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!
Also See
- Unique Places To Stay In Iceland
- Top Tips For Visiting The Blue Lagoon
- How To Find Iceland’s Hidden Pool
- A Guide To An Awesome adventure on Victoria Falls
- The Perfect One Day London Itinerary
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
- Reykjavik Lights Hotel by Keahotels
Also See:
- Camping On Norwegian Fjords
- A Guide To Exploring Iceland By Campervan
- Iceland’s Best Campsites
- Q&A Top Tips For Hiking Norway’s Trolltunga
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