Want to discover the Icelandic capital with its beautiful views, quirky attractions, unique attractions and more?
Here are all my tips to decide where to stay in Reykjavik:
- Best hotels in Reykjavik city center (luxury, boutique, mid-range, with views…)
- Best areas and neighborhoods depending on your criteria
- other accommodation options
- tips…
Best hotels in Reykjavik city center
My ultra-short answers, if you don’t want to read the article:
My favorite hotels in Reykjavik center are:
- Luxury: Black Pearl Apartment Hotel
- Charm: Reykjavik Konsulat
- Boutique: Vintage Hotel
- Mid-range: City Center Hotel
- Apartments: Rey Apartments
- Guesthouse: Reykjavik Treasure B&B
- For families: Odinsve Hotel Apartments
The airport is not in Reykjavik! Book your transfer.
If renting a car and staying in Reykjavik, check the parking conditions! My favorite platform to rent a car in Iceland is: Discovercars
I have stayed in Reykjavik several times both in Summer and in Winter. It is a great city.
First know that Reykjavik is not a big city and it is very walkable, even in Winter. So there is no real bad place to stay in Reykjavik.
The most central neighborhood is Midborg, and this is where you will find most accommodations, restaurants. And you can find all types of accommodations from Luxury hotel, to rentals, guesthouses and hostels.
Lots of very good quality options that are all located around the cathedral.
I am starting by listing my essential tips to choose your accommodation.
And then I share more hotel options with my favorites in each category to save you time so that you can choose directly based on what you are looking for:
- Luxury
- Boutique
- Mid-range
- Guesthouses
- Hostels
- with parking
- with view
- for families
- for large groups
- for northern lights
- …
Or see all the best rated accommodations in Reykjavik
This selection is completely independent, based on my experiences and research. I visited the region anonymously, making my own choices, and paying all my bills in full.
Best places to stay in Reykjavik – essentials to know
Car or not? Parking issue…
The best way to explore Iceland is on a road trip, renting a car.
However, in Reykjavik you don’t need one. And parking can not be easy.
Therefore my recommendations are:
- if you are road tripping, rent your car before or after visiting Reykjavik and just enjoy the town without the hassle.
- if you are staying in Reykjavik the entire trip, choose a hotel with parking (see options further down in the article) or book guided day trips.
Need to rent a car in Iceland?
My tips:
- Compare prices on my favorite platform: Discovercars.com – one of the best rated comparison sites!
- Prefer a compact car for the narrow streets in villages
- Consider their full coverage option – it for peace of mind!
- Book early to have a large choice of vehicles!
Stations for guided tour
If you are booking day trips from Reykjavik, the minibus are not allowed to enter some areas inside the city.
They have set up a system with touristic bus stops that are numbered and named.
The tour company will tell you the closest stop to your accommodation where you should meet your bus or driver.
How to get to your hotel in Reykjavik from the airport
Reykjavik is a 40min drive from the International airport in Keflavik.
They have a really good system of shuttles available for all the flights.. Your various options are:
- Take a shuttle bus (cheapest) – Pre-purchase your ticket in your currency, and once at the airport, go outside, show your ticket and climb on board. This will take you to the bus hub near the city center, where you will be dispatched into other buses to go to the various hotel areas
- Take a direct shuttle minibus – Pre-purchase your ticket in your currency, and from the airport you climb into the minibus that will get you directly to your accommodation area (no need to change bus)
- or Book a private transfer to be able to leave whenever you are ready and head directly to the door of your accommodation
- or rent your car at the airport.
Plan your dream trip to Iceland with my guides!
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- 6 easy-to-plan maps
- 75+ pre-selected locations
- GPS coordinates
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Best luxury hotels in Reykjavik
Let’s start with my selection of the best luxury hotels: 5 stars, 4 stars and boutique… to help you find a design that suits your expectation.
Best 5-star hotels in Reykjavik
- Black Pearl Apartment Hotel
A 5-star hotel with self-catering smart apartments in the city center.
– see photos and availability - Tower Suites Reykjavik
Super hotel with large windows and stunning views but slightly less central
– see photos and availability - The Reykjavik Edition
Modern and by the sea. Calm and relaxing.
– see photos and availability
Best 4-star Hotels
- Reykjavik Konsulat Hotel
Love the interior design of this hotel. Not overly modern, cosy yet refined.
– see photos and availability - Ion City Hotel
Modern yet warm with the wooden decor. Rooms with lots of light and nice views (some of them have sea views).
– see photos and availability - Canopy Hotel by Hilton
Also in the heart of the city, a great option for families.
– see photos and availability
Best boutique hotels in Reykjavik
- Vintage Hotel
Aparthotel with a very cosy and warm decor, yet modern.
– see photos and availability - Kvosin Downtown Hotel
Quiet location, close to one of the pick-up stops for day trips. With rooms and apartments.
– see photos and availability
Best budget accommodations in Reykjavik
You won’t find really cheap accommodations in Reykjavik, but you can find really good value for price accommodations. Especially with apartments and guesthouses. Here are some of my favorites.
