Best Value Hotels in Iceland

The CenterHotel Plaza -- an exceptionally well-located hotel directly on downtown Reykjavik's town square -- offers 200 rooms that range in size, decor, and quality, though all include flat-screen TVs, well-stocked minibars, and tea- and coffee-making facilities. Common areas are sleek and modern and include plenty of lounge areas plus a bar with a daily happy hour. There's a decent free breakfast buffet, but the hotel lacks a proper restaurant. Wi-Fi is free throughout the property. 

On the harbor right outside the city of Keflavik, the homey, family-run Hotel Berg is agood base for travelers looking for easy access to the Keflavik International Airport; its prices are quite affordable for the area. Its 17 contemporary rooms are clean and well maintained, with most of the amenities expected for a mid-range property -- flat-screen TVs, mini-fridges, and free Wi-Fi. But there's no tea- and coffee-making facilities or air-conditioning (which isn’t uncommon for Iceland). The breakfast buffet has waffles -- a standout feature -- and there’s an outdoor hot tub on the back porch. 

Although Hotel Klettur is within walking distance of Reykjavik's famous Hallgrimskirkja cathedral, downtown is a bit too far to get to on foot, which is one reason this mid-range property has reasonable rates. Interiors have a minimalist Scandinavian style, and the 86 guest rooms are clean and spare, with perks like LCD TVs, tea/coffee facilities, and free Wi-Fi. Some are small, however, and bathrooms have showers only. Breakfast is free, but it gets mixed reviews. Guests can play pool and foosball in the game room, while drinks are available at a small on-site bar (with limited hours).

The 85-room Best Western Hotel Reykjavik is a mid-range chain hotel about a 20-minute walk from the heart of downtown. The hotel offers a range of room sizes, from Singles to two-level Suites, though the decor is dated and generic -- save in the hotel's six chic, refurbished, minimalistic-modern Character Rooms. Though there aren't many amenities, the Best Western does offer a free buffet breakfast, Wi-Fi, and parking, and the small lobby bar has a daily happy hour. 

The Northern Light Inn is a mid-range property that sits among fields of lava between the towns of Grindavik and Keflavik. The 32 rooms are simple and homey, but well maintained, and have light and airy decor plus flat-screen TVs and kettles. Free Wi-Fi and parking are also provided. There’s a breakfast buffet (included in the rates), an on-site Nordic restaurant, and an honesty bar. This quiet, intimate retreat in the countryside attracts tourists and couples looking for easy access to the Blue Lagoon; the hotel provides a free shuttle there and back (as well as to the airport). 

The three-pearl Hotel Kriunes is a family-owned guest house on the shores of Lake Ellidavatn, about a 20-minute drive from central Reykjavik. The value-priced property has 12 simple rooms with free Wi-Fi and flat-screen TVs -- some larger rooms and suites include hot tubs, fireplaces, and sitting areas -- and most rooms have lake views. Breakfast (with home-grown produce) is included in the room rate, and there's free all-day coffee and tea and free happy-hour cake and fruit. There's a den with a fireplace offering views of the lake, and, depending on the season, the Northern Lights. Horseback rides along the trails and tours on rented mountain bikes or kayaks are possible, and guests are welcomed back from these journeys with homemade bread and fruit. Guests can also unwind in the hotel's sauna and hot tub.

The Centerhotel Arnarhvoll is a stylish, minimalistic-modern hotel in downtown Reykjavik, in walking distance of restaurants, bars, and popular sights. The small rooms and bathrooms are what make this a mid-range spot, but they're tasteful and modern with minibars, flat-screen TVs, and free Wi-Fi. The hotel has a top-floor bar, a lounge, and a restaurant offering up a nice free breakfast buffet and excellent views of the city and sea. There's also a small basement spa, though it costs an extra fee for guests in Standard Rooms. I

Set outside Reykjavik, the three-pearl Hotel Hafnarfjordur offers 71 spacious guest rooms with simple, basic decor, and most have kitchenettes. A breakfast buffet is included in rates, and Wi-Fi is free throughout. Other amenities include a lobby bar, meeting rooms, and a game room with pool and ping-pong tables, but the hotel does not offer much else in the way of features, with no on-site restaurant or gym. 

The 105-room Reykjavik Lights hotel is a mid-range property that offers modern and minimalistic decor with Icelandic-themed accents at a value price. Located a five- to 10-minute drive from Reykjavik's city center, this fresh property was built in 2012. Rooms are simple and compact but chic with light wood floors, colorful accent walls, Scandinavian furniture, and nice amenities including electric kettles, flat-screen TVs, and free Wi-Fi. The hotel has a stylish lobby lounge and small bar, and serves a free continental breakfast. The hotel has no fitness center or on-site restaurant, but is a good price for the quality -- as long as guests are willing to drive or take a long walk to the city center.

The Hotel Laxnes is a budget hotel in the coastal town of Mosfellsbaer, on the outskirts of Reykjavik. The public areas of the hotel are a bit dated, but the 26 simply decorated guest rooms are clean, comfortable, and well maintained, with modern bathrooms. Some of the guest rooms are equipped with kitchenettes, and a balcony is a must-have for a chance to catch the Northern Lights during the winter months. This hotel offers good value for money and reviews from past guests are enthusiastic. Notable features include a free buffet breakfast, an on-site bar with a games room, and an outdoor hot tub. 

The Volcano Hotel is a relaxed bed-and-breakfast with seven affordable rooms that all have private bathrooms. It's not the kind of place to spend an entire vacation, but there's just enough here to make it a worthwhile stop for a short stay. A full breakfast is included and dinners with limited menus can be pre-arranged in the lounge, but there's no full restaurant or any other facilities. The owners run guided tours into the glaciers, and their hospitality combined with the quiet pastoral setting help make this one of Iceland's most popular small hotels. 

The 249-room Hotel Cabin is a budget hotel that's a five-minute drive from Reykjavik's downtown. It has views of the waterfront from upper floors, but walks to the city center will take 20 to 30 minutes. The utilitarian rooms are geared toward tour groups opting for affordable rates over amenities, and we saw some rooms that still have old tube TVs. A simple buffet restaurant and lounge bar provide the bare necessities, along with a free continental breakfast. 

The Reykjavik Downtown Hostel is a tidy budget property with both private rooms and shared dorms in a convenient downtown location. Its 19 rooms are clean and minimally decorated with contemporary furnishings. The property serves breakfast for a fee and has a fully equipped kitchen where guests can prepare and store food. Wi-Fi is free, as is luggage storage, and guests can utilize a book exchange. Some visitors report that the security measures for entering the property are onerous, but make them feel safe. This is an environmentally conscious hostel so there are many recycling bins and an emphasis on sharing leftovers. 

The Reykjavik City Hostel is a budget property near a thermal pool and popular camping site, a 30-minute walk from the city center. The bright, college dorm-like property has 43 private and shared rooms with plain furnishings and picture windows. There's a shared kitchen, and a buffet breakfast that's free for children age 13 and under. As an eco-conscious property, the hostel rents bicycles and encourages recycling and lowering energy use. It has a coffee bar, screening room, climbing wall, and game room with table tennis. And renovations are underway to add a restaurant (scheduled to be completed in 2016). Wi-Fi and luggage storage are free as well.