons you should honeymoon in Iceland, too | Two Scots Abroad

  2. Kavey Favelle

    I’m so impressed how many budget places you found in Reykjavik! And in a lot of different styles from charming bed and breakfast type place to hostels to hotels to some more simple guest houses as well. Good to know the key facilities as well such as WiFi and parking.

    1. Follow Me Away Post author

      YES! There is great diversity and almost all have Wifi and parking which is a huge plus!

  3. Natasha

    I did not try any of these during my stay. I was at Hotel Natura just outside of the city. These all look wonderful and better for a more central stay`

  4. Barb

    It s funny that hotels in Reykjavik are considered cheap under $80 a night. I love Scandinavia style hotels. Some of these look great. I will take some notes for my future trip to Iceland.

  5. Drew

    What a cool collection of inexpensive accommodations, from hostels to guesthouses. Good to see the sheer number of options available to visitors. I remember visiting before the financial collapse in 2008, when the exchange rate was insane. I stayed at a basic hotel that was $250/nt, and then a few years later after 2008, the same hotel was closer to $80/nt.

  6. Rob

    Very helpful, we are planning to stop into Reykjvik next time we head over to Europe. It is good to know there are quite a few options to stay inexpensively near the city center.

  7. Jenna

    These are all really great suggestions, especially for the price! We loved staying in Reykjavik–such a cool city. Will have to check out one of these spots on our next visit–Centric Guesthouse looks super cute!

  8. Lauren

    So many great choices for places to stay that are cheap..in a country that’s very expensive! I’ve stayed in 2 places in Reykjavik – unfortunately, not any of these properties, but there are some lovely apartments to rent in the city.

  9. Sandy N Vyjay

    Iceland is a place that we have been planning to head out to for some time. We hope our plans see the light of day sooner than later. This is really useful information for us. I liked the idea of staying near the airport, as you have mentioned that the Blue Lagoon is nearer to this place than proper Reykjavik. The comprehensive list of hotels is going to be of immense value to us.

  10. Chrysoula

    Very useful post. I am planning to visit Iceland and I know accommodation can be pretty expensive especially in the capital.I will have a look at your suggested hotels before booking.

  11. Christine

    We stayed at Hlemmur Square and loved it. It is a hotel/hostel combo with a great atmosphere. If you book early the room are reasonable. The hostel part is super affordable and nice!

    1. Follow Me Away Post author

      Yes! We hope people don’t get scared away by the hotel/hosetl combo! But truly you can choose what fits your budget!

  12. Mike Cotton

    It’s great to know that there are somewhat affordable accommodation options in Iceland. The cost of visiting Iceland is the main sticking point for me planning a visit. Hotels under $80 sound like a bargain in Iceland.

  13. Travel Lexx

    Iceland has been on my bucket list for a while and after hearing so many stories of how expensive the country is, it’s great to know that there are affordable options around. I tend to stay in hostels so great to see places like B47 which would definitely appeal! Really comprehensive list – thanks for sharing!

  14. Megan Jerrard

    Thanks for this very useful list, will come in handy for our next trip to Iceland – reykjavik can definitely be an expensive city, but I think cutting costs is all about knowing where to look 🙂

  15. Claudia

    This is a very helpful post for anyone wanting to save money while visiting Iceland. As the country is so expensive, that means just about anyone I gather! Thanks for sharing the great tips on where to say on a budget!

  16. Cat

    Wow so many cheap hotel options! I didn’t know there are such affordable accommodations! Base Hotel By Keflavik Airport might not be in the city but the fact that it is close to Blue Lagoon makes it appealing!

    1. Follow Me Away Post author

      We recommend a month in advance should be plenty! There are so many options and some people don’t book until the week they arrive [not our suggestion!] But a month or two in advance should give you enough options and enough of a peek at the prices! Of course, if you know your schedule, there is no harm in all at booking early!

  17. Allison

    Awesome! Too bad I didn’t find this info sooner, BUT extremely helpful! Hubby and I are doing Iceland in a few weeks to cross it off HIS bucket list. If I haven’t been I want to go! Thank you for the list of hotels/ hostels p, but ways to save $ is a HUGE help! We will not be eating out. It’s grocery store for us. I love to camp, but my way of doing it is in my hammock. I’ll take 2 for lounging around for Northern Lights, but not sleeping. Thanks again. Safe travels wherever the Universe take some you. ?

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