Best Places to Stay in Reykjavik: Ultimate Neighborhoods Guide | Go Travel Daily

Best Places to Stay in Reykjavik: Ultimate Neighborhoods Guide

Situated along the coast of Iceland, Reykjavik serves as the capital and the largest city in the country. As one of the smallest cities in Europe, Reykjavik holds the distinction of being the northernmost capital in the world, functioning as the governmental, financial, and cultural center of Iceland. According to the “Book of Settlement,” the oldest recorded evidence of Icelandic history, the city represents the first permanent settlement in the nation, existing since 874 AD.

Named after the city’s geothermal features, Reykjavik translates to “cove of smokes” or “the smoky bay.” Remarkably safe, the city is home to the world’s oldest parliament, Althingi. Enthusiasts of art will appreciate the multitude of street art dispersed throughout the city, while Kolaportið, situated next to the harbor, is Iceland’s largest flea market, offering a diverse range of items, from shark meat to vintage records.

Visitors may be surprised to see infants resting in strollers outside of shops or supermarkets; Icelanders believe that allowing their young children to sleep in the fresh air, even in chilly conditions, is beneficial for their well-being.

Let us delve into the prominent neighborhoods within the city to help you determine the most suitable area for your stay in Reykjavik.

Miðborg – Downtown/City Center – 101

Miðborg

Regarded as the vibrant heart of the city, the Downtown neighborhood encompasses numerous attractions and a majority of its well-known bars and restaurants. Whether you prefer exploring the brilliantly colored streets or wish to experience authentic Icelandic nightlife, this area is likely where you will spend most of your time. The downtown area is pedestrian-friendly and features one of the city’s most historic landmarks, the Church of Hallgrímur. This remarkable Lutheran parish church towers over the area and is the largest of its kind in Iceland, with a history dating back to 1945. Additionally, the National Museum of Iceland, established in 1863, offers an intriguing collection of Icelandic historical artifacts and antiquities.

Suitable for: All types of travelers.
Additional Highlights: Volcano House, Listasafn Reykjavíkur Reykjavík Art Museum, and Reykjavík Museum of Photography.

Hotel Recommendations:

  • The Swan House – RÆTUR Apartment Hotel – Conveniently located steps away from the notable shopping street, this property features spacious, self-catering suites equipped with complimentary Wi-Fi, a kitchenette, and a private bathroom. Each stylish unit is complete with a flat-screen TV, extra-large double beds, and a tea/coffee maker for added comfort. Ideal for diverse travelers.
  • Skuggi Hotel Reykjavík by Keahotels – Positioned a short distance from the historic Hallgrímskirkja Church, this hotel offers a 24-hour front desk, complimentary underground parking, and an on-site bar. The comfortable guestrooms are furnished with a TV, free Wi-Fi, and a private bathroom, making it perfect for solo travelers, couples, and families.
  • Canopy by Hilton Reykjavik City Centre – Located just moments from the renowned Laugavegur Shopping Street, this hotel features well-appointed rooms adorned with Icelandic décor, flat-screen TVs, and tea/coffee makers. Guests can work out at the on-site fitness center and unwind with cocktails at the bar, while enjoying a generous complimentary breakfast buffet served daily. A fantastic choice for luxury travelers.

104 – Laugardalur

Laugardalur Botanical Garden

Primarily a residential neighborhood located close to the vibrant downtown area, Laugardalur is an excellent choice for families, especially those traveling with young children. Exuding a charming atmosphere, the numerous cozy cafés provide ideal spots to enjoy lunch while soaking in the surroundings. Families can visit the Reykjavik Zoo and Entertainment Park, where children can splash at Iceland’s largest swimming pool and dine amidst the park’s beautifully manicured gardens. Conclude the day with a leisurely walk through the botanical gardens. For more adventurous experiences, consider an overnight camping trip at the Reykjavik Campsite; while there, don’t miss the chance to indulge in a rejuvenating soak at the thermal pools of the Blue Lagoon.

Suitable for: All types of travelers.
Other Highlights:
Húsdýragarðurinn (zoo), Laugardalslaug Swimming Pool, Laugardalur valley botanical garden, and ice skating.

Hotel Recommendations:

  • Sport Hostel Reykjavik – Located next to the refreshing Blue Lagoon Spa, this hostel offers pleasant accommodation in both twin and family rooms, with a communal kitchen for guest use. Relax on the sun terrace while enjoying breakfast and catching up on favorite shows in the TV lounge, making it suitable for all types of travelers.
  • Skipasund Apartment – A short drive from Laugardalslaug Swimming Pool, the property features generous, fully-equipped apartment units set in the picturesque Laugardalur Valley. Guests benefit from free parking and Wi-Fi, making it ideal for couples, families, and groups.
  • GreenKey Apartments L27 – Offering well-appointed one-bedroom apartments with complimentary Wi-Fi, fully-equipped kitchens, extra-large double beds, and living rooms, these apartments are conveniently located just a short drive from Reykjavik Domestic Airport. Rooms include cozy patios, where guests can enjoy morning coffee. Suitable for couples, families, and groups.

