Iceland has become an increasingly popular travel destination, not only because of the mystical landscape but also the friendly and welcoming atmosphere. In the land of fire and ice, you’ll have a few once-in-a-lifetime photo opportunities and the chance to feel like you’ve stepped into your own fairy tale setting!

To enjoy the best of the island, finding a good place to stay should be your number one priority. Since the main airport of Iceland is in the capital, finding unique accommodation in Reykjavik is a good place to begin.

The best bed and breakfasts in Reykjavik are great options whether you plan on spending most of your vacation in the capital or you’re just passing through to go off and explore other areas of the island. To help you in your search, we’ve put together a guide to select the right property as well as some of our top picks to give you ideas about where to stay!

In a Hurry? Here’s Where to Stay in Reykjavik for One Night

FIRST TIME IN REYKJAVIK

Loki 101 Guesthouse

Enjoy homey comforts and a central location during your trip to Reykjavik! The Loki 101 Guesthouse is a great budget bed and breakfast that still maintains a high standard of service with awesome city views, a shared kitchen, and an outdoor seating area.

Places to visit:
  • Hallgrimskirkja
  • National Museum of Iceland
  • Sun Voyager

Is this amazing Reykjavik Bed & Breakfast booked for your dates? We’ve got your back with our other favorite properties below!

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    Staying in a Bed and Breakfast in Reykjavik

    "Staying

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    Bed and breakfasts are like a perfect combination of a hotel and a hostel as you can enjoy more privacy, but also score a great budget-friendly place to stay. Since many of the best bed and breakfasts in Reykjavik are locally owned, you might also get some tips about what to see and do during your trip!

    Most bed and breakfasts tend to be located in the downtown area of the city, close to both the airport and the top attractions. However, some properties are a bit more removed if you want a less crowded neighborhood.

    Reykjavik is a popular destination year-round, so you won’t have to worry about places closing during the low season. However, since many travelers prefer the warmer weather of summer, bed and breakfasts in Reykjavik tend to fill up quickly during these times so it’s best to make a reservation in advance.

    Public transportation is fairly accessible in the city, especially if you’re staying near the center. Some bed and breakfasts even offer transportation services or airport transfers to make your trip easier!

    Mountain View Reykjavik
    If you enjoy the outdoors, you’ll love Reykjavik.

    What to Look for in a Bed and Breakfast

    Depending on what you’re interested in seeing in Iceland, there are some things you can look out for when picking a bed and breakfast in Reykjavik. You can always count on having your own private room, but some places only offer shared bathrooms, so keep that in mind when browsing through the properties below.

    Although many of the rooms are better suited for solo travelers or couples, you can always book multiple rooms for larger groups. Some places also offer larger family rooms so everyone in your travel group can stay together.

    Unfortunately, not all bed and breakfasts offer a free breakfast with the room price. Hey, business is business though, and the extra charge for breakfast is usually very reasonable. It’s also common for bed and breakfasts to have shared kitchens so you can save money on other meals.

    If you’re still trying to decide on the best bed and breakfast in Reykjavik, it’s helpful to look at search platforms like Airbnb and Booking.com. Here you can compare prices and check out reviews from past travelers to get a better sense of the place. Once you’ve made your reservation, check out our Iceland packing list to ensure you haven’t forgotten anything.

    THE OVERALL BEST VALUE BED AND BREAKFAST IN REYKJAVIK
    Loki 101 Guesthouse
    THE OVERALL BEST VALUE BED AND BREAKFAST IN REYKJAVIK

    Loki 101 Guesthouse

    • > $$
    • > 2 guests
    • > Garden Patio
    • > Equipped kitchen
    THE BEST BUDGET BED AND BREAKFAST IN REYKJAVIK
    The Blue House B&B
    THE BEST BUDGET BED AND BREAKFAST IN REYKJAVIK

