Reykjavík’s city center is where most tourists spend their time, either after arriving in Iceland or at the end of their trip. As the center is quite compact, you’ll have plenty of cafés, restaurants, bars, shops, and major sights within easy reach.
Choosing where to stay in Reykjavík really depends on how many days you’ll be staying in the city, and what you want to do and see. Some areas are perfect if you want to walk everywhere, while others are quieter and more convenient for parking.
When we visited Reykjavík, I noticed that accommodation prices can vary quite a lot depending on the area and the type of stay. You’ll find everything from cozy little apartments and stylish hotels in the city center to more affordable options, such as guesthouses further outside the center.
In this guide, I’ll show you the different areas to stay in Reykjavík, along with accommodation I would recommend based on reviews, location, and price.
Where to Stay in Reykjavík Iceland? My Quick Answer
To be completely honest with you, staying in the city center of Reykjavík is by far the easiest place to explore the capital of Iceland if you only have one or a couple of days during your visit.
From your accommodation in the city center, you’ll be able to walk almost everywhere, and most of Reykjavík’s iconic sights are only a short walk away. You’ll also have plenty of cafés, restaurants, bars, and shops nearby. This makes it super convenient if you don’t want to rent a car or use public transport during your stay.
Short on Time? Check Out My Favorite Reykjavík Hotel Stays
⚪️⚪️⚪️ City Center Hotel – Click to see rates and availability
⚪️⚪️ Reykjavík Base – Click to see rates and availability
⚪️ Hotel Local 101 – Click to see rates and availability
Although we didn’t stay in the city itself, but about a 20-minute drive away because we stayed for a longer period, I’d love to share some of the stays I found in Reykjavík and would consider trying the next time I visit Iceland.
I would say that the only downside could be parking. When we visited Reykjavík, there didn’t seem to be that many parking spaces available, and the streets around the center were pretty busy.
So, if parking isn’t included with your accommodation, you might end up parking a little farther away and adding some extra miles of walking to your day.
Best Areas to Stay in Reykjavík
City Center of Reykjavík
Downtown Reykjavík, specifically Miðborg, is probably the best area if you want to stay close to the main sights and lively streets. Places like Hallgrímskirkja, Laugavegur, Harpa, and the Old Harbour are all within easy walking distance, so I personally think is the best area that’s especially convenient for your first time in Iceland.
City Center Hotel
City Center would be a good fit if you’re just like me, and love to stay somewhere comfortable and stylish without being right in the middle of the busiest streets. The main sights of central Reykjavík are only a short walk away, so you can easily head out for sightseeing, cafés, or dinner and still return to a cozy base at the end of the day.
Book Here: City Center Hotel
Hotel Frón
For travelers who like to step straight into the action, I found Hotel Frón, which has one of the best locations in the city. It sits directly on Laugavegur, Reykjavík’s main shopping street, putting shops, restaurants, and plenty of the lively city-center atmosphere right outside the door.
Book Here: Hotel Frón
Hotel Von
Hotel Von works especially well for couples who are planning a city break with reserving time for wandering, shopping, and relaxed evenings together. Laugavegur is close by, while the option to dine at the hotel adds a bit of extra convenience when you would rather stay in than head back out after a long day.
Book Here: Hotel Von
Kvosin Downtown Hotel
Kvosin Downtown is an interesting choice if you want to stay close to some of the city’s most recognizable landmarks. Reykjavík Cathedral and the Icelandic Parliament are nearby, at the same time the well-equipped rooms make it especially practical for travelers who appreciate having a little more comfort and functionality during their stay.
Book Here: Kvosin Downtown Hotel
West Side of Reykjavík (Vesturbær & Grandi)
The western side of Reykjavík, including places such as Vesturbær and Grandi, feel a bit quieter, although if you’re staying here, you are still close to the city center. Those places have a more relaxed atmosphere, along with the Harbour, museums, cafés, and several whale-watching departure points. I think this is the best option for culture lovers visiting the city.