Best mid-range hotels and apartments
- Rey Apartments
Spacious apartment with cooking facilities in the city center, I had a great time at the Rey Apartments
– see photos and availability - City Center Hotel
Central hotel with clean modern rooms
– see photos and availability - Grey Apartments
Great location with supermarket close by and small kitchen
– see photos and availability - Hotel Klettur
Nice hotel in good location with free parking.
– see photos and availability
Best guesthouses and B&Bs in Reykjavik
Pay attention when choosing guesthouses, some rooms may have share bathrooms.
- Reykjavik Treasure B&B
For a home feeling and a fantastic location, I really enjoyed my stay in this charming B&B
– see photos and availability - Freyja Guesthouse & Suites
Nice rooms with lots of natural light and soft colors
– see photos and availability - Butterfly Guesthouse
A great location, and homy feeling
– see photos and availability
Best hostels in Reykjavik
- Student Hotels
On the University campus
– see photos and availability - Baron’s Hostel
Central and quiet
– see photos and availability
I don’t drink coffee 
But I also like other drinks and sweets!
Do you like the free content you find on my blog? All my tips and practical information, without intrusive advertising…
Family-friendly hotels in Reykjavik
If you are traveling with kids, you are most probably looking for a single accommodation that can sleep you all.
There are plenty of larger apartments in the city. I am very impressed by the offer for families and large groups.
Here are a few hotels and apartments to consider in different price ranges:
Best accommodations with kids
- Rey Apartments
Good value for money. Spacious apartment with cooking facilities in the city center, I had a great time at the Rey Apartments
– see photos and availability - Black Pearl Apartment Hotel
A 5-star hotel with self-catering smart apartments in the city center. they have larger ones which are great for families
– see photos and availability - Canopy Hotel by Hilton
4 stars. In the heart of the city, many rooms with family options.
– see photos and availability - Odinsve Hotel Apartments
Beautiful apartments full of lights with two bedroom apartments sleeping up to 4 adults and 2 kids
– see photos and availability
Accommodations for large groups (family with adults or friends)
- Theater Row Apartments
Several apartments with 3 bedrooms
– see photos and availability - Old Charm Reykjavik Apartments
They have 2 and 3 bedrooms apartments and a decor with a lot of character
– see photos and availability
Coolest Reykjavik hotels: unique, views…
Reykjavik hotels with best views
To get views you either have to be next to the waterfront, in a tall building or away from the city center.
The hotels in Reykjavik are fantastic but not the best for views. But don’t worry you will see plenty when traveling!
- Tower Suites Reykjavik
Superb hotel with large windows and stunning views but slightly less central
– see photos and availability - The Reykjavik Edition
Modern and by the sea. Calm and relaxing.
– see photos and availability - Fosshotel Reykjavik
with a tower
– see photos and availability
Unique hotels in Reykjavik
Well, it depends what you mean by unique.
If you are looking for unusual such as domes, cabins, or architectural tiny villas, you need to go outside of Reykjavik.
But below are some unusual design options, but not many because several have low ratings:
- Rekjavik Marina
with colorful and unique design features
– see photos and availability - Hotel Holt – The Art Hotel
Decor full of art, downtown and with free private parking
– see photos and availability - Reykjavik Domes
for some glamping near Reykjavik, but not in town, quite a way off.
– see photos and availability
Best hotels in Reykjavik to see the northern lights
The best chance at seeing the northern lights is away from any source of light.
Therefore, the capital city is not the best place to see them.
When they are very strong, you could have a chance to see them within the city.
You 3 main options are:
Option 1 – Book any hotels and book an evening tour
Your best chance at seeing the northern lights when staying in Reykjavik, is to book in any hotel in the city and book a guided tour.
They will take you away from the city. They know how to chase those lights, looking at clouds coverage and more.
Plus they share info between guides for more chances to catch them.
Consider the following options by road or boat:
- BUS TOUR – One of the cheapest options is to go on a bus tour. You leave from Reykjavik and the driver takes you to the best spots he knows depending on the forecast – Check out Program, availability and Price
- SMALL GROUP TOUR – This is my favorite options, it is easier to go from one spot to another chasing the northern lights because you can gather everyone more quickly and you can go off the beaten tracks – Check out options
- PRIVATE TOURS – check out options
- NORTHERN LIGHTS CRUISE – A more original option is to go on a boat off the coast of Reykjavik to find the dark and hopefully see the Norther Lights – Check out options
Option 2 – Book a hotel near an area with less lights
If you really don’t want to get out of Reykjavik, your best bet is to stay near an area with less lights. So that you can get out quickly and head there under a minute if they are appearing.
But chances are slim.
Option 3 – Choose a hotel within an hour drive from Reykjavik
Otherwise, head out of the city to find hotels away from the light.
Under good conditions, you may be lucky to see them. Chances will be higher than in the city.
