Are you planning a trip to Reykjavík, the capital of Iceland and a classic starting point for exploring the Golden Circle or the south coast? The city is known for its colorful houses, its rich cultural offerings, and its proximity to hot springs and outdoor pools. We’ve reviewed several neighborhoods and types of accommodations to help you choose where to stay in Reykjavík. Here’s what you’ll find in this article:
- our top picks among the accommodations we tested,
- a guide to the 4 neighborhoods to help you choose where to live,
- Our selection of hotels by category, with reviews.
This opinion is completely independent, based on our experiences. We visited the region anonymously, making our own choices and paying our bills in full.
Best Hotels in Reykjavík: Our Top Picks
Before discovering our detailed opinions on each of the establishments we have selected, take a look at our 3 favorite addresses.
A charming hotel in the city center: Hotel Reykjavik Konsulat
Housed in a former 19th-century department store, just a stone’s throw from Harpa and the old harbor, the Reykjavik Konsulat Hotel blends period details with modern amenities. We really liked the style of this hotel. We recommend this place to travelers looking for a charming hotel right in the heart of the city.
See photos, prices and availability.
Reykjavík Treasure B&B
Reykjavík Treasure B&B is located in a historic house in the Old Town, just a few minutes from the harbor and Laugavegur. We appreciated the intimate atmosphere of this hotel, which offers several rooms with private bathrooms.
Breakfast, served every morning, includes fresh bread baked on site. We recommend this place to travelers looking for a personalized experience rather than a traditional hotel. So many great memories—that was when we first visited Reykjavik! Unfortunately, I didn’t take any photos.
See photos, prices and availability – and book!
Quiet Aparthotel: Castle House Luxury Apartments
Located on the shores of Lake Tjörnin and just a few minutes’ walk from the National Art Museum of Iceland, Castle House Luxury Apartments offers eight apartments and studios, each with a fully equipped kitchen. Even though the name includes the word “Luxury,” these are not luxury apartments. But we found the location to be particularly strategic: close enough to the center to reach Laugavegur in just a few minutes, yet far enough away to escape the nightlife.
See photos, prices and availability.
Where to Stay in Reykjavík: Best Neighborhoods + Map
Why stay in Reykjavík?
Reykjavík serves as the starting point for most excursions to the Golden Circle, the Reykjanes Peninsula, or the south coast. Its historic center is home to museums, restaurants, and nightlife, while the surrounding neighborhoods offer a more residential atmosphere.
We found that the city is just as well suited for a 2- or 3-day stopover before touring the island as it is for a city break in its own right. We recommend booking your accommodations several months in advance, as hotel capacity remains limited relative to tourist demand.
Map of Reykjavík and Its Neighborhoods
Here is a map to help you locate the four neighborhoods we highlight below:
1. Where to Stay in Midborg (Downtown)
Midborg, also known as District 101, is the historic center of Reykjavík. It includes Hallgrímskirkja Cathedral, the Icelandic Parliament, Lake Tjörnin, and the Laugavegur shopping street, as well as the Harpa concert hall and the old harbor below.
We enjoyed being able to do everything on foot from this area, including visiting museums, restaurants, and bars. We recommend this neighborhood to travelers who prioritize proximity to attractions over a quiet setting.
Benefits:
- Most sites and museums are within walking distance
- The widest selection of restaurants and bars
- Close to the Old Port and the Harpa Concert Hall
Disadvantages:
- A noisy neighborhood on some evenings, especially around Laugavegur
- Limited and expensive parking
- Hotel rates among the highest in the city
Recommendations:
Reykjavik Konsulat Hotel
Castle House Luxury Apartments
Reykjavík Saga Hotel
2. Staying in Vesturbær (west of downtown)
To the west of the historic center, Vesturbær stretches between the University of Iceland and the old harbor. This residential neighborhood also borders the Grandi district, which has been transformed in recent years into a hub for gastronomy and creativity, featuring design studios and former fish markets converted into restaurants. We found the atmosphere in Vesturbær to be more laid-back than that of the city center, while still being within a 15-minute walk. We recommend this area to travelers looking for a little peace and quiet without straying too far from Midborg.
