Reykjavik Design and Luxury: Top Hotels, Shops & Interiors

The city skyline in Reykjavik, Iceland, is evolving quickly thanks to a continuing tourism boom, yet you can still stay in the historic heart of town on Laugavegur — Reykjavik’s most famous shopping street — at the new ION City Hotel.

Set down a short side passage near restaurants, shops and pubs, the hotel is perfectly located for exploring the city’s character and cultural offerings. The lobby makes a memorable first impression with a reception desk inspired by an iceberg. Minimalist décor blends modern lighting by Minarc with curtains woven from Icelandic wool. Custom seating — including a hanging chair and a window sofa — creates inviting nooks, while staff wear dresses and jewelry crafted by local Icelandic designers and artisans.

Deluxe Guestroom © Art Gray

Deluxe Guestroom © Art Gray

Corridor lighting is motion-controlled to conserve energy and enhance ambiance, while subtle optical effects make each hallway feel dynamic: room numbers are designed to appear larger near the elevators and smaller toward mirrored ends of the corridors. Guestroom bathrooms evoke Iceland’s geology with walls that mimic lava rock and feature large glass showers for a clean, modern look.

For a spacious option, the Panorama Suite offers a private sauna, separate living room and dining room, and expansive views over the city center and the bay. The dining area is furnished with locally designed wooden chairs around a generous table. Relax in a freestanding soaking tub with organic bath amenities provided for a refined experience. Bedrooms are appointed with Egyptian cotton linens, down duvets and pillows, and robes and slippers designed by Icelandic labels to ensure comfort.

In-room conveniences include a complimentary minibar and wine cooler in the bar area, plus coffee and tea provisions. Guests will find a Nespresso machine and a kettle, along with practical tech features such as direct USB connections, Samsung smart TVs and B&O Bluetooth speakers for easy streaming and connectivity.

Overall, ION City Hotel blends contemporary design, local craftsmanship and thoughtful amenities in a compact, city-center setting — an ideal base for exploring Reykjavik’s shops, cafés, culture and coastal scenery.