ION City Hotel

Reykjavik, Iceland

Rates from

€240.10/ Night

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ION City Hotel — 18-room design-led boutique on Reykjavik's Laugavegur shopping street. Minarc-designed, with in-room saunas, geothermal baths, and Sumac restaurant.

Collection:

Need To Know

  • 18 rooms across five categories — Standard Double, Deluxe Room, City Suite (private indoor sauna), Panoramic Suite (balcony with indoor sauna and bar area), and Junior Suite (balcony with private sauna and sea or mountain views)
  • Operating year-round — no seasonal closure
  • Children welcome — extra beds available for under-14s; baby cots complimentary. Pets not permitted
  • Our Favourite Rooms — the Panoramic Suite for the balcony sauna with sea and mountain views, the dining-and-bar arrangement, and the option of a bartender or chef on request; the Junior Suite for the same balcony sauna at lower-tier configuration; the City Suite for the French balcony and private indoor sauna without the suite-grade footprint
  • Architectural signature — by Minarc (the Iceland-born Santa Monica-based studio of Tryggvi Thorsteinsson and Erla Dögg Ingjaldsdóttir) with Sigurlaug Sverrisdóttir. Aluminium façade panels textured with a motif drawn from traditional Icelandic lopapeysa knitted-sweater patterns, bonded over the original concrete shell. Outdoor mural by Krístin Morthens in the courtyard. Bird's-nest light fixture in the lobby
  • In-room signature — recycled wood panelling, lava-studded walls, mid-century furniture, Bang & Olufsen Bluetooth speakers, soundproof walls, obsidian rock accent walls. Geothermal hot water sourced from local natural springs in every private bath. 100% Mohair geometric blankets in every guest room
  • Dining — Sumac restaurant under Chef Hafsteinn Ólafsson with Icelandic ingredients cooked through Middle Eastern and North African influences, alongside the Mediterranean cocktail programme. On-site bar
  • Amenities — fitness centre, 24-hour front desk, free Wi-Fi, hotel boutique selling handmade Icelandic sweaters knitted by the founder's mother
  • Pedestrian-only street access — taxis drop guests half a block away. No on-site parking; paid options within a block

Check in - Check out

Check in from 14:00; check out before 12:00.

We Love

  • The aluminium-panel façade — the contemporary intervention over the original concrete shell, textured with a motif drawn from the lopapeysa knitted sweaters that Icelanders have made for generations. The hotel boutique sells handmade versions knitted
  • The geothermal hot water in every private bath — sourced from natural springs around Reykjavik. The defining Icelandic in-room amenity, integrated structurally rather than referenced thematically.
  • The Panoramic Suite's balcony sauna with sea and mountain views — a private sauna positioned on a Reykjavik rooftop, with the bar area and the dining table extending the suite footprint. The single most-requested room category.
  • Sumac restaurant under Chef Hafsteinn Ólafsson — one of Iceland's most-recognised chefs, working through Middle Eastern and North African influences with Icelandic ingredients in a Beirut-of-the-past-inspired interior. Both Icelanders and visitors fi
  • The Sprengisandur sand-mural accent walls — paying homage to Iceland's central highland desert plateau between the Hofsjökull and Vatnajökull glaciers. The obsidian rock surfaces continue the natural-Icelandic dialogue without ever leaving the city c

Key Features

Restaurant
Bar
Fitness Center/Gym
Laundry
Disabled Access
Family Friendly
Room Service
Air conditioning
Parking

Book Your Stay at ION City Hotel

ION City Hotel

Location

Address

Laugavegur 28, 101 Reykjavik

Travel Info

Keflavík International Airport (KEF) 48 km / 45 min by Flybus coach or ~50 min by private car. Reykjavík Domestic Airport (RKV) 2 km / ~5 min. Pedestrian street — taxis drop half a block away. No on-site parking; paid options within a block.

Nearby Places

  • Reykjavik International Airport

    1600m

Last Updated: 2026-06-04

ION City Hotel
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Expert Review

Origins

ION City Hotel opened in May 2017 as the urban sister property to the existing ION Adventure Hotel at Nesjavellir, the Hengill geothermal area within the wider Þingvellir National Park region — the same brand pairing the wild-nature and city-centre ends of Iceland's accommodation map. The ION brand was founded by Icelandic hotelier Sigurlaug Sverrisdóttir, and both properties were designed by Minarc — the Iceland-born, Santa Monica-based architectural studio of Tryggvi Thorsteinsson and Erla Dögg Ingjaldsdóttir.

 

The City property's building was originally a backpackers' hostel on Laugavegur, Reykjavik's main shopping and pedestrian street in the 101 RVK district. Minarc and Sverrisdóttir retained the original concrete shell and added a textured aluminium façade panelling system that bonds the metal to the concrete with a motif drawn directly from the traditional Icelandic lopapeysa knitted sweater patterns — the same garment Icelanders have made for generations and that the hotel's own boutique now sells in handmade form, knitted by the founder's mother. The architectural conversation continues through the interior across recycled wood panelling, lava-studded walls, obsidian rock accent surfaces, Sprengisandur sand-murals paying homage to the central highland desert plateau between the Hofsjökull and Vatnajökull glaciers, and 100% Mohair geometric blankets in every room.

