Where to stay in Reykjavik

With a variety of neighbourhoods, price points, and vibes to guide your decision to where to stay in Reykjavik, it can be difficult to be sure you’ve gotten the perfect place for you. So, to lend a hand, we’re going to go over a few facts about what you can find in this stunning city. With such tourist boom in recent years, Iceland has now more hostels and guesthouses than ever before. There is a continuous wave of new constructions and new accommodations being built to cater for the overwhelming number of tourists who wish to visit the land of fire and ice.

Where to stay in Reykjavik

Finding where to stay in Reykjavik is all about your needs as a traveller and budget, of course. If you wish to have the freedom to explore, the best choice is to find accommodation somewhere downtown. If you are in need of a base, you can most certainly find cheaper options on the outskirts. For budget travellers here are some excellent money-saving tips for Iceland.

Also, don’t forget that Reykjavik can be a wonderful getaway to explore the whole island with its wonderful landscape and surreal nature. And once you settle in Reykjavik, please don’t forget to check how to enjoy a golden circle tour in Iceland.

Interested in seeing the Northern Lights? Don’t forget to check the Best Hotels in Iceland for Northern Lights.

Beautiful Iceland


The main city center often called Miðborg, ‘the 101’, or simply downtown, is known for it’s fun, hip, and spiffy atmosphere. Frequented by both locals and tourists, it is truly the busiest part of the city. Staying here will provide you with quick access to the famous architecture and nightlife that the city has to offer. The flip side of that is the party here may go well into the night on weekends. So, light sleepers or those hoping to turn in early should shy away from this happening neighbourhood.

A favourite hotel in the 101 is the Alda Hotel Reykjavik. Located in the heart of downtown, this hotel provides Icelandic style, spacious rooms for a couple’s escape or a family unit. The room each have their own feel and will give you a taste of the country’s culture. With a myriad of amenities at your fingertips, find new friends at the bar downstairs or enjoy the healthy, hearty breakfast in the lobby before you start your day. This hotel has received spectacular reviews all over the internet, so their hospitality is truly on point.

Reykjavík Treasure B&B
Mid-range Hotel 8.8

This property is 5 minutes’ walk from the Laugavegur shopping street. Free WiFi is available. All accommodation options at Reykjavík Treasure B&B have private bathrooms. Prices start at £170 per night with breakfast included.

Click here for prices and book Reykjavík Treasure B&B

Nordic Apartments
Mid-range Hotel 8.8

Located in the middle of Reykjavík, just 700 m from Hallgrímskirkja Church, Nordic Apartments – Lækjargata Penthouse offers city views and free WiFi. Guests staying at this apartment have access to a fully equipped kitchen and a balcony. This apartment is suitable for up to 4 adults and prices start at £181 per person per night.

Click here for prices and book Nordic Apartments

Black Pearl Apartment Hotel
Mid-range Hotel 8.8

These luxury apartments in central Reykjavik are just 350 m from Old Reykjavik Harbour. Each features free WiFi, contemporary furnishings, an iPad and city-view balcony. Prices for this 4-star accommodation start from £417 per night.

Click here for prices and book Black Pearl Apartment Hotel


Heading west of downtown is the more classy and residential Vesturbær. Home to the University of Iceland and surrounded by water on both sides, it is an excellent choice for a more laid-back respite. Walking to downtown for restaurants and museums is less than thirty minutes, and trading the business for the sea view is something many hope for. So, head here for a more relaxed vibe.

If you’re hoping to save a few dollars on the housing to spend elsewhere, check out the Oddsson Hostel. A new player to the housing scene, they offer a fully equipped suite to a bunkroom and everything in between. Starting around $27 dollars, this is incredibly difficult to beat for the quality Oddsson offers. You’ll have free access to the yoga classes offered here, and the Oddsson café is just a moment away. Whether you’d like to grab a beer, enjoy the sea view, or sing karaoke in a soundproof room, Oddsson has it.