Hlíðir – 105

Fosshótel Rauðará

While conveniently located near the energetic downtown area, the Hlíðir district is sufficiently tranquil for a restful night’s sleep. Although it does not feature its own array of restaurants and bars, it is within close proximity to the lively dining and nightlife scene of the 101 neighborhood. Hlíðir is also home to one of the city’s more unconventional museums, the Icelandic Phallological Museum, which, having opened in 1997, boasts the world’s largest collection of penises and penile parts, including 55 specimens from whales and 118 from land mammals. A noteworthy exhibit includes a human specimen, acquired in July 2011.

Suitable for: All types of travelers
Other Highlights:
City Park Klambratún and Reykjavík Art Museum.

Hotel Recommendations:

  • 105 – A Townhouse Hotel – Located within walking distance of Hlemmur Square, this hotel features beautifully-decorated studios and apartments equipped with comfortable beds, satellite TV, kitchen facilities, and private bathrooms. The hotel’s 24-hour front desk is available to assist with car rentals and sightseeing recommendations, appealing to solo travelers, couples, and small families.
  • Fosshótel Rauðará – Boasting 24-hour reception, a delightful bar and cocktail lounge, and free parking, this hotel offers stylishly designed rooms located a mere five minutes’ walk from Klambratun Park. Guests can enjoy a delicious complimentary breakfast served daily. It is great for all types of travelers.
  • Reykjavík Hostel Village – This family-run, welcoming property lies within walking distance of numerous city attractions, including the main shopping street and the Sundhöllin public swimming pool. It provides a variety of cheerfully decorated rooms and apartments equipped with complimentary Wi-Fi and delightful views of the city or surrounding gardens, suitable for all types of travelers.

108 – Háleiti og Bústaðir

Hotel Island

If your interest leans more towards enjoying scenic landscapes rather than cultural experiences, the 108 neighborhood in Reykjavik is an ideal accommodation choice. Surrounded by lush greenery and the crystal-clear waters of the surrounding sea, Hálóleiti og Bústaðir encompasses four neighborhoods: Hálóleiti, Kringla, Fossvogur, and Gerði. Fossvogur Valley, known as the leading outdoor attraction in this region, is a popular recreational site frequented by both locals and visitors. Hiking the many trails that weave through the area is particularly favored. After enjoying the nature of Iceland, head to the Kringlan Shopping Mall, one of the city’s finest retail destinations.

Suitable for: All types of travelers.
Other Highlights:
City Park Klambratún and Laugardalslaug Swimming Pool.

Hotel Recommendations:

  • Reykjavik Lights Hotel by Keahotels – Located within a kilometer of Laugardalur Family Park, this well-designed hotel offers luxurious accommodation in tastefully decorated guestrooms inspired by the ancient Icelandic calendar. A delightful breakfast buffet is served daily, perfect for all types of travelers.
  • Arctic Comfort Hotel – Mere steps from Iceland’s largest swimming pool, this hotel presents expansive guestrooms furnished with flat-screen TVs, kitchenettes, and private bathrooms. Guests can begin their day with a hearty breakfast while relaxing with cocktails at the hotel’s bar and lounge during the day. Additionally, the attentive staff can recommend local dining options and assist with reservations, suitable for all types of travelers.
  • Hotel Island – Featuring a comprehensive spa and wellness center, a beauty salon, a fitness facility, and an on-site bar and restaurant, Hotel Island offers its guests luxurious accommodations with panoramic views of the surrounding mountains. Many of the city’s renowned attractions are within a short distance, making it ideal for diverse travelers.

170 – Seltjarnarnes

Seltjarnarnes

Although technically not part of Reykjavik itself, Seltjarnarnes, known as the 170 neighborhood, is a small town located on the tip of a stunning peninsula, recognized for its proximity to the North Atlantic Ocean. This area features beautiful coastal walks and an impressive display of outdoor art created by local artists. Seltjarnarnes is considered one of the prime locations for experiencing the breathtaking phenomena of the Northern Lights in winter and the Midnight Sun in summer. Additionally, it is a paradise for birdwatchers, boasting more than 110 species of birds, complete with a dedicated shelter for photographers eager to capture avian moments.

Suitable for: All types of travelers.
Other Highlights:
Grótta Island Lighthouse, Golfklúbbur – Seltjarnarnes, and Nesstofa Museum.

Hotel Recommendations:

  • Blue House B&B – Located a short five-minute walk from the beach, this B&B features well-appointed rooms and self-catering apartments in a tranquil setting. Each room is equipped with an Apple TV and Netflix, and guests may enjoy views of the sea or gardens, accommodating various travelers, including larger groups.
  • Apartment by the Sea near Reykjavik Center – This delightful property by the beach offers tastefully decorated self-catering apartments with kitchens and satellite TVs. Guests can access complimentary Wi-Fi throughout the property, with opportunities for hiking and cycling nearby, making it suitable for couples and families.
  • Nes Residence – Providing exceptional views of the encompassing sea, Nes Residence features fully-furnished apartments equipped with modern amenities, including free Wi-Fi, streaming services-equipped flat-screen TVs, kitchens, and private bathrooms. The National Museum of Iceland is only a ten-minute drive away, catering to solo travelers, couples, and small families.

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