The city skyline in Reykjavik, Iceland, is changing rapidly in line with the ongoing boom in tourism, but you can still stay in the heart of the historic district on Laugavegur — the city’s most famous shopping street — at the new ION City Hotel.

Tucked into a shallow passage off the street close to restaurants, shops and pubs, the hotel is ideal for exploring all Iceland’s quirky capital has to offer. Guests entering the lobby are greeted by a reception desk, resembling an iceberg, while the minimalist décor includes lighting designed by Minarc and curtains fashioned from Icelandic wool. Custom seating includes a hanging chair and window sofa, while the hotel staff is decked out in beautiful dresses and jewelry created by Icelandic designers and local jewelers.

Deluxe Guestroom © Art Gray

The lighting in hallways connecting guestrooms is motion-controlled, and optical illusions are created by room numbers that grow larger near the lifts and smaller near the mirrored hallway ends. Walls that replicate lava stone add a sense of place in guestroom bathrooms — featuring large glass showers.

Choose the Panorama Suite with its own private sauna, separate living room, dining room and wide views of city center and the deep ocean bay. In the dining area, a table is surrounded by Icelandic-designed wooden chairs. Enjoy organic bath amenities in the freestanding soaking tub. Egyptian cotton linens, down duvets and pillows, and Icelandic designer robes and slippers keep you cozy, while the bar area includes a complimentary minibar and a wine cooler. Coffee, tea, a Nespresso coffee machine and a tea kettle are standard, while technology includes USB direct connections, Samsung smart televisions and B&O Bluetooth speakers.