You’re standing in Ingólfstorg Square. It’s windy—because it’s always windy in Iceland—and the smell of roasted lamb and sea salt is hitting you from three different directions. Right there, practically anchored into the historical heart of Reykjavik, is CenterHotel Plaza. If you’ve spent more than five minutes researching where to stay in the world’s northernmost capital, you’ve seen this name.
It’s the kind of place that doesn't need to try too hard because it already owns the best real estate in town.
But here’s the thing. Choosing a hotel in Iceland is tricky right now. The country is expensive, the weather is unpredictable, and "central" can mean a lot of things. At CenterHotel Plaza, central means you are literally on top of the city’s oldest foundations. Honestly, if you want to be any closer to the action, you’d have to sleep on a bench in the square.
What People Get Wrong About the "Plaza" Vibe
People hear the word "Plaza" and they think of marble gold-leafed lobbies in New York or London. That’s not what this is. This is Icelandic functionalism.
The hotel grew in stages. Because it was built over time, the layout can feel like a bit of a maze if you’re in the older wings. Some rooms are cozy—read: small—while others have been renovated into sleek, Nordic spaces with oak floors and floor-to-ceiling windows that look out over the wharf or the square. You have to know what you're booking. If you just grab the cheapest "Standard" room, don't be shocked if it feels a bit tight. It’s a city hotel. Space is a premium.
What’s wild is the history beneath the floorboards. During the expansion of the hotel years ago, workers actually hit archaeological remains from the Viking Age. You aren't just staying in a 20th-century building; you’re staying on a site where Reykjavik basically started.
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The Logistics: Surviving the Reykjavik Wind
Let's talk about the morning. Most people wake up at CenterHotel Plaza with one goal: coffee and a tour bus.
The breakfast buffet is famous, mostly because it starts early enough for the 7:00 AM glacier lagoon pickups. You’ll see a sea of 66 North jackets and people aggressively buttering Icelandic rye bread. It’s loud. It’s bustling. It feels like a base camp. The hotel provides a spread that includes pickled herring—try it, even if you’re scared—and that specific type of Icelandic butter that ruins all other butter for you for life.
One major perk that nobody mentions until they’re actually there: the proximity to Bus Stop 1.
In Reykjavik, tour buses aren't allowed to clog the narrow side streets. They have designated pickup points. CenterHotel Plaza is a thirty-second walk from the City Hall stop. When it's sleeting sideways in January, those thirty seconds matter. You’ll see tourists from other hotels sprinting three blocks, soaked to the bone, while you’re still sipping a latte in the lobby waiting for your Northern Lights guide to pull up.
The Room Reality Check
Rooms here are divided into Standard, Superior, and Deluxe.
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If you're a light sleeper, ask for a room facing the back. Ingólfstorg Square is the soul of the city, which means in the summer, when the sun never goes down, people are out. Everywhere. It’s vibrant, but it’s not silent. The double glazing on the windows is heavy-duty, but Icelanders love a good night out, especially on weekends.
A few things you’ll actually find in the room:
- High-speed Wi-Fi that actually works (rare for some older European buildings).
- A mini-bar, though honestly, go to the Bonus grocery store nearby unless you want to spend a fortune.
- That classic Scandinavian duvet setup where it’s two separate blankets on a double bed. No more fighting for the covers.
The bathrooms are clean, minimalist, and have that distinct Icelandic water smell. If you’ve never been to Iceland, the hot water smells like sulfur—eggs, basically. That’s because it’s piped directly from geothermal sources. It’s great for your skin, but it takes a minute to get used to. The cold water, however, is the best you will ever drink in your life. Don't buy bottled water. It’s a scam. Just fill up your flask in the sink.
The "Plaza Bar" and the Social Scene
The lobby bar is a strange, wonderful transition zone. By day, it’s a quiet spot for digital nomads to hammer away at laptops. By 5:00 PM, it becomes a staging ground.
Happy Hour is a sacred ritual in Reykjavik because alcohol taxes are astronomical. The Plaza Bar usually has a solid window where the Gull or Víking beer is actually affordable. It’s a mix of locals meeting up before dinner and travelers comparing photos of the Golden Circle.
You’re also within a two-minute walk of some of the best food in the North Atlantic.
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- Bæjarins Beztu Pylsur: The world-famous hot dog stand is right around the corner. Get it with "the works."
- Messinn: Down the street, serving fish pans that will change your perspective on Atlantic cod.
- Reykjavik Roasters: For when the hotel coffee isn't enough and you need that artisanal caffeine hit.
Is it Worth the Price?
Iceland is never "cheap." You’re paying for the location.
If you stay further out, like near the Perlan or the outskirts, you might save $40 a night, but you’ll spend that on taxis or bus fares. Plus, you lose the ability to just pop back to your room to change socks or drop off shopping bags. The CenterHotel Plaza is for the traveler who wants to be in the thick of it. It’s for the person who wants to walk to the Harpa Concert Hall in ten minutes or hit the Settlement Exhibition without needing a map.
The staff are generally young, multilingual, and very used to "Where are the Northern Lights?" being asked fifty times an hour. They use a localized weather tracking system that’s much more accurate than the app on your phone. Trust them when they say the roads are closing.
Navigating the Seasons
In the winter, the Plaza feels like a warm bunker. The glow of the square’s Christmas lights reflects off the lobby glass, and it’s genuinely cozy.
In the summer, it’s different. The square hosts concerts, skate competitions, and markets. You are in the front row for Iceland’s "Modern Reykjavik" vibe. The hotel handles the seasonal shift well, mostly through its concierge service which flips from booking snowmobile tours to booking puffin-watching boat trips at the Old Harbour, which is just a five-minute stroll away.
Practical Steps for Your Stay
Don't just wing it. If you're heading to CenterHotel Plaza, keep these specific moves in mind to maximize the experience:
- Request a "View" Room Early: If you want to see the Harpa or the ocean, email the hotel a week before. They can’t always guarantee it, but the North-facing rooms on higher floors have killer views.
- Master the Flybus: When you land at Keflavik (KEF), take the Flybus. It’s about a 45-minute drive. You don’t need a private car. The bus will drop you at the BSI terminal, and a smaller shuttle will bring you to Bus Stop 1, right next to the hotel.
- The Grocery Secret: There is a "Kjörbúðin" and a "Bónus" nearby. Iceland’s food prices are high. Grab some Icelandic yogurt (Skyr) and snacks there to keep in your hotel fridge. It saves you enough for an extra cocktail at dinner.
- Check the "Appy Hour" App: Download it. It lists every happy hour in Reykjavik in real-time. Since you're staying at the Plaza, you are in the densest cluster of bars in the country. Use it to find the cheapest Guinness or craft IPA within 200 meters of your bed.
- Skip the Hotel Laundry: Unless you're on a corporate expense account, the laundry service is pricey. There are local options, or better yet, pack enough wool layers to last. Wool doesn't hold scent like synthetic fabrics do—essential for those long Icelandic hikes.
The CenterHotel Plaza isn't trying to be a five-star boutique experience with personalized butler service. It’s a solid, reliable, perfectly positioned hub. It’s the place you stay when you care more about what’s outside your window than having a gold-plated sink. You’re there to see Iceland, and this hotel just happens to be the best front door to the city you could ask for.