2-Star Hotels in Capital Region, Iceland

2-Star Hotels in Capital Region, Iceland

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Guest Rating
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Top 2-Star Hotels - Capital Region

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Closest to downtown
Highest Rated
99+
Hotel near Miðborg,Reykjavik
With a stay at KEX Hotel and Hostel Reykjavik, you'll be centrally located in Reykjavik, just a 4-minute walk from Laugavegur and 9 minutes by foot from Hallgrimskirkja. This hostel is 0.5 mi (0.9 km) from Harpa and 1 mi (1.6 km) from Reykjavik Harbour. Make use of convenient amenities such as complimentary wireless internet access, concierge services, and gift shops/newsstands. Wrap up your day with a drink at the bar/lounge. Buffet breakfasts are available daily from 7:00 AM to 11:00 AM for a fee. Featured amenities include a 24-hour front desk, multilingual staff, and luggage storage. Make yourself at home in one of the 43 individually decorated guestrooms, featuring refrigerators and microwaves. Prepare your meals in the shared/communal kitchen. Complimentary wireless internet access is available to keep you connected. Conveniences include blackout drapes/curtains, and housekeeping is provided on request.

"This hostel ranks among the worst I've experienced in Europe. The 4th floor is supposed to have hairdryers. On my first day, I asked the front desk and they said one should be there but it had 'disappeared'. They had spares, but never restocked them, so I had to go down and borrow one every time. Once, they even lent me two broken ones in a row. In the restrooms, I'd find one out of three stalls without toilet paper. The kitchen paper was replenished very slowly. The kitchen itself was a mess, greasy everywhere, and the sink was constantly full of leftover food dumped by guests. One night, someone had a party in the communal kitchen, smashed two glass cups, and didn't clean up, which was a nasty surprise the next morning. There was also a private party downstairs that blocked off the path to the elevator, so I had to walk up two floors just to get there. The music from the party went on past midnight. I don't know why, but the 6-bed female dorm seemed to attract 'characters'. On my first day, a white woman, upon realizing I was in the bunk above her, tried everything to get me to move. As soon as I put my bag down, before even getting on the bed, she opened the window by my head and told me to ask the front desk for a different bed because she wanted to eat on her bed (though there was no smell at all). Later that night, she opened the window again, letting the draft blow directly on my head (I woke up and closed it). The next morning, around 7 AM, she asked me why I was disturbing her sleep (seriously, what's wrong with her?). Thankfully, she got angry and moved out herself. The lockers were incredibly loud; pulling them open at night made a huge noise and easily woke up roommates. The room lighting was very dim, making it hard to see when looking for things in the morning, even with the lights on. Someone's food was also stolen from the kitchen fridge, but compared to everything else, that was a minor issue."
Very Good
338 reviews
8.6/10
1 night
From PKR 12,398
Check availability
50
Hotel near Laugardalur,Reykjavik
With a stay at Hotel Cabin, you'll be centrally located in Reykjavik, within a 5-minute drive of Reykjavik Harbour and Laugavegur. This hotel is 1.5 mi (2.4 km) from Harpa and 1.6 mi (2.5 km) from Hallgrimskirkja. Make use of convenient amenities such as complimentary wireless internet access, concierge services, and a television in a common area. You can enjoy a meal at The Salatbar serving the guests of Hotel Cabin, or stop in at the snack bar/deli. Need to unwind? Take a break with a tasty beverage at one of the 2 bars/lounges. Featured amenities include a computer station, a 24-hour front desk, and multilingual staff. Planning an event in Reykjavik? This hotel has facilities measuring 1076 square feet (100 square meters), including conference space. Free self parking is available onsite. Stay in one of 257 guestrooms featuring flat-screen televisions. Complimentary wireless internet access keeps you connected, and satellite programming is available for your entertainment. Conveniences include phones and blackout drapes/curtains, and housekeeping is provided daily.

"For a country like Iceland where everything is incredibly expensive, this hotel is definitely a top choice! For me, it's great value for money 😁 Many people commented that the rooms are small, but the hotel's design is IKEA-inspired, meaning the room facilities are movable. Once you move things around, there's ample space. Even a 28-inch suitcase completely disappears from view after being opened 😁 I forgot to take a picture after I rearranged things. The hotel's location is super convenient, and there's parking right outside."
Very Good
285 reviews
8.1/10
1 night
From PKR 31,324
Check availability
53
Hotel near Laugardalur,Reykjavik
Located in Reykjavik (Laugardalur), Lækur Hostel is within a 10-minute walk of Laugardalslaug Geothermal Pool and Sigurjon Olafsson Museum. This hostel is 0.8 mi (1.3 km) from Laugavegur and 1.7 mi (2.7 km) from Harpa. Take in the views from a terrace and make use of amenities such as complimentary wireless internet access and bike parking. Stop by the hostel's restaurant for lunch or dinner, or grab snacks at the coffee shop/cafe. Wrap up your day with a drink at the bar/lounge. Featured amenities include express check-out, complimentary newspapers in the lobby, and luggage storage. A roundtrip airport shuttle is provided for a surcharge (available 24 hours), and free self parking is available onsite. Make yourself at home in one of the 10 guestrooms. Complimentary wireless internet access is available to keep you connected. Bathrooms with showers are provided.

