Cheap hotels in Reykjavik offer practical stays for budget-conscious travelers. Most are concentrated in the central district near Laugavegur, the main shopping street. Expect rooms with free WiFi, tea/coffee facilities, and private bathrooms. Many include a breakfast buffet and some offer free parking. Room rates vary, but budget options typically start around $100 per night. For geothermally heated pools, Sundhöllin is within walking distance from many hotels.
Top-rated options include City Center Hotel (score 86), located 500 m from Reykjavik Old Harbour with a 24-hour front desk. Skuggi Hotel By Keahotels (score 85) provides free underground parking just 140 m from Laugavegur. Reykjavik Lights Hotel By Keahotels (score 87) offers individually decorated rooms and free parking. Storm Hotel By Keahotels (score 87) features modern Nordic décor and a common terrace. These hotels combine affordability with central location and essential amenities.