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And for an extensive guide on where to stay in Reykjavik, including my top hotel picks, read my detailed article.
Where to Stay in Reykjavik: My Selection of the Best Accommodations
Wondering where to stay in Reykjavik? Looking for the best areas and districts?
You’re at the right place!
As I know Reykjavik very well, I have created this guide of:
- Reykjavik’s best areas for your stay (with details about the best places to visit and nearby attractions)
- For each area and district, the best hotels depending on your budget
Let’s find your dream hotel now!
My favorite hotels in Reykjavik
Here’s a quick summary of my favorite hotels in Reykjavik, in case you don’t have time to read my detailed article.
Simply click on the hotel names in orange to access details and rates:
- Where to stay in Reykjavik for sightseeing: Center Hotels Laugavegur, on the main street of the city
- The Best 5 star hotel in Reykjavik: The Reykjavik EDITION, for its incredible views of the bay
- Where to stay in Reykjavik on a budget: Loft – HI Eco Hostel
- Best family-friendly hotel in Reykjavik: Kvosin Downtown Hotel, for its large rooms with kitchenette
- My favorite hotel in Reykjavík for a romantic stay: Tower Suites Reykjavík, for its unique design, sea view and luxury
In Miðborg District
Miðborg district is the historic center of Reykjavik.
Famous for its colorful houses, it’s the most touristic and emblematic area of the Icelandic capital.
It’s the perfect place to stay in Reykjavik, as you’ll be able to move around very easily on foot to discover the city’s main attractions.
The district is also well-served by public transport and very lively. There, you will find shops, bars, and numerous restaurants.
I recommend this district for your stay in Reykjavik:
- Because it’s an excellent starting point to visit the city on foot or by bus thanks to its central location
- If you’re looking for a lively place
- For shopping
- To go out at night.
The district is the ideal place to discover:
- Hallgrímskirkjala Church, the city’s symbol, a very modern building with a tower nearly 75 meters high. You can take the elevator and go up to the top for a breathtaking view.
- Laugavegur shopping street, lined with stores and restaurants
- Harpa concert hall and its modern architecture
- The Old Harbor, for a seaside stroll. It’s also the starting point of whale watching excursions (click here to buy your tickets).
- The famous “Sun Voyager” sculpture, that represents a Viking ship (Drakkar)
- Höfdi House, a historic site where President Reagan and Secretary Gorbachev met during the Cold War
- The Althingi, the oldest continuous parliament in the world
- The Icelandic Phallological Museum: a very unusual museum (apparently the only one in the world!) that exhibits over 250 animal phalluses in jars!
Where to Stay in Reykjavik’s Historic Center?
- Alda Hotel Reykjavík: Located on Laugavegur Street, just a 15-minute walk from Hallgrímskirkjala Church. Sober double rooms from €160 per night, breakfast €27. Strong points: Bicycle rental, sauna, nice restaurant, good transport links.
- Hotel Von: Located a few minutes from the Althingi (Parliament) on foot. Comfortable double rooms with a modern-minimalist touch from €170 per night, breakfast €24. Strong points: Close to the Tourist Office, comfortable beds, central location.
- Reykjavik Residence Apartment Hotel: Nice apartments located 500 meters from the Icelandic Phallological Museum. Fully equipped studios from 200€ per night, breakfast 23€. Strong points: Airport transfers, amenities and groceries included, great service – One of the best places for a family stay in Reykjavik!
- Center Hotels Laugavegur: 10 minutes from Hofdi House, this 4-star hotel offers modern rooms from €230, breakfast included! Strong points: Restaurant, airport transfer, good breakfast, friendly staff.
- The Reykjavik EDITION: This 5-star hotel is just 1 minute from the Ingólfsgarður Lighthouse. Stay in elegantly decorated rooms from €480, breakfast at €40. Strong points: Exclusive sea views, Spa, impeccable service, great restaurant. Simply the best luxury hotel in Reykjavik!
In Vesturbær District
Vesturbaer district is located west of the historic center.
It’s mainly a residential area, so it’s an excellent choice for accommodation in Reykjavik if you want to be near the old town while still staying somewhere quieter.
Most of the museums worth visiting during your Reykjavik trip are also located here.