Blue Viking Apartments Reykjavík
Blue Viking Apartments are worth considering if you want more space and independence than a standard hotel room can offer. The apartments are super modern and very bright and spacious. Free parking is a particularly useful bonus if you’re arriving by rental car and are going to explore beyond Reykjavík as well.
Book Here: Blue Viking Apartments Reykjavík
Grandi by Center Hotels
For a stay with a little more atmosphere, Grandi by Center puts you in Reykjavík’s creative Harbour district, close to the Old Harbour while still within easy reach of downtown. Its stylish industrial-inspired interiors, restaurant, bar and spa make it a relaxed choice if you’d like to unwind after a day of wandering.
Book Here: Grandi by Center Hotels
Reykjavík Marina
Reykjavík Marina really stands out for its connection to the waterfront. The hotel is very colorful, with a characterful interior and some rooms have an insane view overlooking the Harbour, which makes the stay way more memorable than a conventional city hotel. It’s also only a short walk away from central Reykjavík.
Book Here: Reykjavík Marina
Hotel Local 101
If you would rather stay somewhere understated and neighborhood-like while remaining close to the center, Hotel Local 101 is a suitable option. It occupies a renovated historic building in Vesturbær, just a few steps from downtown, and its cozy in-house restaurant and bar make it an appealing base for a more chilled stay.
Book Here: Hotel Local 101
East Reykjavík (Laugardalur & Hlíðar)
If you really want to experience a local Icelandic neighborhood, the eastern side of Reykjavík could be your preferred choice. Areas such as Laugardalur and Hlíðar offer an insight into what’s it like to live between the locals, whilst having easy access to green areas, swimming pools, and often more parking spaces. At the same time the busy city center is easy to reach by car or public transport.
Reykjavík Base in Leafy Laugardalur
Reykjavík Base is especially appealing if you need to stay productive while traveling. The exceptionally fast Wi-Fi, work desk, full kitchen and washing machine make it easy to settle into a normal routine, whether you are a digital nomad or simply need to catch up on work in the evenings.
Its location in Laugardalur also gives you a quieter, more residential side of Reykjavík, with green spaces, the city’s largest swimming pool and seaside walking paths nearby.
Book Here: Reykjavík Base
Candlewood Suites Reykjavík
This place is made for you if you prefer the freedom of an apartment and the ability to cook if you want to. Every studio comes with a fully equipped kitchen, including a dishwasher and cooking hob, while on-site laundry makes longer stays considerably easier.
I would say this one is particularly practical for families, business travelers or anyone staying several nights who would rather prepare the occasional meal than rely on restaurants every day.
Book Here: Candlewood Suites Reykjavík
Hotel Muli
Hotel Muli is a really good choice if you are exploring Reykjavík with a rental car, thanks to free parking around the property! That is not its only advantage: breakfast is included in the rates, you can use the laundry room for free, and guests can help themselves to complimentary tea and coffee throughout the day.
Its quieter setting just outside the busiest part of downtown makes it a comfortable place to return to after wandering the capital of Iceland.
Book Here: Hotel Muli
Midgardur by Center Hotels
Miðgarður is the perfect fit if you want your Reykjavík stay to include some proper ‘me-time’. Its spa has indoor and outdoor hot tubs, a sauna and a gym, so you can warm up and unwind after a cold day exploring the city.
At the same time, the hotel sits on Laugavegur and has its own restaurant and bar, meaning you can combine sightseeing, dining and relaxation without having to travel far if you don’t want to.
Book Here: Midgardur by Center Hotels
Where to Stay in Reykjavík on a Budget
Staying on a budget in Iceland is slightly different compared to other European countries as Iceland belongs to one of the most expensive EU countries. That being said, I was able to find some places where you still have a private room for a budget friendly price. Please note that some accommodations might not be directly in the center of Reykjavík, however this does save a pretty buck.
KEX Reykjavík
Right in the middle of the center of Reykjavík you’ll find KEX Reykjavík, a hostel offering private rooms as well as beds in a dorm. These beds come in at around 32 euros a night, giving a reasonable cheap option to stay close to the center. You’ll have access to communal areas such as a kitchen, lounge, and a heated outdoor terrace. They also offer free luggage storage. For me this looks like the perfect option if you’re traveling Iceland on a budget.
