Located in south-west Iceland, Reykjavik is the country’s largest city. The capital of Iceland, it is famous for its streets lined with colorful houses and original murals. Its historical and cultural heritage, as well as its many bars and restaurants, make it a must-see during your stay in Iceland. So, knowing where to stay in Reykjavik will be essential in anticipating your visit to Europe’s smallest capital.
In this article, we’ll take you through the different neighborhoods where it’s worth staying in Reykjavik. We’ll tell you about the atmosphere in these areas, based on the bars and restaurants that can be found there, and then suggest various types of accommodation to suit different budgets.
Main information
Before going into the description of the districts to target when selecting accommodation in Reykjavik, here are the essentials to know about tourism.
Our favorite places to stay
First of all, if you’re in a hurry, here are our favorite places to stay in Reykjavik:
- $ this accommodation 500 m from Reykjavik bus station
- $$ this hotel, in a rather central location close to the port, offers good value for money.
- $$$ this upscale establishment is located on the Laugavegur shopping street. It’s one of the best places to stay in Reykjavik, budget permitting of course.
Map of different areas to stay in Reykjavik
We’re now sharing the map on which you can find all our recommendations for hotels and apartments where to stay in Reykjavik. This map will also enable you to locate the different geographical areas we’ll cover in this guide.
We’ve used the following color code: green for budget hotels, blue for mid-range hotels and red for luxury hotels.
Reykjavik accommodation essentials
Here is some information to help you understand the city:
Where to stay in and around Reykjavik
Let’s get to the heart of the matter with a review of the main areas where we recommend staying in Reykjavik.
Stay in Miðborg: The historic heart of the city
Miðborg, also known as the 101 district, is the historic and tourist heart of Reykjvavik. It's here that you'll find the majority of iconic monuments, such as the Hallgrímskirkjala church, symbol of Iceland's capital, the Sun Traveller sculpture and the Harpa concert hall. You can also walk to the old port.
With its many beginning streets, this is the part of town with the most bars, restaurants and nightclubs. In particular, you'll find Laugavergur, Bankastraeti and Austurstaeti, the main thoroughfares renowned for their local ambience and artisanal stores. If you want to enjoy the nightlife, accommodation in Miðborg seems ideal.
Here's a selection of other places to visit in this part of Reykjavik:
- Reykjavik Art Museum: the first part of the art museum and former home of artist Ásmundur Sveinsson, it houses his works.
- Lake Tjornin: a small urban lake of natural, glacial origin.
- Althingi: the oldest working parliament in the world.
Miðborg is surely the best place to stay in Reykjavik. If you choose to stay here, you'll be within walking distance of the city's various attractions. As far as accommodation is concerned, you'll find more hotels than in other areas. However, this is one of the most expensive areas of Reykjavik, so it's not recommended for smaller budgets. As the liveliest part of the capital, it's also best avoided if you're looking for peace and quiet, especially in the evenings.
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Recently renovated, this historic building on a typical Reykjavik street offers small, comfortable and cosy rooms. Breakfast consists mainly of local produce.
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Located in the capital's old port, this industrial-style accommodation offers luxury rooms. Within the complex, you'll have access to a fitness room, spa and restaurant. Tours and activities can also be arranged.
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The hotel's ideal location on the Laugavegur shopping street justifies its high price. Airport transfers can be booked at reception.
Accommodation in Vesturbær: tranquillity close to the center
To the west of the city, Vesturbær, also known as the "Old West Side", is a district close to Miðborg. This is where you'll find Vesturbæjarlaug, a renowned thermal bath complex with several pools at different temperatures. Part of the shores of Lake Tjornin are also in this area, so you can enjoy a stroll around the lake or visit the National Gallery of Iceland, the second part of the art museum, which houses more contemporary works.
Quiet and restful, staying here is a good compromise for those who want to visit without being disturbed in the evening by the festive life of the center. In fact, it's only a few minutes' walk from the center of Reykjavik and is well served by public transport.
Vesturbær is a more residential area, so you'll find plenty of accommodation. However, it's an area to be avoided by the budget-conscious, as its location close to Miðborg means that prices are higher than in other parts of the city. It's the ideal place to stay if you're on a tight budget and want to enjoy the peace and quiet of the area.
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Just a 15-minute walk from the center, the hotel offers large, luxurious and comfortable rooms, some with balconies. The staff can arrange a shuttle service to the airport at an additional cost. A bar and restaurant are available on site.
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Ideally located in the popular Port 101 district, the hotel offers family rooms with maritime decor. Some rooms have balconies and views of the marina.
