Sand Hotel by Keahotels, Reykjavík

4.7 (9 reviews) Upscale
Contemporary boutique stay on Reykjavík's main shopping street, with elegant, spacious rooms and a light-filled cocktail bar

Overview

This stylish boutique hotel occupies a series of renovated buildings along Laugavegur, Reykjavík's main shopping street, putting the waterfront and most city landmarks within easy walking distance. The sleek Nordic-style interiors weave in plenty of local touches, including contemporary Icelandic artwork and headboards made with fabric from the city's oldest tailor, while the adjoining Sandholt Bakery supplies fresh sourdough and pastries for breakfast. Rooms are elegant and surprisingly spacious for the city-center location, with premium mattresses and granite-tiled bathrooms with heated floors.

Kimkim's Take

Antonia
Antonia Seidenfaden kimkim staff
Based on kimkim staff visit, February 2026 (Learn more)
Pros
  • This is one of the best-situated hotels in Reykjavík for those who want to be in the middle of everything and explore most of the Icelandic capital on foot.
  • The address puts you right next door to the city's legendary, family-owned Sandholt Bakery, and their breads and pastries are served during breakfast.
  • Rooms are bright, elegant, and reasonably spacious for such a central location, with particularly comfortable beds. 
  • The ground-floor bar's floor-to-ceiling windows make it a great spot for people-watching with a cocktail or a craft beer.
Cons
  • The unassuming entrance is on a side street and easy to miss.
  • There's no on-site parking, but you'll find a short-term space at the back of the hotel for guests to drop off their luggage.
  • Front-facing rooms can be noisy due to the central location on Laugavegur.

Authenticity

Owned by the Icelandic Keahotels group, this sleek boutique stay offers a little more warmth and style than most Reykjavík digs, with contemporary, charcoal-toned spaces punctuated by colorful rugs, splashes of velvet, and artworks by Icelandic artists. You'll also find plenty of local touches woven throughout: offcuts of fabric from the neighboring Guðsteinn Eyjólfsson (Iceland's oldest tailor) were used to create headboards and pillows in the guest rooms, while breads and pastries for breakfast come from the adjoining Sandholt Bakery. Outside, look for the engraved stone near the entrance that commemorates beloved Icelandic writer (and Nobel laureate) Halldór Laxness, born on this site in 1902.

Location

The address puts you on a pedestrian-only section of Laugavegur, Reykjavík's famous main street. It can get quite noisy at night, particularly on weekends and summer evenings, but you're surrounded by restaurants and boutiques, and it's an ideal base if you want to explore the city on foot. It's a 5-minute walk from Hallgrimskirkja to the south or the waterfront Sun Voyager statue to the north, and transport links are excellent, with bus stop #6 (which connects with the airport) just an 8-minute walk away. 

Rooms & Bathrooms

The hotel's 78 rooms range from compact Standard units to larger Superior and Junior Suite options. Mist-gray walls are dotted with black-and-white photos of Icelandic landscapes, and warm wood floors and plush textiles add some coziness to the understated Nordic monochrome decor. Beds are particularly comfortable (dressed with luxe Egyptian cotton linens), and mod cons like Nespresso machines and Marshall speakers are standard. The granite bathrooms are snug but stylish, with heated floors, rain-style showers, and Molton Brown toiletries. Accessible rooms are available for guests with limited mobility.

Amenities

There's no on-site restaurant, but that's no hardship when you're located within strolling distance of the city's best dining spots. The buzzy downstairs bar is a nice spot for people-watching, serving light snacks, cocktails, and craft beers, with large windows overlooking Laugavegur. Breakfast is served daily in the same space; expect an above-average cold buffet of fresh-squeezed juices, smoothies, breads from the neighboring bakery, and Icelandic-style savories like smoked salmon. There's also a decent on-site gym—it's a little dark but well-equipped with cardio machines, free weights, and other workout equipment.

Family-Friendliness

Children are welcome here. Family rooms offer two double beds and more space, while interconnecting rooms are available for larger families. Extra beds can be provided at an additional cost, and the hotel offers a limited amount of extra kid-friendly equipment like high chairs, books and games, and cribs.

Like what you see?

Chat with our local specialists and let us help you customize your trip with hotels like this.

Get started

Hotel Information

Hotel stars icon 4-star Hotel
Hotel phone icon +354 5198090
Hotel address icon 34 Laugavegur
Hotel website

Traveler Reviews

9 total ratings, 6 with reviews
4.7
Feature ratings
Authenticity & Character
4.8
Location
4.8
Staff
4.7
Cleanliness & Comfort
4.7
B
Bob H.
Newark, NJ | Reviewed on Sep 01, 2026
great location. good buffet (no cooked like eggs/pancakes) Read more

great location. good buffet (no cooked like eggs/pancakes)

Authenticity & Character
Location
overlooked the road with no cars
Staff
Stayed in August 2026
Jennifer
Jennifer H.
Newark, NJ | Reviewed on Sep 22, 2025
Great location, nice rooms and good hearty & yummy breakfast. Read more

Great location, nice rooms and good hearty & yummy breakfast.

Authenticity & Character
Location
Staff
Cleanliness & Comfort
Stayed in September 2025
Lisa
Lisa D.
Seattle, WA | Reviewed on Aug 18, 2025
Really enjoyed this property. It is very central to everything you need to walk to in Reykavik. Parking is off site but easy to find with the Parka app. Lots of shops and restaurants nearby to choose from. Breakfast was downstair and easily accessible. The bed was comfortable and a nice well equipped bathroom. Read more

Really enjoyed this property. It is very central to everything you need to walk to in Reykavik. Parking is off site but easy to find with the Parka app. Lots of shops and restaurants nearby to choose from. Breakfast was downstair and easily accessible. The bed was comfortable and a nice well equipped bathroom.

Authenticity & Character
Location
Staff
Cleanliness & Comfort
Stayed in August 2025
P
Preston W.
Ashburn, VA | Reviewed on May 26, 2025
You will need to park off-site and walk to the hotel. Not insurmountable. Read more

You will need to park off-site and walk to the hotel. Not insurmountable.

Authenticity & Character
Location
Staff
Cleanliness & Comfort
Stayed in May 2025
F
finley B.
Richardson, TX | Reviewed on Dec 29, 2023
What a great location in Reykjavík! We could walk to everything we wanted to see and everyone was so kind. Read more

What a great location in Reykjavík! We could walk to everything we wanted to see and everyone was so kind.

Authenticity & Character
Location
Staff
Cleanliness & Comfort
Stayed in December 2023
Janet
Janet M.
Seattle, WA | Reviewed on Sep 28, 2023
Cool place, located in the middle of the downtown area. The only downside is the parking if you have a car. Have to find your own parking. Read more

Cool place, located in the middle of the downtown area. The only downside is the parking if you have a car. Have to find your own parking.

Authenticity & Character
Love this lovely boutique hotel. Our room was very unique.
Location
Nice to be close to shopping and restaurants
Staff
Cleanliness & Comfort
Everything was spotless
Stayed in September 2023

Like what you see?

Chat with our local specialists and let us help you customize your trip with hotels like this.

Get started

Hotel Information

Hotel stars icon 4-star Hotel
Hotel phone icon +354 5198090
Hotel address icon 34 Laugavegur
Hotel website