Hotel Lotus

Clean lines and a restrained colour palette run through all 17 rooms at Hotel Lotus, a family-run hotel renovated to a stylish, understated finish. Set in the Álftamýri district east of central Reykjavík, the hotel works as a base for both self-drive tours around Iceland and days spent on foot in the city, with the Lágmúli bus stop and its number 4 and 11 routes a short walk away. Rooms range from compact 10 m² singles to a 40 m² Deluxe Suite with a private balcony; Junior Suites and Twin and Double rooms fall between, several with their own balconies and all with Sleepy mattresses, Chromecast and en suite bathrooms fed by Iceland's geothermal hot water. Breakfast is included. It runs in a basement lounge each morning, with Icelandic skyr, smoked salmon and pastries from a local bakery, and guests heading out early can arrange a packed nesti the night before. The lounge itself serves free coffee and tea through the day and doubles as a meeting point for guests comparing notes on tours booked at the hotel's own desk, from glacier visits to the Golden Circle. Parking is free on-site, a detail that matters more in Reykjavík than it sounds.