It is not just watching whales and enjoying geothermal pools in Reykjavik that I went there. But there are so many other things Reykjavik will offer you. This includes watching the midnight sun in summer while listening to “Two Suns in the Sunset” by Pink Floyd also staying in any luxury vacation rentals near Reykjavik.

Why is that?

Well, Winston Churchill once said, “Iceland’s landscape is unlike anything else I have ever seen. It is truly a land of fire and ice.”

You can literally enjoy both the volcanoes, and the very Icelandic scene, which is of course full of snow staying in luxury hotels or resorts or other accommodation options in Iceland. And you can say, it was one of my dreams to listen to music and enjoy Iceland whatever it offers.

So here am I sharing the best places to stay in Iceland or if you precisely say, the best places to stay near Reykjavik where I stayed in.

5 Best luxury vacation rentals near Reykjavik

Reykjavik, Iceland, shines as a premier destination for luxury travelers with its enchanting landscapes, dynamic culture, Iceland vacation rentals, and seamless fusion of modernity and tradition. As the world’s northernmost capital, Reykjavik exudes a vibrant energy that belies its compact size. Its captivating art scene features renowned Icelandic talents, while many superb museums and attractions await exploration.

Without wasting your time now, I unravel the mystery behind why these 5 best luxury vacation rentals near Reykjavik consistently find themselves at the center of hype:

1. Guesthouse Pavi

luxury vacation rentals near Reykjavik
luxury vacation rentals near Reykjavik
Location - Brautarholt 4, Reykjavík

Factors of popularity and hype 

  • The staff at Guesthouse Pavi radiate genuine warmth, making every guest feel like part of the family.
  • With a prime location in the heart of Reykjavik, Guesthouse Pavi is easily accessible to the city’s vibrant attractions.
  • Plus, with easy access to public transportation, adventures beyond the city limits are just a hop, skip, and jump away.
  • Step back in time as you enter the charming ambiance of Guesthouse Pavi, where history meets modern comfort.
  • It’s not just a place to rest your head; it’s a sanctuary where memories are made and stories are shared.
Places to Visit Near Guesthouse Pavi
  • Hallgrímskirkja: Start your journey with a visit to this iconic church. With its striking architecture reaching towards the sky, it’s a sight you won’t want to miss. Plus, the panoramic views of Reykjavík from the top are simply jaw-dropping!
  • Perlan: Want to experience Reykjavík from a different perspective? Head over to Perlan, where you can marvel at the cityscape while enjoying a delicious meal at the revolving restaurant. Talk about dining with a view!
  • Harpa Concert Hall: Immerse yourself in Iceland’s vibrant culture by catching a show at Harpa Concert Hall. From classical concerts to contemporary performances, there’s something for everyone here. Don’t forget to snap a selfie with the mesmerizing glass façade!
  • Þingvellir National Park: Nature lovers, rejoice! Just a short drive from Reykjavík, Þingvellir National Park offers stunning landscapes and rich history. Walk between the tectonic plates, explore the scenic trails, and learn about Iceland’s ancient parliament – it’s an outdoor enthusiast’s paradise.
  • Geysir Hot Springs: Get ready for some natural wonders! Witness the raw power of Mother Nature at Geysir Hot Springs, where you can watch geysers shoot boiling water into the air. Make sure to have your camera ready for that perfect Instagram shot!
  • Gullfoss Waterfall: Prepare to be awestruck by the majestic beauty of Gullfoss Waterfall. As one of Iceland’s most famous attractions, this breathtaking cascade will leave you speechless. Pro tip: Visit during golden hour for an extra magical experience.
  • Blue Lagoon: Last but certainly not least, treat yourself to a day of relaxation at the Blue Lagoon. Soak in the rejuvenating geothermal waters, indulge in a spa treatment, and let all your worries melt away. It’s the perfect way to unwind after a day of adventure.

2. Hotel Orkin

luxury vacation rentals near Reykjavik
luxury vacation rentals near Reykjavik
Location - Brautarholt 4, Reykjavík

Factors of popularity and hype 

  • The moment I set foot in Hotel Orkin, I felt like I was diving straight into the heart and soul of Iceland.
  • It’s not just a hotel; it’s a gateway to experiencing Iceland’s rich culture and heritage firsthand.
  • Hotel Orkin boasts a prime location that’s the envy of other vacation rentals in Reykjavík.
  • Plus, with Iceland vacation rentals like Hotel Orkin, I had the freedom to create my own itinerary and explore at my own pace.
  • The staff went above and beyond to ensure that my stay was nothing short of perfect, from arranging tours to offering insider tips on the best local spots.
  • It’s not just a place to stay; it’s a home away from home where every guest is treated like family.
Places to Visit Near Hotel Orkin
  • Flea Markets: Reykjavík Flea Market (Kolaportið) is a goldmine for unique souvenirs and local crafts. You never know what kind of treasure you might unearth!
  • Whale Watching Tour: Spotting majestic whales in their natural habitat is an unforgettable experience. Tours set sail from the Old Harbour, a short walk from the hotel.
  • Blue Lagoon: This geothermal spa is a must for any luxury liner. Float in the milky blue waters surrounded by lava rock and pamper yourself with a silica mud mask.
  • Helicopter Tour: Get your bearings and witness Iceland’s dramatic landscapes from a bird’s-eye view. This splurge is guaranteed to make you feel like royalty.
  • Golden Circle: This popular route takes in geothermal wonders like Geysir and Gullfoss waterfall. The hike is manageable for most fitness levels and the views are unreal.

