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Best Boutique Hotels in Reykjavik, Ranked

2026-04-025 min readcheaphotels
Design bedroom in a Reykjavik boutique hotel with wool textiles Design bedroom in a Reykjavik boutique hotel with wool textiles

Ten boutique properties with fewer than 60 rooms, judged on design, service and whether they justify the premium over a chain.

The genuinely boutique

Ion City Hotel is the design leader: 18 rooms downtown with poured-concrete floors, custom wool throws and a bar that locals actually drink in, which is the real boutique test. 101 Hotel remains the reference for Icelandic minimalism at a price, and its restaurant is one of the better hotel dining rooms in the country. Hotel Borg is the historic pick, 1930 Jugendstil detailing intact, rooms updated without wrecking the character. Sand Hotel by Keahotels feels smaller than its 68 rooms and does the Nordic warm-materials trick well.

Konsulat Curio by Hilton is a converted 1900 townhouse with proper period detailing. Kvosin Downtown Hotel occupies a former school with 24 suites, all with kitchenettes and high ceilings. Alda Hotel is smaller and cheaper than the others here without feeling budget.

Called boutique but really just small

Several downtown Reykjavik stays market as boutique without the design or service level to earn it. Hotel Odinsve is comfortable and central but styled generically. Room With A View is apartments with a name upgrade. Skuggi Hotel is fine mid-range, not boutique in any meaningful sense.

What actually makes the boutique premium worth paying in Reykjavik: a bar or restaurant used by locals, staff who know the city and can book a chef's table at Dill or a window at Matur og Drykkur without a two-week wait, and rooms designed rather than assembled. If you are here two nights and want a memorable base, Ion, 101, Borg or Kvosin. If you are here four nights and want space, an apartment hotel serves better.

Book while you read Median night$165 Cheapest area$110 Hotels tracked4 Find a hotel

Before you book

What people ask before booking Reykjavik.

Do boutique hotels include breakfast?

Some yes, some no. 101 and Ion include a modest continental spread; Borg charges separately for a very good buffet. Check when booking.

Are these good for solo travellers?

Yes. Single occupancy discounts are rare but the bars at Ion, 101 and Borg are welcoming for solo drinkers in a way chain lobbies are not.

Where to stay

Hotels in Reykjavik

Live prices · free cancellation

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