Sand Hotel by Keahotels offers a cozy boutique stay along Laugavegur shopping street above a trendy bakery in the heart of Reykjavik. The hotel has a terrace and views of the city, and you can enjoy a meal at the restaurant. Keahotels is a trusted and relatively high-end hotel chain in Iceland.

• Nearby attractions: Downtown Reykjavík is full of culture and activities. Wander around the old town, check out Hallgrímskirkja, the harbour, Tjörnin ("The Pond"), Whales of Iceland & more.