Iceland is a destination that has been experiencing a tourist boom over the last couple of years with more and more people now wanting to experience this pristine landscape and specifically base themselves in the capital Reykjavik. The capital is petite and increased demand for premium accommodation has meant the city is playing catch up and in my opinion there are currently only a couple of hotels that fit the TLE standard (there are no 5 star hotels in the country – but one is planned to open in the capital next to the Harpa opera house).
Things are also changing quickly within the 4 star and boutique hotel sector with upgrades to existing hotels underway and more room stock being added. There are also a number of new properties earmarked to open soon (Sand Hotel being a new one). Prices in Iceland in general are high for rooms and especially high in the summer peak season We visited Iceland recently and have some tips for the best places to stay if you are basing yourself in Reykjavik.
Alda Hotel

A fairly new addition to Reykjavik (opened June 2014), Alda is super stylish, contemporary and in one of the best locations in the city, right on the main shopping street Laugavegur. Heavily Nordic inspired from the rooms to the beautiful communal area’s its a complete bolt-hole and the perfect place to retreat too after an energetic day exploring.  65 rooms in capacity; rooms have views over Faxaflói bay and to Mount Esja. Bedrooms have wooden floors and ben...