What is the best area to stay in Reykjavík?

Reykjavik: from the bustling downtown core with its colourful houses and lively nightlife, to quieter residential neighbourhoods offering easy access to geothermal pools, each district has its own distinct character. In this guide we’ll cover where to stay in Reykjavik to ensure you find your perfect base for exploring the Land of Fire and Ice.

What is the best area to stay in Reykjavík

We’ll delve in much greater detail below, but first here’s a quick overview of the best areas to stay in Reykjavik:

• Miðborg (Downtown): Perfect for first-time visitors, Miðborg is a vibrant area with iconic attractions, colourful streets, and lively nightlife. It's a walkable spot filled with shops, cafes, and cultural spots.
• Vesturbær: For luxury travellers, Vesturbær is ideal. This sophisticated neighbourhood offers a calm vibe with upscale dining and beautiful coastal views. It's also close to cultural spots and scenic harbour areas.
• Hlíðar: Hlíðar is great for families, featuring quiet residential streets lined with trees, playgrounds, and family-friendly attractions. It's close to parks, museums, and geothermal pools.
• Laugavegur: If you're into nightlife, Laugavegur is the place to be. It's the pulsing heart of Reykjavik's after-dark scene, packed with bars, clubs, and restaurants. The vibrant atmosphere has a distinctly Icelandic flavour that makes for a memorable night out.
• Grandi (Old Harbour Area): For a local experience, head to Grandi. This area blends maritime charm with trendy vibes, featuring colourful buildings, fishing boats, street art, and innovative restaurants. It offers an authentic yet contemporary feel.
• Þingholt: Culture and history buffs will love Þingholt. Rich in historical and cultural landmarks, it features charming architecture and is home to significant museums, galleries, and important civic buildings.
• Hlemmur: Budget travellers should check out Hlemmur. Centred around a vibrant food hall with diverse, affordable dining options, it's a community-oriented area with local markets, cultural spots, and easy access to public transportation.

Best area to stay in Reykjavik for first-time visitors: Miðborg (Downtown)

• My recommendation: Black Pearl Apartment Hotel
• Location: Central Reykjavik, close to major attractions and entertainment, with excellent public transport connections.
• Pros: Central location, vibrant atmosphere, numerous dining and shopping options.
• Cons: Can be crowded and expensive.

Miðborg, or downtown, is where you'll find some of the city's most iconic spots, like the towering Hallgrímskirkja church. During the day, the streets are buzzing with locals and tourists exploring charming side streets decorated with colourful murals and quaint Scandinavian-style buildings. As night falls, the area turns into a lively nightlife hub, with cosy bars and trendy clubs coming alive.

The stunning Harpa Concert Hall, with its glass facade reflecting the harbour's waters, showcases Icelandic creativity. Laugavegur Street, the main shopping street, is full of life with its mix of boutiques, cafes, and galleries. The compact nature of the neighbourhood means you're never far from a new discovery, whether it's a hidden courtyard or a bustling square.

Take a stroll along the scenic waterfront, visit the Reykjavik Art Museum, or dive into history at the National Museum of Iceland. Don't miss the charming Tjörnin pond, a peaceful oasis in the city centre.

Why I love it: Miðborg is the perfect introduction to Reykjavik's charm. It's truly a walkable, and vibrant place that never fails to surprise and delight.

Best hotels in this area

• Best for a boutique stay: Reykjavik Marina - Berjaya Iceland Hotels. Chic waterfront hotel offering stylish rooms with nautical-inspired decor. Features an on-site cinema, gym, and vibrant bar. Perfectly situated for exploring Reykjavik's old harbour area and downtown attractions.
• Best for luxury apartments: Black Pearl Apartment Hotel. Upscale all-suite hotel providing spacious, modern apartments with full kitchens and living areas. Offers stunning harbour views, personalised service, and high-end amenities. Ideal for extended stays or families seeking home-like comforts.
• Best for vintage charm: Vintage Hotel. Quaint boutique hotel housed in a renovated 1930s building. Boasts individually decorated rooms featuring retro furnishings and local artwork. Offers a cosy lounge, complimentary breakfast, and a central location near Reykjavik's main shopping street.

Browse hundreds of accommodations in Miðborg to fit any budget.