Benefits:
- A residential atmosphere, quieter than downtown
- Close to the Old Port and the Grandi gourmet district
- Views of the bay and Mount Esja from some accommodations
Disadvantages:
- Fewer restaurants on-site
- A 10- to 15-minute walk to Laugavegur
- A more limited selection of hotels
Recommendations:
Black Pearl Apartment Hotel
Apartments in Reykjavik
3. Staying in Hlíðar
To the east of the historic center, Hlíðar is a residential neighborhood home to many Reykjavík residents, centered around Klambratún Park and the Kjarvalsstaðir Art Museum. The area also borders the Kringlan shopping district and is a short distance from the Perlan observation dome. We enjoyed the tranquility of this neighborhood, with its tree-lined streets and small cafés. We note, however, that Laugavegur Street and its shops are still about a 15-minute walk or a few bus stops away.
Benefits:
- A quiet residential neighborhood surrounded by green spaces
- Close to Klambratún Park and the Kjarvalsstaðir Museum
- Easy access to the Kringlan shopping center and Perlan
Disadvantages:
- It’s about a 15-minute walk to Laugavegur
- There isn’t much nightlife in the neighborhood itself
- Fewer hotel options than in the city center
Recommendations:
Eyja Hotel
Storm Hotel by Keahotels
4. Staying in Laugardalur
Further east, Laugardalur (literally, “Valley of Hot Springs”) is home to Reykjavík’s largest outdoor swimming pool, a botanical garden, a family-friendly wildlife park, and the city’s main stadium. We found this neighborhood to be particularly well-suited for families traveling with children, thanks to its green spaces and recreational facilities. Hotel rates there are also a little lower than in the city center. We recommend this area to travelers who are willing to take a bus or a short drive to reach the historic center.
Benefits:
- A family-friendly neighborhood, close to recreational facilities (swimming pool, zoo, botanical garden)
- More affordable hotel rates
- A green and open environment
Disadvantages:
- About a 20- to 25-minute walk from the historic center (10 minutes by bus)
- There aren’t many restaurants or nightlife options in the area
- You’ll need a bus or car to explore the rest of the city
Recommendation: Reykjavik Lights by Keahotels
Other useful tips to keep in mind
Reykjavík remains a popular tourist destination year-round, including in winter for viewing the Northern Lights. We recommend booking your accommodations several months in advance, especially between June and August.
Renting a car makes it easier to take day trips to the Golden Circle or the south coast, but it isn’t necessary to explore downtown, which is well served by the Strætó bus system.
We also recommend packing clothing suitable for frequent changes in the weather, even in the summer.
Best Hotels in Reykjavik for Viewing the Northern Lights
To see the Northern Lights, you need to get away from any sources of light.
As a result, the capital really isn’t the best place to see them.
Book your magical getaway from Reykjavik to see the Northern Lights!
RENTING A CAR IN Iceland
Discover the best offers on Discovercars, our preferred platform!
On Route 1, no 4WD required, off Route 1, it depends on your plans.
Our curation: best hotels
To help you find the accommodation that best suits your needs, we’ve sorted our recommendations by category. Below you’ll find our detailed picks, as well as other inspiring addresses.
Best Luxury Hotels in Reykjavík (5-star)
Reykjavík has few 5-star hotels, but the ones available stand out for their locations and amenities.
- The Reykjavik EDITION
Midborg Neighborhood
A contemporary hotel located across from the Old Harbor, just a stone’s throw from Harpa. The property features a spa, a fitness center, and several restaurants and bars; some rooms offer views of the harbor, the bay, or the mountains.
Check photos and availability - Black Pearl Apartment Hotel
Vesturbær Neighborhood
A luxury apartment hotel near the Old Port, featuring 23 spacious suites, each with a fully equipped kitchen and a living room. Several apartments have a balcony overlooking the city; however, the property does not have a swimming pool.
Check photos and availability
It’s time to book!
Compare everything: companies, prices, schedules and availability.
Best Boutique Hotels in Reykjavík
Downtown Reykjavík is home to several charming spots, housed in historic buildings or featuring tasteful decor.
The one we reviewed: Reykjavik Konsulat Hotel, Curio Collection by Hilton
The Reykjavik Konsulat Hotel, Curio Collection by Hilton, is housed in a former19th-century department store, just a short walk from the Harpa Concert Hall and the Old Harbor. The renovation preserved several period features, combined with understated contemporary furnishings. We especially liked the relaxation area inspired by traditional Icelandic baths, which includes a sauna and a hot tub. We recommend this place to travelers who want to combine a central location with high-end amenities.
