Why we recommend Reykjavik in palace mode
Reykjavik does not play the historical palace card with columns: the Icelandic capital rebuilt its luxury hotel offering after 2015, with glass towers and design apartments that focus on natural light and raw materials. The Reykjavik EDITION arrives from the old port with its New York aesthetic and its spa facing the fjords, Tower Suites plants its glass silhouette on the new business district, Black Pearl transforms the apart-hotel concept into a high-end studio. No gilding, no Persian rugs: here, luxury comes through the XXL bays, equipped kitchens and hot baths on the rooftop.
The old port concentrates the bulk of the recent offering: Harpa (glass concert hall) two minutes away, fish restaurants on the quays, whale-watching boats at the foot of the hotels. The historic centre, around Laugavegur and Hallgrímskirkja, keeps the more intimate addresses, often apart-hotels that let you cook your Icelandic salmon between two northern lights outings. The two zones meet on foot in ten minutes.
When to go: seasons and Arctic light
Reykjavik runs on two clear seasons. May to September: midnight sun (up to 21h of daylight in June), temperatures between 10 and 15°C, all sites open, palace rates at their peak. September-October: ideal balance, first northern lights from 22h, fewer tourists, prices down 20 to 30 %. November to March: near-permanent night (4h of daylight in December), optimal northern lights, yet southern roads sometimes closed, some restaurants shut.
We avoid July-August if crowds are not your thing: old-port hotels fully booked, Golden Circle excursions overloaded, rates at the ceiling. December-January suits hardcore northern-lights hunters, provided one accepts the polar night and snowstorms that pin you to the ground.
| Month | Hours of daylight | Northern lights | Palace rate (night) | Footfall |
|---|
| May | 18h | No | 350-450 € | Medium |
| June | 21h | No | 450-600 € | High |
| September | 13h | Yes (end of month) | 300-400 € | Medium |
| December | 4h | Yes (optimal) | 250-350 € | Low |
Where to stay: old port or historic centre
Old port (Grandi, Austurbakki, Tryggvagata): the new Reykjavik luxury. The Reykjavik EDITION sets its Ian Schrager design on the east quay, Bamford spa with mountain view, Tides restaurant working local fish. Tower Suites rises to 20 floors, suites with kitchen and panoramic bay window, business clientele mid-week, couples at weekends. Black Pearl turns the apart-hotel into a design concept, studios with Smeg kitchenette and balcony over the port, two minutes from the flea market Kolaportið. The quarter concentrates fish tables (Grillmarkaðurinn, Messinn), Harpa within reach, yet zero historic charm: recent concrete and glass.
Historic centre (Laugavegur, Vatnsstigur): more intimate, more local. Reykjavik Residence plants its 5★ apartments between the lake Tjörnin and the church Hallgrímskirkja, equipped kitchen for those who want to simmer their morning skyr, Laugavegur shopping street 300 metres away. Hotel Reykjavík Saga on Lækjargata bets on Nordic functionality rather than décor, business and family clientele, Austurvöllur square (parliament) five minutes away. The centre lets you do everything on foot, yet the hotels date from the 2000s-2010s, less spectacular than the port towers.
- Old port: for the view, the spas, contemporary architecture
- Historic centre: for autonomy (kitchens), proximity to shops, village atmosphere
- Business district (Katrínartún): Tower Suites only, isolated yet unbeatable views
Tables and gastronomy: fish, lamb, New York prices
Reykjavik counts two Michelin stars: Dill (modern Icelandic cuisine, tasting menu 180 €, book two months ahead) and Moss (opened 2023, fermented vegetables and fish, 150 €). Below, Grillmarkaðurinn (grilled meats and fish, 80-100 € per person) and Fiskfélagið (fish of the day, wine cellar, 70-90 €) hold their own without revolutionising.
The palace hotels integrate their own tables: Tides at The Reykjavik EDITION (opened 2024, chef ex-Noma, wild fish and seaweed), the restaurant at Tower Suites (360° view, correct international menu yet without sparkle). The apart-hotels bet on self-catering: the market Kolaportið (Saturday-Sunday) sells smoked salmon, rye bread, artisanal skyr at local prices.
