The northern island of Iceland has been making ‘noise’ on the social media scene for years due to its impressive Northern Lights spectacle. It has easily become a wish list destination for almost everyone in the world. Well, who wouldn’t want to see an Aurora show expand the Cosmos? I really loved doing this!
Have you decided to organize an excursion to Iceland? You’ll likely land in Reykjavik, the capital, and staying there for at least a day is a great idea. Now you must be wondering where to stay in Reykjavik, right? Don’t worry, I got you!
While there are many places in Iceland to witness such beauty, let me now focus on Reykjavik, the capital and largest city in Iceland. As well as the Aurora Borealis show, you’ll surely love the vibrant pastels, unspoiled 1920s settlements, geothermal pools, museums and galleries, nightlife, the incredible LGBT community, and the half-night sunshine that unfolds. takes place during the summer when the sun shines until the end of the day.
Now here is the wide range of accommodation in Reykjavik that I have selected especially for you when your feet are itching again. In this article, you can find the 4 best central areas to stay in Reykjavik with my handpicked hotel recommendations in each one!
1. Midborg / DownTown Reykjavik
Midborg is a great choice for all types of travelers, with great restaurants, museums, bars and shopping. Yes, yes, if you are interested in nightlife, Middelburg is also the best place to stay in Reykjavik.
Some of the highlights of this area include Hallgrimskirkja Church (one of the city’s most important landmarks), National Museum of Iceland, Nauthólsvík Beach, Volcano House, and Harpa Reykjavik Concert Hall. In the city center you can also go shopping on Laugavegur street!
If you think this is the right place for you, here are the best hotels to choose from:
Luxury Stay (US$140 and up)
Sand Hotel by Keahotels – Located on the main street of Laugavegur in the city center, the Sandhotel is the latest boutique hotel in town that promises a clean and stylish environment during your stay. The Sandhotel also makes it easy for you by organizing excursions to the wonders of Iceland. One of the best things about this place is that it is within walking distance of many popular restaurants and attractions in the area. Definitely one of the best places to stay!
Reykjavik Residence Apartment Hotel – Built with soundproof rooms, this is definitely the place to rest when you want to get away from the bustling surroundings of the city. Definitely one of the best hotels in central Reykjavik! Plus, you’ll be within walking distance of many popular restaurants, bars, and attractions, and it’s also a great place to enjoy the Northern Lights in Iceland.
Middle Budget (US$60 – US$140)
Icelandair Hotel Reykjavik Natura – Icelandair is an eco-friendly hotel located near the peaceful forests of Öskjuhlíd Hill. He swears by local Icelandic environmental policy and is okay with what to do with his guests. Honestly, I think this place is a great option if you want to be close to all the popular places in central Reykjavik.
Hotel Reykjavík Centrum – This property is located on one of the oldest streets in Reykjavik. I don’t know about you, but it’s reason enough to stay here. Plus, its award-winning restaurant called Fjalaköttur is something you should definitely put at the top of your list while you’re here. Another great perk is that you will have plenty of restaurant and bar options nearby which are ideal for all types of travelers!
Budget Stay (up to US$60)
Igdlo Guesthouse – When it comes to where to stay on a budget in Reykjavik, you might want to take a look at this hostel / hostel. The family-run Igdlo Guesthouse offers spacious rooms fully decorated with wooden details. The hotel is located close to the bus station, several restaurants, night bars and the airport, which facilitates the daily transportation of guests. I recommend it to all budget travelers! In addition, you will always be surrounded by many restaurants in this area!
Apartments by ylma – Ránargata – Are you traveling to the city on a tight budget, but want to be in the city center, within walking distance of all popular attractions, restaurants and bars? So I really recommend to visit this place, you can fall in love! This is actually a super nice hostel that offers apartments to stay, all with everything you need for an amazing stay. In short, get ready for a super enjoyable experience at unbeatable prices!
2. Vesturbær / West Town 107 Reykjavik
Vesturbær, which literally means ‘city of the west’, is also known as Reykjavik 107 and is one of the coolest and most underrated areas in Reykjavik, Iceland. It is a central area relatively close to Midborg (3 km, but don’t worry, there is always public transport).
Vesturbær is located close to Reykjavik’s Old Harbor and is a great place to stay both in terms of accommodation and because you will always be surrounded by fantastic restaurants, cafes, bars and clubs.
While in the area, be sure to visit the Living Art Museum, Icelandic Whales (a very interesting whale exhibit), The Saga Museum, and much more. Also, I highly recommend going to the Aurora Reykjavik Museum if you can’t see them on your trip, but want to know everything about them!
