Best Historic and Heritage Hotels in Reykjavik With Real Stories Behind Their Walls
Words by
Jon Magnusson
The Best Historic Hotels in Reykjavik That Carry the City's Soul
I have spent the better part of two decades walking the streets of Reykjavik, and if there is one thing I have learned, it is that the best historic hotels in Reykjavik are not just places to sleep. They are living archives. Every creaking floorboard, every faded photograph in the hallway, every bar counter worn smooth by a century of elbows tells you something about how this small capital on the edge of the Arctic grew from a cluster of turf houses into the cultural hub it is today. When I first started exploring heritage hotels Reykjavik had to offer, I was struck by how many of them sit on streets that have not changed their names in over a hundred years, anchoring entire neighborhoods to their past. This guide is the result of years of checking in, staying late, talking to staff, and occasionally getting lost in corridors that seem to belong to another century.
What follows is not a list of luxury properties with generic "old world charm" marketing copy. These are specific buildings with specific stories, and I have done my best to tell them the way they deserve to be told.
Hotel Borg: The Grand Dame of Austurvöllur Square
Location: Austurvöllur Square, 101 Reykjavik
Hotel Borg has stood on the north side of Austurvöllur Square since 1930, and it remains one of the most recognizable heritage hotels Reykjavik has ever produced. It was commissioned by a wealthy Icelandic businessman and national figure, Jónas Jónsson, who wanted to give the capital a hotel that could rival anything in Copenhagen or Stockholm. The building was designed by Guðjón Samúelsson, the same architect who later gave Reykjavik its iconic Hallgrímskirkja. Walking through the art deco lobby today, you can still see the original geometric floor patterns and the heavy brass fixtures that have been polished by generations of hands.
What to See: The original art deco bar on the ground floor, which still serves cocktails under the same low amber lighting that would have greeted guests in the 1930s. Ask the concierge about the framed photographs in the second-floor corridor, many of which show the square outside during the 1944 independence celebrations.
Best Time: Late afternoon on a weekday, when the lobby is quiet enough to actually study the architectural details without a crowd of conference attendees blocking your view.
The Vibe: Formal but not stuffy, with a sense of civic pride baked into the walls. The rooms on the square side can be noisy on weekend nights when the bars along Laugavegur empty out, so request a rear-facing room if you are a light sleeper.
Local Tip: The small park in Austurvöllur Square directly in front of the hotel was the site of some of Iceland's most significant political protests, including the 2008 "Kitchenware Revolution" demonstrations. Standing on the hotel balcony during a clear evening, you are looking at the same view that protesters, politicians, and poets have argued over for nearly a century.
Hotel Holt: A Gallery Disguised as a Hotel
Location: Bergstaðastræti 37, 101 Reykjavik
If Hotel Borg is the grand public face of Reykjavik's hotel history, Hotel Holt is its quieter, more eccentric cousin. Operating since 1967 in a building that predates it significantly, Holt has long been known as much for its art collection as for its rooms. The hotel houses over 400 works by Icelandic artists, and the corridors function as a rotating gallery that most tourists walk right past without realizing what they are looking at. The building itself sits just off the main shopping street, Laugavegur, in a neighborhood that has been the cultural heart of the city since the early twentieth century.
What to See: The private art collection throughout the hallways and common rooms, which includes pieces by some of Iceland's most important twentieth-century painters. The bar area has a particularly strong selection, and the staff are happy to point out specific works if you ask.
Best Time: Early evening, when the bar fills with a mix of hotel guests and locals who come specifically for the atmosphere rather than the drinks menu.
The Vibe: Intimate and slightly bohemian, like staying in a well-curated private home. The rooms are comfortable but not oversized, and the Wi-Fi signal weakens noticeably on the top floor, which can be frustrating if you are trying to work.
Local Tip: The street Bergstaðastræti runs parallel to Laugavegur and was once home to some of Reykjavik's most prominent families. Walking its length gives you a sense of the residential elegance that existed here before the tourist boom transformed the surrounding blocks.
