You’re standing in Ingólfstorg Square. It’s February, the wind is biting, and you’ve just realized your phone battery is plunging toward zero because of the cold. In this moment, you don’t want a "boutique experience" tucked away in a quiet residential suburb. You want a lobby. Specifically, you want the lobby of the CenterHotel Plaza Hotel Reykjavik Iceland.
Location is everything. People say that about every hotel, but here, it's actually true.
The Plaza is basically the ground zero of downtown Reykjavik. If you walk out the front door and trip, you’ll probably land in one of the city's best bars or a historic site. It’s sitting right on the oldest part of the city, where the first settlers supposedly set up shop. Honestly, if you’re looking for a place where you can retreat from the sub-arctic horizontal rain without having to hike three miles, this is the spot.
What Nobody Tells You About the Location
Most tourists look at a map of Reykjavik and think, "Oh, it's small, I can stay anywhere." Big mistake.
While the city is walkable, the weather is a chaotic beast that doesn't care about your step count. CenterHotel Plaza Hotel Reykjavik Iceland sits directly on the edge of the pedestrian zone. You've got the Harpa Concert Hall a five-minute stroll away. The Old Harbour? Just around the corner. If you’re here for the whale watching tours or the Northern Lights boat trips, you are staying exactly where you need to be.
There’s a specific vibe to Ingólfstorg Square. In the winter, it often hosts a small ice rink. In the summer, it's where the locals hang out. By staying at the Plaza, you aren't just visiting the city; you are literally inside its heartbeat. You’ll see the local skaters, the weekend markets, and the late-night crowds heading for the famous Bæjarins Beztu Pylsur hot dog stand, which is—you guessed it—about two minutes away.
The Layout: Not Your Typical Cookie-Cutter Hotel
The Plaza isn't a single, perfectly symmetrical block. It’s actually a bit of a maze because it has been expanded over the years. This gives it a quirky, authentic feel that some modern "luxury" hotels lack.
Some rooms look out over the square. These are great for people-watching, though if you’re a light sleeper, you might hear the muffled bass of Reykjavik’s legendary nightlife on a Friday night. Other rooms face the back or the side streets. They are quieter. The décor? It’s classic Scandinavian. Clean lines. Lots of wood. Not fussy. It feels like a place where you can actually kick off your boots and not worry about ruining a $5,000 silk rug.
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The Breakfast Situation and Why It Matters
Let’s talk about the food. Iceland is expensive. Like, "did I just pay $15 for a sandwich?" expensive.
This is why the breakfast buffet at CenterHotel Plaza Hotel Reykjavik Iceland is a tactical advantage. They serve a spread that actually keeps you full until dinner. You’ve got the standard eggs and bacon, sure, but look for the Icelandic staples. Try the hárákótt (not really, that's fermented shark—don't eat that for breakfast). Stick to the pickled herring, the local cheeses, and the massive bowls of skyr.
Pro tip: Drink the cod liver oil. They usually have a bottle of Lýsi sitting out near the juices. It sounds disgusting, and it kinda is, but it’s the secret to how Icelanders survive the dark winters without losing their minds. It’s a shot of pure Vitamin D. Just take it and chase it with orange juice.
Practical Realities of Staying at the Plaza
Is it the most luxurious hotel in the world? No.
If you want a personal butler and gold-plated faucets, go somewhere else. But if you want a reliable, warm, and professional base of operations, this is it. The staff have seen it all. They know exactly which tour operators are reliable and which ones will leave you stranded in a blizzard (okay, maybe not that dramatic, but they know the good ones).
The Northern Lights Dilemma
People stay at the CenterHotel Plaza Hotel Reykjavik Iceland and ask the front desk, "Can I see the Aurora from my window?"
Honestly? Probably not.
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The city lights are too bright. To see the lights, you need to get away from the light pollution of the square. However, because the Plaza is a major hub, the tour buses for Northern Lights hunts pick up almost right outside. You wait in the warm lobby until the bus arrives, rather than shivering on a street corner three blocks away. That's the difference between a good trip and a miserable one.
