World's Sexiest Affordable Destinations

Reykjavík, Iceland

Why Go Now: The collapse of Iceland’s financial system last year has made Reykjavík’s cafés, industrial-chic nightspots, and restaurants more affordable than ever.

The Details: At the new Center Hotel Arnarhvoll (doubles from $142, including breakfast), in downtown’s 101 district, the modern rooms (slate palette accented with red and chestnut brown) come with views of Mount Esja. Browsing the boutiques on Laugavegur, Reykjavík’s main shopping street, could take days; stop by Gust for funky Icelandic wares such as knit wool wraps, or Steinunn for local, cutting-edge clothing. Segurmo at Boston (dinner for two $20) is a restaurant opened last year by Björk’s personal chef, Nuni Thomasson. His menu of regional comfort food might include dishes like foal steak with couscous and cabbage.

T+L Tip: At the 200,000-square-foot Laugar Spa, six tubs and an outdoor pool are filled with the Laugardalur Valley’s healing thermal waters.