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.

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.

**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.

Lovely clean and spacious room. Nice little kitchen area with microwave to heat food. Buffet breakfast was OK. Personally not to my taste, but that is only my opinion. The 16 year old with us loved the waffles with the choice of toppings! The porridge which I do enjoy was good day 1 but very watery day 2. Choice of bread that could be toasted, margarine (Sorry I am a butter fan!), preserves, ham, cheese,boiled eggs, tomatoes etc. Free coffee wasn't great - again I'm a coffee snob and like a good cup of filter coffee. I did notice there was coffee to buy. The room was great and the staff very helpful. We were able to park right outside our room. Good location for Reykjavik by car, Thingvellir National Park etc. We travelled from here to both and also to Snaefellsnes Peninsula, which was worth the drive. Also we visited Rekyholt, Barnafoss and Hraunfossar waterfalls, Deildartunguhver Thermal Spring - try the tomato soup!

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.