TOP Cheap Hotels in Reykjavik for 2026

A coastal town with colorful buildings, a large body of water, and snow-capped mountains in the background.

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Our top choices for Reykjavik cheap hotels

Family Suite Large | In-room safe, desk, blackout curtains, free WiFi

1. 201 Hotel

Kópavogur

Karen

£151

includes taxes & fees

7 Sept - 8 Sept

2. Reykjavik Lights by Keahotels

Háaleiti

Patricia

£218

includes taxes & fees

1 Sept - 2 Sept

3. CityHub Reykjavik

Downtown Reykjavik

Ingrid

£113

includes taxes & fees

8 Sept - 9 Sept

Deluxe Studio | Minibar, in-room safe, blackout curtains

Apartment, 1 Bedroom | Living area | 32-cm TV with digital channels

4. Hotel Fron

Downtown Reykjavik

Nancy

£166

includes taxes & fees

30 Aug - 31 Aug

Triple Room | Desk, laptop workspace, blackout curtains, soundproofing

5. Konvin Hotel by Reykjavik Keflavik Airport

Reykjanesbær

Ross

£206

includes taxes & fees

6 Sept - 7 Sept

Classic Single Room, Patio View | View from room

6. Hotel Von

Downtown Reykjavik

Gustavo Londono

£206

includes taxes & fees

8 Sept - 9 Sept

Superior Twin Room | Desk, free WiFi, bed sheets

Superior Double Room | Bathroom | Shower, hair dryer, towels

7. Alva Hotel Brautarholt

Holt

Eduardo

£154

includes taxes & fees

18 Aug - 19 Aug

8. Exeter Hotel

Downtown Reykjavik

Sybilla

£265

includes taxes & fees

31 Aug - 1 Sept

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Find out more about Reykjavik

Discover cheap things to do in Reykjavik

Reykjavik offers a wealth of experiences for budget-conscious travellers looking to explore without breaking the bank. Start your adventure at the iconic Hallgrímskirkja, where a modest fee grants you access to the tower's viewing platform, offering breathtaking panoramic views of the city and surrounding landscapes. A stroll through the vibrant Laugavegur shopping street not only delights with its unique boutiques but also provides a chance to sample affordable street food; try the famous hot dogs from Bæjarins Beztu Pylsur, a local favourite. Don't miss the beautiful Tjörnin pond, where you can enjoy a peaceful walk and watch the local birdlife, all completely free. For a bit of culture, the National Museum of Iceland has an entrance fee that's easy on the wallet, showcasing the country's fascinating history. When it comes to accommodation, consider staying in the trendy downtown area, where numerous budget hotels and hostels are just a stone's throw from these attractions, making it convenient to explore on foot. This area is filled with charming cafes and restaurants, perfect for sampling local delicacies at reasonable prices, ensuring your family enjoys the best of Reykjavik without overspending.

Find the best cheap hotels in Reykjavik

Reykjavik offers a wealth of affordable accommodation options that don’t compromise on comfort. Here are some excellent budget-friendly hotels perfect for savvy travellers looking to enjoy the Icelandic capital without breaking the bank.Guesthouse Sunna

Why it's great for a budget-friendly vacation: Guesthouse Sunna is a charming and budget-friendly accommodation located in Downtown Reykjavik, with a noteworthy guest review rating of 9.2. Offering free Wi-Fi and self-parking, it provides guests with the essentials for a comfortable stay at a great price.
Other amenities: This guesthouse features shared kitchen facilities, allowing guests to prepare their own meals, along with a refrigerator and microwave for added convenience. Daily housekeeping ensures that rooms remain tidy during your stay, while rollaway beds are available at no extra charge for families or groups. The welcoming atmosphere and prime location make Guesthouse Sunna an excellent option for those looking to explore Reykjavik affordably.
Neighborhood: Downtown Reykjavik
Nearby attractions: Laugavegur - 0.5 km, Hallgrimskirkja - 0.1 km, Reykjavik Free Church - 0.7 km

