Where to stay in Reykjavik?

Located halfway between breathtaking nature and vibrant culture, Reykjavik, the capital of Iceland, is an ideal destination if you are planning a trip to Iceland. Staying in Reykjavik is the perfect choice to discover the country, but finding the right neighborhood to settle in can be a bit more complicated. Don't worry: this guide is here to help you know where to stay in Reykjavik

Nestled in the heart of the land of ice and fire , Reykjavik offers a unique blend of stunning landscapes and a creative urban atmosphere. Modern yet rooted in its traditions, it charms with its art galleries, fascinating museums, and festivals that enliven the year. Strolling through its old town, you will discover a charming and historic atmosphere

In addition to offering a lively nightlife scene with its relaxed traditional bars, Reykjavik is also the ideal starting point to explore the natural wonders of Iceland. As the capital of Iceland, Reykjavik is the launchpad for many excursions to discover the best activities in Iceland. Nearby, you will find sites such as the Geysir geothermal area, the Gullfoss waterfall, and the highly active Reykjanes peninsula since 2021, as well as the famous Blue Lagoon!

Like most Nordic destinations, Iceland is very expensive. When preparing your trip to Reykjavik, make sure to budget accordingly. To ensure you have a great stay, I recommend staying in the most central neighborhoods of the capital to maintain proximity to everything! Also, be aware that many hostels have been developed in Reykjavik to give those on a tighter budget the chance to visit Iceland. Moreover, these hostels are often well organized and quite stylish. I'll give you some addresses in this post

The Midborg neighborhood is by far the best place to stay in the capital. It's the historic center, but if you prefer to stay close by, Vesturbaer is the one to choose. Laugardalur is a bit farther from the center but offers prices for modest budgets, although hotels are few and far between.

Finally, the Hlidar neighborhood stands out with its trendy restaurants, bars, and electric atmosphere, while Seltjarnarnes, located on the west peninsula of the city, offers a unique natural setting facing the ocean. Kópavogur, a rather residential area close to Reykjavik, offers a completely different experience, right in the heart of Icelandic life. All these neighborhoods are, in my opinion, the most pleasant, but before making a choice, discover if they suit your needs!

If you decide to stay in the neighborhoods farther from the center, you can easily access downtown sites by public transport. In Iceland, there is no subway or tram, everything happens via bus. You can find information on the official Strætó website.

If you don't have time to read the whole article, here are my favorite hotels in Reykjavik:

The Reykjavik Centrum Hotel, in the heart of downtown Reykjavik, offers a cozy atmosphere in a room or studio, starting at €192.

To stay in a fully furnished apartment in Vesturbaer, Reykjavik Apartments is ideal, for about €115.

The Kriunes Hotel located in Kópavogur is a great option for larger budgets, starting from €183, due to its incredible view of Lake Ellídavatn

The Midborg neighborhood, Reykjavik's historic center, is renowned for its lively streets, picturesque shops, and warm atmosphere. Due to its proximity to all historical monuments, shops, and cultural venues, it is indeed a more expensive area but incredibly convenient. Here you will find the widest selection of hotels, but also the most expensive! Additionally, the time of year you choose to visit Iceland will greatly influence hotel prices. Don't know when to visit Iceland? I wrote an article to clarify that for you

The center of Reykjavik extends from the south bank to the north bank. It is home to notable sites like the Sun Voyager sculpture and the remarkable Hallgrímskirkja church. The colorful houses and cobblestone streets of the center also provide a welcoming atmosphere. It's genuinely pleasant to live in central Reykjavik, and strolling through the alleys is very enjoyable

A little further east of Midborg, you'll find Perlan, which offers a view of the Icelandic nature and has a panoramic platform to observe the city. Just a few meters from Perlan, you can enjoy the Nautholsvik Beach. It's a perfect place to relax, especially with its hot baths facing the ocean!

The Harpa concert hall is one of the most beautiful buildings in Miðborg, a modern and bold architectural masterpiece. With its glass facades reflecting the Icelandic sunlight, Harpa hosts musical events, dance performances, and art exhibitions all year long.

Art enthusiasts should not miss the contemporary art gallery i8 Gallery, which showcases works by renowned Icelandic artists, as well as the Reykjavik Art Museum. But if you are looking for an immersion in local history, the Höfdi House is a must-see. This elegant 19th-century residence hosted the meeting between Ronald Reagan and Mikhail Gorbachev in 1986, marking a historical turning point in international relations.

City Center Hotel offers 3-star accommodation near Hallgrímskirkja and the Sun Voyager sculpture. The hotel features comfortable and pleasant rooms starting at €168 per night, you will be close to popular attractions including the old harbor of Reykjavik, the shopping street Laugavegur, and the Harpa concert hall and conference center.