"I personally feel that if you're planning to visit nearby attractions, you might want to reconsider staying here. It's quite a long walk to get anywhere, and while there are buses, they don't go to every destination. I chose this place mainly because of the cheap price and the fact that it was on the first floor (my luggage was very heavy), but I didn't realize it was so far from the sights. Self check-in is very convenient, and there's a place downstairs where you can cook and eat. The bathrooms are all quite small. It takes some time to adjust the hot and cold water, otherwise you might accidentally scald yourself. Plus, there are no hooks, so I had to put my clothes on the floor. I wouldn't recommend showering here if you're a larger person. Also, if you're a light sleeper, you should think twice, as it's right next to the road and cars pass by all night, making it very noisy. If you can tolerate all of these things and the price fits your budget, then it's still an option."
Very Good
48 reviews
8.4/10
1 night
From PKR 11,249
Check availability
42
Hotel near Miðborg,Reykjavik
With a stay at Guesthouse Aurora, you'll be centrally located in Reykjavik, steps from Hallgrimskirkja and 6 minutes by foot from Laugavegur. This guesthouse is 0.6 mi (0.9 km) from Reykjavik City Hall and 0.6 mi (1 km) from Harpa. Make use of convenient amenities, which include complimentary wireless internet access and concierge services. Featured amenities include express check-in, express check-out, and dry cleaning/laundry services. Free self parking is available onsite. Make yourself at home in one of the 25 guestrooms. Prepare your meals in the shared/communal kitchen. Complimentary wireless internet access is available to keep you connected.

"Service provided by Ginta was excellent! Initially we were assigned to a room on the 3rd floor, which would have been impossible for us as there was no elevator and we had two big luggages. Ginta was very helpful and accommodating to our request, she called her manager and helped us to change rooms to the first floor. We also had to leave early by 7:30am the next day for a tour, but breakfast officially only starts at 7:30am. Ginta helped to arrange and ensure we had breakfast before we left. Location is great, less than a 5 minute walk to bus stop #8 and Hallgrimskirkja church. It was also easy to walk to Rainbow street, Laugavegur and other attractions."
Very Good
125 reviews
8.8/10
1 night
From PKR 30,668
Check availability
49
Hotel near Miðborg,Reykjavik
With a stay at Hostel B47, you'll be centrally located in Reykjavik, steps from Sundhollin and within a 5-minute walk of Hallgrimskirkja. This hostel is 0.2 mi (0.4 km) from Laugavegur and 1.1 mi (1.8 km) from Harpa. Take in the views from a garden and make use of amenities such as complimentary wireless internet access and a communal living room. Featured amenities include express check-out, multilingual staff, and luggage storage. Free self parking is available onsite. Make yourself at home in one of the 57 guestrooms. Prepare your meals in the shared/communal kitchen. Bathrooms with showers are provided. Conveniences include blackout drapes/curtains, and housekeeping is provided daily.

"Fantastic location. We stayed for three nights, they provide towels, bath shampoo and hangers in room. There are side table and chairs. The common kitchen is well equipped and there are so clean. Some traveller bought food to prepare breakfast and dinner. It's so convinient to walk to city. Recommend for team building and school camp."
Very Good
77 reviews
8.3/10
1 night
From PKR 14,821
Check availability
99+
Hotel near Miðborg,Reykjavik
Welcome to Nordic Hostel, a modern and friendly hostel in the heart of Reykjavík. Our central location puts you within walking distance of the city's top attractions, restaurants, cafés, bars, museums, and the main shopping street, making it the perfect base for exploring Iceland's capital. We offer comfortable dormitories and private rooms designed for solo travelers, couples, families, and groups. Guests enjoy free high-speed Wi-Fi, spacious common areas, a fully equipped shared kitchen, luggage storage, self check-in, and clean, modern facilities. Relax and meet fellow travelers at Snorra Bar, our on-site bar, where you can enjoy local beers, cocktails, happy hour specials, and regular social events. Our friendly team is always happy to help with travel advice, tours, and recommendations to make the most of your stay. Whether you're visiting Reykjavík for adventure, sightseeing, or the Northern Lights, Nordic Hostel offers outstanding value, comfort, and a welcoming atmosphere in one of the city's best locations.