Convinced? Here are the best hotels in this neighborhood to choose from, all organized by budget for your convenience:
Luxury Stay (US$140 and up)
Sudurgata – Luxury Dream Apartment – Looking for one of the best apartments in town? Don’t worry, you just found it! If you travel to Iceland with only one thing in mind which is totally luxurious and wasteful, I am sure this accommodation will make all your dreams come true. One of the main advantages of staying here is that this place is not far from the city center and I highly recommend it if you want to see the lights of Reykjavik.
Black Pearl Apartment Hotel – Being “passionate perfectionists”, father and son Klaas Hol and Bert transform existing buildings into new ones, which explains the birth of the Black Pearl Apartment Hotel. It used to be an apartment and they have given it a new meaning making it one of the best accommodation in Reykjavik. In addition, you will have many restaurants nearby, as well as in the city center! Fully recommended for a budget stay in Iceland!
Middle Budget (US$60 – US$140)
Embassy Apartments Downtown – If you are looking for the best hotels at the best value for money, you are on the right track! This is one of my top recommendations for mid-range hotels in Vesturbaer and a great option if you plan to see the lights of Reykjavik during your stay. All the apartments they offer are in fact very beautiful and spotlessly clean.
Icelandair Hotel Marina – If you are looking for a wonderful mid-range place with nice, clean rooms, an onsite restaurant and great service for your Iceland vacation, you should definitely book a room here! Besides the great reviews and great facilities, one of the best things about staying here is that you will be very close to lots of green areas and lots of restaurants and bars. Look at the photos and get ready for a great experience!
Budget Stay (up to US$60)
Reykjavik Downtown Hotel – Unfortunately I was only able to find a good budget hotel in Vesturbaer, but don’t worry, in fact it offers very good service! Honestly, this is one of the best options if you are looking for an inexpensive place that will give you a good night’s sleep after a full day chasing the Northern Lights or exploring the best things Reykjavik has to offer. The youth hostel is very clean and the staff are very friendly and helpful.
3. Hlídar – Reykjavik 105
One of the best things about Hlídar is that it’s close to central Reykjavik, so it’s a great option if you want to be super close to all the action, but still want to save some money. money on hosting. A nice combination, right? Another great advantage of staying in this area is that it is a bit quieter than Reykjavik 101, so you can enjoy some peace and quiet at night.
Speaking of downsides, this area unfortunately doesn’t have a lot of bar and restaurant options, but you can still walk to Midborg to explore the best things (it’s only a 15 minute walk! ) If you want to explore a bit, you have to know that the Reykjavík Art Museum is located in this area, as well as the Phallological Museum, one of the most unusual museums in the world I would say (not for children, of course!)
Luxury Stay (US$100 and up)
105 – A Townhouse Hotel – If you want to be super close to the city center and all the popular attractions and places of interest, I highly recommend you visit this place! This is one of the best hotels in Iceland and is my recommendation for anyone who wants to travel in luxury to this beautiful city and wants to be close to several restaurant and bar options in the center. Look at the photos and see for yourself, I’m sure you will like it! Get ready for one of Iceland’s best experiences! Ah, this is also one of the best hotels in Reykjavik if you are traveling to see the Northern Lights in Iceland.
Eyja Guldsmeden Hotel – This is another amazing option for all travelers who want to be pampered during their stay, besides being very close to the city center. This beautiful hotel has an onsite bar, restaurant, and great reviews, so I would recommend it to all travelers who want to stay in Hlidar. Hope this matches your travel plans!
Middle Budget (US$40 – US$100)
22 Hill Hotel – All rooms in this chalet have the basic amenities you need. However, his restaurant Potturinn og Pannan changes the rules of the game. It offers Icelandic cuisine with flavor combinations from all over the world. The rooms are extremely clean and very modern and the service offered here is absolutely impeccable. I consider this a great option if you want to explore all that the city has to offer besides the Northern Lights in Iceland!
Stay Apartments Bolholt – If you like a hotel that offers great value for money, that you will pay and that is also within walking distance of central Reykjavik, I highly recommend you visit this place! It is also ideal for families and travelers traveling to the countryside to see the Northern Lights in Iceland! Get ready for a super pleasant experience, as you can choose between different suites and you will also be near several options of bars and restaurants!
Budget Stay (up to US$40)
Hlemmur Square Hostel – Traveling to Reykjavik on a tight budget, but still want to experience the best of this area? Don’t worry, there are lots of great options! For example, this hostel is located on the third and fourth floors of the building, where you can sleep on custom made beds. There are mixed rooms for 4 and 6 people and this hostel offers lockers, chairs, a bar, two kitchens and other spaces sufficient for you to store your belongings and mingle with other guests.