Reykjavik Centrum Hotel is located on one of Reykjavik's oldest streets, Adalstraeti, just 200 meters from the Reykjavik Art Museum. It offers both hotel rooms and independent studios, all boasting modern decor, a nice bathroom, and hardwood floors starting at €192 per night.

Kex Hostel is a trendy youth hostel offering private rooms in central Reykjavik, just across from Faxaflói Bay. Perfect for exploring the boardwalk, admiring the surrounding fjords, and discovering the Sun Voyager sculpture. Quality concerts are regularly held at the Kex Hostel bar. Prices start from €111 for a double room in this hostel.

Covering the entire western part of the old town, Vesturbær is both traditional and trendy, featuring typical Icelandic architecture, souvenir shops, and guesthouses. It's an interesting neighborhood as it offers proximity to downtown Reykjavik and various accommodation options.

This area gathers cabins offering fish and seafood. It is also the starting point for whale watching excursions in Iceland, and the harbor is a pleasant place for a stroll with various museums nearby. Among them, you can see life-size replicas of whales on display at the Whales of Iceland museum, or learn more about the country's and city's history by discovering the National Museum of Iceland, a must-do in Reykjavik to uncover the little-known history of the country!

This neighborhood is characterized by its traditional Icelandic architecture that will appeal to those seeking authenticity. You will stay in a tranquil setting while remaining close to the capital's main attractions. The quiet streets invite you to wander, providing a peaceful escape in the middle of the capital...

Among the unmissable cultural spots, the National Gallery of Iceland, located nearby, showcases local and international artists in a contemporary setting. It features works produced from the 19th to 20th centuries. For a complete immersion in Icelandic culture, the Parliament House, located nearby, is a must-see landmark as well. If desired, you can take part in guided tours to learn more about the Icelandic political system and its history.

Local 101 Hotel has a peaceful location in the heart of downtown, on a picturesque street lined with traditional Icelandic houses. The small rooms are warm and comfortable in hygge style, and a breakfast featuring local products is served in the morning. The hotel is 3 minutes from the harbor, the modern art museum, and shops. Rooms are available from €154 a night, including breakfast.

Reykjavik Apartments offers various accommodations with a terrace, garden, and barbecue. The units include a fully equipped kitchen with a dining area, some have a terrace and/or balcony with views of the garden or courtyard. Available from €115 per night for 2 people.

The Laugardalur neighborhood is a little further from the center. It is located in the eastern part of Reykjavik and is known for its outdoor activities, sports centers, hiking trails, and an ice rink. Prices are more affordable if you're on a tighter budget.

In addition to providing a green setting, this neighborhood includes the Laugardalslaug thermal baths and pools, popular for year-round swimming. Laugardalslaug is the largest pool in Reykjavik and it's clear that a swim there is a must. Indeed, Laugardalur literally means >, named after the many hot springs that dot the area. These springs feed the famous Laugar spa, a must for wellness enthusiasts.

The area also boasts several lush green spaces such as the Grasagardur Botanical Garden, filled with plants from around the world. The Húsdyragardurinn zoo and park, located nearby, features children's rides and is home to farm animals and Icelandic horses.

For a culinary experience, the neighborhood offers various restaurants serving authentic Icelandic cuisine that highlight local products. Accommodations in Laugardalur vary from comfortable hotels to charming guesthouses, thus offering a range of options for all tastes and budgets.

Nordurey Hotel City Garden offers bright and comfortable rooms for €160 per night with a complimentary continental breakfast. You will stay in a quiet environment near downtown, with a very attentive and available staff. Despite its location in the heart of Laugardalur, you can reach downtown in about ten minutes on foot or easily catch a bus.

Lækur Hostel is a youth hostel displaying colorful and modern decor. All rooms have access to a shared bathroom, and bed linen is provided. The property features a terrace, restaurant, bar, and free Wi-Fi throughout its premises. For a night, you will pay €42 in a mixed dormitory. A dormitory exclusively for women is available for €49.

The lively and multicultural neighborhood of Hlidar is a great place to stay in Reykjavik! It is characterized by a warm atmosphere and diverse architecture, making it an ideal choice for an authentic immersion in the daily life of the Icelandic capital. In terms of accommodation, this neighborhood offers a variety of options, including cozy little hotels and guesthouses.