"I want to give an objective review of this hostel. First, the pros: 1. The price is excellent. I stayed for five nights for just over 2000 [currency, e.g., ISK], which is very reasonable considering the prices in Iceland. 2. The communal kitchen and bar are very spacious and bright, making cooking very convenient. 3. The location is central; it's easy to walk anywhere within 15 minutes, and there are bus stops nearby. 4. The hostel has a minimalist, modern design, and the facilities are relatively new. The individual bed curtains provide great privacy. Now, a few areas for improvement: 1. There are a bit too few restrooms and showers, so sometimes you have to wait in line. 2. I really hope they could provide a female-only dorm, even if it's a multi-person room. My bed this time was near the door, and people were constantly coming and going in the middle of the night. Two guys snored loudly, which was incredibly disruptive, and the air quality also deteriorated. I was woken up three times in one night – it was a nightmare. 3. It would be good to separate the male and female bathrooms/showers. Having them mixed is indeed a bit unhygienic."
Great
21 reviews
9.2/10
1 night
From PKR 25,905
Check availability
60
Hotel near Laugardalur,Reykjavik
With a stay at Lækur Guesthouse, you'll be centrally located in Reykjavik, within a 5-minute drive of Laugavegur and Harpa. This guesthouse is 2.1 mi (3.3 km) from Reykjavik Harbour and 1.7 mi (2.8 km) from Hallgrimskirkja. Take in the views from a terrace and make use of amenities such as complimentary wireless internet access and bike parking. Enjoy a meal at the restaurant or snacks in the guesthouse's coffee shop/cafe. Quench your thirst with your favorite drink at the bar/lounge. Featured amenities include luggage storage and laundry facilities. A roundtrip airport shuttle is provided for a surcharge (available 24 hours). Make yourself at home in one of the 6 guestrooms. Prepare your meals in the shared/communal kitchen. Complimentary wireless internet access is available to keep you connected. Bathrooms with showers are provided.

"The hotel is very well located, there is little room to park. But with a little patience we can get there. Just a bemol on the soundless rooms, the doors that clack all night."
Good
21 reviews
7.8/10
1 night
From PKR 58,051
Check availability
77
Hotel near Hafnarfjarðarkaupstaður,Hafnarfjordur
With a stay at Hostel Fjordur in Hafnarfjordur, you'll be within a 15-minute drive of Sky Lagoon and Hallgrimskirkja. This hostel is 8.6 mi (13.8 km) from Reykjavik Harbour and 7.8 mi (12.6 km) from Laugavegur. This hostel offers designated smoking areas. Free self parking is available onsite. Make yourself at home in one of the 25 guestrooms featuring refrigerators and microwaves. Complimentary wireless internet access is available to keep you connected. Bathrooms feature showers with rainfall showerheads.
Very Good
4 reviews
8.3/10
1 night
From PKR 22,416
Check availability
55
Hotel near Miðborg,Reykjavik
With a stay at Guesthouse Andrea, you'll be centrally located in Reykjavik, steps from Hallgrimskirkja and 6 minutes by foot from Laugavegur. This guesthouse is 0.6 mi (1 km) from Reykjavik City Hall and 0.7 mi (1.1 km) from Harpa. Take in the views from a garden and make use of amenities such as complimentary wireless internet access and tour/ticket assistance. Featured amenities include luggage storage and laundry facilities. Free self parking is available onsite. Make yourself at home in one of the 10 guestrooms. Complimentary wireless internet access is available to keep you connected. Bathrooms have showers and hair dryers. Conveniences include desks and blackout drapes/curtains, and housekeeping is provided once per stay.

