Heading to Iceland and looking for tips on where to stay in Reykjavik? You are in luck as we share tips on the best areas to stay in Reykjavik. I have covered a lot on Iceland on the blog. This time I want to showcase the best location to stay in Iceland. Taking you through the best places to stay in Iceland’s capital, by way of a guide on where to stay in Reykjavik Iceland.
Even a 3 day Iceland visit is enough to make you want to return again and again. If you are a lover of the outdoors and love adventure, then Iceland is an absolute must see. Then again even if you aren’t into the outdoors Iceland offers one of the most amazing sights and showcases all that is amazing about our planet on one little island. You can see glaciers and hike on them, walk behind waterfalls, swim between tectonic plates, miles upon miles of moss-covered lava, geyzers, the list is endless!
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Where To Stay In Reykjavík
I have experienced exploring Iceland in a campervan, stayed in Airbnbs and Hotels, in addition to exploring and sleeping a campervan in Iceland while taking to the sights on the Ring Road. For the best places to stay in Iceland and where to stay in Reykjavik below is a guide to the best areas to stay in the Icelandic capital, Reykjavik including Reykjavik’s best hotels in each area.
Miðbær – Downtown/Center – 101 Reykjavík
If you want to stay in the beating heart of the city in Reykjavík, then you should look for accommodation in Miðbær. Miðbær is considered the heart of the city and is the home to a majority of the restaurants and bars in the city. If you want an area where the bars stay open till late at night, especially on a weekend, then you may want to stay on Laugavegur, Bankastræti, or Austurstræti. Otherwise, avoid these areas and choose a quieter part of Downtown.
From brightly colored streets to several notable attractions such as the historic Church of Hallgrímur and the National Museum of Iceland, there is much to see and do in Miðbær.
Best Hotels And Apartments In Miðbær
- Legacy Apartments
- Freyja Guesthouse & Suites
- 101 Reykjavik Apartments
- CenterHotel Arnarhvoll
- City Center Luxury Apartment
- Luxury Apartment Central Reykjavík
- Luxury Apartment Downtown Ocean View
Hlíðar – 105 Reykjavík
If you want to be close to downtown Reykjavík without being in the heart of the town, then consider staying in Hlíðar. Located east, Hlíðar is close enough for you to enjoy Downtown but without the hustle and bustle of the nightlife. This is a very quiet neighborhood. So, for bars and restaurants you may have to head Downtown but the bus is easy to use to get there. The bus connections can quickly take you downtown and it is in close proximity to the nightlife of the 101 neighborhood.
One of the main attractions in Hlíðar is the Icelandic Phallological Museum which houses the largest display of penile parts and penises in the world from a variety of species.
Best Hotels And Apartments In Hlíða
Vesturbær – 107 Reykjavík
Vesturbær, literally translated to West Town, is a quieter part of Reykjavík. It is mostly a residential area and somewhat of a university town with buildings, staff, faculties, and students from the University of Iceland and the University of Vesturbær calling the area home.
Vesturbær has seen an increase in tourist commercial activities over the years. Tourists especially enjoy the harbor area and Grandi. As a university town, you are a bit closer to local life and a more authentic Icelandic experience.
Best Hotels And Apartments In Vesturbær
- Icelandair Hotel Reykjavik Marina
- Vesturgata Apartment
- Heart of Reykjavik – Luxury Apartments
- Old Harbour Apartment Reykjavík
- GreenKey Apartment
- Luxurious Private Villa
Háaleiti og Bústaðir – 108 Reykjavík
The 108 neighborhood is known for Reykjavík culture and boasts some of the beautiful city landscapes.
Háaleiti og Bústaðir comprises the four neighborhoods of Háaleiti, Kringla, Fossvogur, and Gerði. The prominent outdoor attractions in the area are located in Fossvogur Valley. There are many trails to explore and enjoy the natural side of Iceland.
When you’re finished with exploring the recreational areas loved by both locals and tourists, then you can do a bit of shopping. For shopping, you should head to the Kringlan Shopping Mall in Kringla.
