You’re standing in Ingólfstorg Square. It’s windy. It’s probably raining, because it’s Iceland, and the weather here has a sense of humor. You look up and see the glass facade of CenterHotel Plaza Reykjavik Iceland. It isn’t the tallest building in the city, nor is it the flashiest, but it’s sitting on some of the most historic ground in the country. Seriously. Some of the oldest remains of a Viking longhouse were found right next door at the settlement exhibition.
Staying here is basically like sticking a compass into the heart of the capital and saying, "Yeah, this is where I live now."
Most people book this place because of the location. Honestly, that’s the main draw. You step out the front door and you're already there. No twenty-minute walks in the freezing slush to find a decent cup of coffee or a bar that doesn't charge forty dollars for a burger. You are surrounded by the oldest part of the city. But there's a lot of noise online about whether it’s too corporate or if the breakfast is actually any good. Let’s get into the weeds of what it’s actually like to sleep here.
The Reality of Staying at CenterHotel Plaza Reykjavik Iceland
If you’re expecting a boutique, artisanal experience where the wallpaper is made of hand-pressed moss, you're in the wrong place. This is a functional, sharp, well-oiled machine. It’s part of the Center Hotels group, which is a local powerhouse. They know how to run a hotel.
The lobby is huge. It feels like a crossroads. You’ve got hikers in Gore-Tex boots checking their maps next to business travelers in slim-fit suits. It's a vibe. The Plaza Bar, which is tucked right into the lobby area, has these floor-to-ceiling windows that look out onto the square. It’s one of the best places in the city to just sit with a Gull beer and watch people struggle against the wind. It’s entertaining.
One thing people get wrong? They think all the rooms are the same. They aren’t.
Because the hotel has expanded over the years—it’s actually made of several connected buildings—the room layouts are all over the place. You might get a sleek, modern room with hardwood floors, or you might end up in a slightly older section that feels a bit more "early 2000s." If you’re a light sleeper, you need to ask for a room facing the courtyard. Ingólfstorg Square is the epicenter of Reykjavik nightlife. On a Friday night, that square is loud. Like, "I can hear that guy's entire conversation about fermented shark" loud.
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Why the Location Is a Double-Edged Sword
Let's talk about the square. Ingólfstorg is where the city gathers. In the winter, there’s an ice rink. In the summer, it’s full of skaters and people eating ice cream in 10-degree weather because Icelanders are built different.
Staying at CenterHotel Plaza Reykjavik Iceland means you are thirty seconds away from the famous Bæjarins Beztu Pylsur hot dog stand. You are two minutes from the Harpa Concert Hall. You’re right around the corner from the Reykjavik Art Museum.
But.
If you have a rental car, you’re going to have a bad time. The hotel is in a pedestrian-heavy zone. Street parking is a nightmare and expensive. There is a multi-story parking garage nearby (Vesturgata), but don't expect to park right at the front door. Most people don't realize that the "center" of Reykjavik is actually quite small, but the Plaza is the center of that center.
The Breakfast Situation and the "Plaza Vibe"
The breakfast is a thing. It’s served in a basement-level dining room that feels a bit like a bunker, but a very nice, Icelandic bunker. It’s a massive spread. We’re talking pickled herring (try it, don't be scared), cold cuts, various breads, and the essential Icelandic cod liver oil. Yes, there’s a bottle of Lysi sitting there. Take a shot. It’s the law of the land if you want to survive the winter darkness.
The coffee is decent. It’s not "third-wave-espresso-bar" decent, but it’ll wake you up.
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What's interesting about the "vibe" here is the efficiency. Icelandic service can sometimes feel a bit... detached? It’s not that they’re being rude; it’s just that they aren't into the fake "customer is king" fluff you get in the States. At the Plaza, the staff are helpful but they get straight to the point. You want a northern lights tour? They’ll book it. You need a taxi to the Blue Lagoon? Done.
Small Details That Matter
- The Northern Lights Wake-up Call: This is a real thing. You can tell the front desk to call your room if the lights start dancing. Since you're in the city, the light pollution makes them harder to see, but if it's a strong storm (K-index 5 or 6), you'll see them over the rooftops.
- The Showers: Icelandic water smells like sulfur. Get used to it. It’s the smell of clean, geothermal energy. The water at the Plaza is piping hot and high pressure, which is exactly what you need after trekking through a glacier.