    The Blue House B&B

    • > $
    • > 2 guests
    • > Equipped kitchen
    • > View of the Bay
    THE BEST BED AND BREAKFAST FOR COUPLES
    Heart of Reykjavik B&B
    THE BEST BED AND BREAKFAST FOR COUPLES

    Heart of Reykjavik B&B

    • > $$
    • > 2 guests
    • > Queen bed
    • > Prime location
    THE BEST BED AND BREAKFAST FOR A GROUP OF FRIENDS
    Central Eco Hostel & Bar
    THE BEST BED AND BREAKFAST FOR A GROUP OF FRIENDS

    Central Eco Hostel & Bar

    • > $$
    • > 4 guests
    • > 24/7 reception
    • > Rooftop terrace
    OVER-THE-TOP LUXURY BED AND BREAKFAST
    Magical Mountain View B&B 2
    OVER-THE-TOP LUXURY BED AND BREAKFAST

    Magical Mountain View B&B

    • > $$$$
    • > 2 guests
    • > Self-service breakfast
    • > Beautiful gardens
    THE BEST BED AND BREAKFAST FOR FAMILIES VISITING REYKJAVIK
    Cozy Bungalow B&B
    THE BEST BED AND BREAKFAST FOR FAMILIES VISITING REYKJAVIK

    Cozy Bungalow B&B

    • > $$
    • > 6 guests
    • > Equipped kitchen
    • > Excellent views
    THE BEST BED AND BREAKFAST FOR BACKPACKERS
    Privileged B&B
    THE BEST BED AND BREAKFAST FOR BACKPACKERS

    Privileged B&B

    • > $
    • > 1 guest
    • > Dinner on request
    • > Countryside setting

    Looking for other types of accommodation? Check out our guide to Where to Stay in Reykjavik!

    The 7 Top Bed and Breakfasts in Reykjavik

    Alright! Now that you know what to expect from the best bed and breakfasts in Reykjavik, check out our selections for the top options. We understand that people travel for a variety of reasons, so we’ve included something for budget backpackers all the way to luxury vacationers!

    The Overall Best Value Bed and Breakfast in Reykjavik – Loki 101 Guesthouse

    Loki 101 Guesthouse - best bed and breakfasts in Reykjavik
    This spacious bed and breakfast offers great value for money.

    Located in central Reykjavik, you’ll be within walking distance from the top shopping areas and historic landmarks of the city when you stay at the Loki 101 Guesthouse. You’ll also be just a few minute’s walk from the central bus station so the location couldn’t be better! The property owners also offer airport shuttles but these arrangements need to be made prior to your arrival.

    There are several rooms to choose from, so whether you’re a solo traveler, couple, or a few friends traveling together there’s a good room for you. You’ll also have access to a shared kitchen and a great outdoor garden patio.

    The Best Budget Bed and Breakfast in Reykjavik – The Blue House B&B

    The Blue House B&B is one of the best bed and breakfasts in Reykjavik.
    This is an awesome bed and breakfast in Reykjavik.

    Located in the Seltjarnarnes neighborhood, The Blue House has a stunning view of the bay and is right next to a bus stop that takes you to downtown Reykjavik. A continental breakfast can be included for a small additional price, and you’ll also have access to a kitchen to prepare your own meals to help you save money. Speaking of which, if you’re traveling on a budget, take a look at this helpful post to see just how expensive Iceland is.

    Right next to the bed and breakfast is the beautiful Valhusahaed Park where you can go walking and enjoy the views. Plus, since the neighborhood has less light pollution than the downtown area, it has a much better view of the northern lights!

    Budget Tip: Dorms in Reykjavik start from $18USD per bed. They’re the cheapest accommodation in the city. Search for hostels in the area!

    The Best Bed and Breakfast for Couples – Heart of Reykjavik B&B

    Heart of Reykjavik B&B
    Couples will love this cozy spot.