Room Sizes and Variety
The rooms vary. Because the building has been cobbled together over time, you might get a standard double that feels a bit tight, or an upgraded room with a massive window overlooking the mountains across the bay.
- Standard Rooms: Functional. Good for solo travelers or couples who spend 90% of their time exploring.
- Superior Rooms: A bit more breathing room. Worth the upgrade if you have big suitcases full of hiking gear.
- The Suite: If you’re feeling fancy, the top-floor options give you a killer view of the harbor.
The bathrooms are usually surprisingly spacious, and the showers have that distinct Icelandic water smell—a tiny hint of sulfur. Don't freak out. That's just the volcanic heat. It’s the cleanest water you’ll ever wash your hair with.
Nightlife and the "Plaza Bar"
The hotel bar is actually a decent spot to start your evening. It’s called the Plaza Bar, obviously. It’s got big floor-to-ceiling windows that look right onto the square.
It’s a great place to sit with a Gull or a Víking beer and watch the weather roll in. In Iceland, the weather changes every five minutes. You can see a blizzard and a rainbow in the span of a single pint. Most people use the bar as a "pre-game" spot before heading out to places like Lebowski Bar or Dillon Whiskey Bar, which are all within walking distance.
A Few Real-World Downsides (Let's Be Honest)
I'm not here to sell you a fairytale. There are things you might not like.
First, the elevators can be slow during peak breakfast hours. It's a busy hotel. If you’re on the 4th floor, sometimes it's faster to just take the stairs.
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Second, the proximity to the square means you are in the "party zone." On weekends, Reykjavik stays up until 4:00 AM. The hotel has good double-glazing on the windows, but if you’re a hyper-sensitive sleeper, bring earplugs. Or, better yet, join the party.
Third, parking is a nightmare. If you rented a car, don't expect to park it right in front of the door. There are public parking garages nearby (like the one under Harpa or Vesturgata), but you’ll have to pay. Honestly, if you’re staying at the Plaza, you probably don’t even need a car for the first few days. Everything is right there.
How to Get the Most Out of Your Stay
If you've booked your stay at CenterHotel Plaza Hotel Reykjavik Iceland, you need a game plan.
Don't just use it as a bed. Use the staff. The concierge desk here is better than most because they handle such a high volume of travelers. They know which roads are closed and which glaciers are currently accessible.
- Check the Aurora Forecast: Even if you aren't on a tour, ask the desk. They have the Vedur.is (Icelandic Met Office) data pulled up constantly.
- The "Early Bird" Strategy: Breakfast gets packed at 8:30 AM. If you go at 7:00 AM, it's silent, and you can get the best window seat.
- Walk to the Old Harbour: It takes eight minutes. Go to the Marshall House for art or Grandi Mathöll for a more "local" food hall experience.
Is it Worth the Price?
Iceland isn't cheap. You know this.
But when you compare the Plaza to some of the ultra-modern hotels that have popped up lately, it often offers better value because of what you save on transport. You aren't paying for taxis. You aren't paying for bus passes to get to the center. You are the center.
For a first-timer, the CenterHotel Plaza Hotel Reykjavik Iceland is the safest, most logical bet. It’s the "Old Reliable" of the Icelandic hospitality scene. It has survived the 2008 crash, the 2010 volcano eruption, and the massive tourism boom of the 2020s. It’s still standing because it works.
Actionable Next Steps for Your Trip
- Book directly if possible: Sometimes the hotel website offers "Northern Lights" packages or free welcome drinks that you won't find on the big booking sites.
- Pack a swimsuit in your carry-on: You'll likely want to head to the Sky Lagoon or Blue Lagoon shortly after landing. The hotel has a luggage room where you can stashed your big bags if your room isn't ready.
- Download the 'Parka' app: If you absolutely must have a rental car, this app is the only way to manage parking in the downtown area without getting a massive fine.
- Walk to the Pond (Tjörnin): It’s two minutes from the hotel. Feed the ducks, look at the City Hall, and breathe in that ridiculously clean air.
Stay here if you want to be where the action is. Skip it if you want total silence and a minimalist yoga retreat. But if you want the real Reykjavik, the one with the history and the wind and the nightlife, this is your spot.