Where to Stay in Reykjavik: Guide to the Best Areas and Hotels

Reykjavik it is more than just a simple one Icelandic capital: it is the center of the island's culture, history and economy.

The problem is that in recent years, with the tourism boom, find a place to sleep it can be a difficult undertaking, especially in high season, when the best hotels in terms of quality / price run out of availability months before.

ReykjavĂ­k is such a small city that it probably wouldn't even be called a city if it were somewhere else. The downtown area, where you will spend most of your time, is basically little more than a village.

However, Reykjavik is more than just a gateway to Iceland's natural wonders. The same capital offers tourists numerous extraordinary and unique activities, such as quirky museums, art galleries, trendy breweries, shops and bars, and more!

Reykjavik is also a great base for go hunting for the Northern Lights, visit the Snaeffelsness Peninsula o Reykjanes, per walk the Golden Circle and even to push you along the whole southern coast of Iceland.

Especially if you are not traveling by car, staying in Reykjavik is the best choice as most tours in Iceland depart from the capital. Reykjavik is also a great choice as a base when visiting theIceland in winter as many accommodations away from the city are not open during the winter months.

Don't worry if you can't find accommodation in the city center: Reykjavik is easily explored on foot, as well as having an efficient public bus system connecting the city with the surrounding suburbs, making getting around relatively easy.

Among the places to sleep I thought of including Keflavik which is not really a neighborhood, indeed it is not, but that's where the airport is and is located about 48 km and 45 minutes by car from the capital. Sleeping in Keflavik it is particularly suitable if your flight arrives late in the evening or if you plan to rent the car the next morning and leave for your on the road.

This mine guide to the best neighborhoods to sleep in Reykjavik however it will help you choose where you should stay, whether you want to be in the center of the action within walking distance of the best museums, nightclubs, or whether you prefer to stay more on the sidelines convenient for exploring nearby nature.

  • 1 - Where to stay in Reykjavik for the first time - Midborg
  • 2 - Where to stay in Reykjavik on a budget - hlidar
  • 3 - The coolest place to stay in Reykjavik - Vesturbær
  • 4 - Where to sleep in Reykjavik with children - Laugardalur
  • 5 - Where to sleep near the airport - Keflavik

Reykjavik neighborhood guide

The smallest capital in Europe, Reykjavik it is a compact city that can be easily explored on foot.
It is also incredibly safe, so visitors should feel perfectly comfortable exploring its colorful streets both day and night.

Midborg, or 101, as it is affectionately called by the locals, is the heart, soul and center of Reykjavik.
Home to many of the city's top attractions, Midborg is where you'll find lively bars, independent shops, and a slew of quirky and interesting museums.

West of the center is located Vesturbær. This up and coming district is a great combination of convenience and tranquility. Here you will find chic boutiques and local designers, cute cafes and fascinating museums.

Moving east you will pass through the neighborhoods of Hlíðar, Haaleitis, Laugardalur e Arbær.

Typically residential areas, these neighborhoods are home to parks and playgrounds and are perfect for travelers keen on outdoor adventures and families with children, not too far from the city.

Still not sure where to stay in Reykjavik? Don't worry, you will find out by continuing to read!

Where to stay in Reykjavik

1. Midborg District - Where to stay in Reykjavik for the first time

The fabulous Hotel Eyja, my favorite choice!

Midborg is considered by many to be the heart of the city. Here is the Laugavegur shopping street, where most of the museums are located and where most of the restaurants and bars are located.

Midborg is probably your best bet if you want to stay in the heart of the city but keep in mind that in the lower part of Laugavegur, Bankastræti and Austurstræti there are some bars that stay open late on weekends and if you are a light sleeper you might want to consider a other area.

In fact, Midborg is not only the best neighborhood for those visiting Reykjavik, but it is also the area where nightlife is concentrated.

Whether you are looking for a cozy pub, a lively bar or a lively club, there is something for everyone here.

Midborg is also where you will find a great variety of restaurants. From world-class restaurants to famous hot dog stalls, this neighborhood has it all, and more.

Where sleeping in Midborg:

one of the most popular hotels of downtown Reykjavic, theHotel Fron it has modern rooms, private bathroom and free wi-fi. Hotel Fron also has a guest restaurant that serves delicious meals throughout the day.

Who instead prefers apartments, should take a look at the Svala Apartments, the best in town for value for money and particularly appreciated for the location right in the center, surrounded by pubs and clubs.

Who wants something higher band instead it shouldn't miss the Black Pearl Apartment Hotel or Room With A View Apartment Hotel.



One of my favorite choices is definitely the Eyja Guldsmeden Hotel which I love for the super comfortable four-poster beds, the warm atmosphere and the views of the city, the sea or the mountains. In short, if you want to spend a little more, this is certainly one of the best choices you can make!


If you haven't found the one that's right for you, by clicking on the blue button below you can see all the other Hotels and apartments in Midborg:



2. Hlidar neighborhood - Where to sleep in Reykjavik on a budget

HlĂ­Ă°ar it is a neighborhood a few steps from the east side of the center. The Icelandic Phallological Museum and the Reykjavik Museum of Art are just some of the attractions that make this one of the most touristic neighborhoods in Reykjavik.

Relatively quiet, this residential neighborhood is popular with students and young people. This is also where you will find the highest concentration of backpacker hostels e cheap hotels.