Best Hotels And Apartments In Háaleiti og Bústaðir
- B14 Hostel
- Grimur Hotel
- H24 Reykjavík Apartment
- Guesthouse SummerDay
- Arctic Comfort Hotel
- Mýrin Guesthouse
Seltjarnarnes – 170 Reykjavík
Seltjarnarnes is a small town just on the outside of Reykjavík along the sea, though technically not part of Reykjavík proper. In the summer, Seltjarnarnes offers beautiful coastal walking trails for strolls along the sea line. It is also the perfect place to experience the Midnight Sun in the summer. If you’re visiting Iceland during the winter months in the hopes of seeing the northern lights, then this is the town to stay. The Grotta lighthouse is one of the best places see the northern lights in the city. There are several bus routes to Seltjarnarnes which makes it very easy to quickly get around the town and into the city.
Best Hotels And Apartments In Seltjarnarnes
Laugardalur – 104 Reykjavík
Located adjacent to Reykjavík, Laugardalur is a residential neighborhood that is not far from downtown. The area is easily accessible by public transportation especially if you want to go into Downtown Reykjavík. The neighborhood itself is not without its attractions. There is the Reykjavík Zoo and entertainment park. A large outdoor swimming pool is available for swimming and Laugardalur houses the botanical gardens where you can have lunch at its cozy café.
The neighborhood is a great location if you are travelling with children. You can also enjoy fun-filled nights at the Reykjavík campsite in the area.
Best Hotels And Apartments In Laugardalur
- Reykjavík City HI Hostel
- Cozy 60’s villa in Reykjavik
- Uncle Chops Apartment
- 101 Family Apartments
- Nordurey Hotel City Garden
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Reykjavik Hotels and Things to do in Iceland
Hi Bianca, get blog a couple of friends and I are planning a trip to Iceland and looking at things to do in Iceland in November but also wanted to pick your brains on what neighborhood to stay in Reykjavik is? This is obviously our first time visiting Iceland as we have heard so much about it. We still dont know how many days we are visiting Iceland but have a couple of questions and would appreciate your travel tips for Iceland having explored by campervan. Can you help us with the questions below?
1. How many days in Iceland do you think we need to plan for?
2. Can you recommend where to stay in Reykjavik on a budget?
3. Which hotel offers best location for touristy stuff or must stay at hotels in Reykjavik you can recommend?
4. We are also planning on doing a golden circle tour, can you recommend any tours that can also pick us up from our hotel in Reykjavik as we are hoping to save money on transportation while exploring in Iceland.
Thanks so much and look forward to hearing from you!
Well those are some questions!
1.So, how many days in Iceland? This really deepens on how much you want to spend. Iceland isnt the cheapest destination to visit. So if you only have a layover in Iceland you can still see the blue lagoon or do a goldern circle tour and if you have more time you can really explore all that the ring road has to offer.
2. Hmmm, for where to stay in Reykjavik on a budget check out one of my links and then just filter that depending on how much you can afford. There are cheap hotels in Iceland or you can also do Airbnb but prices are nearly the same in Iceland but that allows you another option to compare with.
3. You can look at several options to save money in Iceland. You can use the hop on-hop off tour to get around Reykjavik. There are a few tours that collect your from the airport and your accommodation. Check out my links above to tours to find one suitable for you.
Hope that helps.
Marek - where to stay in reykjavik for nightlife
Can you recommend where to stay in Reykjavik for nightlife also any where to eat in Reykjavik on a budget?
Definitly staying central in Reykjavik would be ideal for nightlife in Iceland. As far as where to eat in Reykjavik on a budget, there are a couple of places in Reykjavik town centre that are fairly cheap places to eat. Plenty of places to choose from so you will definitely have plenty of options for budget places to eat in Iceland.
Jeanie - best place to stay in reykjavik
Iceland, lovely country with beautiful cities. Thanks for sharing Bianca, I am planning on visiting Iceland next year and have been looking for a detailed post to help me with just where is the best place to stay in Reykjavik. We are visiting Iceland in winter and look at where to stay in Reykjavik to see Northen lights? Any tips on this?
That a tough one. This depends, are you doing a tour or is this all self-guided. If you are doing a tour they will share the location of where the tour is and that will give you an idea exactly where is the best place to stay in Reykjavik to Northern lights. You might be able to stay in Reyjkavik and then do a trip for the lights in which case sometimes that is a day trip in which case you can just choose where to stay in Iceland based on where you prefer above and according to budget.