Rey Apartments

Why it's great for a budget-friendly vacation: Rey Apartments offers budget-conscious travellers an exceptional stay in Downtown Reykjavik, a fantastic guest review rating of 9.2. The apartments come equipped with free Wi-Fi, toiletries, and even an airport shuttle service available 24 hours, ensuring a straightforward experience for those arriving or departing at odd hours.
Other amenities: Each apartment features a kitchenette for guests who prefer to self-cater, including an oven, refrigerator, and dining table. The hotel also provides a crib for families, as well as easy access to nearby shopping and hiking locations. The combination of comfort and convenience makes Rey Apartments a smart choice for travellers looking to explore Reykjavik on a budget.
Neighborhood: Downtown Reykjavik
Nearby attractions: Laugavegur - 0 km, Hallgrimskirkja - 0.5 km, Reykjavik Free Church - 0.6 km

Storm Hotel by Keahotels

Why it's great for a budget-friendly vacation: Storm Hotel by Keahotels is an ideal choice for budget travellers seeking a modern stay in Reykjavik, reflected in its impressive guest review rating of 9.2. Guests can enjoy a delightful buffet breakfast each morning, paired with free Wi-Fi and essential toiletries, ensuring a pleasant experience without added costs.
Other amenities: The hotel also offers complimentary cribs and a variety of room configurations, including balconies for added outdoor space. With a snack bar on-site and convenient parking facilities, it caters to a range of needs. The concierge service is available to help guests plan their adventures in the city, making it a well-rounded choice for any traveller.
Neighborhood: Laugardalur
Nearby attractions: Laugavegur - 0.1 km, Harpa - 1.4 km, Hallgrimskirkja - 1.5 km

How to get cheap hotels in Reykjavik?

✅ The length of stay in Reykjavik often varies depending on the nature of the trip, but many travellers opt to stay for several days or up to a week to take in Reykjavik's notable landmarks and points of interest.

✅ If you're looking for cheap hotels in Reykjavik in 2026, book your hotel well in advance. Reserving your stay at least a few weeks or months ahead of time can help you take advantage of amazing rates on cheap hotels in Reykjavik, and if your plans change you can find many options of hotels with free cancelation.

✅ To find affordable hotels in Reykjavik on Expedia, start by entering your travel dates and the number of individuals in your group. Once you've provided this information, you can refine your search results by filtering for budget hotels in Reykjavik.

✅ Use the filtering tools offered by Expedia to refine your search results by location, price limits, amenities such as breakfast included, and other factors that matter to you. This will help you quickly locate the ideal budget-friendly hotel that fits your specific requirements.

✅ If you're looking to save money on a cheap hotel in Reykjavik, the ideal time to go is usually during the off-season in Reykjavik. On Expedia, you can find hotels from £113*.

✅ Reykjavik offers numerous budget-friendly attractions and activities for travellers, such as art and exhibits at free museums and galleries or exploring Reykjavik on foot.

✅ One of the best ways to find cheap hotels in Reykjavik is to search Expedia for properties that provide family-friendly accommodations and features such as activities and complimentary meals, and then sort these by price.

*Prices and availability are subject to change. Additional terms may apply.

Top Reykjavik Hotel Reviews

Center Hotels Plaza

10/10 Excellent

"The room was quaint and clean."

Fosshotel Reykjavik

10/10 Excellent

"The location is great—you can walk to city center. The view from the high-floor room was amazing. On the day I stayed, the parking lot was closed due to construction, so I had to park at a nearby parking facility. Parking in Zone P4 was free from 4:00 PM to 8:00 AM. The front desk staff kindly explained everything to me."

Reykjavik Residence Apartment Hotel

10/10 Excellent

"Checking in was a puzzle. You have to go to the main office downtown to access any of the hotels"

Center Hotels Arnarhvoll

10/10 Excellent

"Desk staff were very helpful in dealing with our very early arrival, also with suggestions for shopping for replacement for lost raincoat. Great suggestion for restaurant for dinner. Loved the location. DO NOT USE MY NAME"

Fosshotel Barón

10/10 Excellent

"Breakfast was delicious and plentiful with a large variety of choices!"

Miðgarður by Center Hotels

8/10 Good

"No access to hottub"

Hotel Reykjavík Grand

10/10 Excellent

"Excellent stay at this fine hotel."

Alva Hotel Brautarholt

8/10 Good

"Clean comfortable room Easy to check in Nice bathroom Walking distance to downtown My only complaint was the black out curtains only covered half the windows, so minimal privacy as the building across could see inside our room and it didn't get completely dark."

Frequently asked questions

Which are the best hotels to stay in Reykjavik as a budget traveller?

