Iceland has long topped the bucket list for travellers craving otherworldly landscapes, geothermal pools, and the magic of the Northern Lights.

But it’s also gained a reputation for being one of the most expensive places in Europe to visit — particularly when it comes to food, drink, and accommodation.

For anyone looking to make the most of Reykjavik without breaking the bank, a new affordable hotel concept is making it easier to save on where you stay — so you can spend more on what you see and do.

CityHub Reykjavik, which opened recently in the heart of the capital, offers a smarter, more budget-friendly alternative to traditional hotels.

Instead of standard rooms, guests stay in sleek, tech-enabled private sleeping pods called Hubs, designed to maximise comfort, privacy and convenience.

Each Hub comes with a large, comfy bed, app-controlled lighting and sound, high-speed Wi-Fi, and access to luxury shared bathrooms.

Prices start from around £69 a night, a steal compared to many standard hotel options in the city that can easily charge triple that in peak season.

But this isn’t a bare-bones experience. Guests also get 24/7 access to a self-service bar and lounge, a rooftop hot tub, and advice from the hotel’s CityHosts — friendly locals on hand to offer recommendations and help visitors plan their trip like a native.

The atmosphere is low-key and social, making it ideal for solo travellers, couples, and groups who want a more relaxed, communal way to explore the city.

The hotel’s central location means many of Reykjavik’s best-loved spots — from Hallgrímskirkja to the harbour — are within easy walking distance.

And if you're heading further afield to see the Golden Circle, black sand beaches or the Blue Lagoon, tour pickups and transport options are close by.

If you’ve been put off Iceland by the price tag, this new take on affordable accommodation might just be your way in.

Find out more at: www.cityhub.com