"I highly recommend this place. It was a bit hard to find at first. I carried my suitcase and searched for the front desk for a long time. I found it on the side of a small street, and it was half underground. It was too hard to find, but once you checked in, it was very convenient. There was breakfast. Although there was not much to eat, it was very clean. There were few varieties, but it was enough. I liked cereal and milk the most. The coffee was okay. The fresh vegetables were OK. The best thing was that the brother at the front desk was very nice. He could help me book a taxi and book a bus ticket to the airport because Uber was not available here, which was inconvenient."
Very Good
112 reviews
8.3/10
1 night
From PKR 28,902
Check availability
76
Hotel near Reykjavik East,Reykjavik
With a stay at Alba Guesthouse, you'll be centrally located in Reykjavik, within a 5-minute drive of Laugavegur and Hallgrimskirkja. This guesthouse is 2.4 mi (3.9 km) from Reykjavik Harbour and 2 mi (3.2 km) from Harpa. Take in the views from a terrace and a garden and make use of amenities such as complimentary wireless internet access. Additional amenities at this guesthouse include tour/ticket assistance, a picnic area, and barbecue grills. Featured amenities include multilingual staff and laundry facilities. Free self parking is available onsite. Make yourself at home in one of the 10 guestrooms. Complimentary wireless internet access is available to keep you connected. Bathrooms have showers and hair dryers. Conveniences include electric kettles, housekeeping is provided on weekdays only, and irons/ironing boards can be requested.

"The room was spacious and clean, shared bathroom was also clean. Good spread for buffet breakfast and good amenities to use in this guesthouse. There was a strict check in at 3pm but the host let us wait in the waiting area when we arrived at 2:30. It has nearby bus stop but everything is walking distance if you brace the weather."
Very Good
71 reviews
8.1/10
1 night
From PKR 29,682
Check availability
See All 2-Star Hotels in Capital Region

Recent Reviews for Capital Region Hotels

See all

Hotel Cabin

8,1/10
Very Good
Posted on Mar 7, 2026
Guest User
For a country like Iceland where everything is incredibly expensive, this hotel is definitely a top choice! For me, it's great value for money 😁 Many people commented that the rooms are small, but the hotel's design is IKEA-inspired, meaning the room facilities are movable. Once you move things around, there's ample space. Even a 28-inch suitcase completely disappears from view after being opened 😁 I forgot to take a picture after I rearranged things. The hotel's location is super convenient, and there's parking right outside.
Price per night from:PKR 31,324

Kex Hostel

8,6/10
Very Good
Posted on Feb 9, 2026|Shared 6-Bed, Dormitory, Women Only, Shared Bathroom
HKGuest User
This hostel ranks among the worst I've experienced in Europe. The 4th floor is supposed to have hairdryers. On my first day, I asked the front desk and they said one should be there but it had 'disappeared'. They had spares, but never restocked them, so I had to go down and borrow one every time. Once, they even lent me two broken ones in a row. In the restrooms, I'd find one out of three stalls without toilet paper. The kitchen paper was replenished very slowly. The kitchen itself was a mess, greasy everywhere, and the sink was constantly full of leftover food dumped by guests. One night, someone had a party in the communal kitchen, smashed two glass cups, and didn't clean up, which was a nasty surprise the next morning. There was also a private party downstairs that blocked off the path to the elevator, so I had to walk up two floors just to get there. The music from the party went on past midnight. I don't know why, but the 6-bed female dorm seemed to attract 'characters'. On my first day, a white woman, upon realizing I was in the bunk above her, tried everything to get me to move. As soon as I put my bag down, before even getting on the bed, she opened the window by my head and told me to ask the front desk for a different bed because she wanted to eat on her bed (though there was no smell at all). Later that night, she opened the window again, letting the draft blow directly on my head (I woke up and closed it). The next morning, around 7 AM, she asked me why I was disturbing her sleep (seriously, what's wrong with her?). Thankfully, she got angry and moved out herself. The lockers were incredibly loud; pulling them open at night made a huge noise and easily woke up roommates. The room lighting was very dim, making it hard to see when looking for things in the morning, even with the lights on. Someone's food was also stolen from the kitchen fridge, but compared to everything else, that was a minor issue.
Price per night from:PKR 12,398

Guesthouse Aurora

8,8/10
Very Good
Posted on Jan 27, 2026
Anonymous User
Service provided by Ginta was excellent! Initially we were assigned to a room on the 3rd floor, which would have been impossible for us as there was no elevator and we had two big luggages. Ginta was very helpful and accommodating to our request, she called her manager and helped us to change rooms to the first floor. We also had to leave early by 7:30am the next day for a tour, but breakfast officially only starts at 7:30am. Ginta helped to arrange and ensure we had breakfast before we left. Location is great, less than a 5 minute walk to bus stop #8 and Hallgrimskirkja church. It was also easy to walk to Rainbow street, Laugavegur and other attractions.
Price per night from:PKR 30,668