- Neighborhood: Midborg, historic center
- Price range: 4–5 stars
- Restaurant: Yes, there is a bar and restaurant on site
- Family rooms: please check with the establishment
- No pool; wellness area with a sauna and hot tub
- Amenities: gym, sauna, hot tub, room service
- Parking: no
- See photos, prices and availability – and book!
Our selection of other great boutique options
- Reykjavík Saga Hotel
Midborg neighborhood, near the Parliament and Tjörnin Pond
An elegant, contemporary hotel featuring a restaurant, a bar, a fitness center, a sauna, and a courtyard garden.
Check photos and availability - Phoenix Hotel
Midborg neighborhood, near Laugavegur
A small boutique hotel with a classic atmosphere, housed in two historic homes. Personalized service and traditional decor.
Check photos and availability - Eyja Hotel
The Hlíðar neighborhood, set slightly back from Laugavegur
An independent hotel with a contemporary Icelandic design. Several rooms feature large windows with views of the city, the sea, or Mount Esja.
Check photos and availability - Sand Hotel by Keahotels
Midborg neighborhood, right on Laugavegur
A boutique hotel housed in a complex of restored historic buildings, featuring a terrace with an unobstructed view of the city’s rooftops.
Check photos and availability - Reykjavík Centrum Hotel
Midborg neighborhood, one of the oldest streets in the city
A hotel housed in historic buildings that combines traditional elements with contemporary guest rooms; a small exhibition space dedicated to Viking artifacts discovered on the site.
Check photos and availability
Best Aparthotels in Reykjavík
Apartments and aparthotels are particularly common in Reykjavík, offering a convenient way to cook your own meals and save on dining expenses.
The one we tested: Rey Apartments
Located in the heart of Midborg, between Laugavegur Street and the lively Skólavörðustígur neighborhood, Rey Apartments offers spacious apartments equipped with full kitchens. We appreciated this hotel’s central location, just a few minutes’ walk from the main shops and restaurants, while still being relatively quiet at night. We recommend this place to couples and families who want to cook their own meals while enjoying a central location.
- Neighborhood: Midborg, between Laugavegur and Skólavörðustígur
- Price range: mid- to high-end aparthotel
- Restaurant: No, the apartments have fully equipped kitchens
- Family rooms: Yes, several apartments with a separate bedroom
- No swimming pool on site
- Amenities: fully equipped kitchen, living room, sofa bed (depending on the unit)
- Parking: no
- See photos, prices and availability – and book!
The second one we tested: Castle House Luxury Apartments
Castle House Luxury Apartments is located on a small property on the shores of Lake Tjörnin, next to the National Art Museum of Iceland. The property consists of eight units—six one-bedroom apartments and two studio apartments—all equipped with a kitchenette or a full kitchen.
We would have found the shared garden and terrace particularly pleasant for a morning coffee before heading out to explore the city (if we’d tried it in the summer…). We especially appreciated the quiet of the neighborhood, about a ten-minute walk from Laugavegur but without the nightlife of the city center.
- Neighborhood: Midborg, on the shores of Lake Tjörnin
- Price range: luxury aparthotel
- Restaurant: No; kitchenette or fully equipped kitchen, depending on the unit
- No pool; shared garden and terrace
- Amenities: heated floors in the bathroom, fully equipped kitchen, balcony (depending on the unit)
- Parking: no
- See photos, prices and availability – and book!
Our selection of other excellent aparthotel options
- Reykjavik Residence Apartment Hotel
Midborg neighborhood, spread across several historic buildings
Studios and apartments with kitchens, as well as accommodations featuring multiple beds, separate bedrooms, or sofa beds.
Check photos and availability - Kvosin Downtown Hotel
Midborg neighborhood, behind the cathedral and the Parliament
Suites and apartments typically feature a kitchenette and a living area, with some layouts suitable for families.
Check photos and availability - Alfred’s Apartments
Midborg neighborhood, near Laugavegur
Apartments with a kitchenette or full kitchen and living area; some of the units can accommodate three to five people.
Check photos and availability - City Comfort Apartments
Midborg neighborhood, at the beginning of Laugavegur
Modern apartments equipped with a kitchen and a living area; some units have a balcony overlooking the street.
