Best Boutique Hotels in Laugavegur

As a long-established luxury travel publication, The Luxury Editor is known for showcasing hotels that go beyond star ratings alone and focus on what really matters to discerning travellers seeking a memorable stay in a boutique hotel in Laugavegur. Service, design, atmosphere, sense of place and the overall quality of the guest experience all play a part in whether a property earns its place in our curated list.

Whether you are at the early stages of planning or already comparing a shortlist, our choice of boutique hotels in Laugavegur is a credible and useful guide, with easy booking options too.

Let us help you make searching for the perfect place to stay more inspiring, more informed and more enjoyable.

Reykjavik Greater Region, Reykjavík, Laugavegur

ION City Hotel

Hotel
(4 stars)
At a glance
Rooms 18 Contemporary Rooms & Suites, some Featuring Private Saunas
Amenities Features the Sumac Restaurant with Middle Eastern & North African-inspired Cuisine, Alongside a Fully Equipped Fitness Centre
More Centrally Located on Laugavegur Street with Panoramic City views

Looking out onto the pretty, colourful rooftops of the capital and mountains beyond, ION City Hotel is well-located to explore Reykjavik’s nightlife. One of two ION hotels, rooms feature saunas, recycled wood panelling, organic linens, Bang & Olufsen Bluetooth speakers, mid-century furniture and Scandi style by design studio Minarc. Sumac, the hotel’s restaurant is the hip place to be. One of Iceland’s top chefs Hafsteinn Ólafsson, is at the helm, serving North African dishes in surroundings inspired by the Beirut of the past. Relax in the bar after your meal, with an unusual drinks list including Lebanese wine.

BOOK YOUR STAY
ION City Hotel
SAVE FOR LATER
Add to wishlist

Reykjavik Greater Region, Reykjavík, Laugavegur

Alda Hotel

Hotel
(4 stars)
At a glance
Rooms 90 Modern Rooms & Suites
Amenities Features a Lively Barber Café, Gym, Sauna, & Outdoor Hot Tub
More Centrally Located on Laugavegur with Easy Access to Reykjavik's Shops & Restaurants

Another city-break favourite is Alda Hotel, on Reykjavik’s main shopping street. Although centrally located, the emphasis here is on tranquillity and calm, creating an oasis-like experience – the outdoor hot tub is perfect for winding down after some hectic sightseeing. 88 swanky guest rooms with L’Occitane toiletries all vary in shape and size, furnished in vibrant colour schemes, eye-catching artworks and designer furnishings. Alda is perfect if you like a stylish, laid back vibe, or are travelling with kids. Meals can be enjoyed at the casual Brass Kitchen & Bar, or you can explore the array of options in the vicinity.

BOOK YOUR STAY
Alda Hotel
SAVE FOR LATER
Add to wishlist

Reykjavik Greater Region, Reykjavík, Laugavegur

Sand Hotel by Keahotels

Hotel
(4 stars)
At a glance
Rooms 83 Rooms & Suites With Modern Icelandic Design
Amenities On-Site Dining At The Famous Sandholt Bakery, Cosy Lounge
More Prime Location on Reykjavik's Main Shopping Street, Laugavegur.

This is a new boutique hotel right in the middle of Reykjavik. Its strategic location offers the guests the pleasure of enjoying the lively Reykjavik cultural life. You will find numerous Icelandic natural marvels nearby when you choose to stay at the Sandhotel. They have decorated their rooms with a combination of art designs that explain the history of the surroundings and contemporary artwork that sets each room apart. The rooms are designed with only the guests’ comfort in mind. You will have some of the best moments when you spend a night or two there.

BOOK YOUR STAY
Sand Hotel by Keahotels
SAVE FOR LATER
Add to wishlist

Sign up for our newsletter for inspiration, exclusive previews & luxury tips