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. 🌌✨

**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!

The hotel has no service, because everything is ready to dry, the place is simple and clean, the toilet and bathroom have multiple 👍 excellent location, it is very convenient to go everywhere, and there is a 24-hour coffee machine, coffee and hot water, unlimited paper cups, Excellent 👍👍👍👍👍. Lucky finally Free breakfast is distributed one day 😘,

The location is convenient. There is a Xiaozhu supermarket downstairs. It is close to bus stop No. 9, which is convenient for local tour groups to gather and pick up. The room is clean. The counter staff provides early check-in service, but the room lighting is a little dim.

We paid an upgrade to a twin superior and had early access to the room which we were grateful for, following an early flight. Twin superior room was spacious, coffee machine, fridge and kettle provided, bathroom was great. Really comfy beds. Staff were fantastic and breakfast was superb, loads of choice. Would thoroughly recommend.

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

To my surprise, the time to access the locker is only from 9am onwards!!! (only when the staff is at the reception). My plan was to put my luggage into the locker and I have to catch a morning bus at 7am the next day!! Next time please design the lockers in a way such that it is accessible 24/7 😅😅 Anyways, I still figured out a way - which is to walk to the bus terminal to leave my luggage at the lockers. Attaching a photo of the daylight at 12am 😊

Good location, decent service, comfortable beds and relatively quiet rooms so overall a pleasant stay at Midgardur. The hotel is well placed for exploring Reykjavik and the room itself was clean and comfortable. The main issue was the minibar setup. Drinks in the fridge have no prices listed, so it’s not obvious that it’s a paid minibar until you see the charge at checkout. To make things more confusing, some drinks placed on the bedside table do have visible prices, which makes it seem like those are the only items for purchase and the fridge items might be complimentary

Really friendly and helpful staff, great breakfast, clean spacious apartment and so central - what’s not to love!!

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