The Reykjavik Palace Hotel: Where Diplomacy Meets Design
Location: Sólutún 1, 101 Reykjavik (near the harbor)
The palace hotel Reykjavik visitors often photograph but rarely step inside sits in a building with layers of history that go back to the mid-twentieth century. Located near the old harbor, this property has hosted diplomats, musicians, and heads of state over the decades. The structure was significantly renovated in the 2000s, but the bones of the original building remain visible in the lobby's stonework and the layout of the upper floors. Its proximity to the harbor means it has always been connected to the maritime side of Reykjavik's identity, the part of the city that looked outward across the North Atlantic rather than inward toward the highlands.
What to See: The harbor-facing rooms, which give you a direct view of the old fishing docks and the Harpa Concert Hall across the water. The lobby bar has a selection of Icelandic craft spirits that most tourists never encounter because they stick to the more obvious Laugavegur bars.
Best Time: Early morning, when the harbor is at its most active and you can watch the fishing boats return while having breakfast.
The Vibe: Polished and professional, with the faint echo of its diplomatic past in the formal reception area. The parking situation is genuinely difficult on weekdays, as the surrounding streets fill with harbor workers and office commuters by 8 AM.
Local Tip: The old harbor area within walking distance of the hotel was where American and British forces were stationed during World War II, and the cultural exchange that happened in this neighborhood during the 1940s fundamentally changed Reykjavik's relationship with the outside world. You can still see traces of that era in the architecture of the warehouses along the waterfront.
Hotel Óðinsson: A Family Story in the City Center
Location: Þingholtsstræti 9, 101 Reykjavik
Hotel Óðinsson is the kind of old building hotel Reykjavik locals know about but rarely think to mention to visitors, because it has been part of the neighborhood fabric for so long that it feels almost invisible. The building dates to the late nineteenth century and has been operated by the same extended family for generations. It sits on Þingholtsstræti, a short street that runs between Laugavegur and the old town's quieter residential blocks. What makes this place remarkable is not grandeur but continuity. The same wooden staircase you climb today was climbed by guests in the 1920s, and the dining room still serves a breakfast spread that has not changed in decades.
What to See: The original wooden staircase and the small sitting room on the first landing, which has a collection of books and magazines left by guests over the years. The breakfast room, where the buffet includes traditional Icelandic skyr and rye bread baked using a recipe the hotel has guarded for generations.
Best Time: Breakfast hour, between 7 and 9 AM, when the dining room is full of a mix of travelers and the occasional local who has been coming here for weekend breakfasts for years.
The Vibe: Warm and unpretentious, like staying with a Reykjavik family that happens to have a few extra rooms. The walls are thin, and you will hear your neighbors, which is either charming or annoying depending on your temperament.
Local Tip: Þingholtsstræti is named after Þingholtsstræti, a reference to the old parliament site at Þingvellir. The street itself was laid out during a period of rapid urban expansion in the late 1800s, and walking its length gives you a compact lesson in how Reykjavik grew from a village into a capital.
Room with a View Hotel: Literary History on Laugavegur
Location: Laugavegur 18, 101 Reykjavik
Laugavegur is Reykjavik's main commercial artery, and the Room with a View hotel occupies a building that has been part of the street's story since the early 1900s. This is an old building hotel Reykjavik visitors often pass without a second glance, but the structure has housed a succession of businesses, residences, and cultural gatherings over more than a century. The hotel's name is not marketing fluff, several of the upper-floor rooms genuinely look out over the colorful rooftops of the old town toward Esja mountain across the bay. The building's facade has been maintained in keeping with the street's historic character, and stepping inside feels like entering a quieter version of the city that exists just behind the busy shop fronts.
What to See: The upper-floor rooms with views toward Esja, particularly on clear winter mornings when the mountain is dusted with snow and the light comes in at a low golden angle. The small reception area has a framed timeline of the building's history that most guests walk past without reading.
Best Time: Winter mornings, when the view is at its most dramatic and the street below has not yet filled with shoppers and tourists.
