Reykjavik is cold. I mean, really cold when that North Atlantic wind starts whipping through the colorful streets of the downtown core. But inside the 101 Hotel a member of Design Hotels, the vibe is strictly monochromatic, sleek, and weirdly warm for a place that looks like a high-end art gallery. It was the first real "boutique" hotel in Iceland. Back when it opened in 2003, people weren't quite sure what to make of it. Was it a bar? A gallery? A place to sleep? Honestly, it’s a bit of all three, and even decades later, it manages to feel more relevant than the flood of cookie-cutter luxury chains that have recently landed in the Icelandic capital.
The hotel sits in a former office building that once housed the Icelandic Social Democratic Party. You can still feel that sense of structural history, but it’s been polished to a mirror finish by owner and designer Ingibjörg S. Pálmadóttir. She didn't just decorate the place; she curated it.
The Aesthetic Gamble of 101 Hotel a Member of Design Hotels
Most hotels try to be everything to everyone. They want to be "cozy" and "traditional" and "modern" all at once. 101 Hotel doesn't care about that. It sticks to a palette of black, white, and grey. It sounds depressing on paper, right? In reality, it’s the perfect backdrop for the insane Icelandic light. When the sun hangs low on the horizon for six hours a day in winter, the shadows in the lobby create these sharp, dramatic lines that make you feel like you're living inside a film noir.
The lobby is essentially a massive lounge with a fireplace that looks like a piece of industrial machinery. It’s the heart of the building. You’ll see locals here. That’s the litmus test for any good hotel in a small city like Reykjavik. If the locals won’t pay 2,500 ISK for a cocktail at your bar, you’ve failed. But the 101 bar is a staple. It has this glass ceiling that lets you watch the snow fall while you’re sipping a Brennivín-based drink. It’s cozy, but in a "I own a tech startup" kind of way, not a "knitting a wool sweater" way.
The rooms follow the same logic. You get heated oak floors—which, let's be real, is the only thing that matters when it's -5°C outside—and Italian linens. The bathrooms are usually separated by frosted glass, which might be a bit much if you’re traveling with a business partner, but for couples, it’s part of the "design hotel" charm. You aren't just staying in a room; you’re staying in a concept.
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Why Location Actually Matters Here
You’ve probably heard people say Reykjavik is walkable. It is. But there’s walkable, and then there’s "I can stumble to the best bakery in the country in three minutes" walkable. 101 Hotel a member of Design Hotels is located at the corner of Hverfisgata and Ingólfsstræti. Hverfisgata used to be the gritty sibling to the main shopping street, Laugavegur. Not anymore. Now, it's where the interesting stuff is.
You’re literally across the street from the National Theatre of Iceland. You're a five-minute walk from Harpa Concert Hall. If you want to see the Sun Voyager sculpture at sunrise (which you should), it’s right down the hill. This matters because Reykjavik weather is unpredictable. If a storm rolls in, you want to be able to duck back into your hotel without needing a taxi or a death wish.
Staying here puts you in the "101" postal code. That’s where the hotel gets its name. In Iceland, "101" is shorthand for the elite, artistic, and trendy crowd. It’s the Soho of Reykjavik. If you stay outside this zip code, you’re just a tourist. If you stay here, you’re part of the scene, even if only for forty-eight hours.
The Art is Not Just Decoration
A lot of hotels buy "art" by the square yard from corporate suppliers. 101 Hotel feels more like a private collection that happens to have beds. Pálmadóttir is an artist herself, and the walls are covered with works by Icelandic luminaries. There’s a ruggedness to the art that contrasts with the slick furniture. You might see a giant mural or a provocative sculpture that makes you stop and think before you head to breakfast.
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Speaking of breakfast, it’s not your typical buffet nightmare. It’s served in the restaurant, which features high ceilings and a narrow, narrow layout that feels very urban. The food is Icelandic-international fusion. Think fresh Atlantic salmon, local skyr that actually tastes like skyr and not the sugary stuff you get in US supermarkets, and sourdough that’s probably better than what you find in San Francisco.
Things to Keep in Mind Before Booking
- The Vibe: If you want a traditional "grand hotel" with bellhops in white gloves and gold leaf on the ceiling, this isn't it. This is minimalist. It's sharp.
- The Noise: Because it's in the heart of the 101 district, the streets can get lively on Friday and Saturday nights. Icelanders party hard. The hotel has good windows, but you’re in the middle of a city.
- The Price: It’s Iceland. Everything is expensive. 101 Hotel is a premium experience, and the rates reflect that. You're paying for the design pedigree and the location.
Is it Still the Best Choice?
With the arrival of the Reykjavik Edition and other big-name players, 101 Hotel a member of Design Hotels has some serious competition. But those bigger hotels often feel like they could be anywhere—London, New York, Tokyo. 101 feels like Reykjavik. It has that specific Icelandic blend of "we take design very seriously" and "we don't take ourselves too seriously at all."
There is a gym and a small spa area with a steam bath and a plunge pool. It’s tucked away in the basement. It’s tiny. But after a day of hiking across a glacier or getting sprayed by Gullfoss, that steam bath feels like a religious experience. It’s these small, quiet moments that the hotel nails. It doesn't need to shout to be heard.
People often ask if the "Design Hotels" tag is just marketing. In this case, no. The brand is a curated collection, and 101 was one of the early members that actually defined what the movement was about: personality over brand standards. Every room feels slightly different. Every corner has a specific shadow.
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How to Maximize Your Stay at 101 Hotel
If you're going to stay here, do it right. Don't just use it as a place to crash after a tour.
Spend an hour in the library. It’s filled with art books and fashion magazines, and there’s a fireplace that makes the Icelandic winter feel like a cozy backdrop rather than a threat. Order a drink at the bar even if you aren't staying there. Talk to the staff. They aren't robotic; they’re usually locals with deep knowledge of the Reykjavik music and art scenes. They can tell you which gallery has a private opening or which bar is having a secret DJ set.
Practical Steps for Your Trip:
- Book the "Double Plus" or Suites: The standard rooms are beautiful but can feel a bit tight if you have a lot of winter gear. The extra space in the higher tiers is worth the splurge for the freestanding tubs alone.
- Skip the Rental Car in the City: Parking in 101 is a nightmare. Use the hotel as your base for walking the city, and only pick up a car when you’re ready to head out to the Ring Road or the South Coast.
- Check the Event Calendar: The hotel often hosts small events or exhibits. Ask at the front desk when you check in if there's anything "off-menu" happening during your stay.
- Embrace the Kitchen: The 101 Restaurant is genuinely good for dinner. The Icelandic lamb is a standout, but they also do a surprising job with vegan-friendly dishes, which can be hit-or-miss in other parts of the country.
101 Hotel a member of Design Hotels remains a landmark because it hasn't chased trends. It set a specific aesthetic in the early 2000s and has refined it rather than replacing it. In a world of "Instagrammable" hotels that look dated after two years, the 101 remains a masterclass in timeless, moody, Nordic cool. It’s the kind of place that makes you want to go home and paint your living room dark grey, even though you know it won't look nearly as good without the Reykjavik light streaming through the window.