2-Star Hotels in Capital Region, Iceland

2-Star Hotels in Capital Region, Iceland

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Top 2-Star Hotels - Capital Region

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Highest Rated
Hotel near Laugardalur,Reykjavik
11358178**** 2026.01.18
Chose Cabin for our last night in Iceland, primarily because of the shuttle bus to the airport, but I was pleasantly surprised upon arrival. The front desk staff made check-in a breeze, and they even used a translation app on their phone if there were any English communication difficulties. Although the room was small, it was very cozy. The location is also fantastic, right by the sea, just 100 meters away. It's only a 10-15 minute walk to popular areas like the church and Rainbow Street. Plus, there are plenty of restaurants and supermarkets conveniently located nearby. Thumbs up! 👍
Very Good
274 reviews
8.1/10
Price from
AU$123
per night
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Hotel near Laugardalur,Reykjavik
GGuest User 2025.01.31
The environment is good and the whole is very clean; there is a kitchen to buy food and cook, because Iceland is very expensive, many Europeans cook by themselves; the drawback is that there is no staff, and no one responds to the email; the first floor is a bar restaurant.
Very Good
48 reviews
8.5/10
Price from
AU$40
per night
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Hotel near Miðborg,Reykjavik
AAnonymous User 2026.03.28
I want to give an objective review of this hostel. First, the pros: 1. The price is excellent. I stayed for five nights for just over 2000 [currency, e.g., ISK], which is very reasonable considering the prices in Iceland. 2. The communal kitchen and bar are very spacious and bright, making cooking very convenient. 3. The location is central; it's easy to walk anywhere within 15 minutes, and there are bus stops nearby. 4. The hostel has a minimalist, modern design, and the facilities are relatively new. The individual bed curtains provide great privacy. Now, a few areas for improvement: 1. There are a bit too few restrooms and showers, so sometimes you have to wait in line. 2. I really hope they could provide a female-only dorm, even if it's a multi-person room. My bed this time was near the door, and people were constantly coming and going in the middle of the night. Two guys snored loudly, which was incredibly disruptive, and the air quality also deteriorated. I was woken up three times in one night – it was a nightmare. 3. It would be good to separate the male and female bathrooms/showers. Having them mixed is indeed a bit unhygienic.
Great
14 reviews
9.2/10
Price from
AU$92
per night
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Hotel near Miðborg,Reykjavik
GGuest User 2025.11.17
One of the best guesthouse in town with complimentary breakfast which is absolutely good to have because Iceland is very expensive
Very Good
121 reviews
8.8/10
Price from
AU$115
per night
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Hotel near Miðborg,Reykjavik
GGuest User 2026.01.12
Advantages: It is only 15 minutes walk from Leishi and there is free parking outside the accommodation. Disadvantages: I just live on the first floor of the ground floor, and the damp smell is very heavy. The toilet has no heating and it is super cold when taking a bath.
29 reviews
7.5/10
Price from
AU$111
per night
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Hotel near Miðborg,Reykjavik
XXiangxianging 2026.03.01
Hands down the best hostel in Iceland! The common areas are incredibly clean, and the private bathrooms with showers are a huge plus. It's super warm inside – almost too warm! The bedding is really soft, and the kitchen is fully equipped for cooking.
Very Good
321 reviews
8.8/10
Price from
AU$143
per night
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Hotel near Reykjavik East,Reykjavik
GGuest User 2025.07.31
來冰島大學讀研,攜程上可以下單,住了一週靠近市中心,房子背面就是中餐館Fine restaurant. 工作人員很熱情,離學校宿舍搬進去還需要一段時間,不得不在各大平台薅羊毛。 a favorable reception is really impressed The hostel is absolutely amazing! From the moment we walked in, we were greeted with such warmth and hospitality. The staff were incredibly helpful and always had a smile on their face. Our room was beautifully decorated and extremely comfortable. The location was perfect, right in the heart of the city, making it so easy to explore all the attractions. We will definitely be back!
36 reviews
5.7/10
Price from
AU$15
per night
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Hotel near Miðborg,Reykjavik
TTingZip 2025.07.20
Fantastic location. We stayed for three nights, they provide towels, bath shampoo and hangers in room. There are side table and chairs. The common kitchen is well equipped and there are so clean. Some traveller bought food to prepare breakfast and dinner. It's so convinient to walk to city. Recommend for team building and school camp.
Very Good
75 reviews
8.2/10
Price from
AU$53
per night
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Hotel near Miðborg,Reykjavik
GGuest User 2026.03.19
This apartment is in a perfect, central location in downtown Reykjavík, within easy walking distance of the BSI bus station and all the major city sites. The room was impressively big and clean, and we were even pleasantly surprised by an automatic upgrade to a three-bedroom unit. One of the biggest advantages for those with a rental car is the free parking available right around the building. While there is no kitchen or cooking facility, which might be a drawback for longer stays, it was perfectly fine for our short visit. I highly recommend this spot for anyone looking for a convenient and comfortable base in the city.
Good
51 reviews
7.7/10
Price from
AU$140
per night
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Hotel near Reykjavik East,Reykjavik
世界流浪 2024.07.03
The location of the room is very good, just near the cathedral, and it only takes a few minutes to walk to the city center. The cleanliness of the room is OK, the radiator is very warm, and it can continue to heat after turning it on
Very Good
66 reviews
8.4/10
Price from
AU$88
per night
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See All 2-Star Hotels in Capital Region