For budget-conscious travellers exploring Reykjavik, excellent choices include Reykjavik Treasure, Skuggi Hotel by Keahotels, and Reykjavik Lights by Keahotels.Reykjavik Treasure, a 3-star hotel with an outstanding 9.6 rating, offers a truly delightful experience. Guests frequently praise its delicious free continental breakfast, convenient location, and lovely rooms. Free toiletries and free WiFi are also included, adding to the value.Another solid option is the 3-star Skuggi Hotel by Keahotels, rated 9.2. This hotel provides a great start to your day with a free buffet breakfast. Travellers appreciate its excellent location, comfortable and clean rooms, and the friendly, helpful staff. Free self-parking and free WiFi are also valuable amenities.The 3-star Reykjavik Lights by Keahotels, also with a 9.2 rating, is a popular choice. Guests consistently highlight the friendly and helpful staff, nice and clean rooms, and a great free continental breakfast.

How much does a budget hotel in Reykjavik cost?

Budget hotel prices in Reykjavik vary, but you can find a great deal from £113 on Expedia. To find the cheapest budget hotels, be flexible with your dates. Typically, off-peak and mid-week stays are cheaper. Stretch your budget further by looking for hotels with free breakfast, free parking or free airport shuttles. Sort your search results by "Price: low to high" to see our lowest rates.

What are the top-rated cheap hotels for families in Reykjavik?

For families seeking affordable and highly-rated accommodation in Reykjavik, excellent choices include Rey Apartments, Hotel Fron, and Fosshotel Barón.Rey Apartments, a 3-star property with an impressive 9.2 rating, is particularly well-suited for families. Guests consistently praise its great location and the helpful staff. The inclusion of a kitchen in each apartment is a significant advantage for families wishing to prepare their own meals, and free WiFi is provided. Free cribs are available, and the hotel offers a 24-hour airport shuttle service for convenience.Hotel Fron, also a 3-star hotel with an 8.8 rating, is another fantastic option. Its excellent location is frequently highlighted by guests, as are the spacious and clean rooms. Families will appreciate the complimentary buffet breakfast, ensuring a good start to the day without extra cost. Free WiFi is available throughout the hotel.Fosshotel Barón, a 3-star hotel rated 8.6, is known for its convenient location and friendly, helpful staff. Families will find the rooms spacious and clean, and free cribs are provided. The breakfast receives excellent reviews from guests, and the hotel offers a 24-hour airport shuttle service.

What cheap hotels in Reykjavik offer complimentary breakfast?

For budget-friendly hotels in Reykjavik that offer complimentary breakfast, you have several excellent choices, including Reykjavik Treasure, Skuggi Hotel by Keahotels, Reykjavik Lights by Keahotels, Storm Hotel by Keahotels, and Hotel Fron.Reykjavik Treasure, a 3-star hotel with an outstanding 9.6 rating, provides a delicious complimentary continental breakfast. Guests frequently praise its convenient location and the lovely rooms.The 3-star Skuggi Hotel by Keahotels, rated 9.2, offers a free buffet breakfast and complimentary self-parking, which is a great value in Reykjavik. Reviewers often highlight its excellent location, comfortable rooms, and friendly staff.Another great option is the 3-star Reykjavik Lights by Keahotels, also with a 9.2 rating. This hotel includes a free continental breakfast and free self-parking, with guests often commending the friendly staff and nice, clean rooms.Storm Hotel by Keahotels, a 3-star property with a 9.2 rating, provides a complimentary buffet breakfast. Reviewers consistently mention the helpful staff, comfortable rooms, and convenient location.Lastly, Hotel Fron, a 3-star hotel rated 8.8, includes a free buffet breakfast.

When is the most affordable time to visit Reykjavik?

The most affordable time to visit Reykjavik is generally during the shoulder seasons, specifically from late September to November and again from February to early May. During these periods, you'll find lower prices on flights and accommodation compared to the peak summer months.Solo travellers looking for value will appreciate the noticeable drop in hotel rates and flight costs. While the weather can be unpredictable, these months still offer opportunities to experience the Northern Lights without the intense competition and higher prices of mid-winter. It's also a great time to find deals on guided tours, which are often essential for exploring outside the city.For couples, travelling in the shoulder season means a more intimate experience of Reykjavik's attractions. Many museums and galleries are less crowded, and you can often enjoy quieter moments at popular spots like the Blue Lagoon (booking ahead is still wise).