 

The eighteen-key scale was deliberate. The brief Sverrisdóttir set for the City property was to read as a small urban hub rather than a downtown hotel of conventional scale — closer in editorial register to the Adventure Hotel's eccentric design programme than to any other Reykjavik property. The Minarc work earned a First Award in the Hospitality Hotels & Resorts category at the World Architecture & Design Awards 2019, and Hotel Bedroom & Suites Design recognition at the SBID International Design Awards 2018. The Sumac restaurant has anchored its own reputation independently — under Chef Hafsteinn Ólafsson, one of Iceland's most-recognised culinary names, with a Middle Eastern and North African cuisine programme through Icelandic ingredients that has drawn Icelanders and visitors in roughly equal measure since opening.

Top Secret

The Panoramic Suite is the room category where the architectural and amenity programmes converge most fully — a balcony sauna positioned over Reykjavik's rooftops with sea and mountain views, a bar area within the suite footprint, a dining table, and the option of a bartender or chef on request. Worth requesting at booking; only one or two are available depending on the night. Worth knowing: Sumac sits in the same building and accepts non-resident reservations — Icelanders fill it in the evenings, and the cod-cheek and roasted-cauliflower programme reads distinctly from anywhere else in Reykjavik. The hotel's gift boutique sells the handmade Icelandic sweaters that match the façade panelling motif, knitted by the founder's mother — the closest single souvenir to the property's editorial identity.

The Review

ION City Hotel sits on Laugavegur, the principal shopping and pedestrian street through Reykjavik's 101 RVK district — the historic city centre, with Hallgrímskirkja four hundred metres away, the Sólfar (Sun Voyager) monument four hundred metres in the other direction, the Old Harbour a short walk north, and Harpa Concert Hall, the National Museum, and Tjörnin pond all reached on foot. The street is pedestrian-only, which means taxis drop guests half a block away — a small operational note that reads, after a few hours in residence, as the right configuration for a building of this scale and this position.

 

The property is the urban sister to ION Adventure Hotel at Nesjavellir, in the Hengill geothermal area an hour's drive east in the wider Þingvellir National Park region — a brand pairing that runs the two ends of the Iceland accommodation map under the same editorial language. Sigurlaug Sverrisdóttir founded the brand; the Iceland-born Santa Monica-based architectural studio Minarc designed both properties, with the City work earning the World Architecture & Design Awards 2019 First Award in the Hospitality category and SBID International Design Awards 2018 recognition for Hotel Bedroom & Suites Design.

 

The building was originally a Reykjavik backpackers' hostel; the architectural intervention retained the concrete shell and added the textured aluminium façade panelling that distinguishes the property visually from anything else on Laugavegur. The motif is drawn from the lopapeysa — the patterned hand-knitted Icelandic sweater — and the conversation continues throughout the interior across recycled wood panelling, lava-studded walls, obsidian rock accent surfaces, and 100% Mohair geometric blankets in every guest room. The lobby's bird's-nest light fixture, the cocoon chair swing at reception, the Icelandic birch hanging by the entrance, and the staff jewellery from local Reykjavik makers all extend the same deliberate domestic-local register against the contemporary architectural shell.

 

The eighteen rooms run from the Standard Double through the Deluxe Room to three suite categories that anchor the property's editorial weight: the City Suite with French balcony and private indoor sauna; the Junior Suite with balcony sauna and sea-or-mountain views; and the Panoramic Suite with the same balcony sauna, plus a bar area within the suite footprint, a dining table, and the option of a bartender or chef on request. Every private bath carries geothermal hot water sourced from local natural springs — the Icelandic in-room amenity that no other Reykjavik design hotel matches structurally. Bang & Olufsen Bluetooth speakers and soundproof walls run across all categories.

 

Sumac, the on-property restaurant, anchors a reputation independent of the hotel. Chef Hafsteinn Ólafsson — one of Iceland's most-recognised culinary names — runs a Middle Eastern and North African programme through Icelandic ingredients, with cod cheeks, roasted cauliflower, and the wider seasonal Icelandic vegetable circuit cooked through that lens. The interior is inspired by the Beirut of the past; the cocktail programme runs Mediterranean. Icelanders and visitors fill the room in equal numbers most evenings of the week.

 

The wider position carries Keflavík International Airport (KEF) forty-eight kilometres away, reached in forty-five minutes by Flybus coach or just under an hour by private car; Reykjavík Domestic Airport (RKV) sits two kilometres from the property for inland flights to Akureyri, Egilsstaðir, and the Westman Islands. The Adventure Hotel's Hengill / Þingvellir position sits an hour's drive east for guests pairing the two ION properties across an Iceland itinerary — the most coherent single-brand pairing currently available in the country's accommodation map.

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