Cheap hotels in Reykjavik tonight
Updated 7 November 2026 · 36 real hotels
Reykjavik is not the cheapest European capital, but staying in neighboring suburbs like Kópavogur, Garðabær, or Mosfellsbær cuts costs significantly compared to central options. Our selection starts at 85 €/night and tops out at 120 €/night, covering guesthouses, hostels, and 3-star hotels within easy reach of the city center.
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Affordable Stays in Reykjavik: What to Expect
Reykjavik has a well-earned reputation for high living costs, and accommodation is no exception. That said, smart travelers know that stretching a few kilometers beyond the downtown core, toward suburbs like Kópavogur or Garðabær, can shave a meaningful amount off the nightly rate without sacrificing comfort or access. Public buses connect these areas to central Reykjavik reliably, so a suburban base is a genuinely practical choice, not just a compromise.
Budget Neighborhoods and Strategies
The cheapest option in our selection, ASKA Heiðmörk in Kópavogur at 85 €/night, sits just south of the capital and offers a 3-star experience at a price that is hard to match anywhere closer to Laugavegur. For travelers who want a city-center address without paying premium rates, KEX Hotel and Hostel on the waterfront starts at 94 €/night and mixes hostel energy with hotel-style rooms, making it a favorite for solo travelers. Guesthouse Andrea, also centrally located, provides a quieter, more intimate stay from 99 €/night. If you book mid-week, avoid the summer peak of June through August, and check rates a few weeks in advance rather than at the last minute, you will generally find the lower end of these prices. Combining a suburban location with these timing tips is the most reliable way to keep your Reykjavik accommodation budget under control.
Our selection in Reykjavik
A real selection, real prices, from the most affordable to the showstopper.
| Hotel | Area | Rating | Price / night |
|---|---|---|---|
| ASKA Heiðmörk ★★★ | Kópavogur | ★ 4.3 | 85 €/nuit |
| KEX Hotel and Hostel Reykjavik ★★ | Centre-ville de Reykjavik | ★ 4.3 | 94 €/nuit |
| Guesthouse Andrea ★★★ | Centre-ville de Reykjavik | ★ 4.1 | 99 €/nuit |
| Hotel Cabin ★★★ | Laugardalur | ★ 3.9 | 105 €/nuit |
| Hotel Laxnes ★★★ | Mosfellsbær | ★ 4.3 | 107 €/nuit |
| Fisherman's Village ★★★ | Garðabær | ★ 4.6 | 111 €/nuit |
| 201 Hotel ★★★★ | Kópavogur | ★ 4.3 | 115 €/nuit |
| CityHub Reykjavik ★★ | Centre-ville de Reykjavik | ★ 4.6 | 120 €/nuit |
| Reykjanes Guesthouse ★★★ | Grindavik | ★ 4.4 | 120 €/nuit |
| Nordurey Hotel City Garden ★★★ | Reykjavik | ★ 4.5 | 121 €/nuit |
Our hotel profiles in Reykjavik
Frequently asked questions
What is the cheapest hotel in Reykjavik in our selection?+
ASKA Heiðmörk in Kópavogur is the most affordable option, available from 85 €/night. It is a 3-star property rated 4.3/5, located a short bus ride south of central Reykjavik, making it excellent value by Icelandic standards.
Are the suburban hotels near Reykjavik well connected to the city center?+
Yes. Properties in Kópavogur, Garðabær, and Mosfellsbær are all served by Strætó public buses, which link them to Reykjavik's main attractions and transport hubs. Travel times are typically 15 to 30 minutes depending on the specific location, so staying outside the center is a realistic budget strategy rather than an inconvenience.
When is the best time to book a cheap hotel in Reykjavik?+
Rates are lowest during the shoulder seasons of April to May and September to October, when weather is still manageable but tourist numbers drop sharply. Midsummer (June through August) and the Northern Lights peak period (November to February) both see higher demand and prices. Booking several weeks in advance and opting for mid-week check-ins also tends to yield better rates across all seasons.
Is it worth paying more to stay in central Reykjavik?+
It depends on your priorities. Central options like KEX Hotel and Hostel (94 €/night), Guesthouse Andrea (99 €/night), and CityHub Reykjavik (120 €/night, rated 4.6/5) put you within walking distance of Laugavegur, the harbor, and major landmarks, which saves on transport costs and time. If you plan to explore the Golden Circle or South Coast by rental car, a suburban base actually makes logistics easier, since you avoid city-center parking and simply join the ring road directly.