By early November winter has well and truly arrived in Reykjavik. Temperatures hover around freezing and days are short, making it a great time to experience Iceland’s natural wonders, from ice caves to steaming geothermal pools, before prices climb nearer Christmas. Dark nights also mean you stand a good chance of spotting the northern lights and there are always plenty of places to warm up, including unusual museums and cosy cafés.

Three nights’ room-only at 22 Hill Hotel, including flights from London Luton, costs £330pp with easyJet, departing on November 3. A small under-seat bag is included, and you can check in a 15kg case for an extra £65 return. A shared coach transfer to the hotel from Keflavik airport, just under an hour away, is £55pp. The three-star hotel, also known as Alva Hotel Brautarholt, is a modern, three-floor property with 55 rooms and a self-service check-in rather than a traditional reception desk. Spacious rooms have wooden floors, sleek Scandi furniture and city views. The adjoining restaurant serves Icelandic à la carte dishes and a popular lunch buffet (from £30; potturinn.is).

Reykjavik’s main shopping street, Laugavegur, is less than two minutes’ walk away and is lined with restaurants, bars, souvenir shops and Icelandic boutiques. Several museums are also within walking distance, including the National Museum of Iceland, which charts the country’s history (£18; thjodminjasafn.is) and Saga Museum, which focuses on its Viking past (£25; sagamuseum.is). The interactive nature museum, Perlan, has a volcano exhibition, the world’s first indoor ice cave and an observation deck with 360-degree views across the city (£38; perlan.is). Other city centre sights include the modern glass Harpa Concert Hall and the Hallgrimskirkja church, with its 73m tower overlooking the mountains and sea beyond (£9; hallgrimskirkja.is). Drop into Grandi street-food hall to try local specialities including lamb stew and lobster soup (grandimatholl.is) or feast on traditional waffles with whipped cream at Mokka Kaffi, one of Reykjavik’s oldest cafés (mokka.is).

22 Hill Hotel room with a bed, desk, TV, and large windows.

A room at the modern, well-located 22 Hill Hotel

The city is a great base for day trips, especially as the hotel is ten minutes’ walk from the bus stops on Borgartun. Take bus No 4 from there to Hamraborg, then change to bus No 35 to Hafnarbraut to reach Sky Lagoon, an infinity-edge geothermal pool with spa facilities and an in-water bar (£85; skylagoon.com). There are also whale-watching cruises from Reykjavik’s harbour (£88; elding.is); trips to Iceland’s second-largest glacier in a monster truck (£141; adventures.is); and bus tours that take in Strokkur, Iceland’s most active geyser, the Gullfoss waterfall and the tectonic plates in the Unesco-listed Thingvellir National Park (£66; re.is). Though it is possible to see the northern lights in Reykjavik itself, you’ll stand a better chance by getting out of the city on a guided tour to prime viewing spots away from the capital’s lights (£50; viator.com).

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What you get for your £330pp

• Return Luton to Reykjavik flights, departing on November 3
• Three nights’ room only at 22 Hill Hotel (easyjet.co.uk)

Feeling flush? If you’re inspired to visit Reykjavik, and have more to spend, you could try the options below.

The £600 holiday

Interior of Hotel Reykjavik Saga restaurant with green plants hanging from the ceiling.

The restaurant at Hotel Reykjavik Saga has an Icelandic menu

A five-minute walk from Lake Tjornin in the centre of Reykjavik, the four-star boutique Hotel Reykjavik Saga is within walking distance of the city’s restaurants, cathedral and museums. It has 130 rooms, including some in a recently renovated historic house next to the main building. All are smartly contemporary in shades of taupe and oatmeal, with marble bathrooms, geometric feature walls and floor-to-ceiling windows. There’s also a gym, dry sauna and two roof terraces, plus Froken Reykjavik Kitchen & Bar, which has a stylish art deco feel, a daily champagne happy hour and an Icelandic menu.
Details Three nights’ room only from £573pp, including flights and hold luggage, departing on November 3 (britishairways.com)

• Read our full guide to Iceland

The £1,000 holiday

Hotel room at Alda Hotel Reykjavik.

The rooms at Alda Hotel have been furnished Icelandic photography

Alda Hotel is right on Reykjavik’s main shopping street and has 90 stylish rooms decorated in deep grey with dark wooden floors, Icelandic photography on the walls and trendy white-tiled bathrooms. Guests also receive a complimentary smartphone to use during their stay including local calls and 4G data. Downstairs, the hotel has a barber shop, a dry sauna, gym and hot tub. The bar and restaurant serves burgers, Icelandic specialities and locally brewed beers. Hallgrimskirkja church is less than ten minutes’ walk away and the harbour a further ten for boat trips.
Details Three nights’ B&B from £989pp, including flights, transfers and two excursions, departing on November 2 (tui.co.uk)

• Read our full guide to Northern Lights holidays