Among the sights to see in this part of town is the Kjarvalsstadir Reykjavik Art Museum, which houses modern paintings and sculptures by Icelandic artists. Surrounding it is Klambratún Park, a green space with sports fields. You'll find laid-back restaurants serving a variety of cuisines (Thai, Icelandic, pizza...) as well as various small shops and convenience stores. It's also in the Hlidar neighborhood that you'll find the Perlan Museum, where all the geological and scientifically related features of Iceland are explained in a very pedagogical manner. At Perlan, there is also a planetarium that showcases the phenomenon of the Northern Lights

Many of the must-see landmarks cited in this guide are nearby: the Harpa Concert Hall with its glass architecture, the National Museum of Iceland, and Laugardalur Park which offers an escape into a more natural environment with its gardens, thermal pool, and national zoo.

Personally, I appreciate this area as it is really well located. It is close to everything, and even if you want to enjoy the nightlife of Reykjavik, that's possible! Hlidar is at the entrance to Midborg, downtown Reykjavik

22 Hill Hotel is located just a hundred meters from the main shopping street Laugavegur, thus very close to downtown. It's an elegant and classy establishment. This small hotel is very quiet and warm, sure to please most types of travelers! You will be close to all amenities, in a peaceful setting. Double rooms are available starting at €130 per night, breakfast included

Frost Apartments by Heimaleiga offers apartments with all the necessities: private bathroom, equipped kitchen, and comfortable bedroom! Expect to pay €185 per night.

Seltjarnarnes is located on an isolated peninsula surrounded by the Atlantic Ocean. It offers spectacular views of the waters and distant mountains. What's great about this neighborhood is that it provides a good compromise between the surrounding nature and sufficient urbanization to ensure more comfort

During your stay, you can dip your toes in the Kvika foot bath, a geothermal pool located by the water. Among the outdoor facilities, there's a 9-hole golf course set on a rugged promontory and the Sundlaug Seltjarnarness, a complex with pools and hot baths.

One of the unique charms of Seltjarnarnes lies in its vast green spaces, perfect for relaxing walks. The Grótta Nature Reserve, with its iconic lighthouse, is a favored spot.

For accommodation, there are few options since this neighborhood is quite residential. The lodging you find is often apartments, and establishments soon become fully booked.

In short, staying in Seltjarnarnes offers not only a peaceful retreat but also easy access to Reykjavik's attractions. Downtown is just a few minutes' drive away, which is very convenient!

Blue House B&B offers charming double rooms with comfortable bedding. You will stay in a natural setting within a lovely guesthouse. Since Seltjarnarnes is a somewhat remote peninsula, away from the city's light pollution, it's a perfect spot to watch the Northern Lights in Iceland! Expect to pay around €100 per night.

Kópavogur can be considered a town in its own right just south of Reykjavik or as a neighborhood in the capital region. In fact, Kópavogur touches Reykjavik and is well served by public transport like Reykjavik. If you decide to stay here, you'll have easy access to the must-see historical sites of the capital. It is the second most populated city in Iceland, and most Icelanders live in houses here. The downtown area of Reykjavik is aimed at tourists and young residents who typically live together.

Prices for lodging in Kópavogur are thus more affordable than in Reykjavik, but that doesn't mean the holidays will be less enjoyable in Kópavogur! Here, locals enjoy strolling through the city's many green spaces. A few museums are also worth noting, such as the Kópavogur Art Museum. If you want to shop, you will find the largest mall in the country: Smáralind, with stores found in France as well as restaurants, playgrounds, and supermarkets. Sleeping in Reykjavik can quickly become stressful due to the prices which are better here than in Reykjavik

Pleasant swimming pools are also present in Kópavogur for you to relax after a long day of sightseeing. If you prefer to opt for a spa, be aware that a new geothermal relaxation center opened in 2021. I'm talking about Sky Lagoon, which offers a picturesque setting in an infinity pool overlooking the North Atlantic Ocean. Personally, it's my favorite spa, without a doubt, in Iceland! I recommend choosing the 7-step ritual option if you decide to visit. It will allow you to experience it to the fullest and come out of the Sky Lagoon with baby-soft skin

201 Hotel is located in the heart of Kópavogur, just a few minutes' walk from Smáralind and Lake Ellidavatn. The hotel's decor is quite trendy, and the rooms are simple and comfortable. The breakfast is substantial and included in the price, which gives this hotel the title of best value for money! Rooms are available starting at €155 per night for 2.

Kriunes Hotel is a more luxurious option. This 4-star establishment is truly unique, with a direct view of Ellídavatn. As the hotel is somewhat secluded, you will surely be able to observe the Northern Lights from your room! This accommodation has a very warm decor with quite original colors. You feel at home here, perhaps even better! Expect to pay from €183 per night.

My article on the best places to stay in Reykjavik ends here! If you have any questions or comments, feel free to let me know in the comments. If you still don't know what to do in Iceland, I have written an article about it to better guide you during your trip Finally, if you plan to take a road trip in Iceland, I invite you to check out my other articles on the best addresses where to stay in Akureyri and where to stay in Husavik!