Realistic budget for three meals a day:
- Hotel breakfast: 25-35 € (often included in palaces)
- Casual lunch (lamb soup, sandwich): 20-30 €
- Average dinner table: 70-100 €
- Starred dinner: 150-200 €
We cook one meal in two in the apart-hotels to halve the bill.
Experiences: northern lights, Blue Lagoon, Golden Circle
Northern lights: September to March, between 22h and 2h in the morning, provided clear skies (50 % chance on average). Old-port hotels organise 4x4 outings (150 € per person, 4h), yet one can rent a car and head out alone towards Þingvellir (45 min) or the Reykjanes peninsula (30 min). Rooftop spas in the palaces (Tower Suites, EDITION) let you watch from the hot water.
Blue Lagoon: the most photographed geothermal spa in Iceland, 40 minutes from Reykjavik. Three packages: Comfort (75 €, basic entry), Premium (95 €, robe + drink), Retreat Spa (350 €, private-zone access + treatment). Book three weeks ahead in high season, otherwise full. Less touristy alternative: Sky Lagoon (opened 2021, 15 min from Reykjavik, ocean view, 60-90 €).
Golden Circle: classic one-day circuit (Þingvellir, Geysir, Gullfoss), doable by rental car (2h drive each way) or private excursion (400-500 € for 2 people, 8h). We prefer to leave early (8h) to avoid the tourist buses that arrive at 11h.
Budget: what a palace stay really costs
Three nights in luxury mode in Reykjavik, couple, September (shoulder season):
- Hotel: 300-450 € per night in a palace (EDITION, Tower Suites), 250-350 € in a 5★ apart-hotel (Black Pearl, Reykjavik Residence) → 900-1350 € for 3 nights
- Restaurants: 2 average-table dinners (160 €), 1 starred dinner (300 €), light lunches (90 €) → 550 €
- Experiences: Blue Lagoon Premium (190 €), northern lights in 4x4 (300 €), private Golden Circle (500 €) → 990 €
- Transfers: airport-centre by taxi (60 € return), 2-day car hire (120 €) → 180 €
Total: 2620-3070 € for 3 nights, couple, without flights. We drop to 1800-2200 € by cooking half the meals in an apart-hotel and hiring a car for excursions.
| Item | Comfort budget | Palace budget |
|---|
| Hotel (3 nights) | 750-900 € | 1200-1800 € |
| Restaurants | 300-400 € | 500-700 € |
| Experiences | 400-600 € | 800-1200 € |
| Transfers | 150-200 € | 200-300 € |
| Total couple | 1600-2100 € | 2700-4000 € |
Logistics and practical tips
Keflavík Airport (KEF): 45 km from Reykjavik, 45 minutes by car. Three options: taxi (80-100 €, fixed), Flybus shuttle (30 € per person, hotel stops), car hire (from 40 € per day, essential to leave the capital). Palaces offer private transfers (150-200 €), useful if arriving at night with lots of luggage.
Car: compulsory for the Golden Circle, northern lights, South Coast. Useless in Reykjavik itself (everything done on foot, paid parking 3-5 € per hour). Hiring for 2-3 days on a one-week stay is enough. Route 1 (ring road) practicable all year, F-roads (interior) closed October to May.
Currency: Icelandic króna (ISK), 1 € = 150 ISK approx. Bank card accepted everywhere, even for a 2 € coffee. No need for cash.
Language: Icelandic, yet perfect English in all hotels and restaurants. Menus are systematically translated.
What we pack: thermal layers (wind-chill -5 to -15°C in winter), waterproof windbreaker, swimsuit (for spas and public geothermal pools, 8-10 € entry, water at 38°C all year). Sunscreen in summer (21h of daylight, strong UV).
Pitfalls to avoid: Blue Lagoon on a Saturday in July (packed, book at dawn or evening), restaurants without reservation in high season (full from 19h), 4x4 hire if staying on route 1 (standard SUV enough, 30 % cheaper) ✨