- The Layout: If you get lost trying to find your room the first time, don't feel dumb. The corridors are a bit of a maze because of how the buildings were joined together.
Is It Worth the Price?
Iceland is expensive. There is no way around it. You will pay more for a mid-range hotel in Reykjavik than you would for a luxury suite in many other European capitals.
CenterHotel Plaza Reykjavik Iceland generally sits in that "mid-to-high" price bracket. You’re paying for the convenience. You’re paying so you don't have to call an Uber (which doesn't exist here anyway—it's all taxis) every time you want to go to a museum.
If you are a solo traveler, their single rooms are actually quite good. Often, hotels just shove a twin bed into a broom closet, but here they feel like actual living spaces. For couples, the "Superior" rooms are worth the extra few bucks just for the extra floor space. If you're trying to fit two suitcases and two humans into a standard room, it gets cozy real fast.
A Quick Reality Check on Reviews
If you look at TripAdvisor, you’ll see people complaining about the noise or the "dated" furniture. Here is the nuance: Iceland had a massive tourism boom in the 2010s. A lot of hotels were built or renovated quickly. The Plaza has been around for a while, so it has character, but that also means it’s not a sterile, brand-new Marriott. It feels like Reykjavik.
The "noise" is usually just people enjoying the city. If you want total silence, you should probably stay out by the airport or in a guesthouse in the suburbs. But then you’d miss the 2 AM sunrise over the harbor, and that’s half the point of being here.
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Navigation and Logistics for the Modern Traveler
When you arrive at Keflavik Airport (KEF), you’ll likely take the Flybus or Airport Direct. They don't drop you off at the door of the hotel because of the narrow streets. You’ll be dropped at "Bus Stop 1" (Ráðhúsið - City Hall). From there, it’s a very short, flat walk to the Plaza.
Don't try to drag your luggage through the gravel or the snow if you can help it. Stick to the paved sidewalks.
Expert Tips for Your Stay
- The Happy Hour: The Plaza Bar has a solid happy hour. In Iceland, happy hour is a sacred ritual because it's the only time beer is "normal" priced. Usually, it's from 4 PM to 6 PM.
- The Tap Water: Do not buy bottled water. It is a scam. The tap water in Reykjavik is some of the cleanest, best-tasting water on the planet. Just fill your bottle in the bathroom sink.
- The Window Latch: Icelandic windows often have a specific "tilt and turn" mechanism. If you can't figure out how to close it, don't force it—ask the staff. You don't want a gale-force wind blowing into your room at 3 AM.
What to Do Within Five Minutes of the Front Door
You don't need a car for your first two days if you're staying here.
Walk to the Old Harbour. It takes about six minutes. This is where the whale watching boats leave from. Even if you aren't going on a boat, the area has been revamped with incredible tiny restaurants. Check out Sægreifinn (The Sea Baron) for their lobster soup. It’s legendary for a reason.
Then there’s Grandi. It’s the old fishing district turned hipster haven. You’ll find the Omnom Chocolate factory there and some of the best gelato in the city at Valdís.
If you head the other direction, you’re on Laugavegur, the main shopping street. It’s a bit touristy, sure, but the side streets have some incredible street art and independent record stores like 12 Tónar.
Moving Forward With Your Trip
If you’ve decided that CenterHotel Plaza Reykjavik Iceland is your base camp, your next steps should be about timing.
- Book Early: This hotel fills up months in advance, especially for the summer solstice and the New Year’s Eve fireworks (which are insane in Reykjavik).
- Request Your View: Send a short email after booking. Ask for a high-floor room if you want a glimpse of the ocean or the mountains (Esja). Ask for a courtyard room if you value sleep over people-watching.
- Download the "Appy Hour" App: It tracks all the drink specials in the bars surrounding the hotel. It will save you a fortune.
- Check the Bus Stop: Familiarize yourself with the walk to Bus Stop 1. Most day tours (Golden Circle, South Coast) will pick you up there, not at the hotel lobby.
Staying here puts you in the middle of the Icelandic story. From the old Viking roots beneath the floorboards to the modern buzz of the square outside, it’s a place that feels connected to the city's pulse. You aren't just visiting Reykjavik; you're living in the thick of it.