Are there any cheap Reykjavik hotels near Reykjavik Pond?

Yes, there are several excellent and affordable hotels near Reykjavik Pond that offer great value for travellers.The 3-star Reykjavik Treasure hotel, with an outstanding rating of 9.6, is highly recommended. Guests consistently praise its delicious free continental breakfast, and its convenient location makes exploring the area effortless. Free WiFi and complimentary toiletries are also provided, ensuring a comfortable stay.Another fantastic option is the 3-star Skuggi Hotel by Keahotels, rated 9.2. This hotel offers a great free buffet breakfast, free self-parking, and free WiFi. Its excellent location is a major plus for guests, and the comfortable, clean rooms are complemented by friendly and helpful staff.Also from the Keahotels group, the 3-star Reykjavik Lights by Keahotels, rated 9.2, provides great value with its free continental breakfast, free self-parking, and free WiFi. Guests frequently comment on the friendly and helpful staff, as well as the nice and clean rooms.For a hotel with a slightly different feel, the 3-star Hotel Local 101, with a 9.4 rating, is another great choice. It offers free toiletries, free WiFi, and free parking at a nearby location. Reviewers consistently highlight the amazing and friendly staff, excellent rooms, and good breakfast.Finally, the 3-star City Center Hotel, rated 9.2, is much-loved for its superb location and comfortable, clean rooms.

What cheap hotels in Reykjavik offer cooking facilities or kitchenettes?

For budget-friendly hotels in Reykjavik offering cooking facilities or kitchenettes, excellent options include Rey Apartments, Hotel Fron, and Hótel Múli.Rey Apartments, a 3-star property with a superb 9.2 rating, provides private kitchens within its accommodations, allowing guests to prepare their own meals. Reviewers frequently praise its superb location and the helpfulness of its staff.Another great choice is the 3-star Hotel Fron, rated 8.8 by customers. Many of its rooms come equipped with kitchenettes, and guests also benefit from a complimentary buffet breakfast, adding extra value to their stay. Its central location also receives frequent praise.Hótel Múli, also a 3-star hotel with an 8.8 rating, offers rooms with convenient kitchenettes.

Which cheap hotels in Reykjavik have good reviews for customer service?

For affordable hotels in Reykjavik with excellent customer service, travellers often recommend Reykjavik Treasure, Skuggi Hotel by Keahotels, and Reykjavik Lights by Keahotels.The 3-star Reykjavik Treasure, with an impressive 9.6 rating, is highly praised by guests for its great staff. It also offers complimentary breakfast, including a continental option, and free WiFi, adding to its value.Skuggi Hotel by Keahotels, a 3-star establishment rated 9.2, consistently receives positive feedback for its friendly and helpful front desk staff and good service overall. Guests will also appreciate the free buffet breakfast and complimentary self-parking.Another excellent choice is the 3-star Reykjavik Lights by Keahotels, also rated 9.2. Reviewers frequently highlight the great and excellent service, with staff being described as friendly and helpful. This hotel also provides free breakfast, including a continental option, and free WiFi.The 3-star Rey Apartments, with a 9.2 rating, is known for its great and helpful staff. Its amenities include free WiFi and a kitchen in each apartment, which is a practical feature for budget-conscious travellers.Finally, the 3-star Storm Hotel by Keahotels, rated 9.2, is frequently commended for its great customer service and helpful, friendly staff, particularly at reception.

Are there any cheap hotels in Reykjavik that allow for late check-out or early check-in?

Yes, there are several budget-friendly hotels in Reykjavik that can accommodate early check-ins or late check-outs, though specific policies often depend on availability.The 3-star Skuggi Hotel by Keahotels, with an excellent rating of 9.2, is a strong contender. While early check-in availability may vary, guests frequently praise the complimentary buffet breakfast and free Wi-Fi, adding to its overall value.Another great option is Center Hotels Klöpp, a 3-star establishment rated 8.8. They explicitly offer early check-in and late check-out options, making it easier to manage your arrival and departure times. Reviewers often highlight the friendly and helpful staff, as well as the comfortable rooms.Hotel Local 101, a 3-star hotel with an impressive 9.4 rating, also provides early check-in options. Guests consistently praise the amazing staff and excellent rooms, making it a reliable choice for flexible timings. They also offer free Wi-Fi.Finally, Fosshotel Raudara, rated 8.4, is another 3-star hotel that facilitates early check-in. This hotel offers free Wi-Fi and complimentary parking at a nearby location, which is a great perk for those travelling with a car.