Best area to stay for luxury travellers: Vesturbær

• My recommendation: Reykjavik Marina
• Location: West Reykjavik, close to upscale dining and scenic views, with good public transport connections.
• Pros: Luxurious atmosphere, high-end accommodations, beautiful coastal views.
• Cons: Can be expensive.

Vesturbær, in the western part of Reykjavik, is a sophisticated neighbourhood with a calm and charming vibe, unlike the bustling energy of downtown. You'll find tree-lined streets and well-maintained parks, creating a serene atmosphere perfect for those who want tranquillity without being too far from the city's amenities.

This area is home to some of the city's key cultural spots, like the National Museum of Iceland, where you can dive into the country's rich history. Don't miss the Vesturbæjarlaug swimming pool, a local favourite for its luxurious geothermal baths. 

Vesturbær is filled with upscale boutiques, art galleries, and cosy cafes, perfect for those who appreciate the finer things in life. When it comes to dining, this neighbourhood doesn't disappoint. Check out Matur og Drykkur, set in an old salt fish factory, where you can savour a modern twist on traditional Icelandic cuisine, earning it a Michelin Bib Gourmand. For something unique, try Coocoo's Nest, a family-run restaurant with a daily changing eclectic menu.

Why I love it: Vesturbær is Reykjavik's hidden gem, it's where you can experience the luxurious side of Iceland while still feeling connected to the country's authentic charm and stunning landscapes.

Best hotels in this area

• Best for a central location: Hotel Local 101. Stylish boutique hotel situated in the heart of Reykjavik. Offers modern rooms with Icelandic-inspired decor, an on-site restaurant serving local cuisine, and a trendy bar. Steps away from main attractions and vibrant city life.
• Best for harbour views: Grandi by Center Hotels. Contemporary hotel overlooking the old harbour. Features sleek rooms, a rooftop terrace with panoramic vistas, and a fitness centre. 
• Best for maritime charm: Reykjavik Marina. Unique hotel set in a former paint factory by the old harbour. Boasts quirky nautical-themed rooms, a cinema, gym, and lively Slippbarinn bar. 

Browse hundreds of accommodations in Vesturbær to fit any budget.

Best area to stay in Reykjavik for families: Hlíðar

• My recommendation: Midgardur by Center Hotels
• Location: East Reykjavik, close to family-friendly attractions and parks, with good public transport connections.
• Pros: Family-friendly, quiet area, close to parks and museums.
• Cons: Less vibrant nightlife.

Hlíðar is a charming residential district that offers an ideal base for families visiting Reykjavik. With its tree-lined streets, well-maintained playgrounds, and cosy local cafes, you'll quickly feel at home in this neighbourhood.

You'll find some of Reykjavik's most engaging family-friendly attractions here. The Perlan Museum, complete with a planetarium and observation deck, lets you dive into Iceland's natural wonders. For a perfect picnic spot or some outdoor fun, head to Klambratún Park, a sprawling green space that's great for kids to run around. Right in the park, the Reykjavik Art Museum's Kjarvalsstaðir branch showcases modern Icelandic art/

On rainy days, the Ásmundarsalur art gallery is a fantastic indoor option, as they regularly offer workshops for children.  The nearby Laugardalslaug geothermal pool complex is a must-visit, with its water slides and hot tubs providing fun for all ages.

For a sweet treat, Valdís Ice Cream Parlor is a must-visit, known for its unique, locally-inspired flavours that everyone will love. Just a short distance away, the Laugardalur Valley offers even more family fun with the city's largest outdoor thermal pool, a zoo, and a beautiful botanical garden.

Why I love it: Hlíðar is where families can experience both nature and culture. 

Best hotels in this area

• Best for budget-friendly style: ODDSSON Downtown Hotel. Trendy hostel-hotel hybrid offering a mix of dorms and private rooms. Features a rooftop hot tub, yoga studio, and communal kitchen. 
• Best for wellness enthusiasts: Midgardur by Center Hotels. Modern hotel boasts a luxurious spa with a sauna and hot tub. Offers comfortable rooms, an on-site restaurant, and a gym. 
• Best for quiet comfort: 22 Hill Hotel. Cosy boutique hotel in a residential area, offering a peaceful retreat from city bustle. Features clean, comfortable rooms and a complimentary breakfast buffet. 