The Vibe: Cozy and practical, with the kind of no-nonsense hospitality that Reykjavik does better than almost anywhere. The elevator is small and slow, and if you are on the top floor with heavy luggage, you may want to ask for help.
Local Tip: Laugavegur was originally a path used by women walking to the hot springs in Laugardalur to do laundry. The street's name literally means "Wash Road." Standing at the hotel window, you are looking out over a route that has been in continuous use for centuries, long before there were shops or hotels along it.
CenterHotel Þingholt: Modern Comfort in a Historic Shell
Location: Þingholtsstræti 3, 101 Reykjavik
CenterHotel Þingholt occupies a renovated building on the same historic street as Hotel Óðinsson, and the two properties together tell the story of how Reykjavik's old town has adapted to the demands of modern tourism without entirely losing its character. The building was thoroughly updated in the 2010s, but the exterior maintains the low, wide proportions typical of early twentieth-century Reykjavik residential architecture. Inside, the rooms are contemporary and well-equipped, but the common areas retain enough original detail, exposed stone, old timber, to remind you that you are not in a generic chain hotel.
What to See: The courtyard area behind the hotel, which is easy to miss if you do not know it is there. It is a small, sheltered space where guests can sit outside during the brief Icelandic summer, and it gives you a rare sense of privacy in the middle of the busy city center.
Best Time: Summer evenings, when the courtyard catches the long northern light and the temperature is just warm enough to sit outside with a drink.
The Vibe: Efficient and comfortable, with a design sensibility that respects the building's age without fetishizing it. The front desk staff can get overwhelmed during check-in hours in peak summer, and waits of 15 to 20 minutes are not uncommon in July and August.
Local Tip: The Þingholtsstræti block is one of the best-preserved historic residential streets in central Reykjavik. Walking it from end to end takes less than five minutes, but you pass buildings that represent nearly every decade of the city's development from the 1880s onward.
Apotek Hotel: A Pharmacy Turned Boutique Stay
Location: Austurstræti 16, 101 Reykjavik
The Apotek Hotel sits on Austurstræti, one of the oldest streets in central Reykjavik, in a building that originally served as a pharmacy. The conversion to a boutique hotel was handled with considerable care, and many of the original pharmaceutical details, glass cabinets, tiled surfaces, apothecary labels, have been preserved as decorative elements in the lobby and bar area. This is one of the best historic hotels in Reykjavik for travelers who appreciate design, because the interior blends the building's medical heritage with contemporary Icelandic aesthetics in a way that feels intentional rather than gimmicky. The bar, which takes its name from the building's past, serves creative cocktails in a space that still smells faintly of old stone and aged wood.
What to See: The bar area, where the original pharmacy cabinets have been repurposed as display shelves for bottles and glassware. The lobby's tiled floor is original to the building and has been carefully restored.
Best Time: Early evening, when the bar is lively but not yet at its busiest, and the lighting brings out the textures of the old stone and tile work.
The Vibe: Stylish and slightly theatrical, with a strong sense of place. The rooms are well-designed but compact, and storage space is limited if you are staying more than a few nights.
Local Tip: Austurstræti was one of the first streets in Reykjavik to be paved, and for much of the nineteenth century it was considered the most prestigious address in the city. The pharmacy that occupied this building served some of Reykjavik's most prominent families, and the building's survival through decades of urban redevelopment is something of a minor miracle.
Hotel Grímsborgir: Suburban Heritage with a Story
Location: Grundarstígur 7, 101 Reykjavik (near the Laugardalur valley)
Hotel Grímsborgir sits in the Laugardalur area, a short walk from the city center but in a neighborhood that feels distinctly different from the old town. Laugardalur was Reykjavik's original recreation valley, the place where residents came to bathe in hot springs, play sports, and escape the density of the city center. The hotel building has been part of this landscape since the mid-twentieth century, and while it has been updated multiple times, it retains a connection to the area's identity as Reykjavik's green lung. The surrounding streets are quieter than the center, and the nearby swimming pool and sports complex give the neighborhood a community feel that the tourist-heavy old town sometimes lacks.
