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 May 06, 2026.
1. Oddsson Hotel (from USD 114)
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.
ODDSSON Midtown Hotel
Address: Grensásvegur 18
2.78 km (1.8 mi) from Hallgrimskirkja
2. Hotel Orkin (from USD 220)
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.
Hotel Orkin This is a Proud Certified property where you can be extra sure of a welcoming stay.
Address: Brautarholti 29
1.24 km (0.8 mi) from Hallgrimskirkja
3. Hotel Cabin (from USD 85)
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.
Hotel Cabin
Address: Borgartún 32
1.65 km (1.1 mi) from Hallgrimskirkja
4. Reykjavik Downtown Hotel (from USD 61)
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.
Reykjavik Downtown Hotel
Address: Skolavordustigur 42
135 meters (442.0 ft) from Hallgrimskirkja
5. h Floor Hotel (from USD 63)
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.
4th Floor Hotel
Address: Laugavegur 101
530 meters (0.4 ft) from Hallgrimskirkja
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.
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