Browse hundreds of accommodations in Hlíðar to fit any budget.

Where to stay in Reykjavik for nightlife: Laugavegur

• My recommendation: Hotel Phoenix
• Location: Central Reykjavik, close to bars and nightlife, with excellent public transport connections.
• Pros: Vibrant nightlife, numerous bars and clubs, lively atmosphere.
• Cons: Can be noisy and crowded.

Laugavegur is centred around its namesake street. This vibrant district is where locals and tourists alike flock for entertainment after dark. Laugavegur Street itself is a buzzing thoroughfare lined with an eclectic mix of bars, clubs, and restaurants. 

 For craft beer enthusiasts, Microbar offers an impressive selection of local and international brews. Kaffibarinn, partly owned by Damon Albarn of Blur fame, is a local institution known for its eclectic music and lively atmosphere. For a taste of Icelandic nightlife, visit Prikið, the oldest cafe in Reykjavik that transforms into a hopping bar and club at night.

Just a short walk away, the striking Harpa Concert Hall offers world-class performances and stands as an architectural marvel on the waterfront. For those seeking something uniquely Icelandic, the quirky Icelandic Phallological Museum provides an offbeat cultural experience.

The atmosphere is decidedly youthful and cosmopolitan, with a distinctly Icelandic flavour that sets it apart from other European party districts.  Food-wise, don't miss Bæjarins Beztu Pylsur for a late-night snack - their hot dogs are world-famous.

Why I love it:  Laugavegur is a great place to go out in Reykjavik

Best hotels in this area

• Best for design lovers: Hotel Phoenix. Stylish boutique hotel showcasing contemporary Icelandic design. Features individually decorated rooms with local artwork, a cosy lounge, and a gourmet breakfast. Centrally located, offering easy access to Reykjavik's cultural attractions and nightlife.
• Best for eco-conscious travellers: Eyja Guldsmeden Hotel. Sustainable boutique hotel with a Nordic-Balinese aesthetic. Offers organic toiletries, locally sourced breakfast, and eco-friendly practices throughout. Comfortable rooms feature four-poster beds and cosy sheepskins. Conveniently located near Laugavegur shopping street.

Browse hundreds of accommodations in Laugavegur to fit any budget.

Best area to stay for a local experience: Grandi (Old Harbour Area)

• My recommendation: The Reykjavik EDITION
• Location: West Reykjavik, known for its maritime history and trendy vibe, with good public transport connections.
• Pros: Beautiful scenery, maritime charm, trendy restaurants and cafes.
• Cons: Can be windy.

Grandi, also known as the Old Harbour Area, still retains much of its original fishing village character, with colourful corrugated iron buildings and bobbing fishing boats in the harbour.

However, it's also known for its hip and artistic vibe. Street art adorns walls, trendy cafes occupy former fishermen's huts, and innovative tech startups have made their home in repurposed warehouses. 

In Grandi, the Reykjavik Maritime Museum is a must-visit for a glimpse into Iceland's seafaring history. Just nearby, the Whales of Iceland exhibition offers an immersive experience with these incredible marine mammals. 

For food, you can't miss Matur og Drykkur, a restaurant in a former salt fish factory that serves modern takes on traditional Icelandic dishes. The Grandi food halls are a culinary hotspot, perfect for tasting the best of Icelandic cuisine in a lively, market-style setting.

Art lovers should definitely stop by the Marshall House, which hosts the Living Art Museum and the studio of artist Ólafur Elíasson.

Why I love it: Grandi is where the old meets the new in the most captivating way.

Best hotels in this area

• Best for a boutique stay: The Reykjavik EDITION. Luxury boutique hotel offering sophisticated design and exceptional service. Features sleek rooms, a rooftop bar with panoramic views, and a signature restaurant. 
• Best for harbour views: Grandi by Center Hotels. Contemporary hotel overlooking the old harbour. Features sleek rooms, a rooftop terrace with panoramic vistas, and a fitness centre. 
• Best for industrial chic: Exeter Hotel. Stylish hotel housed in a renovated building that was once a salt fish factory. Offers modern rooms with exposed concrete and leather details, an excellent restaurant, and a sauna. 

Browse hundreds of accommodations in Grandi to fit any budget.

