Where to stay · Reykjavík · Iceland
Where to stay in Reykjavík
7 neighbourhoods compared, with the trade-offs hotel listings don't tell you.
Updated By the AMZBooking editorial team
Photo: (WT-en) Meltwaterfalls at English Wikivoyage, CC BY-SA 1.0
Quick answer
For a first visit, stay in Downtown (101 Reykjavík). Laugavegur shops, small bars and colourful corrugated-iron houses around the Tjörnin pond. Best alternatives — families: Old Harbour and Grandi; budget: Vesturbær.
Key facts
- First visit
- Downtown (101 Reykjavík)
- Families
- Old Harbour and Grandi
- Budget
- Vesturbær
- Nightlife
- Downtown (101 Reykjavík)
Best area for each kind of trip
| Trip type | Area | Why |
|---|---|---|
| First-timers | Downtown (101 Reykjavík) | Laugavegur shops, small bars and colourful corrugated-iron houses around the Tjörnin pond |
| Families | Old Harbour and Grandi | Whale-watching docks, fish restaurants and converted warehouses on the waterfront |
| Couples | Skólavörðuholt | Hilltop streets around Hallgrímskirkja with wool shops and galleries on Skólavörðustígur |
| Budget | Vesturbær | Residential west end with Vesturbæjarlaug pool, the university and sea walks to Grótta |
| Nightlife | Downtown (101 Reykjavík) | Laugavegur shops, small bars and colourful corrugated-iron houses around the Tjörnin pond |
| Food lovers | Downtown (101 Reykjavík) | Laugavegur shops, small bars and colourful corrugated-iron houses around the Tjörnin pond |
| Solo travellers | Vesturbær | Residential west end with Vesturbæjarlaug pool, the university and sea walks to Grótta |
| Shopping | Downtown (101 Reykjavík) | Laugavegur shops, small bars and colourful corrugated-iron houses around the Tjörnin pond |
| Quiet stays | Vesturbær | Residential west end with Vesturbæjarlaug pool, the university and sea walks to Grótta |
Reykjavík neighbourhoods in detail
$$$$ · Best for first-timers, nightlife, food lovers and shopping
Downtown (101 Reykjavík)
The 101 postcode covers the compact old centre between the harbour and the Tjörnin pond, including Laugavegur, Austurstræti and Ingólfstorg square. Nearly every restaurant, bar and design shop in the city is here, and most day-tour buses pick up from numbered bus stops around it. It is the easiest base for a short stay without a car.
- Good
- Walk to almost everything; Tour pick-up points nearby; Lively in the evenings
- Watch out
- Highest hotel prices; Weekend bar noise on Laugavegur
- Nearby
- Laugavegur, Tjörnin, Harpa, Old Harbour
$$$ · Best for couples, first-timers and culture
Skólavörðuholt
The hill crowned by Hallgrímskirkja is a residential pocket of guesthouses and apartments a few minutes uphill from Laugavegur. Skólavörðustígur, the rainbow-painted street that leads down from the church, is lined with knitwear, ceramics and design shops, and the Einar Jónsson sculpture garden sits beside the church.
- Good
- Quieter than the bar streets; Central and walkable; Good apartment choice
- Watch out
- Uphill walk with luggage; Some streets are steep and icy in winter
- Nearby
- Hallgrímskirkja, Skólavörðustígur, Einar Jónsson Museum, Laugavegur
$$$ · Best for families, food lovers and first-timers
Old Harbour and Grandi
The Old Harbour is where whale-watching, puffin and northern lights boat trips depart. West along the waterfront, the Grandi district has turned fish-processing sheds into the Whales of Iceland exhibition, FlyOver Iceland, the Grandi Mathöll food hall, ice-cream parlours and design studios. Harpa concert hall anchors the eastern end.
- Good
- Tours depart on the doorstep; Good seafood; Family attractions nearby
- Watch out
- Exposed to wind off the sea; Quieter in the evenings away from the centre
- Nearby
- Harpa, Whales of Iceland, Kolaportið, Sun Voyager
$$ · Best for quiet stays, budget and solo travellers
Vesturbær
West of the centre, Vesturbær is where many Reykjavík families live, with small cafés, the local Vesturbæjarlaug pool and the University of Iceland and National Museum on its southern edge. Coastal paths lead west to Seltjarnarnes and the Grótta lighthouse, a popular northern lights spot away from city glare.