Hlíðar: stay close to the perlan
Hlíðar ishome to the Perlan, Reykjavik's emblematic building where you can see a variety of exhibitions on Icelandic nature, including the famous Northern Lights exhibition. Considered one of Reykjavik's must-sees, it's also famous for its panoramic terrace on the top floor, offeringa 360° view of the city and surrounding mountains. It's also in this district that you can visit a third and final section of the Reykjavik Art Museum , this time housing works of modern art.
Located in the south-east of the city, Hlíðar is a little further from the historic center, but still very well served by public transport. It takes less than 30 minutes to get there. For those who travel to the capital by bus, the bus station terminal is located in this area. It's not a very lively area, but it does boast a number of bars and casual restaurants.
As far as accommodation is concerned, this is an area with very few hotels, and you'll find mainly guesthouses. However, the location and types of accommodation make prices more affordable. If you're on a budget, staying in Hlíðar could be the ideal solution.
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Located 500m from Reykjavik bus station, this accommodation offers bright, spacious rooms. There's also an outdoor area with barbecue facilities during the summer months.
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Located in a residential area less than 10 minutes' walk from the perlan, this establishment offers family rooms. Free private parking is available on site.
Laugardalur: Accommodation in the capital's green district
Located to the east of Miðborg, Laugardalur is considered the green district of Iceland's capital. This part of Reykjavik is home to the Laugardalur valley and park, the city's largest outdoor park, renowned for its many outdoor activities and hiking trails. The Laugardalslaug open-air thermal baths, accessible all year round, are also in this area. Last but not least, you'll find the Húsdýragarðurinn zoo and park, an area with rides for children where you can observe typical Icelandic animals. Laugardalur is the ideal place to stay for sports enthusiasts and families looking to recharge their batteries in the great outdoors.
As it is set back from the city center, accommodation here is rather less expensive than in the rest of the capital. However, if you choose to stay in this area, you'll only be able to reach the center by public transport or by car. The public transport network is well-developed in this part of Reykjavik, however, and it's also fairly easy to get around by car. What's more , parking lots are available in many parts of the city.
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Close to the Laugardalslaug thermal baths, this accommodation offers family rooms. Free private parking is available on site. There's also a café and bar-restaurant on site.
Seltjarnarnes: Staying on the peninsula
A mainly residential area, Seltjarnarnes is a peninsula to the west of the city, divided into two parts, one of which belongs to Reykjavik. The peninsula is famous for its Grótta lighthouse, accessible via a nature trail. You can also enjoy mountain views from Seltjarnarnes. Beyond its natural heritage, this area close to Reykjavik boasts a number of outdoor activity parks, as well as the Sundlaug Seltjarnarness, a complex of thermal pools heated to different temperatures, accessible in summer and winter alike.
Although set back from Miðborg, it's easy to get to the historic center by public transport. So, if you decide to stay in this part of Reykjavik, getting to the heart of the city to see the must-sees won't be a problem.
Although it's not very popular with tourists, you'll still find some affordable accommodation for travellers. Being mainly residential, Seltjarnarnes is not a very lively area with few shops and restaurants, but staying on the peninsula is a good alternative if you're mainly looking for peace and comfort.
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A 10-minute drive from central Reykjavik, this establishment offers hotel rooms and self-catering apartments with views of places of interest. A fitness center is available on site.
Other districts: accommodation in Tun and Norðurmýri
To reduce your budget during your stay in Reykjavik, you can choose to stay in other nearby areas. Tun and Norðurmýri are located to the east of Miðborg. These are mainly residential areas, and you'll find almost nothing to see here. In Tun, however, you can see the Hofdi house, the famous home of Icelandic poet Einar Benediktsson. This is also where you'll find the end of the famous Laugavegur shopping street.
If you choose to stay here, you can easily reach the historic heart of the city by public transport. For the more courageous, it's also possible to get there on foot. And although these areas are not touristy, you' ll find a number of cafés, bars and restaurants.
Where to stay, you'll mainly find hotels and guesthouses. They are, however, less expensive than in Miðborg or Vesturbær, making them a good alternative if you want to be close to the center on a smaller budget.
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Conveniently located 600m from Hallgrímskirkja Church, this guesthouse offers clean, comfortable rooms. There's a terrace and garden on site.
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Just a stone's throw from Laugavegur, this establishment offers family rooms. There's also a playroom for children. Free private parking and an airport shuttle service are available.
Summary
As you can see, despite its small size, Reykjavik is one of Iceland’s must-sees . It has a multitude of areas in which to stay during your trip, and some are more accessible than others.
If you have the budget, we can only recommend staying in Miðborg, in the heart of Reykjavik. Otherwise, the surrounding areas such as Hlíðar and Laugardalur are good alternatives