Where To Stay In Reykjavik ( BEST AREA & Hotels )

What is the best place to stay in Reykjavik?

By Katie Lindsay. January 21, 2025

Reykjavík, Iceland’s cosy capital, is in the southwestern region of the country. Boasting sights such as Hallgrímskirkja church, Grótta lighthouse, Harpa, and the Sun Voyager, it’s a highlight of many travellers’ trip to Iceland. There are many things to do in Reykjavík, including marvelling at nature at Lava Show Reykjavík, taking flight at FlyOver Iceland, hopping on a whale watching tour from the harbour, or exploring one of the city’s amazing museums and art galleries. After a day of visiting the sights, you can enjoy a delicious meal in one of the many incredible restaurants in Reykjavík.

The best area to stay in Reykjavík is right in the city centre, with everything you could need within a stone’s throw. There are a fantastic range of hotels and short-term holiday let apartments to choose from, and something for every traveller and every budget. It’s a lively location with plenty of culture to soak up. Those looking to make the most of Reykjavík’s nightlife will be glad to know that there are fantastic music, comedy, and film scenes. The wide range of restaurants and bars on offer also means there is something for every budget and taste.On the map, which shows the most convenient area to stay in Reykjavik, you can see a selection of some of the best located hotels.

If you are interested in where to stay in Reykjavik, you may also be interested in where to stay in Stockholm, where to stay in Copenhagen, where to stay in Oslo and where to stay in Moscow.

City centre, the best area to stay in Reykjavík for tourists

Proximity to Sights / Exploring on Foot / Nightlife

Reykjavík city centre accommodation will suit the needs of most travellers, but it’s even better suited to those who have limited time in the city or who prefer to explore on foot, with famous sites such as Hallgrímskirkja, Harpa, and the Sun Voyager all within walking distance.

Close to the main shopping street of Laugavegur, Skólavörðustígur boasts many galleries and art studios. Meanwhile almost every street in the city centre offers street art to be enjoyed.

Staying in the heart of Reykjavík allows you to experience the atmosphere of the city and enjoy browsing its colourful streets at a pace that suits you. Peruse Frakkastígur, Grettisgata, Njálsgata and the surrounding area for a taste of Reykjavík’s quirky architecture style.

Head down to Tjörnin pond to watch locals feed the birds that gather next to the City Hall and wander over to Austurvöllur to witness where some of Iceland’s most famous demonstrations have taken place.

Hotels in Reykjavik City Centre

Other areas to stay in Reykjavik

Vesturbær

Families / Northern Lights Hunters / Those Looking For a Quieter Vibe

Vesturbær is a great option for families looking to stay slightly outside the busy city centre and maybe get a little more distance from the weekend nightlife. Vesturbær (or the west of town) is within close proximity of the city centre, without any of the nighttime noise or hustle and bustle associated with staying in the city centre.

Gamli Vesturbærinn (the old west town) is only a stone’s throw of the heart of the city, but there is a larger Vesturbær area which is a little bit further removed, maybe even making it possible to catch sight the northern lights.

Northern lights hunters might also want to take the short trip to Grótta lighthouse on Seltjarnarnes peninsula, where sightings of the northern lights are more frequent due to being that little further away from the city lights.

Vesturbær offers great amenities, cafes, and bakeries, and the local swimming pool is well worth a visit.

Hotels in Vesturbær

Kópavogur

Families / Couples Travelling on a Budget / Authentic Residential Experiences

Kópavogur is another great location for families, and it’s a favourite among couples travelling on a budget. There are many modern apartments available at decent rental prices, making it great for the couple or family who wants that little bit of extra space without paying city centre prices.

Kópavogur is a popular residential area in Reykjavík so staying there is a great chance to live like a local and imagine real life in the world’s northernmost capital.

There are swimming pools, cafes, restaurants, and shops in the area, as well as an events hall (Salurinn, or “The Hall”) and a popular golf course (Golfklúbbur Kópavogs og Garðabæjar, or “The Golf Club of Kópavogur and Garðabær“).

Though this area is well-connected with bus routes, you might want the flexibility and comfort of having a rental car if you plan to stay at an accommodation in Kópavogur.

Hotels in Kópavogur

Laugardalur

Families / Authentic Residential Experiences / Those looking for a Quieter Vibe

Laugardalur is another great option for families travelling to Reykjavík. A popular residential area, Laugardalur is a sleepy spot in the city, making it a great spot for families looking to relax and unwind after a busy day of exploring. There are fewer short-term accommodation options in this area, but some great hotels are located on the side of Laugardalur closest to the city centre.

You’re also near the city’s largest pool (Laugardalslaug) complete with a water slide and children’s pool, making it great for kids who enjoy playing in water and super handy for parents to have close by. There’s also a cinema, animal park (Húsdýragarðurinn), botanical garden (Grasagarðurinn), several ice cream shops, and a good range of cafes and shops in the area.

Basing yourself in Laugardalur will certainly give you a peaceful residential experience of Reykjavík, but you might want a rental car to get around, especially if you’re travelling with young children.

Hotels in Laugardalur

Our recommended hotels in Reykjavik

Use the interactive map to navigate through our recommended hotels in Reykjavik Note: Hotel prices can change daily due to promotions, seasons, and demand. Our $ - $$$$ scale shows the overall cost range rather than exact prices.