3. Hotel Ísland – Spa & Wellness Hotel

luxury vacation rentals near Reykjavik
luxury vacation rentals near Reykjavik
Location - Armula 9, Reykjavík

Factors of popularity and hype 

  • The soothing ambiance and calming atmosphere create the perfect retreat from the hustle and bustle of everyday life.
  • Hotel Ísland offers an array of luxurious amenities that cater to every need and desire.
  • From luxurious spa treatments to cutting-edge fitness facilities, there’s something to delight everyone. 
  • What truly sets Hotel Ísland apart is its unwavering commitment to providing exceptional service to every guest.
Places to Visit Near  Hotel Ísland 
  • Hallgrímskirkja Church: This humongous Lutheran church is the biggest church in Iceland, and you can see it from pretty much anywhere in the city. It’s also open to the public for free, and you can take an elevator to the top of the tower for some seriously epic views of Reykjavík and the surrounding area.
  • The Settlement Exhibition: Wanna learn a little something about the history of Reykjavík? The Settlement Exhibition is a cool little spot that  tells the story of the first Viking settlers in Iceland. It’s got some archaeological digs and artifacts and stuff, and it’s a great way to spend an hour or two.
  • The National Museum of Iceland: If you’re more into Iceland’s general history and culture, then the National Museum is the place for you. They’ve got a big collection of Viking artifacts,  stuff about Icelandic folklore and sagas, and exhibits about Iceland’s natural history.

4. Stay Apartments Bolholt

luxury vacation rentals near Reykjavik
luxury vacation rentals near Reykjavik
Location - Bolholt 6, Reykjavík

Factors of popularity and hype 

  • With its spacious accommodations and modern amenities, it’s no wonder that this spot is a favorite among Iceland vacation rentals.
  • Stay Apartments Bolholt offers the ideal base for exploring all that the city has to offer.
  • With vacation rentals in Reykjavík like this one, convenience and adventure go hand in hand.
  • It’s not just a place to stay; it’s a home away from home where every detail is tailored to make your Icelandic adventure truly unforgettable.
Places to Visit Near Stay Apartments Bolholt
  • Golden Circle: Dive deep into Iceland’s natural wonders with a tour of the Golden Circle. Prepare to be awestruck by the mighty Gullfoss waterfall, witness the geothermal power of Geysir, and stand between two continents at Thingvellir National Park.
  • Blue Lagoon: Treat yourself to ultimate relaxation at the world-renowned Blue Lagoon. Surrender to the soothing warmth of its geothermal waters as you soak in the breathtaking beauty of Iceland’s volcanic landscape.
  • Reykjavík Ramblings: Explore Reykjavík’s bustling city center to immerse yourself in its vibrant culture. Wander through the colorful streets, visit iconic landmarks like Hallgrímskirkja Church, and indulge in mouthwatering Icelandic cuisine at local eateries.
  • Northern Lights: Experience the enchantment of the Northern Lights with a guided tour departing from Reykjavík. Venture into the darkness in search of the mesmerizing auroras dancing across Iceland’s night sky.

 5. Travel Inn

luxury vacation rentals near Reykjavik
luxury vacation rentals near Reykjavik
Location - Sóleyjargata 31, Reykjavík

Factors of popularity and hype 

  • Stepping into Travel Inn, Reykjavík, I instantly felt embraced by its cozy atmosphere, like being wrapped in a warm hug.
  • Travel Inn boasts a prime spot in the heart of Reykjavík, making it the perfect launchpad for exploring the city’s vibrant offerings.
  • Travel Inn combines charm with modern comforts, offering well-appointed accommodations equipped with all the amenities needed for a comfortable stay.
  • With its unbeatable combination of comfort, location, and hospitality, Travel Inn offers a memorable Icelandic experience without breaking the bank.
Places to Visit Near Travel Inn
  • Harpa Concert Hall: This architectural stunner looks like a giant block of ice glinting in the sunlight. Inside, you’ll find a world-class concert hall that hosts everything from orchestras to rock concerts. Even if you don’t catch a show, it’s worth a peek for the eye candy.
  • The Old Town (Altarpóll): Cobblestone streets, brightly colored houses – Altarpóll is Reykjavík’s historic heart. Wander through its charming streets, pop into quirky shops, and grab a bite at one of the cozy cafes. It’s the perfect place to soak up Reykjavík’s unique atmosphere.
  • The Settlement Exhibition: Step back in time and explore the remains of a Viking longhouse! This underground exhibition will show you what life was like for Iceland’s earliest settlers.


Alright, let’s wrap up this journey through the Icelandic wonders of luxury vacation rentals near Reykjavik. After exploring the stunning landscapes and staying in the cozy comforts of these top-notch accommodations, it’s clear why they’re always on the hype radar.

In conclusion, it’s no surprise that these 5 luxury vacation rentals near Reykjavik are always the talk of the town. With their unparalleled charm, convenient locations, and top-notch amenities, they offer an Icelandic getaway like no other. 

To make your trip even more memorable, consider local recommendations on hidden gems and know some essential Iceland travel tips, dining, and activities to enhance your stay.

So why wait? Book your stay today and embark on the adventure of a lifetime! 

Q1. Do these luxury rentals offer unique Icelandic experiences?

Yes, many of these rentals provide unique experiences such as Northern Lights viewing, geothermal hot spring access, and proximity to outdoor adventure activities like hiking and whale watching.

Q2. What are the main attractions near these vacation rentals?

Nearby attractions often include the Blue Lagoon, Golden Circle, Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall.

Q3. Are these luxury vacation rentals suitable for families?

Yes, many of these rentals are family-friendly, offering multiple bedrooms, large living areas, and amenities like kitchens and laundry facilities to accommodate families.