Vesturbaer is a perfect place to stay in Reykjavik:
- To stay in the city center without being right in the middle of the historic center
- If you love history, art, and culture
- For a family trip.
Best things to do in Vesturbaer district:
- A walk along the shores of Lake Tjornin
- The National Museum of Iceland, tracing the country’s history from the Vikings to the present day
- “Whales of Iceland,” a museum displaying life-size whale reproductions
- The Saga Museum featuring wax figures of the island’s first inhabitants as they go about daily life during ancient times
- The Northern Lights Center to learn more about the aurora borealis
- The Maritime Museum on the history of fishing
- The Reykjavik Art Museum focusing on Icelandic contemporary art
- The Vesturbæjarlaug thermal complex offering pools of varying temperatures.
Here’s my selection of the best hotels in Vesturbær district
- Reykjavik Marina – Berjaya Iceland Hotels: Accommodation located just 11 minutes walk from the Icelandic Whale Museum. Modern double rooms with marine winks from 135€ per night, great breakfast 27€. Strong points: well connected, in a quiet area, close to the harbor. A great place to stay in Vesturbær for a reasonable price!
- Apartments Reykjavik: Located 400 meters from the Saga Museum. Cozy double room from 140€ per night. Strong points: Shared kitchen and bathroom, quiet neighborhood, friendly staff, laundry area.
- Grandi by Center Hotels: Located a 4-minute walk from Reykjavík Maritime Museum. Modern double rooms from 200€ per night, breakfast 25€. Strong points: the amazing spa, vegetarian option for breakfast, close to the old harbor – Perfect for a romantic getaway in Reykjavík!
- Hotel Local 101: Good newly renovated hotel, located 300 meters from the Museum of Modern Art. Double room from 210€ per night, breakfast 12€. Strong points: good breakfast, very comfortable beds, well connected.
- Exeter Hotel: 1 block from the Reykjavik Art Museum, this large hotel offers nice Industrial style rooms from 220€. Strong points: breakfast with local products, good service, sauna, in front of the marina, delicious bakery! My recommendation for a high-end stay in Vesturbær district.
In Hildar District
Hildar district is located to the southeast of the historic center.
Like Vesturbaer, it’s mainly a residential area but with a younger and more dynamic atmosphere, as this is where the university is situated.
You’ll enjoy this district:
- For a stay with friends
- If you don’t mind taking a bus to get around or walking at least 30 minutes to the center.
Best attractions in Hildar district:
- Perlan is one of the city’s most famous museum. It’s dedicated to Icelandic nature, with engaging and interactive exhibitions on glaciers, volcanoes, and northern lights. It also features a panoramic terrace and a restaurant.
- Nauthólsvík Beach: a geothermal beach with hot water pools and saunas
- Kringlan, Reykjavik’s largest shopping center.
The best accommodations in the Hildar district
- NN Urban Guesthouse: Located a 10-minute walk from Reykjavík’s Kjarvalsstaðir Art Museum. Comfortable double rooms from 140€ per night. Strong points: Friendly hosts, shared kitchen, nice beds. A great choice for its excellent value for money.
- ODDSSON Downtown Hotel: Cozy accommodation located 20 minutes walk from Perlan. Spacious studios from 200€ per night. Strong points: quiet neighborhood, clean and modern, well equipped.
- Eyja Guldsmeden Hotel: Located 1 block from the main street of Laugavegur. Nice Balinese-style double rooms from 210€, breakfast 26€. Strong points: rich breakfast, quiet location, good restaurant – A very cozy hotel at a great price!
- Midgardur by Center Hotels: Located 800 meters from Hallgrímskirkja Church. Double room from 210€ per night, rich breakfast for 25€. Strong points: friendly staff, very good spa, centrally located, cozy.
- Tower Suites Reykjavík: Elegant suites just a 3-minute walk from the Höfði Lighthouse. Luxurious rooms with panoramic sea or city views from €510, breakfast included. Strong points: the fantastic view, the free minibar, the impeccable service, the excellent breakfast served in the room. My recommendation for a luxury stay in the Icelandic capital!
In Laugardalur District
The last area I recommend for a stay in Reykjavik is Laugardalur, located to the east of the old town.
