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. 🌌✨

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.

Hotel was on a very central location. Room was very clean. We were provided with all kinds of amenities. The morning breakfast had so much variety. Supermarkets and other shops were on the same street. Staff was also very helpful

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.

**100/100 - Excellent!** This place feels as warm and inviting as home. The location is easy to find, and the room is exceptionally clean and comfortable. The hot tub is a must-try! Breakfast features traditional Icelandic dishes with a great variety that truly fuels your journey. I highly recommend this stay!

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.