    Right in downtown Reykjavik, couples will love the cozy atmosphere and central location of this bed and breakfast. The property is right next to the famous Hallgrimskirja, the tallest church of Iceland, as well as numerous local shops and restaurants.

    For a small additional charge, you can include breakfast each morning of your stay, and coffee and tea are always available throughout the day. You can also park your own vehicle in front of the house, or there are free bikes to use to explore the city. The bus terminal is only 5 minutes away on foot, which can take you all the way to the airport.

    The Best Bed and Breakfast for a Group of Friends – Central Eco Hostel & Bar

    Central Eco Hostel & Bar
    This is the place to stay if you’re backpacking Iceland.

    For groups of friends backpacking Iceland, look no further than Eco Hostel. With its fun atmosphere and central location, Eco Hostel combines the comfort of a bed and breakfast with the budget price and cool vibes of a hostel. You can book dormitory rooms, or private rooms depending on how many people you’re traveling with.

    You can also book tours and excursions right from the front desk, and you won’t have to worry about a curfew since there’s 24/7 reception. When you’re done exploring the city for the day, you can come back and relax on the rooftop terrace or play board games or foosball in the game room!

    Is This the Best Backpack EVER???
    audy on top of a mountain in japan with the osprey aether

    We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.

    Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!

    View on Osprey View on REI

    Over-the-Top Luxury Bed and Breakfast – Magical Mountain View B&B

    Magical Mountain View B&B 2

    If you’re looking for a truly out-of-this-world vacation experience, there’s no better place to stay than at this stunning bed and breakfast in Reykjavik! Surrounded by amazing gardens, you can also enjoy a great view of the mountains from your own private porch.

    You’re welcome to self-service ingredients for breakfast, and you can use the kitchen to prepare other meals if desired. There’s a secure place to park your own vehicle, and the property provides easy access to hiking trails with great views of Reykjavik.

    The Best Bed and Breakfast for Families Visiting Reykjavik – Cozy Bungalow B&B 

    Cozy Bungalow B&B
    We love the peaceful neighborhood of this charming B&B.

    Instead of being stuck in some stuffy hotel room in the city center, your family can enjoy a relaxed and peaceful retreat at this charming bed and breakfast in Reykjavik. You’ll have a private room and bathroom, plus access to a kitchen where you can prepare meals for picky eaters.

    The bungalow is walking distance from the Grotta lighthouse, one of the best swimming pools in Reykjavik, and a bus stop where you can reach the city center. From the peninsula, you’ll also have great views of the bay and lovely walking paths along the coast.

    The Best Bed and Breakfast for Backpackers – Privileged B&B

    Privileged B&B
    Budget travelers will love this awesome bed and breakfast in Reykjavik

    If you’re a backpacker used to staying in crowded hostels, you’ll love the Privileged B&B for its budget price and great amenities. You’ll have a private room and access to all the public spaces including a hot tub on the back porch!

    The property is close to a bus stop, but the hosts also offer rides and can assist with transport to and from the airport. You can also reach hiking trails directly from the back porch to go out and explore the landscape and appreciate the stunning views.

    Check out these other great resources

    We have loads more information to help you plan your trip.

    FAQ about Bed and Breakfasts in Reykjavik

    Here’s what people usually ask us when they look for vacation homes in Reykjavik.

    Don’t Forget Your Reykjavik Travel Insurance

    ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.

    They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

    SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

    Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.

    Final Thoughts on Bed and Breakfasts in Reykjavik

    Now that you have some cool ideas for where to stay in Reykjavik, you’re ready to set out on your adventure to explore glaciers, geysers, and waterfalls! Whether you’re a professional photographer or a family on summer vacation, the best bed and breakfasts in Reykjavik are all-around excellent options for accommodation.

    Iceland has earned a reputation for its welcoming atmosphere as well as its natural beauty, which is one of the reasons why unique accommodation in Reykjavik is such a good choice. It’s a chance to have a more authentic local experience that you would get at most hotels.


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