Travelers Reviews of Capital Region Hotels

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8.1/10
Very Good
11358178****Chose Cabin for our last night in Iceland, primarily because of the shuttle bus to the airport, but I was pleasantly surprised upon arrival. The front desk staff made check-in a breeze, and they even used a translation app on their phone if there were any English communication difficulties. Although the room was small, it was very cozy. The location is also fantastic, right by the sea, just 100 meters away. It's only a 10-15 minute walk to popular areas like the church and Rainbow Street. Plus, there are plenty of restaurants and supermarkets conveniently located nearby. Thumbs up! 👍
Hotel Cabin

Hotel Cabin

Hotel near Laugardalur, Reykjavik
Price per night from:AU$123
8.8/10
Very Good
XXiangxiangingHands down the best hostel in Iceland! The common areas are incredibly clean, and the private bathrooms with showers are a huge plus. It's super warm inside – almost too warm! The bedding is really soft, and the kitchen is fully equipped for cooking.
Kex Hostel

Kex Hostel

Hotel near Miðborg, Reykjavik
Price per night from:AU$143
8.8/10
Very Good
GGuest UserOne of the best guesthouse in town with complimentary breakfast which is absolutely good to have because Iceland is very expensive
Guesthouse Aurora

Guesthouse Aurora

Hotel near Miðborg, Reykjavik
Price per night from:AU$115
8.5/10
Very Good
GGuest UserThe environment is good and the whole is very clean; there is a kitchen to buy food and cook, because Iceland is very expensive, many Europeans cook by themselves; the drawback is that there is no staff, and no one responds to the email; the first floor is a bar restaurant.
Lækur Hostel

Lækur Hostel

Hotel near Laugardalur, Reykjavik
Price per night from:AU$40
7.7/10
Good
GGuest UserThis apartment is in a perfect, central location in downtown Reykjavík, within easy walking distance of the BSI bus station and all the major city sites. The room was impressively big and clean, and we were even pleasantly surprised by an automatic upgrade to a three-bedroom unit. One of the biggest advantages for those with a rental car is the free parking available right around the building. While there is no kitchen or cooking facility, which might be a drawback for longer stays, it was perfectly fine for our short visit. I highly recommend this spot for anyone looking for a convenient and comfortable base in the city.
Downtown Reykjavík Baldursbrá Guesthouse

Downtown Reykjavík Baldursbrá Guesthouse

Hotel near Miðborg, Reykjavik
Price per night from:AU$140
8.2/10
Very Good
TTingZipFantastic location. We stayed for three nights, they provide towels, bath shampoo and hangers in room. There are side table and chairs. The common kitchen is well equipped and there are so clean. Some traveller bought food to prepare breakfast and dinner. It's so convinient to walk to city. Recommend for team building and school camp.
Hostel B47

Hostel B47

Hotel near Miðborg, Reykjavik
Price per night from:AU$53
8.2/10
Very Good
GGuest UserThere was a very servicey Brazilian boy, he attended you every hour and searched for answers to all the answers. He makes cakes and gives conversation. That was loved! The house is very pleasant!
Blue House B&B

Blue House B&B

Hotel near Seltjarnarnes
Price per night from:AU$90
8.0/10
Very Good
GGuest UserThe room was spacious and clean, shared bathroom was also clean. Good spread for buffet breakfast and good amenities to use in this guesthouse. There was a strict check in at 3pm but the host let us wait in the waiting area when we arrived at 2:30. It has nearby bus stop but everything is walking distance if you brace the weather.
Alba Guesthouse

Alba Guesthouse

Hotel near Reykjavik East, Reykjavik
Price per night from:AU$123
8.2/10
Very Good
SSiu hinThe location of the room is very good and very close to the cathedral. There is breakfast every morning, but you have to cook your own breakfast. If I remember correctly, the time is between 7 and 9. A very typical European breakfast of bread, eggs, and milk. The staff are very nice.
Guesthouse Andrea

Guesthouse Andrea

Hotel near Miðborg, Reykjavik
Price per night from:AU$110
7.9/10
Good
GGuest UserThe room is spacious but the shower area was flooding The fridge wasn’t working but we managed to contact them and they replaced a new one The light switch is sometime not working there’s few days we slept with light on. Others than that it’s a good location which nearby bus stop 4
Day Dream Vesturgata 17 Reykjavik

Day Dream Vesturgata 17 Reykjavik

Hotel near Vesturbær, Reykjavik
Price per night from:AU$81

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Property Information for Tourists

Total properties29
Number of reviews1,762
Highest priceAU$6,225
Lowest priceAU$48
Weekend Avg. PriceAU$338
Weekday Avg. PriceAU$326