Guesthouse Aurora Review – Our One-Night Stay in Reykjavik

When we first arrived in Reykjavik, I decided we’d ease into Iceland gently with a stay at a guesthouse.

We were only staying one night before collecting our camper van and beginning our 10-day drive around Iceland.

In hindsight, it probably would have been cheaper to grab the van straight away and stay at the campground…but travel is all about learning as you go!

Iceland is famously expensive, and our poor Aussie dollar doesn’t help, so we booked at the more budget-friendly end of the scale.

Even then, our stay at Guesthouse Aurora came in at just over $300 AUD.

To keep costs down, I chose a small double room with a shared bathroom – we were really only sleeping here, and breakfast was included.

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Who This Stay Suits Best

If you’re trying to work out where this fits into your own plans, Guesthouse Aurora is ideal for:

  • Travellers arriving late at night
  • Anyone picking up a campervan the next morning
  • Budget-conscious visitors who still want a warm, comfortable bed
  • Those without a car (the location is wonderfully walkable)

If you’re planning several days in Reykjavik, you may prefer something with more amenities, but for a quick stopover, this works beautifully.

Ready to book? See prices and availability here.

Getting There From the Airport

If you’re flying into Keflavik and heading straight into Reykjavik, the easiest option by far is the Flybus. It runs to coincide with arriving flights, and you can book your ticket in advance here.

It’s reliable, comfortable, and one of the most stress-free ways to get into the city after a long-haul flight.

The Flybus will drop you at the main bus terminal in Reykjavik (BSÍ), and from there it’s about a 10-minute walk to Guesthouse Aurora.

We arrived early evening and found the walk simple and safe, even with luggage.

If you’d rather not walk, you can also book the Flybus+ add-on, which includes a smaller connecting bus into the city centre.

For Guesthouse Aurora, choose Bus Stop 8 – Hallgrimskirkja, which is only a minute or two away from the guesthouse. It’s a great option if you’re arriving tired, travelling in winter, or dealing with heavier bags.

Either way, getting from the airport to Guesthouse Aurora is really straightforward – another reason it worked so well for our one-night stay.

Checking In After Hours

We arrived after office hours but checking in was simple. An envelope with our keys and instructions was waiting for us, and we learnt that the guesthouse operates across several buildings.

Ours was thankfully in the main house, so it was an easy walk upstairs.

If you are in one of the other buildings, they are next door and around the corner, so it’s not too far to go to find them. A personalised map was included with the instructions for others yet to check in when we arrived.

The Room & Shared Facilities

The room was exactly as expected — small, cosy and warm. For one night it was completely fine.

Each floor had one shared bathroom between four rooms. I’m not sure if the rooms were all occupied, but we did share the bathroom with others.

The shower was lovely and hot, and this was our first introduction to Iceland’s unique geothermal hot water. That sulphur smell is totally normal!

Our bathroom didn’t have a hairdryer, but the one on the floor below did. If I’d noticed earlier, I would have used that one.

There are some rooms that have private bathrooms if you would prefer that, and there are family, triple and single rooms available too.

A small bathroom with a wall-mounted basin, an open toilet, soap and paper towel dispensers, a mirror, and a shower area separated by a curtain. The floor and walls are covered in grey tiles.

Breakfast

Breakfast was simple but handy: toast, cereal, fruit, boiled eggs, tea and coffee. Nothing fancy, but a solid way to start the day without having to find a café straight away.

If you’re in one of the other buildings, you will come to the main building for breakfast.

Know Before You Book

A few practical things to know:

  • Shared bathrooms: one per floor
  • After-hours check-in: very normal and easy
  • Buildings vary: you may not be in the “main” house
  • Hot water smell: completely normal in Iceland
  • No secure luggage room: bags were left in the dining room, but Iceland feels very safe
  • Stairs only: if you have heavy luggage, be prepared

These little things aren’t deal-breakers, but they help set expectations.

Leaving Our Bags for the Day

We were able to leave our bags in the dining room the next morning while we explored Reykjavik. It’s not a locked room, but lots of guests do the same and we had no concerns.

A row of colourful houses, including green, blue, yellow, and pink, lines a sloped street. A no parking sign is visible, and the sky is partly cloudy.

Location

This is where Guesthouse Aurora really shines.

  • 10 minutes’ walk from the main bus stop (perfect if you’re arriving on the FlyBus)
  • 1 minute from Hallgrimskirkja
  • 10 minutes to the centre of town

If you’re on foot, the location is fantastic.

Alternatives Nearby

Just to put things in context for budget planning:

  • Cheaper option: Reykjavik Eco Campsite if you already have your camper van or want to stay in their bunkhouse
  • Step up: Standard mid-range hotels, usually $450–$600+ AUD per night.
  • Try City Guesthouse for another simple option closer to the centre
  • Try Center Hotels Plaza for a central hotel.

Guesthouse Aurora sits neatly in the “simple but comfortable” category.

Guesthouse Aurora isn’t luxurious, but it doesn’t pretend to be. It’s a solid, well-located, value-for-money option in one of the most expensive cities in the world.

For a one-night stay before picking up a camper van, it ticked every box we needed.

If you need accommodation near the airport instead, read my review of Kef Guesthouse here.

Would I stay here again? Yes – for a short stopover, absolutely. It’s comfortable, warm, and in a brilliant location.

For a longer Reykjavik stay, I’d probably upgrade, but for exactly what we needed on night one, it was spot on.

If you’re also planning a road trip in a camper van, I’ve also shared reviews of the campgrounds we stayed at around Iceland.

Is Guesthouse Aurora for you? See the latest prices and availability here.

TRAVEL PLANNING ESSENTIALS

Flights – Book direct with the airline, always.

Book accommodationMy go to is Booking.com

Hire a rental carDiscoverCars.com is where I search many car rental companies in one place

Get travel insuranceI use CoverMore for my insurance.

Pick up an eSIMMy eSIM of choice is Airalo

Book activities, tours & attractions – I use a few different websites for this. Viator, Get Your Guide and Klook are my first options.

Stay safe with a VPN – I use NordVPN to keep me safe online

Manage your money – I use Wise and ING (Australia) for my travel accounts.

Josie Kelsh

Josie will help you to plan your next trip filled with bucket list experiences balanced with budget travel. She discovered travel in her late thirties, but since then has travelled extensively, visiting more than 60 countries and taking an adult gap year. She is now based in Australia and loves sharing all she has learned about travelling on a budget but with the added comforts a Gen Xer requires.