Book Here: KEX Reykjavík
Guesthouse Pavi
If you’re a group of two and splitting the bill, Guesthouse Pavi is a great option at 39 euros per person per night. It’s a private room, but you’ll have access to a shared bathroom.
The best part? It’s only a couple of minutes of walking from the city center, so that’s a big win. Staying here means staying on budget but not sacrificing the ease of staying in the center. So, if you’re on a budget, but travelling as a couple or within a group, this might be you preferred choice!
Book Here: Guesthouse Pavi
FAQ About Where to Stay in Reykjavík Iceland
What is the best time to visit Reykjavík?
I’d say that the best time to visit Iceland really depends on what kind of trip you’re after and will be very different for anyone. Summer offers long daylight hours which is perfect for certain excursions, while autumn and winter are genuinely the best if seeing the Northern Lights is a priority on your list.
What is the best area to stay in Reykjavík?
For most first-time visitors, Downtown Reykjavík, Miðborg, is the perfect area to start or finish your Iceland trip. From here, it’s handy to have everything from iconic sights to the best restaurants nearby. It’s also very convenient if you’re staying for a short amount of time or would like to do a full-day trip, such as the Golden Circle.
What is there to do if you only have 24 hours in Reykjavík?
If you only have 24 hours in Reykjavík, you can still see and experience a lot without rushing around. Everything in the city center is easy to combine, so a few iconic sights, good food, and one memorable activity are all possible within one single day.
I’ve actually written a full article where I break down exactly how I would spend a full day in Iceland’s capital, including the best order to do everything and how to make absolutely the most of your limited time.
How do you get to Reykjavík without a car?
Public transport is easy to use in Iceland, but it isn’t the most common way to get around. From Keflavík Airport to the city center of Reykjavík, you can take a public bus or secure a spot on the Flybus, which is one of the most convenient options for travelers who don’t want to rent a car.
Is Reykjavík worth visiting?
Absolutely! If you’re planning a trip to Iceland, you definitely cannot skip the capital. Reykjavík offers many iconic sights, such as Hallgrímskirkja, the Old Harbour, and the famous Rainbow Street, but there’s also plenty to enjoy beyond the main sightings.
I also think Reykjavík gives you a nice contrast to Iceland’s stunning landscapes, making it a great place to either start or finish your Iceland itinerary.
My Final Thoughts on the Best Area to Stay in Reykjavík
I personally think staying in the middle of Reykjavík is the most logical choice for first-time visitors, especially if you only stay one full day in the capital. You can start your day exploring the city center on foot, head out for dinner to one of the well-known Icelandic restaurants and easily fit a lot of wandering around into just one day.
That being said, staying a bit outside Reykjavík definitely has its own charm, especially during the darker months. With less light pollution around your accommodation, you’ll have a better chance of spotting the Northern Lights straight from your window or just by stepping outside, which is a pretty special feeling to start your trip or end your Iceland itinerary with.
So, in the end, it really depends on what you prefer, what kind of budget you want to spend, and which period of the year you’re visiting this beautiful country.
I genuinely loved staying just outside the capital, as I could easily go hunt for Northern Lights daily by just stepping outside and staring into the darkness. 🙂
Hopefully you can choose between the variety of accommodations, and I am sure you’ll have the best time in Reykjavík. Happy travels!
Check Out My Other Reykjavík Blogs
Spend 24 Hours in Reykjavík Iceland: What I Did and What I Recommend
Whale Watching Tour in Reykjavík Iceland: My Honest Review
Check Out My Other Iceland Blogs
The Best Waterfalls in Iceland: Add These Waterfalls to Your Iceland Itinerary
What’s the Best Month to Visit Iceland? My Honest Opinion & Thoughts
What to Pack for Your Iceland Trip? Check My Useful Packing Guide
The 9 Best Activities to Do in Iceland: Things to Do & Which Activities I Would Recommend
5 Days South Coast Iceland Itinerary: My Top Route & Tips
Iceland Budget: Daily Costs & Money-Saving Tips for Your Iceland Trip
