Where to Stay in Reykjavík 2026 | Best Areas + Hotel Map
Reykjavík is the world's northernmost capital and gateway to Iceland's extraordinary landscapes. The compact downtown (101 postal code) contains almost everything, making walking easy. Most visitors use Reykjavík as a base for day trips to Golden Circle, South Coast, and beyond. Prepare for high prices - Iceland is expensive but delivers unique experiences.
On This Page
Editor's Pick for First-Timers
Downtown 101
Walk to Hallgrímskirkja, Harpa, restaurants, and nightlife. Base for day trip pickups. The full Reykjavík experience in compact form.
Downtown 101
Old Harbour
Hlemmur
Vesturbær
Laugardalur
Quick Guide: Best Areas
Things to Know
- • Keflavík (airport area) is far from Reykjavík - don't stay there unless for early flight
- • Outer suburbs lack tourist infrastructure and require car
- • Some budget hotels are actually outside Reykjavík - check location carefully
- • Party hostel noise can be significant - check reviews if sleep is priority
Understanding Reykjavík Geography
Reykjavík clusters on a peninsula. Downtown (101) occupies the center with Laugavegur as the main street. The Old Harbour extends west. Hallgrímskirkja church rises on the hill. Residential areas spread east (Hlemmur) and west (Vesturbær). Laugardalur lies further east with sports facilities.
Neighborhood Overview
Explore different areas by price range. Click a neighborhood to learn more.
Accommodation Map
Check availability and prices across Booking.com, Vrbo, and more.
Best Neighborhoods in Reykjavík
Downtown / 101 Reykjavík
Best for: Hallgrímskirkja, Laugavegur shopping, nightlife, central everything
"Colorful Nordic capital with world's northernmost main street"
Pros
- Walk to everything
- Best nightlife
- Restaurant hub
Cons
- Expensive
- Can be crowded
- Tourist-focused
Old Harbour / Grandi
Best for: Whale watching, seafood restaurants, maritime museums, Harpa views
"Working harbour turned cultural and culinary destination"
Pros
- Whale watching base
- Excellent seafood
- Harpa views
Cons
- Windy location
- Limited hotels
- Industrial edges
Hlemmur / East Downtown
Best for: Bus hub, local restaurants, quieter downtown, Hlemmur Mathöll food hall
"Local Reykjavík with excellent food hall and transport hub"
Pros
- Great food hall
- Good value
- Bus connections
Cons
- Less scenic
- Grittier edges
- Far from harbour
Vesturbær (West Side)
Best for: Residential calm, Ægisíða swimming, local neighborhood, ocean views
"Quiet residential with ocean promenade"
Pros
- Peaceful atmosphere
- Ocean access
- Local feel
Cons
- Far from nightlife
- Limited hotels
- Needs bus
Laugardalur
Best for: Laugardalslaug pool, zoo, camping, sports facilities
"Family-friendly area with Iceland's best public pool"
Pros
- Best swimming pool
- Family attractions
- Green space
Cons
- Far from center
- Needs transport
- Limited dining
Accommodation Budget in Reykjavík
Budget
Hostels, budget hotels, shared facilities
Mid-Range
3-star hotels, boutique stays, great locations
Luxury
5-star hotels, suites, premium amenities
💡 Prices vary by season. Book 2-3 months ahead for best rates.
Our Top Hotel Picks
$ Best Budget Hotels
Loft - HI Eco Hostel
Downtown
Excellent hostel on Laugavegur with rooftop bar, great common areas, and prime location.
Fosshotel Reykjavik
Hlíðar
Large modern hotel offering comfortable rooms, on-site restaurant and bar, and convenient location within easy walking distance to Laugavegur shopping street and main attractions.
$$ Best Mid-Range Hotels
Reykjavik Residence Apartment Hotel
Downtown
Apartment-style hotel with kitchens - helpful for managing Iceland's food costs.
Apótek Hotel by Keahotels
Downtown
Boutique in former pharmacy with excellent restaurant, central location, and sophisticated design.
$$$ Best Luxury Hotels
Hotel Borg by Keahotels
Downtown
An iconic 1930s Art Deco landmark overlooking Austurvöllur Square, featuring a signature Tower Suite and a luxurious spa in the heart of downtown.
Canopy by Hilton Reykjavik City Centre
Downtown
Design hotel on Laugavegur with excellent restaurant, bikes for guests, and local partnerships.
The Reykjavik EDITION
Old Harbour
Ian Schrager's outpost with Harpa views, excellent restaurant, and minimalist Nordic luxury.
Silica Hotel
Blue Lagoon area (Grindavík — Reykjanes Peninsula)
Design-forward boutique in lava landscape with private Silica Lagoon access and Blue Lagoon admission included. Calmer, exclusive geothermal experience.
✦ Unique & Boutique Stays
Reykjavik Konsulat Hotel, Curio Collection by Hilton
Downtown
Housed in a 1900s department store, this boutique hotel blends industrial history with contemporary Icelandic design and a traditional stone-walled bathhouse.
Icelandair Hotel Reykjavik Marina
Old Harbor
Stylish boutique hotel with cool nautical design, harbor views, excellent restaurant, and fantastic location next to the Old Harbor for whale watching tours and city exploration.
Smart Booking Tips for Reykjavík
- 1 Book 4-6 months ahead for summer (June-August) and Northern Lights season (Sep-Mar)
- 2 Iceland Airwaves music festival (November) fills hotels quickly
- 3 Winter offers 20-30% lower prices but limited daylight
- 4 Many day trips include hotel pickup - downtown location essential
- 5 Hot tub access is valuable - many hotels have geothermal tubs
Why you can trust this guide
35+ countries • 8 years analyzing travel data
Independent developer and travel data analyst based in Prague. 35+ countries visited across Europe and Asia, 8+ years analyzing flight routes, accommodation prices, and seasonal weather patterns.
- All neighborhoods verified by walking them
- Curated locations based on walkability & safety
- Real-time availability via live partner maps
- Prices based on Booking.com & Numbeo averages
Methodology: This guide combines on-the-ground neighborhood research, current hotel pricing data, and real traveler feedback to provide honest, actionable accommodation recommendations for Reykjavík.
Updated: February 25, 2026
Ready to Visit Reykjavík?
Book your flights, accommodation, and activities
Frequently Asked Questions
What is the best area to stay in Reykjavík?
How much does a hotel cost in Reykjavík?
What are the main neighborhoods to stay in Reykjavík?
Are there areas to avoid in Reykjavík?
When should I book a hotel in Reykjavík?
More Reykjavík Guides
Weather
Historical climate averages to help you pick the best time to visit
Best Time to Visit
Coming soon
Things to Do
Coming soon
Cost & Budget
Daily costs, money-saving tips, and budget breakdown
Itineraries
Coming soon
Overview
Complete travel guide for Reykjavík: top things to do, itineraries, and typical costs.