Very Good 95 Reviews
Jetsetter Approved
This Hotel meets our standards
This hotel meets our standards, but we haven't stayed yet

What We Love

  • The natural light that floods the rooms (especially during summer's 22-hour days)
  • The hallway walls, which are lined with cool motion-controlled lighting that appears in angled lines
  • Complimentary minibars stocked with beer and wine

What To Know

  • Junior suites have balconies with private saunas
  • The hotel fronts a busy street, so request a room at the back
  • Free WiFi
  • There's a very small workout room in the basement


  •  Bar
  •  Free WiFi
Disclaimer: This content was accurate at the time the hotel was reviewed. Please check our partner sites when booking to verify that details are still correct.
Boutique Hotels Hotels Iceland Outdoors + Adventure Reykjavík Road Trips Architecture flooring product design house angle daylighting chair


Small, central boutique highlighting Icelandic traditions—all in superb style

The Lowdown

It’s all about the details at ION City Hotel, the sister hotel of ION Adventure Hotel—both designed by California-based firm Minarc. Take the façade, patterned in textured aluminum panels modeled after a traditional Icelandic wool sweater. You can buy those sweaters, woven by the owner’s mother, in the hotel, a pleasing bit of symmetry. Showcasing Iceland’s makers is part of the hotel’s mission, and the Scandi-hip rooms (some on the small side) even have bathrooms with local sand and moss in the walls. Oversized windows invite city and mountain views in, while the suites with saunas are the most coveted. Splurge on the premium Panorama suite and you’ll also get a chef on call for when you want to entertain. The hotel has a sweet location in the trendiest neighborhood in town, so it’s not likely you’ll be spending too much time inside, but the Sumac restaurant’s North African cuisine is a must-try. Service throughout is impeccable.

In the Area

Laugavegur is one of the hippest streets in the city, so you’ll be well-positioned to indulge in the first-class restaurants, bars, and shops nearby. It’s a five-minute stroll to Dill, the first Michelin-starred restaurant in the country (book waaaaaay in advance), where you’ll find deceptively simple dishes like Arctic char and fennel that make a disproportionately big splash. A couple of blocks away is the very hip Kaffibarinn, which has tip-top beer and late-night DJs. Hallgrímskirkja, an imposing Lutheran church that’s a city landmark, is just a six-minute walk from the hotel. If you want to go puffin spotting or whale watching, head to the harbor, which is extraordinarily picturesque with its fishing boats floating in front of snow-capped mountains. This area is getting better known for its restaurants and nightlife, too. Hotel staff are universally warm and friendly and have good, insider-y tips for where to go; run your evening plans by them before heading out to get the seal of approval.

How to Get There

ION City Hotel
Laugavegur 28
Reykjavik, Iceland


4.5 Very Good 95 Reviews
Nice hotel but too noisy surroundings in weekends!
Reviewed 5 days ago

This is a great hotel with a great location in the centre of Reykjavik. The rooms are comfortable and spacious, the staff super-friendly. However, next to the hotel there is a discoteque that plays very loud music until 03 am fridays and saturdays. I would like to come back, but only during the weekdays.

beautiful hotel in reykjavik
Reviewed 2 weeks ago

I stayed here for a couple of nights and loved the room and front desk service. It had one of the best showers I've ever taken. We stayed on points, so I can't speak to the value (I know it's not a cheap hotel), but it was lovely and I'd recommend it to anyone coming through the city.

Great stay in Reykjavik!
Reviewed 2 weeks ago

We stayed two nights here back in March for a bucket list trip to Iceland. It was an amazing, new, modern hotel. We booked a Jr Suite with a balcony, and a sauna outside on the balcony. It really was surreal to be in a sauna right on Laugavegur, right in the middle of everything. The room wasn't huge, which is common for the area...But it was so new and clean. Everything was great. The bed was amazing, the towel warmer was a nice touch, and the shower was awesome.

Also, Virginia at the front desk went out of her way to make sure we had an amazing time. She was so nice and helpful and can't thank her enough.

Overall, if (or more like, when) we return to Iceland, we will definitely plan on once again staying at Ion City Hotel.

Very friendly hotel in the centre of Reykjavík
Reviewed 1 month ago

Stayed for a couple of nights over Easter. The hotel is very well located in the centre of Reykjavík, staff really friendly, and the rooms great. Very happy, and we’ll stay here again when we revisit Iceland.

Great locstion
Reviewed 1 month ago

Perfect central location in Reykjavik. We had unlimited walkable nearby bars and restaurants as well as shopping. They don’t offer parking which is a pain if you rented a car because it’s street parking and you have to feed the meter. We traveled with our 5 month old but brought our own crib. They do offer a pack N play but you can’t guarantee availability ahead of time so we didn’t want to risk it. Also very close to a very bumping club that you can hear the throbbing music all the way to 4am. It wasn’t so loud we couldn’t sleep but it did wake the baby up a few times.