Downtown Reykjavík Baldursbrá Guesthouse

7,7/10
Good
Posted on Mar 19, 2026
Guest User
This apartment is in a perfect, central location in downtown Reykjavík, within easy walking distance of the BSI bus station and all the major city sites. The room was impressively big and clean, and we were even pleasantly surprised by an automatic upgrade to a three-bedroom unit. One of the biggest advantages for those with a rental car is the free parking available right around the building. While there is no kitchen or cooking facility, which might be a drawback for longer stays, it was perfectly fine for our short visit. I highly recommend this spot for anyone looking for a convenient and comfortable base in the city.
Price per night from:PKR 41,752

Hostel B47

8,3/10
Very Good
Posted on Jul 19, 2025
TingZip
Fantastic location. We stayed for three nights, they provide towels, bath shampoo and hangers in room. There are side table and chairs. The common kitchen is well equipped and there are so clean. Some traveller bought food to prepare breakfast and dinner. It's so convinient to walk to city. Recommend for team building and school camp.
Price per night from:PKR 14,821

Blue House B&B

8,2/10
Very Good
Posted on Apr 1, 2026
Guest User
There was a very servicey Brazilian boy, he attended you every hour and searched for answers to all the answers. He makes cakes and gives conversation. That was loved! The house is very pleasant!
Price per night from:PKR 33,418

Alba Guesthouse

8,1/10
Very Good
Posted on Mar 9, 2025
Guest User
The room was spacious and clean, shared bathroom was also clean. Good spread for buffet breakfast and good amenities to use in this guesthouse. There was a strict check in at 3pm but the host let us wait in the waiting area when we arrived at 2:30. It has nearby bus stop but everything is walking distance if you brace the weather.
Price per night from:PKR 29,682

Guesthouse Andrea

8,3/10
Very Good
Posted on Feb 18, 2025
Yinjiali
I highly recommend this place. It was a bit hard to find at first. I carried my suitcase and searched for the front desk for a long time. I found it on the side of a small street, and it was half underground. It was too hard to find, but once you checked in, it was very convenient. There was breakfast. Although there was not much to eat, it was very clean. There were few varieties, but it was enough. I liked cereal and milk the most. The coffee was okay. The fresh vegetables were OK. The best thing was that the brother at the front desk was very nice. He could help me book a taxi and book a bus ticket to the airport because Uber was not available here, which was inconvenient.
Price per night from:PKR 28,902

Day Dream Vesturgata 17 Reykjavik

7,9/10
Good
Posted on Dec 3, 2024
Guest User
The room is spacious but the shower area was flooding The fridge wasn’t working but we managed to contact them and they replaced a new one The light switch is sometime not working there’s few days we slept with light on. Others than that it’s a good location which nearby bus stop 4
Price per night from:PKR 29,477

Refurinn Reykjavik Guesthouse

8,6/10
Very Good
Posted on Feb 12, 2023
Guest User
I didn't make a reservation personally, but I couldn't get an email from the owner, who said self-check-in, and after another guest opened the door, I called the owner and went in. Open the part with the room number attached to each room and press the off-time key. When you check out, you can leave it in it. The entrance is not the front door, but the second floor of the next staircase. The underground luggage storage room is You have to go back to the building, not next to it. It was nice to be close to the city center and the museums
Price per night from:PKR 46,843

Frequently Asked Questions

What are the popular 2 star hotels in Capital Region?

Whether you are traveling to Capital Region for business or tourism, Hotel Cabin (price from PKR 35,429) , Nordic Hostel (price from PKR 29,230) and Hostel B47 (price from PKR 17,653) are all preferred hotels.

How much is the average rate for 2 star hotels in Capital Region?

For 2 star hotels in Capital Region, the average price on weekdays is PKR 63,386, and the average price on weekends (Friday–Saturday) is PKR 70,310.

Which 2 star hotels in Capital Region allow pets?

Esjan (price from PKR 50,209) allows pets. Take your pets with you in the travel!

Which 2 star hotels in Capital Region have bars?

For 2 star hotels in Capital Region with bars, Hotel Cabin (price from PKR 35,429) , Nordic Hostel (price from PKR 29,230) and Lækur Hostel (price from PKR 11,618) are very popular.

Which 2 star hotels in Capital Region provide free Wi-Fi?

Internet connection is an essential condition for travel. Hotel Cabin (price from PKR 35,429) and Nordic Hostel (price from PKR 29,230) are popular hotels with free Wi-Fi.

What deals are available for 2 star hotels in Capital Region?

Trip.com provides various promotions and discounts for 2 star hotels. You can check the promotions page to see available promotions on Trip.com.

Property Information for Tourists

Total Properties29
Number of Reviews 1,817
Highest PricePKR 1,224,526
Lowest PricePKR 8,704
Weekend Avg. PricePKR 70,310
Weekday Avg. PricePKR 63,386