Best area to stay in Reykjavik for culture and history: Þingholt

• My recommendation: 101 Hotel, a Member of Design Hotels
• Location: Central Reykjavik, close to historical and cultural landmarks, with good public transport connections.
• Pros: Rich in history and culture, charming architecture, central location.
• Cons: Can be touristy.

Þingholt is where to stay in Reykjavik if you’re interested in discovering the local culture and history. This district is packed with some of the city's most significant cultural spots. You can visit the National Gallery of Iceland, which is in a stunning 1920s building, to see the best of Icelandic art from the 19th and 20th centuries.

Don't miss the Reykjavik City Hall, a striking modernist building that appears to float on Tjörnin Pond. This place isn't just a government building; it's also an architectural landmark. Tjörnin Pond itself is a peaceful oasis in the city centre, loved for its calm atmosphere and abundant birdlife.

Nearby, you can check out the Settlement Exhibition to see the remains of a Viking longhouse and learn about Reykjavik's early history. The Einar Jónsson Museum, dedicated to Iceland's first sculptor, is a hidden gem with a lovely sculpture garden.

For a moment of reflection, visit the Dómkirkjan cathedral, the oldest church in Reykjavik, which has played a significant role in Iceland's history. 

Why I love it: Þingholt is where you can walk in the footsteps of Vikings, admire centuries of artistic expression, and experience the warm hospitality of modern Icelanders

Best hotels in this area

• Best for art lovers: 101 Hotel, a Member of Design Hotels. Sleek, design-focused hotel featuring contemporary Icelandic art throughout. Offers chic rooms, a spa with hot tub, and a trendy restaurant-bar. 
• Best for modern luxury: Thingholt by Center Hotels. Upscale hotel with a contemporary Nordic design. Features elegant rooms, a spa with sauna, and a gourmet restaurant..
• Best for classic elegance: Hotel Holt - The Art Hotel. Refined hotel housing Iceland's largest private art collection. Offers traditionally furnished rooms, a renowned restaurant, and a cosy library bar. 

Browse hundreds of accommodations in Þingholt to fit any budget.

Best area to stay for budget travellers: Hlemmur

• My recommendation: Center Hotels Laugavegur
• Location: East Reykjavik, close to shopping and dining, with good public transport connections.
• Pros: Affordable, vibrant atmosphere, diverse dining options.
• Cons: Can be busy and noisy.

Hlemmur is your go-to neighbourhood if you're a budget-conscious traveller in Reykjavik. The area revolves around Hlemmur Square, which used to be a bus terminal but has now transformed into a trendy food hall. 

Food is a big deal in Hlemmur, and you'll have plenty of affordable options. If you're in the mood for something cheap and filling, grab a pylsur (Icelandic hot dog) at Pylsuhúsið. For beer lovers, Micro Bar is a must-visit with its wide selection of local craft beers that won't empty your wallet. And if you're a coffee aficionado, Reykjavik Roasters is a local favourite known for its excellent brews and light bites.

Despite being a bustling area, Hlemmur has a friendly, community-oriented vibe that makes you feel right at home. You'll also find several local markets here, perfect for picking up fresh produce, Icelandic delicacies, and unique souvenirs without spending too much.

For a bit of culture, check out Ásmundarsalur, a renovated milk factory turned art gallery that offers free exhibitions. And when you need a break, head over to Klambratún park. It's a peaceful spot perfect for picnics or a game of frisbee.

Why I love it: Hlemmur is where you can experience the city's vibrant culture without overspending. 

Best hotels in this area

• Best for a boutique stay: Center Hotels Laugavegur. Stylish boutique hotel located on Reykjavik's main shopping street. Offers modern rooms with Scandinavian design, a cosy lobby bar, and complimentary breakfast. 
• Best for urban explorers: Skuggi Hotel by Keahotels. Contemporary hotel with sleek, minimalist design. Features comfortable rooms, a welcoming bar, and a generous breakfast buffet. 
• Best for wellness enthusiasts: Midgardur by Center Hotels. Modern hotel boasts a luxurious spa with a sauna and hot tub. Offers comfortable rooms, an on-site restaurant, and a gym. 

Browse hundreds of accommodations in Hlemmur to fit any budget.

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