For example:
- Motel Artic Wind
– see photos and availability - Northern Light Inn
Close to the Blue Lagoon
– see photos and availability - Hild Fisherman’s village Guesthouse
Charming traditional place to stay by the sea
– see photos and availability - Hvassahraun Cabin by the Sea
A large villa by the sea
– see photos and availability
Best hotels in Reykjavik with parkings
If you are planning on renting a car, I recommend you book a hotel or accommodations with a parking area. This will make your stay more enjoyable.
- Hotel Klettur
Nice hotel in good location with free parking.
– see photos and availability - Old Charm Reykjavik Apartments
They have 2 and 3 bedrooms apartments and a decor with a lot of character
– see photos and availability - The Reykjavik Edition
Luxury. Modern and by the sea. Calm and relaxing.
– see photos and availability - Hotel Holt – The Art Hotel
Decor full of art, downtown and with free private parking
– see photos and availability - Skuggi Hotel
Stylish hotel with free parking garage (but reservation of parking spot not possible)
– see photos and availability
Where to stay in Reykjavik: best neighborhoods and areas map
I think there are 2 main neighborhood to stay in Reykjavik:
My 1st choice – Midborg (downtown)
The Midborg neighborhood in Reykjavik, Iceland is a great place to stay during your visit for several reasons:
- Central Location: Midborg is located in the heart of Reykjavik, making it a convenient base for exploring the city’s attractions. It’s within walking distance of many of the city’s main sights, such as the Hallgrimskirkja church, Harpa Concert Hall, and the Old Harbour.
- Dining: Midborg is home to many great restaurants and cafes. You’ll find a variety of options within walking distance.
- Nightlife: There are many bars, pubs, and clubs in the neighborhood where you can experience the city’s famous party scene.
My 2nd choice – Vesturbaer
Vesturbaer is a neighborhood located in the western part of Reykjavik, Iceland, and is a great place to stay during your visit for several reasons:
- Quiet Atmosphere: Vesturbaer is known for its quiet and residential atmosphere, making it a great option if you’re looking for a peaceful and relaxing stay in Reykjavik.
- Cultural Attractions: Vesturbaer is home to several cultural attractions, such as the Icelandic Museum of Natural History and the Nordic House, which showcases Nordic culture and art.
- Convenient Location: While Vesturbaer may be a quieter neighborhood, it’s still located close to many of Reykjavik’s main attractions. You can easily access the city center and other neighborhoods via a short walk.
- Local Charm: Vesturbaer is known for its local charm, with narrow streets and colorful houses. It’s a great place to explore and discover local shops, cafes, and restaurants.
Other areas
Hlidar and Laugardalur are further away from the city center, so you can find cheaper accommodations, mostly rentals and guesthouses.
Hlidar is more catered to wards the young visitors while Laugardalur is better for families.
Areas to avoid in Reykjavik – where not to stay
Reykjavik is generally a very safe city, and there are no areas that are considered to be particularly dangerous or off-limits to visitors.
- If you cannot walk much and are booking a day trip, choose a hotel that is a little further from the cathedral which is on top a hill
- If you want lots of restaurant, avoid the neighborhoods further away from the city center
Where to stay in Iceland?
My favorites:
- Reykjavik, capital city: see best rated accommodations – or my article on where to stay
- Selfoss, between Golden Circle and South Coast: see best rated accommodations
- Vik, near waterfalls and glaciers: see best rated accommodations
- Höfn, gateway to the East fjords: see best rated accommodations
- Egilsstadir, between fjords and North Iceland: see best rated accommodations
- Reykjahlid, for the wonders of Lake Myvatn: see best rated accommodations
- Akureyri, capital of the North: see best rated accommodations
- Grundarfjordur, on the Snaefellsnes Peninsula: see best rated accommodations
Staying in Reykjavik in Winter
Overall, the same article applies for Summer and Winter.
But here are a few tips to keep in mind when choosing your Reykjavik hotel for Winter
- Be careful on less visited streets as the sidewalks can be slippery
- The attractions of Reykjavik are a little spread out but you can still walk between a lot of them: Cathedral area to the waterfront to the harbour area for example
- For the attractions further away, you can use to hop-on-hop-off bus – Pre-purchase your ticket in your own currency
- If you are booking an accommodation that is on the ground floor, know that you can have a surprise in the morning when you open the door.
If you want to leave early, the owners will not have yet cleared a path.
Want to see more of the best Iceland has to offer?
- All my favorite things to do in North Iceland – read article
- Tips to plan your Iceland road trip – read article
- Tips to rent a car in Iceland – read article
- Tips to drive around Iceland – read article
- Itinerary suggestions – read article
- 45 Most beautiful landscapes in Iceland in pictures – read article
- The best stops on the Ring Road – read article
- The best locations off the beaten path around Iceland – read article
- 21 Most beautiful waterfalls in Iceland – read article
- Top 5 places to see around Myvatn – read article
- 5 best Lava Fields in Iceland – read article
- The 10 best lava caves in Iceland – read article
- The 5 most beautiful black sand beaches in Iceland – read article
- The Golden Circle – read article
- The Snaefellsnes peninsula – read article
Planning a trip to Iceland?
Check out my travel guide to help you plan:
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