Housed in a traditional 19th-century Icelandic townhouse, Kvosin Downtown Hotel underwent a clever renovation in 2013, which saw it purposefully reimagined with the modern traveller in mind. The property's 24 apartments fall across four different room categories: Cosy, Big, Bigger and Biggest. That weekend getaway with your gang? The bigger room is for you. Sleeping up to four, king-sized beds are lined with linen cushions, nightstands are topped with fresh bouquets and an open-plan living area comes complete with a cosy sofa and knitted throws. Our favourite part, aside from the airy en-suite stuffed with organic toiletries, is the slick kitchenette, which offers all the luxury trimmings - think a marble-topped island, leather stools and a selection of handcrafted tableware. Skip to the ground floor to find a whisky-soaked menu at Klaustar Bar, where over 40 different labels are on offer - in addition to a selection of Spanish-style tapas bites.

The 2018-opened Exeter Hotel occupies two different buildings - the first, a refurbished steel-faced warehouse; the second, a muted brown six-floor edifice. The result? An industrial-chic home-from-home to fall in love with. Bedrooms all embody a minimalist ethos, with exposed stone, polished concrete, rich woods and matte-black detailing. Downstairs, a fully equipped fitness space is the place to work up a sweat, before soothing tired muscles in the adjacent sauna. There's also a top-notch in-house restaurant, LeKock, which rustles up street-food-inspired plates spanning cheese-stacked burgers to spicy kebabs and bagel sandwiches. You'll know where to find us.

Nordic urbanites will quickly tell you that 101 Hotel is the coolest crash pad in Iceland's capital - and we'd have to agree with them. A sense of creativity can be found etched throughout every inch of this 38-key stay, which is the brainchild of talented designer Ingibjörg S. Pálmadóttir. Private quarters, which offer sweeping vistas of the dramatic Mount Esja, adopt a monochromatic approach, but one that is made cosy by the addition of enormous rugs and feather-lined quilts. Kick-start your digestive system with a trip to the buffet-style breakfast, where Icelandic cheeses, grains and granolas demand at least three visits. After a culture-rich day of sightseeing, retreat to the spa, where an intimate steam room and Jacuzzi await. Or, alternatively, head straight to in-house Kitchen and Wine to savour local fare and exceptional cocktails. Art lovers, meanwhile, will enjoy the hotel's gallery, which showcases a collection of artworks from local creatives.

Well-thought-out interiors echo Iceland's natural beauty - all earth-toned hues fused together with glass inserts and art deco touches - at Ion City Hotel. All 18 rooms feel soothingly snug thanks to the use of oak flooring, mid-century furniture and leather details. The real drawcard, however, are the bathrooms, which each come with their own private sauna - a feature we'd argue is a visiting point in its own right. What about the food offering, we hear you cry… Put it this way, head chef Jakob Zarioh conjures up creative Icelandic cuisine with North African and Lebanese influences - a fusion we can only describe as what foodie dreams are made of. If the octopus and chilli is on the menu, order it.

Sitting pretty in the heart of the city's achingly cool Laugavegur neighbourhood, Sand Hotel is situated above the legendary family-run Sandholt Bakery - cherished since 1920 for its artisan breads and exquisite pastries. Inside, nods to the city's heritage seamlessly blend with contemporary flair through sculptures and artworks. Rooms get the job done with their springboard-like beds, but it's the all-marble bathrooms that we can't stop thinking about. Step into spacious rainfall showers, sink into pool-sized bathtubs and snuggle into fight-ready robes. There's a strong sense of community embedded in the property, an element that can be traced through the kindness of its staff, who will happily provide you with a list of must-visit local hotspots.

This biscuit factory turned hip hostel is the epitome of Icelandic cool: Kex has its own brewery, stellar restaurant and regular live-music events. The ideal setting for those seeking a great vibe without breaking the bank, private rooms have a distinctive home-from-home aesthetic - plus, plenty come with a sea view. It's the social spaces that have us stuffing our suitcases, though. With a cosy library, gastropub, gym and pop-up barber, this is the sort of place you end up departing having made at least five new best mates.

Dynamic husband-and-wife-duo Linda Jóhannsdóttir and Ellert Finnbogason have created an idyllic escape in Eyja Guldsmeden Hotel. Offering spectacular city views, bedrooms are decorated with four-poster beds, lantern lights and warm wood. Breakfast is served in an airy setting where potted plants, cow-print chairs and enormous communal tables make way for fruit platters and fry-ups. You won't find a huge line-up of in-house amenities, but the location more than makes up for it. Our favourite hangouts? Port 9 for its wine cellar, Kaolin for its pastel-hued ceramics and Salka Valka for its freshly caught seafood.