Hotels With Breakfast in Capital Region, Iceland

View just right above our hostel !!!! Staying at this hostel in Iceland was honestly unforgettable. The location alone makes it special — but what truly made it magical was seeing the aurora dancing right above the hostel rooftop. Stepping outside at night and watching the Northern Lights shimmer across the sky without even leaving the property felt surreal. The atmosphere was cozy and welcoming, and it had that perfect mix of comfort and adventure. After a long day exploring Iceland’s dramatic landscapes, it was amazing to come back somewhere warm and relaxed — and then be rewarded with a sky full of green lights. If you’re coming to Iceland hoping to see the Northern Lights, this place gives you front-row seats. I would absolutely stay here again. 🌌✨

This hostel ranks among the worst I've experienced in Europe. The 4th floor is supposed to have hairdryers. On my first day, I asked the front desk and they said one should be there but it had 'disappeared'. They had spares, but never restocked them, so I had to go down and borrow one every time. Once, they even lent me two broken ones in a row. In the restrooms, I'd find one out of three stalls without toilet paper. The kitchen paper was replenished very slowly. The kitchen itself was a mess, greasy everywhere, and the sink was constantly full of leftover food dumped by guests. One night, someone had a party in the communal kitchen, smashed two glass cups, and didn't clean up, which was a nasty surprise the next morning. There was also a private party downstairs that blocked off the path to the elevator, so I had to walk up two floors just to get there. The music from the party went on past midnight. I don't know why, but the 6-bed female dorm seemed to attract 'characters'. On my first day, a white woman, upon realizing I was in the bunk above her, tried everything to get me to move. As soon as I put my bag down, before even getting on the bed, she opened the window by my head and told me to ask the front desk for a different bed because she wanted to eat on her bed (though there was no smell at all). Later that night, she opened the window again, letting the draft blow directly on my head (I woke up and closed it). The next morning, around 7 AM, she asked me why I was disturbing her sleep (seriously, what's wrong with her?). Thankfully, she got angry and moved out herself. The lockers were incredibly loud; pulling them open at night made a huge noise and easily woke up roommates. The room lighting was very dim, making it hard to see when looking for things in the morning, even with the lights on. Someone's food was also stolen from the kitchen fridge, but compared to everything else, that was a minor issue.

Perfect location on the middle of the walking street with plenty of shops and restaurants around Room is clean with all facilities and buffet breakfeast with many choice The perfect place to enjoy Reykjavik

The water barrier in the bathroom cannot block water, causing the bathroom to be very wet. In addition, there are no windows or exhaust, which makes the bathroom even more humid. In addition, there is no elevator on the other side, so you need to carry your luggage up and down the stairs, which is not recommended.

The value for money was pretty average, and the breakfast was quite basic. The room was actually pretty small; it was difficult to even open two suitcases. However, there's a bus stop right outside the hotel's restaurant, which was very convenient. You'll also find plenty of gift shops just across the street.

Beautiful hotel and excellent location (I had a view of the main square and parliament building). The staff was very helpful, professional and friendly. Food in the restaurant was superb with selected dishes from the local cuisine. The Spa design has taken inspiration from Icelandic nature in both colours, materials and textures, and is a fantastic addition to the experience with thermal pool, steam room, sauna, cold mist/rain and cosy relaxation areas.  Would highly recommend choosing this hotel when visiting Reykjavik, or using it as a base when exploring further around.

One of the best guesthouse in town with complimentary breakfast which is absolutely good to have because Iceland is very expensive

The room is spacious and the bed is comfortable. The location is fantastic as it offers free parking and close to a famous bakery, Costco and Sky lagoon. The breakfast is a typical Nordic breakfast which is very nice. Staff are warm and friendly. I will definitely come back again.

Conveniently located at the entrance to Reykjavik. Second-floor room with no elevator. The room was spacious and had a bathtub, making this the only place we stayed after seven nights in Iceland. Even luxury hotels didn't have bathtubs. My husband was delighted with his first bath after driving about 2,000 kilometers. The bathroom and washroom had poor drainage, so water overflowed from somewhere and flooded the entire place. The room wasn't particularly clean, but it's a good option as a hotel to stay before entering (or leaving) Reykjavik. There are restaurants nearby, like KFC and Sabue. There was no hair dryer in the room, but I think you could borrow one from the front desk if you needed one. We realized this in the morning and had to go down to the front desk to borrow one. Breakfast was minimal. No hot meals. Also, the serving area was small and crowded. Nothing particularly noteworthy, but overall it was an average hotel. By average, I don't mean badly; it wasn't the best, but it was passable. I hope this review is helpful.

It's great, except that the bathroom is small and there is no toilet paper. But you can see the church as soon as you open the curtains. If you are lucky, you can lie down and watch the aurora and the church together, so I highly recommend it.