Where to stay in Reykjavik

Details on Reykjavic areas, helping you find the best place to stay in Iceland

When visiting Iceland most people will choose to base themselves in the capital, Reykjavik. It is by far the busiest place on the island and the perfect base from which to explore all Iceland has to offer. Reykjavik is also a walking capital as it is relatively small, so can easily be explored on foot. The public bus system is reliable and covers Reykjavik and its outside suburbs. This is especially useful when the temperature drops or weather changes and walking any distance can seem like the last thing you fancy doing.

Reykjavik areas

There are quite a few areas of Reykjavik, but in reality there are only a few that most visitors will consider staying in. That’s not to say that the other areas are not good places to stay. but rather the central areas offer the visitor so much, that it is hard to consider outside areas unless your budget is really constrained.

Midborg or Reykjavik 101

Fondly known as 101, but officially known as Midborg this is the centre of the city and where most visitors will choose to stay in Reykjavik. The area encompasses the Harpa Concert Hall through to Hallgrimskirkja Church. If you stay here you are central, have all the shops, restaurants, bars and attractions within easy reach and most of the day tours from Reykjavik pick up from here too.

There are plenty of hotels to choose from in Midborg at various budgets, although as most people know Reykjavik is an expense city so bargains in accommodation are few and far between.

If you want to know the best place to stay in Reykjavik as a visitor then look no further as Midborg is it.

Hlidar

This is a quieter residential area of Reykjavik and at the budget end of the scale for visitors. It is popular with young people, backpackers and students which is why you’ll find the highest concentration of hostels and budget hotels in Reykjavik here.

Laugardalur

Laugardalur is popular with families as it is central but not so central that the nightlife and hustle and bustle overwhelmes the family style of holiday. Situated in a residential neighbourhood it has good connections into the heart of Reykjavik giving visitors the best of both worlds.

Vesturbaer

This area is becoming increasingly popular as although central it is slightly outside the main center and could be considered a more sophisticated and cool area to base yourself, still with easy access to all you need.

Booking a hotel in Reykjavik

As Reykjavik is the capital city of Iceland, there are a range of accommodation options available. There are the cheaper hotels and hostels that cater more for the young travellers and backpackers, a whole host of mid-range hotels, Airbnb’s and apartments, right the way through to top of the range luxury hotels.

We like to focus on luxury hotels in Reykjavik, as who doesn’t want to stay in a fantastic city and experience some luxury at the same time. And there are always good deals to be found.

However, we also appreciate the lovely chain hotels in Reykjavik, that allow you to be flexible with your budget, but also give you a little peace of mind if you have stayed with the chain before or are a member of their rewards scheme. Boutique and independent hotels in Reykjavik offer a true slice of Icelandic life, so we feature a few of our favourites on that page too.