Although the term "low cost" refers to Reykjavik, this is the best area to be in if you are budget conscious.

Where sleeping in Hlidar:

THEHotel Brim it is a comfortable and simple hotel. Modern beds, clean showers and a great location are just some of the features I like about this hotel.

Within walking distance of the center, this hotel is close to the Art Gallery, restaurants and many of Reykjavik's top attractions.

Bus Hostel ReykjavikThis charming three-star property is one of our top recommendations on where to stay in Reykjavik. It is close to shops, restaurants and Reykjavik's best nightlife.

The staff are friendly and knowledgeable, and there's even a tour agency on site to help you make the most of your time in this amazing country.

3. Vesturbær District - The best place to stay in Reykjavik

Camera sul porto all'Icelandair in Reykjavik

Vesturbær it is centrally located, yet far enough away to maintain its relaxed and peaceful atmosphere.
However, keep in mind that to reach the center you will have to walk a little. Nothing major, probably no more than a 20-30 minute walk.

Located near the old port, Vesturbær is where you will find independent boutiques, chic cafes, trendy bars and breweries.

Vesturbær is a foodie's paradise, thanks to a good number of delicious and innovative restaurants serving everything from traditional and fusion dishes to hot dogs and tasty tapas.

Where to sleep in Vesturbær:



Icelandair Hotel Reykjavik Marina: a 4-star hotel. Some rooms have stunning views of the old harbor and, despite being a modern style hotel, the atmosphere in the rooms is warm and welcoming.


Who loves The flats should instead take a look at the Ranargata Apartment, a little gem in the center of Reykjavik, which has a very high score on booking.com for both services and price. Particularly recommended for couples.

Another great hotel in the district of Vesturbær is undoubtedly the Radisson Blu Saga Hotel which boasts a comfortable lounge, on-site restaurants and panoramic city views.

Each room has air conditioning, a relaxing bathroom and on-demand movies.

Using the button below you can find a wide selection of other hotels in Vesturbaer:



4. Laugardalur - Where to stay in Reykjavik with children

No there is better place to stay for families of the district of Laugardalur. Centrally located, this neighborhood is quiet and residential but well connected to the city. Whether you choose to walk or hop on the bus, you'll find yourself in the heart of Reykjavik in 30 minutes or less.

Laugardular is also a draw for travelers who enjoy outdoor adventures. It is full of activities perfect for the whole family: from zoos and water parks to archaeological sites and museums. There is something for children and adults of all ages in this charming Icelandic neighborhood.

Where sleeping in Laugardular:

Arctic Comfort Hotel: The Arctic Comfort Hotel is a delightful three-star hotel in Laugardalur. It is close to cafes, restaurants and shops. Guests can relax after a day of sightseeing in the lounge bar. Each room is spacious, tastefully decorated and equipped with all the necessary facilities for a wonderful stay.

Thanks to its comfortable rooms and modern furnishings, theHotel Island it is my favorite choice for sleeping in Laugardalur. This charming three-star hotel has a laundry service, an on-site restaurant and a cozy lounge to relax. Each room is equipped with cable / satellite TV, refrigerator and free wifi.

5. Keflavik - where to sleep near the airport

THEReykjavic airport it is not in the city, but in Keflavik, a town about 48 km away from the capital. In my opinion, sleeping near the airport has extremely advantageous sides: the first is that if you arrive late in the evening or leave early in the morning, you don't need to work overtime to get to the city.

The second is that, as long as you arrive late in the evening and have decided to rent the car, you can pick up your vehicle the next morning, thus saving a day.

Not only. There elusive and somewhat discussed Blue Lagoon it is located nearby, which is why most travelers visit it either as the starting or ending point of their trip to Iceland. It is therefore very convenient in both of the following cases:

  • If you arrive in the evening, sleep in Keflavik, the next morning go to the Blue Lagoon and then leave for your on the road
  • If your return flight leaves in the morning, depart Reykjavik the day before, go to the Blue Lagoon, drop off your car, sleep in Keflavik and fly the next morning.

So here are also two tips on where to sleep in Keflavik:

The small 3 star Hotel Grásteinn – Airport Hotel, family-run, is highly recommended because it is located 5 minutes by taxi from the airport, has a reception open 24 hours a day, breakfast is available as early as 24 in the morning (and therefore you don't have to spend a shot at the bar. airport), the wi-fi is free and the environment is warm and comfortable.

About wants to rent the car instead could take a look at the Bed and Breakfast KeflavĂ­k Airport Hotel offering airport shuttle service and car rental service. Here, too, breakfast starts at 4 am (Icelanders too smart!), The rooms are spacious and clean and there is an excellent restaurant nearby!

Third and last hotel I recommend is theHotel KeflavĂ­k by KeflavĂ­k Airport also located 5 minutes drive from the airport, with one way shuttle service included, sauna and gym.

The modern rooms have coffee making facilities and satellite TV and some of them have ocean views. The hotel also makes various reservations for clients such as local restaurants, blue lagoon and whale watching expeditions.

If among these hotels you have not yet found the one that's right for you, by clicking on the blue button below, you find many other choices right in Keflavik:




Two last hotels that I recommend

That said, if you're still not sure where to stay in Reykjavik and don't have time to evaluate all the options in this post but still want to be on the safe side, I highly recommend the Galaxy Pod Hostel for backpackers and solo travelers. Heida's Home instead it is the perfect place for those looking for more privacy.

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