What to See: The nearby Laugardalslaug swimming complex, which is one of the largest public pools in Iceland and a genuine window into daily Reykjavik life. The hotel's own breakfast area has a view toward the valley that is worth waking up for.
Best Time: Late morning, after breakfast, when you can walk into Laugardalur and explore the botanical garden and sports facilities before the afternoon crowds arrive.
The Vibe: Relaxed and residential, with the feel of a well-run neighborhood hotel rather than a destination property. The distance from the city center means you will need to walk 15 to 20 minutes or take a bus to reach the main tourist sites, which is either a drawback or a blessing depending on your perspective.
Local Tip: Laugardalur was the site of Iceland's first geothermal heating experiments in the 1930s, and the hot water that feeds the neighborhood's pools and the city's heating system comes from fields just a few kilometers away. Staying here puts you at the literal source of what makes Reykjavik livable in winter.
When to Go and What to Know
Reykjavik's historic hotels are busiest from June through August, when room rates peak and availability tightens. If you want the best rates and the quietest experience, visit between late September and early November, or in March and April, when the city is less crowded but still accessible. Winter visits, from November through February, offer the lowest prices and the most atmospheric conditions, short daylight hours, possible northern lights, and a city that feels like it belongs entirely to its residents rather than to tourists.
Most of the hotels listed above are within walking distance of each other, clustered in the 101 postcode area that defines central Reykjavik. You do not need a car, and in fact, parking in the city center is expensive and often frustrating. The Strætó bus system covers the wider city adequately, and many locals simply walk or cycle year-round.
One practical note: Icelandic hotels, even historic ones, tend to include breakfast in the room rate more often than not. This is worth confirming when you book, as the breakfast spreads at these older properties are often significantly better than what you would get at a modern chain hotel, featuring local skyr, smoked fish, dense rye bread, and sometimes even traditional Icelandic lamb soup.
Frequently Asked Questions
How many days are needed to see the major tourist attractions in Reykjavik without feeling rushed?
Three full days are sufficient to cover the main sights, including Hallgrímskirkja, Harpa Concert Hall, the National Museum, the old harbor, and the Laugavegur shopping street, without rushing. If you want to add a day trip to the Golden Circle or the Blue Lagoon, plan for five days total. Most major attractions are concentrated within a 2-kilometer radius in the city center.
Is it possible to walk between the main sightseeing spots in Reykjavik, or is local transport necessary?
Walking is entirely feasible. The distance from Hallgrímskirkja to the old harbor is approximately 1.5 kilometers, a walk of around 18 minutes. The entire central area, from Tjörnin pond to Harpa, can be covered on foot in under 30 minutes. Local transport is only necessary for reaching outlying areas like Perlan or the Grótta lighthouse.
Do the most popular attractions in Reykjavik require advance ticket booking, especially during peak season?
Harpa Concert Hall events and guided tours of certain museums, such as the National Museum's special exhibitions, often require advance booking in July and August. Hallgrímskirkja's tower access is available on a walk-up basis, but queues can exceed 45 minutes during midday in summer. The Sky Lagoon and Blue Lagoon, both popular with tourists, require online reservations weeks in advance during peak months.
What is the safest and most reliable way to get around Reykjavik as a solo traveler?
Walking is the safest and most practical option within the 101 city center, which is well-lit and heavily populated even late at night. For longer distances, the Strætó bus system operates reliably from 6:30 AM to midnight, with a single fare costing approximately 600 ISK. Taxis are available but expensive, with a typical city center ride costing between 2,500 and 4,000 ISK.
What are the best free or low-cost tourist places in Reykjavik that are genuinely worth the visit?
The Sun Voyager sculpture by the harbor, the Laugavegur street art walk, Tjörnin pond for birdwatching, and the Hallgrímskirkja church exterior are all free. The National Gallery of Iceland charges 2,000 ISK for admission and houses a significant collection of Icelandic art. The Reykjavik Free Walking Tour, which operates on a tip-based model, covers the old town's history in approximately 90 minutes and is one of the best value experiences in the city.
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