Canopy by Hilton Reykjavik City Centre
by the TopOfHotel team
Canopy is a new-build lifestyle hotel that retells Iceland through volcanic stone and pale oak, with a 7th-floor rooftop bar and a 2-minute walk to Laugavegur — strongest on design and the chill 101 vibe.
Canopy is a new-build lifestyle hotel that retells Iceland through volcanic stone and pale oak, with a 7th-floor rooftop bar and a 2-minute walk to Laugavegur — strongest on design and the chill 101 vibe.
In-Depth Review
Rooms and decor
Picture a fresh lifestyle hotel tucked onto a quiet side street in 101 Downtown — the building wrapped in dark, textured panels that read as volcanic basalt, the visual shorthand for Iceland. Step through the door and the lobby keeps the palette going: blue-grey walls warmed up by pale oak, rugs patterned like cooled lava and ice, and works by local artists scattered across the walls. It's a modern retelling of Iceland that doesn't feel forced. Upstairs, all 112 rooms stay on theme — deep Hilton beds with firm pillows, a desk by the window, and a glass-walled bathroom that's clearly designed past the usual 4-star template. Higher north-facing rooms open up to Mount Esja and Faxaflói Bay in full view; in winter you'll wake up to snow-dusted peaks framed by your window. Interior-side rooms are noticeably quieter and worth requesting if you're a light sleeper. The consistent thread in guest reviews is "genuinely new and clean" — the property only opened in late 2021, so nothing has the wear of older central Reykjavik stock yet.
Food and amenities
If this hotel has a heart, it's Sky, the 7th-floor rooftop bar that's already become a 101 landmark. Come up in the evening and the view stretches across Reykjavik's bright-roofed houses out to Faxaflói Bay, with Mount Esja rising on the other side. In winter, when the sky goes dark early, you've got a decent shot at watching the aurora from a bar stool. The vibe is lifestyle-casual rather than high-formal — creative cocktails using Icelandic ingredients like birch syrup and Brennivín (the national spirit), and a crowd that mixes hotel guests with locals. Downstairs, Geiri Smart serves the breakfast buffet that's included on direct bookings: fresh bakes daily, smoked local salmon, Icelandic skyr, house-made pastries, and made-to-order eggs. By lunch and dinner Geiri Smart shifts into a small-plates restaurant leaning on North Atlantic ingredients, priced fairly against bigger-name 101 restaurants. Round it out with a 24-hour gym, free Wi-Fi throughout, and paid underground parking for Ring Road road-trippers. What's not here: a spa and a pool — a deliberate trade-off that fits the lifestyle-hotel concept of leaning on neighbourhood over in-house amenities.
Location and getting there
The address is the strongest single argument for Canopy. It sits on Smiðjustígur in 101 Downtown, which functions as both old and new heart of Reykjavik at once. Step outside and you're 2 minutes from Laugavegur — the main shopping and restaurant spine of the city, lined with Icelandic design shops, lopapeysa wool-sweater stores, cool cafés, and late-opening pubs. About 400 metres towards the water you hit Sun Voyager, the steel Viking-ship sculpture every visitor photographs, then another short walk to Harpa, the honeycomb-glass concert hall on the harbour. Hallgrímskirkja, the church on the hill, is 10-12 minutes uphill. For the airport, Flybus runs from BSÍ Bus Terminal — a few minutes' walk from the hotel — and takes around 45 minutes to Keflavík (KEF), much cheaper than a taxi. If you're renting a car for Golden Circle or the South Coast, the underground garage handles parking. The summary: if your plan is to use Reykjavik as a downtown base and pivot out for day trips, this address is hard to beat.
Things to know before booking
Honest call so you can decide. First: there's no spa and no pool inside the hotel. For an Iceland trip where hot-water soaking is part of the point, that's a real omission. The workaround is heading to Sky Lagoon (~15 minutes by car) or Blue Lagoon (~50 minutes, conveniently near the airport) — both genuine experiences worth the trip, and the hotel can arrange transfers. Second: rates move fast in high season, particularly June-August (midnight sun) and the September-March aurora peak. Some nights jump from around $235 up past $415. If you can plan ahead, book several months out. Third: rooms facing Smiðjustígur and the Laugavegur side can pick up bar and restaurant noise on Friday and Saturday nights — 101 is a real entertainment district. Ask for a higher floor or interior-facing room at check-in if you're sensitive to noise. Finally, the underground parking carries a nightly fee and spots are limited; if you're picking up a rental, let the hotel know in advance so they can reserve you a slot.
Our take
Pulling together the consensus across guest reviews, Canopy by Hilton Reykjavik City Centre is a new-build lifestyle hotel that sells design — Iceland reframed in basalt and oak — paired with a heart-of-101 address, a rooftop bar with city and mountain views, and an included breakfast that punches above the 4-star average. If your mental picture of the trip is shopping Laugavegur, coming back for a hot shower, riding up to Sky for a sunset cocktail, hitting a smoked-salmon breakfast, and rolling out for a Golden Circle day trip, this is about as well-placed a base as you'll find. The catch: if a spa and pool inside the hotel are part of the experience you're paying for, Canopy doesn't deliver that — you'll need to plan natural-spa side trips. Overall we score it 8.8/10 — best fit for couples, mid-luxury travelers, remote workers, and anyone using Reykjavik as the launching pad for the rest of Iceland.
Score Breakdown
Assessed by our editorial team from data and real guest reviews
The Honest Verdict — pros & what to know
- Genuinely central 101 Downtown address on Smiðjustígur — 2 minutes' walk to Laugavegur shopping street and around 400 metres to the Sun Voyager sculpture on the waterfront.
- The building and interiors actually do something with Iceland — blue-grey volcanic basalt as the headline material, paired with pale oak and rugs that echo lava fields and glaciers.
- Sky, the 7th-floor rooftop bar, looks out across city rooftops to Mount Esja and Faxaflói Bay — a low-key lifestyle vibe that pulls in locals as well as guests, not a stiff hotel bar.
- Geiri Smart breakfast buffet is included on direct bookings — fresh bakes, smoked local salmon, Icelandic skyr yogurt and cheeses, and made-to-order eggs that reviews consistently call out as a strong point.
- New-build property (opened late 2021) means everything still feels fresh — glass-walled bathrooms, deep Hilton beds, free Wi-Fi, and chain-level reliability on check-in and service.
- No spa, no pool in the building. If hot-water soaking is the point of your Iceland trip, you'll need to head to Sky Lagoon (~15 minutes by car) or Blue Lagoon (~50 minutes near the airport) — both better than any hotel pool, but it's an extra trip.
- Rates move quickly in high season (June-August midnight-sun, plus September-March aurora peak). Some nights jump from around $235 up to $415 or more — book several months ahead for the best rate.
- Rooms facing Smiðjustígur and the Laugavegur side can pick up weekend bar and restaurant noise from the 101 scene. Ask for a higher floor or interior-facing room if you're a light sleeper.
Who It’s For
Match Score by travel style
Amenities
Location & Nearby Spots
Things to do near Reykjavík
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Insider Tips
- Request a 5th- or 6th-floor sea-facing room — you'll get Mount Esja and Faxaflói Bay framed in the window at winter sunset, and it's noticeably quieter than the Smiðjustígur bar side.
- Head up to Sky rooftop between 9-11pm in winter — on clear nights with a good aurora forecast you can spot the northern lights right over central Reykjavik without leaving the building (check the Icelandic Met Office aurora forecast first).
- Walk to the BSÍ Bus Terminal in a few minutes and grab Flybus back to Keflavík (KEF) — around 45 minutes, and several times cheaper than a taxi.