You're scrolling through booking sites, looking for that perfect spot in Iceland’s capital, and the name Centra Plaza Hotel Reykjavik pops up. Or maybe you see it listed as the Plaza Hotel by Center Hotels. Honestly, the naming conventions for hotels in Iceland can be a total mess. People get confused. Is it the Plaza? Is it Center Hotels Plaza? It’s the same place, sitting right on Ingólfstorg Square, and if you don't know the layout of the city, you might think "plaza" implies some giant, sprawling resort. It’s not. It’s a sleek, narrow, and surprisingly deep building that holds down the fort in the oldest part of the city.
Location is everything. If you stay here, you are literally steps from the Reykjavik 871±2 Settlement Exhibition. You're breathing the same air as the Vikings who first dug into the turf here.
Most people pick this spot because they want to be "central." But "central" in Reykjavik is a specific vibe. You aren't just near the shops; you are in the crosshairs of the nightlife, the history, and the relentless Icelandic wind that whips across the harbor just a few blocks away. It’s convenient. It's also loud on a Saturday night. That’s the trade-off.
Why the Centra Plaza Hotel Reykjavik matters for your itinerary
Iceland isn't cheap. We all know this. When you're looking at the Centra Plaza Hotel Reykjavik, you're looking at a mid-range heavy hitter that tries to balance that "Scandi-cool" aesthetic with the practical needs of a tourist who is probably going to be soaking wet and covered in volcanic dust by 6:00 PM.
The lobby is usually buzzing. It’s a transit hub. Because it's right on the square, it's a primary pickup point (Bus Stop 1) for almost every major tour operator in the country. If you're heading to the South Coast or the Golden Circle, you don't have to hike across town with your backpack. You just walk out the front door and look for the bright yellow bus or the Super Jeep. That convenience is worth about $50 a day in saved stress alone.
The reality of the rooms
Don't expect massive American-style suites. This is Europe. Specifically, it's downtown Reykjavik where space is at a premium. The rooms are clean, functional, and lean heavily into that minimalist wood-and-grey palette. Some rooms look out over the square—great for people-watching, potentially noisy during the summer solstice when nobody sleeps. Others look into a courtyard or side street. They’re quieter. If you’re a light sleeper, ask for a room on the backside of the building.
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The bathrooms are usually tight. Functional? Yes. Luxurious enough to spend two hours in a bubble bath? Probably not. But you’re in Iceland. Go to the Sky Lagoon for that.
Navigating the local food scene from Ingólfstorg
One thing people get wrong about staying at the Centra Plaza Hotel Reykjavik is thinking they have to eat at the hotel every morning. Look, the breakfast buffet is solid. It has the Icelandic essentials: pickled herring, good bread, and that weirdly delicious cucumber-and-tomato spread. But you are surrounded by some of the best bakeries in the North Atlantic.
Brauð & Co is a short walk up the hill. Sandholt is even closer. If you want to feel like a local, grab a cinnamon roll the size of your head and eat it while walking toward the Harpa Concert Hall.
For dinner, you have the Reykjavik Fish and Chips just down the street. It’s not the greasy stuff you get in London; it’s light, tempura-style batter with "skyr-nes" (mayonnaise made with skyr). It sounds weird. It's life-changing.
The nightlife factor
Icelandic weekends are legendary. The locals don't go out until midnight. Since the hotel is on the square, you are at ground zero. If there’s a festival, a protest, or a massive football match, it happens right outside your window. For most travelers, this is a pro. It feels alive. You’re not isolated in some sterile airport hotel. You’re in the heartbeat of the 101 zip code.
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Logistics and the "Secret" Airport Transfer
Getting from Keflavík International (KEF) to the Centra Plaza Hotel Reykjavik is a 45-minute haul through a lava field. Don't take a taxi unless you have $150 you're looking to burn. Take the Flybus.
The trick is ensuring you book the "Flybus Plus" which drops you at the hotel-specific stop. Since the hotel is in a pedestrian-friendly zone, the large buses can't always pull up to the front door. You’ll get dropped at Bus Stop 1 (Ráðhúsið - City Hall), which is about a three-minute walk. It’s flat ground. Your rolling luggage will survive.
What about parking?
If you rented a car to drive the Ring Road, parking at a city center hotel is your biggest headache. The Plaza doesn't have a private parking garage. You’re looking at street parking (Zone P1 or P2) or the nearby multi-story garages like Traðarkot.
- P1 is the most expensive.
- P3 is cheaper.
- Sundays are usually free, but check the signs because the city loves a good parking ticket.
Honestly? If you’re staying at the Plaza for three days before starting a road trip, don't pick up your rental car until the day you leave the city. Walk. The city is tiny. Save the rental fees.
Acknowledge the quirks
Let’s be real: the elevators can be slow. When a tour group of 40 people arrives at the same time, you're better off taking the stairs. And the Wi-Fi? It’s generally great, but like any old building with thick walls, it can have its "moods" in certain corners of the top floor.
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Also, the "Plaza" part of the name can be misleading if you're expecting a mall. It’s a public square. In the winter, they often set up a small ice skating rink there. In the summer, it's full of skateboarders and people eating ice cream in 10-degree weather because Icelanders are hardy like that.
Actionable steps for your stay
If you've decided the Centra Plaza Hotel Reykjavik is your base of operations, do these three things to make the experience better:
- Email the hotel 48 hours early. Ask for a room on a higher floor. The street noise drops significantly once you get above the third floor.
- Download the Parka app. If you do have a car, this is the only way to pay for parking without freezing your fingers off at a kiosk.
- Check the northern lights forecast. Even in the city, you can sometimes see them from the harbor, which is a five-minute walk from the hotel lobby. Walk past the hotel towards the water, get away from the streetlights near the Reykjavik Maritime Museum, and look up.
This hotel isn't a five-star luxury resort with gold-plated faucets. It's a high-functioning, stylish, perfectly located hub. It puts you in the center of the action so you can spend less time commuting and more time wondering why you waited so long to visit Iceland.
Pro Tip: If you need a quick snack, there is a 10-11 convenience store nearby. Be warned: it is notoriously expensive. Walk an extra five minutes to a Bónus (the one with the pink pig logo) during the day to stock up on snacks for your glacier hikes. You'll save enough for an extra round of drinks at the hotel bar.