Danny Scott - where to stay in reykjavik iceland
I have visited Iceland, it was really a fun-filled experience, although I did not have enough time to visit all the places in Iceland you got to visit. I enjoyed the life and energy that Miðbær provided while I was there. If I have my way to visit Iceland, I will gladly visit again. Just wondering if you can recommend where to stay in Iceland outside of Reykjavik that isnt too expensive.
That’s a difficult one as I dont know which part of Iceland you mean outside of Reykjavik. Are you heading towards Vik, North Iceland? It would really help to know this before recommending where to stay in Iceland outside of Reykjavik.
Michael W Rickard II
Hey Bianca. I’m a fan of the TV show VIKINGS and have been considering a two-week trip to Iceland. However, I’ve heard Iceland gets a lot of tourist traffic. I don’t care if I go in winter or summer (in fact, winter might be kind of fun to see what it’s like). Are there any times when there are less tourists about? Or where is the best places to stay in Reykjavik to avoid the crowd.
I visited Iceland in July during summer when its meant to be particularly busy. With majority of the country requiring you to be on some tour or using your own car, you can definitely avoid the crowds. As far as where to stay in Iceland. Most places we visited and stayed in Iceland, We spend a considerable time in Iceland so stayed in a couple of areas in Reykjavik as well as staying across many campsites on the Ring Road. I can tell you that you wont really have any problems with crowds. Yes, some tourist sights can have crowds but if you have your own car, you can certainly visit the sights when tour groups have yet to pass through. We had ample time at Reykjavik tourist sights on our own.
I’m looking to visit Iceland for the first time and stumbled across your blog doing some research. I’m very glad I did as I now feel more confident about arranging where to stay in Reykjavik and beyond.
That’s awesome to hear. I am sure you will have a great time in Iceland.
Such a great guide! I am heading to Iceland in May next and looking for where to stay in Reykjavik on a budget. Will definitely look into these. Thanks
Iceland is such an amazing country I am sure you will have an awesome time.
Shulem - top places to stay in reykjavik
We are heading to Iceland in March and have been trying to figure out the best places to stay in Reykjavik Iceland. This is seriously one of the best guides I have read not only on where to stay in Reykjavik but the best location to stay in Reykjavik. Will share with my friends so we can all decide on where exactly to stay in the city.
I love your blog! I am planning where to stay in Reykjavik on a budget and knew you would have the perfect post. Still trying to figure out how long to stay in Reykjavik so I can calculate the costs of accommodation. Nevertheless, your post has come in handy.
Quinton - where to stay in Reykjavik Iceland
I am visiting Reykjavik in May and have been trying to figure out not only where is the best places to stay in Reykjavik but where to stay in Reykjavik on a budget. This is such a cool guide. I had no idea there were so many interesting places to stay in Reykjavik. I love that you have included tips on what neighborhood to stay in Reykjavik. I thought I needed to stay close the airport but would definitely love to stay in downtown Reykjavik.
I am so happy that you found this post useful. Iceland is such a cool country to explore. I hope you manage to find a great places to stay in Iceland for your budget.
Iceland has always been one of my top travel destinations. Although I haven’t yet visited, it looks like an incredible place. I love how you showcase the different cities in Iceland throughout this article. It makes me want to visit even more!
Can you tell me if you can see the Northern Lights in August? I would like to visit Iceland at this time because I’ll be celebrating my 60th birthday. Thanks
Unlikely as it will still be fairly light due to the summer season. I would aim for October/November in Iceland.
I am heading to Iceland and have been looking for tips on places to stay in Reykjavik. I had a feeling lodging in Reykjavik Iceland was going to be expensive but I am glad you have included so many options for hotels and hostels in Iceland. Also love that you have included what area of Reykjavik to stay in. Thank you so much!
Thank you for your comment. I am glad you found the post useful. Consider our visit I wanted to make sure people had an easier time to find a place to stay in Reykjavik, whether that is hotels in downtown Reykjavik or 101 district of Reykjavik.