Eyja Guldsmeden

This practical city hotel offers a decent base for exploring Reykjavik.

It’s a little way east of downtown, just off the main thoroughfare of Laugavegur, and while the building isn’t much to look at – a boxy, concrete block that’s typical of so much of Reykjavik – inside you’ll find plenty of designer style, including in the chic open-plan bar and attached restaurant.

Rooms are surprisingly cosy, with timber furniture, frilly fabrics and sheepskins giving them the feel of a rustic B&B out in the country. There are some handy amenities here, too, including free parking and on-site bike hire.