It’s also a calm and residential neighborhood, with a lot of charm.
Laugardalur is home to Laugardalslaug, a year-round heated aquatic complex (very handy in Iceland!), and the Reykjavik Park and Zoo, where you can observe animals native to the island like arctic foxes, reindeer, or seals, are located here.
It’s thus a great choice if you’re on a family trip to Iceland!
In this district, you can also discover Grasagardur Botanical Garden.
From Laugardalur, you can easily reach Reykjavik’s downtown area by taking the bus or with your rental car, if you have one.
The best hotels to stay in Laugardalur district (Reykjavik)
- Hotel Muli: Located less than 10 minutes walk from Reykjavík Zoo. Cozy rooms from 150€ per night, breakfast included! Strong points: friendly staff, good breakfast, quiet. Definitely the best value for money in Laugardalur.
- Reykjavik Lights Hotel by Keahotels: Located 500 meters from Laugardalslaug water park. Double room from 190€ per night, breakfast included. Strong points: views, good breakfast, free parking.
- Storm Hotel by Keahotels: Located 20 minutes walk from Rainbow Street. Comfortable accommodation for 2 from 200€ per night including breakfast. Strong points: Varied breakfast, comfortable beds, the warm welcome.
- Lotus Hotel: Located 300 meters from the Asmundarsafn Museum of Art. Modern room from 220€ per night, breakfast included. Strong points: excellent breakfast, new facilities, good bedding.
- Sif Apartments by Heimaleiga: Luxurious apartments located a 15-minute walk from the Sun Traveler sculpture. Bright, fully equipped accommodation is available from €340. Strong points: fully equipped apartments, children’s playground, airport transfer, terrace, quiet area – Perfect for a high-end family stay in Reykjavik!
Where to Stay in Reykjavik on a Budget
If you’re on a tighter budget, here’s a selection of affordable hotels in Reykjavik:
- Baron’s Hostel: Located 900 meters from the Sun Traveler Sculpture. Bed in shared dormitory from 40€ per night. Strong points: shared kitchen, quiet accommodation, central location.
- Loft – HI Eco Hostel: Located 15 minutes walk from the Maritime Museum. Bed in shared room from 60€ per night. Strong points: Bar and terrace, lockers, guest events, shared kitchen.
- Nordic Hostel: Located 500 meters from the Reykjavik Church. Bed in shared room from 80€ per night. Strong points: well equipped kitchen, bunk beds with curtains, friendly staff.
- Flóki by Guesthouse Reykjavík: Located 20 minutes from the Icelandic Phallotheca. Double room from 110€ per night, shared bathroom. Strong points: shared kitchen and lounge, very cozy.
Staying in Reykjavik with Family
- Skólavörðustígur Apartments: Located 5 minutes walk from Hallgrímskirkja Church. Bright 2-bedroom apartment from 250€ per night. Strong points: Full kitchen, centrally located, good bedding.
- Alda Hotel Reykjavík: Located 800 meters from the National Gallery of Iceland. Family room with double bed and sofa bed from 300€ per night. Strong points: modern, friendly staff, comfortable room, spa – perfect for family relaxation!
- Kvosin Downtown Hotel: Located next to the Icelandic Parliament. Spacious suite with 1 double bed and sofa bed from 420€ per night, optional breakfast for 22€. Strong points: private kitchen, excellent breakfast, nice views, super comfortable.
- Iceland Parliament Hotel, Curio Collection By Hilton: Located right on Austurvöllur Square in the city center. Lovely connecting family rooms from €600 per night. Strong points: spa and restaurant, excellent service, quiet space – an excellent choice for a luxury family stay in central Reykjavik!
What is the Best Hotel in Reykjavik?
If you’re looking for the best hotel in Reykjavik, I can only recommend you The Reykjavik EDITION.
And if you want something a bit more affordable but still excellent, you should book a night or more at Iceland Parliament Hotel.
Where to Stay in Reykjavik: The Summary Table of the Best Hotels
To give you a better idea of where to stay in Reykjavik, whether it’s in the city center or elsewhere, I’ve put together a table summarizing all the hotels mentioned in this article.
You can sort them by price or by district!
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🙎 Book a tour
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