Galaxy Pod Hostel – This is another amazing option for anyone who is planning to travel on a budget, but still wants to be in a good area, close to the center as well. This is also a great opportunity if you haven’t been able to sleep in a capsule hut yet and want to give it a try! The cabins are comfortable and perfect for a comfortable night’s sleep, and you’ll also be close to plenty of restaurants and bars. Take a look at the deals and get ready to surprise budget travelers!
Laugardalur is a charming district located in the northern part of the city, not far from the city center. This is my top recommendation for people traveling to Reykjavik with their families, as there are TONS of activities to choose from that will appeal to adults and children alike.
This area of Reykjavik is also known as the “Valley of the Hot Springs” because there are many hot springs that you can visit no matter what time of year you visit. They can also hike here which in my opinion is a great bonus for those looking for adventure.
If you are wondering about the sights located here then you should totally add the Botanical Garden of Grasagardur to your list, as well as the Húsdýragarðurinn Park and Zoo, Laugardalslaug (if you like swimming), the Asmundur Sveinsson Sculpture Museum and more. again.
Laugardalur is also more relaxed as it is a residential area so I totally recommend it to anyone looking for peace and quiet. If you think you belong here, scroll down to find my list of recommended hotels in this area:
Luxury Stay (US$110 and up)
Grand Hotel Reykjavik – This is for all travelers looking for a super pampered and luxurious stay in the city! This impressive hotel offers excellent service and, if you book your room here, you will have plenty of restaurants and bars nearby. There is a restaurant on site and the rooms are just beautiful, I am sure you will fall in love! Other great facilities include free gym access, huge outdoor pool, free Wi-Fi, free parking and more.
R13 – A Townhouse Hotel – If you want the best stay in one of the best places for families in Reykjavik, I recommend you visit this amazing accommodation! This beautiful hotel offers clean and well-decorated rooms, free Wi-Fi, a great location, a terrace, a wonderful view of the city and much more! Plus, you will find plenty of restaurants near you, in case you get bored and want to experience Icelandic cuisine.
Middle Budget (US$40 – US$110)
Nordurey Hotel City Garden – This is my top recommendation for all travelers looking for a great mid-range hotel that offers good value for money and helps them save money for their trip to Iceland. Free Wi-Fi, flat-screen TV, great location in the heart of the neighborhood, free toiletries – these are just a few of the perks you’ll get if you decide to book your stay here.
Hilton Reykjavik Nordica – If you’re looking for a great mid-range hotel that’s also perfect for families, this is the place for you! This wonderful hotel offers a delicious breakfast buffet, friendly and helpful staff, a 5-star gourmet restaurant with amazing dishes, free Wi-Fi and a prime location. What more could you ask for on your Iceland vacation? Plus, you’ll be within walking distance of lots of green spaces, restaurants, and cafes – a big bonus!
Budget Stay (up to US$40)
Reykjavik City HI Hostel – Reykjavik City HI Hostel in Iceland is another eco-friendly accommodation you should not miss on your list. This hostel offers a buffet breakfast, a nearby supermarket 24/7, community kitchens, movie nights, social events, a refreshing patio, free Wi-Fi and much more!
Lækur Hostel – This cute and cozy hostel is ideal for individual travelers and families looking to save some money on accommodation so that they can spend it to visit other beautiful areas of this amazing country. If you choose to stay here, you can enjoy free Wi-Fi, a restaurant, shared kitchen, luggage storage and many other great facilities and facilities. Believe me, this hostel offers everything you need and more for an unforgettable trip to Iceland.
Top Hotels near Reykjavik Airport
Reykjavik International Airport (KEF), officially called Keflavik Airport, is the main airport in the city and the place you are likely to land on your arrival in the country. If your flight arrives too early or too late, or if you have to wait until the morning to collect your rental car for your trip to Iceland, staying overnight near the airport may be a good idea for you.
If you’ve decided, scroll down to find my recommended Reykjavik Airport hotels (one for each type of budget):
Luxury Stay – Hotel Duus by Keflavik Airport – This is my recommendation for anyone who wants to enjoy luxury. This hotel offers an on-site restaurant, free Wi-Fi, a 24-hour front desk, beautiful rooms, a tour desk and much more. It is located just 3.4 km from the airport and also offers an airport shuttle service.
Middle Budget – Airport Hotel Aurora Star – This is one of the best mid-range hotels near Keflavik Airport! It is literally 400 meters from the airport and offers excellent service; believe me, it can’t get any closer than that!
Budget Stay – Nupan Deluxe – And here I present to you one of the best budget options if you want to be 2 miles from the airport and save money too. This property offers free Wi-Fi and many other great amenities that you are sure to enjoy.
The most important advice I can offer is to buy good travel insurance. Travel insurance protects you against illness, injury, theft and cancellations. This is full protection in the event of a problem. I never travel without it, as I have had to use it several times in the past. You can use the widget below to find the policy that’s right for you:
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