What free activities should we do in Reykjavik?

Reykjavík offers a surprising number of free activities, allowing solo travellers to soak up the city's unique charm without spending a fortune. Exploring the city on foot is a fantastic way to discover its vibrant street art scene, with colourful murals adorning buildings throughout the downtown area.A stroll along the waterfront is a must, offering stunning views of Mount Esja across Faxaflói Bay, and you can admire the striking architecture of the Harpa Concert Hall from the outside. For a touch of history and culture, visit the Hallgrímskirkja church; while there's a fee to go up the tower, admiring its impressive exterior and the statue of Leif Erikson is completely free.Outdoor enthusiasts can wander through the expansive grounds of the public parks, such as Klambratún, which often hosts free events and has outdoor art installations. You can also explore the diverse birdlife and enjoy the tranquil atmosphere of Tjörnin, the city's central pond, which is particularly lovely for a leisurely walk.

Can I cancel my budget hotel reservation on Expedia?

Many Expedia hotel reservations are refundable, provided that you cancel before the hotel's cancellation deadline. This is often within 24-48 hours of your scheduled arrival. Be sure to check your booking confirmation for the exact cancellation policy. For maximum flexibility, use Expedia's "Fully refundable property" filter during your search to find the right budget hotel in Reykjavik for you.

How can I save on a budget hotel in Reykjavik with Expedia?

There are plenty of ways to save on a budget hotel in Reykjavik. Join One Key™, our free travel rewards programme, to unlock instant discounts with Member Prices across a range of hotels. Typically, booking in advance will help you save on your hotel booking. If you're feeling spontaneous, be sure to check for last-minute deals.

Is it cheaper to book flights and a hotel in Reykjavik as a package?

Booking a hotel and flight package on Expedia can be cheaper than booking flights and hotels separately. Savings vary depending on factors like destination, travel dates, and availability, so it's wise to compare options. With access to over 300,000 hotels worldwide, Expedia makes it easy to build the perfect travel package. *Savings vary and are not available on all flight and hotel bookings.

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Reykjavik Holiday Rentals

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Check availability on Reykjavik Cheap Hotels

Our top choices for Reykjavik cheap hotels

1. 201 Hotel

2. Reykjavik Lights by Keahotels

3. CityHub Reykjavik

4. Hotel Fron

5. Konvin Hotel by Reykjavik Keflavik Airport

6. Hotel Von

7. Alva Hotel Brautarholt

8. Exeter Hotel

9. Hotel Cabin

10. Hotel Reykjavík Grand

Find out more about Reykjavik

Discover cheap things to do in Reykjavik

Find the best cheap hotels in Reykjavik

How to get cheap hotels in Reykjavik?

Top Reykjavik Hotel Reviews

Center Hotels Plaza

Fosshotel Reykjavik

Reykjavik Residence Apartment Hotel

Center Hotels Arnarhvoll

Fosshotel Barón

Miðgarður by Center Hotels

Hotel Reykjavík Grand

Alva Hotel Brautarholt

Frequently asked questions

Explore a world of travel with Expedia

Search Cheap Hotels in Reykjavik

Change your mind

Treat yourself

Be picky

Check availability on Reykjavik Cheap Hotels

Our top choices for Reykjavik cheap hotels

1. 201 Hotel

2. Reykjavik Lights by Keahotels

3. CityHub Reykjavik

4. Hotel Fron

5. Konvin Hotel by Reykjavik Keflavik Airport

6. Hotel Von

7. Alva Hotel Brautarholt

8. Exeter Hotel

9. Hotel Cabin

10. Hotel Reykjavík Grand

Find out more about Reykjavik

Discover cheap things to do in Reykjavik

Find the best cheap hotels in Reykjavik

How to get cheap hotels in Reykjavik?

Top Reykjavik Hotel Reviews

Center Hotels Plaza

Fosshotel Reykjavik

Reykjavik Residence Apartment Hotel

Center Hotels Arnarhvoll

Fosshotel Barón

Miðgarður by Center Hotels

Hotel Reykjavík Grand

Alva Hotel Brautarholt

Frequently asked questions

Explore a world of travel with Expedia