Where to Stay in Reykjavík: A Neighbourhood Guide

The short answer

First time in Reykjavík and no car? Stay in downtown 101, close to Laugavegur, Hallgrímskirkja and the harbour. Renting a car? Eastern Reykjavík or Kópavogur are easier, with free parking and a quick road out to the Golden Circle and the South Coast.

Reykjavík is a small city, so wherever you stay, the centre is a short walk, bus ride or drive away. Three questions will point you to the right area:

1. Will you rent a car?
2. Is this your first time in Reykjavík?
3. Who are you travelling with?

Downtown 101: Laugavegur and Hallgrímskirkja

Best for: first-time visitors, short city breaks, travelling without a car.

The old centre, built around Laugavegur and Skólavörðustígur, which climbs the hill to Hallgrímskirkja. Most of the city's restaurants, cafés, shops and bars are here, and the streets stay lively late on weekends.

Getting around: everything is walkable. Parking is paid and limited.

Stay here: Reykjavík Residence, apartments in nine restored buildings one street back from Laugavegur, several from the early 1900s. The largest sleep a family across three bedrooms.

The Old Harbour and Grandi

Best for: whale watching, boat tours and eating out.

Tours leave from the Old Harbour, and the harbour buildings now hold restaurants and museums. Harpa sits on the waterfront, and Grandi, a little further west, has a food hall and small design shops. Evenings are quieter than on Laugavegur.

Getting around: Laugavegur is 10 to 15 minutes on foot. Parking is paid.

Stay nearby: Reykjavík Residence is a few blocks uphill, and Tower Suites is a walk east along the shore.

Klambratún and Hlemmur (105)

Best for: walking into town but sleeping somewhere calmer, and cooking some of your own meals.

East of Laugavegur the streets turn residential. Hlemmur, the old bus station, is now a food hall, and Klambratún is one of the city's largest parks.

Getting around: Hlemmur is five minutes on foot, Hallgrímskirkja about ten. Parking is easier than in 101.

Local tip: Sundhöllin, Reykjavík's oldest public pool, is close by.

Stay here: ODDSSON Downtown, studios with kitchenettes and free parking beside Klambratún.

Höfðatorg and the shore (105)

Best for: couples, special occasions and a view.

A newer part of town between Borgartún and the sea, quiet in the evenings, with Mount Esja across the bay. Höfði, where Reagan and Gorbachev met in 1986, is a few steps away.

Getting around: Laugavegur is 15 to 20 minutes on foot, most of it along the shore path past the Sun Voyager. Best without a car.

Stay here: Tower Suites, eight suites on the 20th floor with floor-to-ceiling windows and breakfast brought to your suite.

Eastern Reykjavík: Skeifan, Kringlan and Laugardalur (108)

Best for: road trips, families, early tours and late flights.

This is where locals shop, and where the main roads out of town begin. Laugardalur, the city's largest green area, has the Family Park and Zoo and the Botanical Garden.

Getting around: Laugavegur is about ten minutes by car or bus. Parking is easy.

Local tip: Laugardalslaug is the city's biggest outdoor pool.

Stay here: ODDSSON Midtown, breakfast included, free garage parking and tour pick-up at the door.

Kópavogur (201)

Best for: starting or ending a Ring Road trip, families who need space, and good value with a car.

The town directly south of Reykjavík, part of the same capital area. Smáralind, Iceland's largest shopping centre, is here, and Sky Lagoon is on the coast nearby.

Getting around: downtown Reykjavík is about 8 km by road, 10 to 15 minutes by car. The Flybus runs from Keflavík Airport to the hotel.

Stay here: 201 Hótel, free breakfast and parking, and family suites for up to six.

Reykjavík neighbourhoods compared

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Frequently asked questions

What is the best area to stay in Reykjavík for first-time visitors? Downtown 101, around Laugavegur and Hallgrímskirkja. Restaurants, museums and shops are a short walk away, and many tours pick up nearby.

Where should I stay in Reykjavík for three nights? Stay central, in downtown 101 or near Klambratún and Hlemmur, so you can walk to most things and spend your time seeing the city rather than getting to it.

Is it better to stay outside downtown Reykjavík if I have a car? Often, yes. Parking in 101 is paid and limited. Eastern Reykjavík and Kópavogur have free parking and put you on the main roads out of the city.

Which hotels are near Hallgrímskirkja? Reykjavík Residence and ODDSSON Downtown are both about ten minutes' walk away.

Are there boutique or historic hotels in central Reykjavík? Reykjavík Residence is spread across nine restored buildings, several from the early 1900s. Tower Suites has just eight suites, all on the 20th floor at Höfðatorg.

Is 201 Hótel in Reykjavík? It is in Kópavogur, the town just south of Reykjavík, about 8 km by road or 10 to 15 minutes by car from downtown.

Do I need a car in Reykjavík? Not if you stay in or near the centre. The city is easy to walk, buses run to the eastern areas, and many day tours pick up from hotels.

To compare the hotels themselves, read Which Flóra Hotel Should You Choose for Your Iceland Trip?

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