- Good
- Local atmosphere; Walking distance to the centre; Easy access to dark-sky spots
- Watch out
- Few hotels, mostly apartments; Limited nightlife
- Nearby
- National Museum of Iceland, Vesturbæjarlaug, Grótta, Grandi
$$ · Best for families, budget and quiet stays
Laugardalur
About 3 km east of the centre, Laugardalur is Reykjavík's recreation valley, with the Laugardalslaug geothermal pool complex, the Family Park and Zoo, the botanic garden and the national stadium. Hotels here tend to be larger and better value than downtown, with frequent buses into the centre.
- Good
- Space and parks for children; Better-value hotels; Next to the biggest pool
- Watch out
- Bus or 30–40 minute walk to the centre; Few restaurants nearby
- Nearby
- Laugardalslaug, Reykjavík Family Park and Zoo, Reykjavík Botanic Garden
$$$ · Best for budget, solo travellers and food lovers
Hlemmur and Hverfisgata
Around the Hlemmur bus terminal, the old bus station has become the Hlemmur Mathöll food hall, and Hverfisgata and the eastern end of Laugavegur have a cluster of newer hotels, hostels and cafés. It is a five-to-ten-minute walk to the core of downtown and a good hub for buses to Laugardalur and beyond.
- Good
- Good transport links; Wide choice of hostels and mid-range hotels; Food hall on the doorstep
- Watch out
- Less picturesque than the old centre; Main roads can be busy with traffic
- Nearby
- Hlemmur Mathöll, Laugavegur, Sun Voyager
$$ · Best for quiet stays, families and budget
Hafnarfjörður
Hafnarfjörður is a historic fishing town in the capital region, built on the Búrfellshraun lava field, with a working harbour, small museums and a strong local tradition of hidden-people folklore. It is calmer and somewhat less expensive than downtown Reykjavík and closer to Keflavík Airport and the Reykjanes Peninsula.
- Good
- Closer to the airport; Small-town feel; Lower prices
- Watch out
- Bus ride of about 30 minutes to downtown; Few evening options
- Nearby
- Hellisgerði lava park, Hafnarfjörður harbour, Reykjanes Peninsula
Areas compared
| Area | Price | Nearby |
|---|---|---|
| Downtown (101 Reykjavík) | $$$$ | Laugavegur, Tjörnin, Harpa, Old Harbour |
| Skólavörðuholt | $$$ | Hallgrímskirkja, Skólavörðustígur, Einar Jónsson Museum, Laugavegur |
| Old Harbour and Grandi | $$$ | Harpa, Whales of Iceland, Kolaportið, Sun Voyager |
| Vesturbær | $$ | National Museum of Iceland, Vesturbæjarlaug, Grótta, Grandi |
| Laugardalur | $$ | Laugardalslaug, Reykjavík Family Park and Zoo, Reykjavík Botanic Garden |
| Hlemmur and Hverfisgata | $$$ | Hlemmur Mathöll, Laugavegur, Sun Voyager |
| Hafnarfjörður | $$ | Hellisgerði lava park, Hafnarfjörður harbour, Reykjanes Peninsula |
Getting to your hotel
Keflavík International Airport (KEF) is about 50 km southwest of the city, roughly 45–50 minutes by road. Airport coaches such as Flybus run to the BSÍ bus terminal with optional hotel drop-offs, and Strætó route 55 offers a slower public bus. Reykjavík Airport (RKV) in the city handles domestic flights.
Questions travellers ask
+What is the best area to stay in Reykjavík for first-time visitors?
Downtown (101 Reykjavík). The 101 postcode covers the compact old centre between the harbour and the Tjörnin pond, including Laugavegur, Austurstræti and Ingólfstorg square.
+Where should families stay in Reykjavík?
Old Harbour and Grandi: Tours depart on the doorstep.
+Which area of Reykjavík is best for a budget stay?
Vesturbær ($$): Residential west end with Vesturbæjarlaug pool, the university and sea walks to Grótta.