Check photos and availability - Apartments in Reykjavik
Vesturbær neighborhood, west of the historic center
A large complex of apartments with kitchens and dining areas; many of the units have two bedrooms or a sofa bed.
Check photos and availability - Vintage Apartment Hotel
Midborg neighborhood, on Laugavegur
Contemporary studios and apartments equipped with a kitchen; the larger units include multiple sleeping areas and a separate bedroom.
Check photos and availability
OUR GUIDE TO PLANNING A Dream trip
- 8 maps that make planning easier
- + 100 pre-selected locations
- Practical advice
- + 130 photos to help you choose
Best Family-Friendly Hotels in Reykjavík
Traveling with the family to Reykjavík often requires a little more space than just a double room. Here are the addresses we recommend:
- Black Pearl Apartment Hotel
Vesturbær Neighborhood
A luxury apartment hotel near the Old Port, featuring 23 spacious suites, each with a fully equipped kitchen and a living room. Several apartments have a balcony overlooking the city; however, the property does not have a swimming pool.
Check photos and availability - Reykjavík Central Apartments
A neighborhood in eastern Reykjavík, near the harbor
Studios and apartments equipped with a full kitchen and soundproof windows; several units include a sofa, which is convenient for families.
Check photos and availability - Sif Apartments by Heimaleiga
Hlíðar Neighborhood
A modern apartment complex offering one- and two-bedroom apartments, each featuring a kitchen, a living room, and a sofa bed. Some units have a balcony.
Check photos and availability
OUR GUIDE TO PLANNING A Dream trip
- 6 maps that make planning easier
- + 75 pre-selected locations
- Practical advice
- + 115 photos to help you choose
Best 2-3-star (“budget”) hotels in Reykjavík
Reykjavík is an expensive city, but you can still find some decent places to eat on a “tight budget.” But nothing here is really on a budget; it’s just cheaper than the rest.
The one we tested: Reykjavik Lights by Keahotels
Reykjavik Lights by Keahotels is located in the Laugardalur neighborhood, and its decor is inspired by the Icelandic calendar and the Northern Lights. We enjoyed the rooms on the upper floors, which offer unobstructed views of the city or the surrounding mountains. The hotel is located a reasonable distance from the historic center—between 10 and 15 minutes by bus. We recommend this place to travelers looking for good value without sacrificing comfort.
- Neighborhood: Laugardalur
- Price range: 3 stars
- Restaurant: Please check with the restaurant
- Family rooms: Please check with the hotel
- There is no on-site pool (the Laugardalur public pool is nearby)
- Amenities: Rooms with views depending on the floor; contemporary decor inspired by the Northern Lights
- Parking: please ask at the establishment
- See photos, prices and availability – and book!
Our curation of other excellent options
- Lotus Hotel
Laugardalur
An intimate, modern hotel located near sports facilities; free parking and a highly rated breakfast.
Check photos and availability - Hotel Local 101
Vesturbær, near the old harbor
An independently owned hotel located on a relatively quiet street; renovated rooms and an on-site restaurant.
Check photos and availability - City Center Hotel
Midborg, on Austurstræti
A centrally located hotel near the Parliament and Harpa; some rooms have a balcony or a view of the city center’s rooftops.
Check photos and availability - Hotel Muli
Laugardalur
A functional and contemporary hotel with free parking; several room categories, including family rooms.
Check photos and availability - Storm Hotel by Keahotels
Hlíðar, near the waterfront and Laugavegur
A modern hotel with simple, bright rooms; some offer a partial view of the sea or the mountains.
Check photos and availability
UNFORGETTABLE ACTIVITIES IN Iceland
- Swimming in the Silfra fissure
- Horseback riding
- Hiking on a glacier
- Whale watching (from Reykjavik, Husavik or Akureyri)
UNFORGETTABLE ACTIVITIES IN winter
- Visit an ice cave
- Glacier hiking
- Whale watching (from Reykjavik, Husavik or Akureyri)
Other Types of Accommodations in Reykjavík
You can also find
- independent bed-and-breakfasts
- Apartments for rent from private individuals
- and a few youth hostels, particularly around Laugardalur
See the top-rated accommodations in Reykjavík.
VISIT Reykjavik
- Things to Do in Reykjavik in the Summer
- Things to Do in Reykjavik in Winter
- Best Hotels in Reykjavik
- Winter Excursions from Reykjavik
- Perlan Museum
- Whale Museum