Apartments West Side
Mid-range Hotel 8.8

Perfect location, central charm. In Reykjavík features accommodation with free WiFi, 1.3 km from Solfar Sun Voyager and 1.5 km from Hallgrímskirkja Church. This apartment is 2.8 km from The Pearl and 200 m from Reykjavik Old Harbour.

Click here for prices and book Apartments West Side

Heart of Reykjavik – Luxury Apartments
Mid-range Hotel 8.8

Set in Reykjavík, within 1.8 km of Solfar Sun Voyager and 1.8 km of Hallgrímskirkja Church, Heart of Reykjavik – Luxury Apartments offers accommodation with free WiFi. You will find everything you need for a comfortable stay in your home in Reykjavik and all apartments are suitable for up to 4 adults. Prices start at £213 per night.

Click here for prices and book Heart of Reykjavik – Luxury Apartments

Embassy House
Mid-range Hotel 8.8

This villa features free WiFi, a garden, as well as a terrace. This villa features 5 bedrooms, a fully equipped kitchen, a dining area and a flat-screen TV. Located in the West, Vesturbær is a great choice for travellers interested in tours, excursions and friendly locals. Prices start at £421 per night for a villa which accommodated up to 10 people.

Click here for prices and book Embassy House


For the families hoping to be near the botanical gardens, Reykjavik zoo, or desiring to relax in the hot springs, stay in Laugavegur. This valley section of Reykjavik provides a family-friendly atmosphere with a little less spiff than downtown, but with just as much hospitality. With easy day adventures out your door, this is an excellent choice if you’re bringing along the littles.

A Hotel that is known for its attention to detail and hospitality while still providing a Nordic feel might be the perfect selection for those hoping to stay in Laugavegur, Reykjavik Lights is a uniquely designed hotel still close to downtown. With each room decorated to reflect a different day in the calendar, the rooms are light, airy, and refreshing. Free private parking and breakfast with fresh bread are included, which is rare among Reykjavik hotels.

Sport Hostel Reykjavík
Mid-range Hotel 8.8

Located by the Blue Lagoon Spa, this hostel offers free parking and brightly decorated rooms with free WiFi access. Reykjavik city centre is a 7-minute drive away. Prices start at £50 for a twin room.

Click here for prices and book Sport Hostel Reykjavík

JodEmm Homestay
Mid-range Hotel 8.8

Offering private rooms with shared bathroom facilities, JodEmm Homestay is 2.3 km from Hallgrímskirkja Church, in Reykjavík. WiFi and parking are free. Kringlan Shopping Centre is a 5-minute walk away. Prices start at £82 per night for a triple room with shared bathroom.

Click here for prices and book JodEmm Homestay

Arctic Comfort Hotel
Mid-range Hotel 8.8

This good-value hotel is a short walk from Iceland’s largest swimming pool, Laugardalslaug, and Reykjavík’s biggest shopping centre, Kringlan. Its spacious rooms offer flat-screen TVs, refrigerators and tea/coffee facilities. Prices start at £119 per night.

Click here for prices and book Arctic Comfort Hotel

So, whichever district you choose to stay, you will be close to water, things to do, and magical food. Pick wisely what you’re hoping to get out of your stay in Reykjavik and how much you’re willing to spend.

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Ella Kim

Ella Kim – Ella, Content Manager for trekbible, is a writer and content specialist with a predilection for learning and exploring new places and cultures around the world. With family scattered throughout the U.S. and South Korea, she loves to see cross-cultural influences around the world. Her favourite thing to do on her travels is to taste the local cuisine of each destination.


2 responses to “Where to stay in Reykjavik”

  1. Ella Traveler Avatar
    Ella Traveler

    On my bucket list! Next year I will get there!

    I can already imagine myself there. Such a cool place.

  2. Dan Howard Avatar
    Dan Howard

    Thanks for this useful information…I really like this blog…Becuase it will really helpful for me…I will bookmark this for future reference…

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