Where to stay in Reykjavík
Reykjavík is so small that almost every area is within a 30 minute walk of the next, so the choice is mostly about noise, price and how much of a hill you want. Stay around Laugavegur, the main street, for a first visit and a lot of walking, or at the old harbor if you would rather sleep near the water and the food halls. Skólavörðuholt, the hill under the big church, is calmer and still close, and Vesturbær is the local, residential west side beside the pool. Iceland charges a small overnight tax per room, and the airport is about 50 km away, so plan the Flybus into the trip.
The short answer
- First trip
- Around Laugavegur, with the shops, the harbor and the church on foot.
- Water and food halls
- The Old Harbour and Grandi, for boats, museums and food halls.
- Calm and close
- Skólavörðuholt, the hill under Hallgrímskirkja.
- A local base
- Vesturbær, beside the swimming pool, or Laugardalur for the big pool and campsite.
- Value near the center
- Hlemmur and Austurbær, east of the shops, by the bus hub.
How we judge an area of Reykjavík: walking time to the sights, noise at night, how easy the buses are for tours and the airport, and price. Nothing on this page is paid for, and the hotels we choose will say who chose them and when they last stayed.
Reykjavík's neighborhoods, side by side
| Area | Best for | At night | Hallgrímskirkja | Harpa | BSÍ bus terminal | Getting around | Price |
|---|---|---|---|---|---|---|---|
| Laugavegur and the old center | A first visit, shops | Loud at weekends until late | 10 min | 10 min | 15 min | Buses at Lækjartorg and Hlemmur; tour pick-ups | €€€€ |
| Old Harbour and Grandi | Boats, food halls | Quiet, busy near harbor bars | 25 min | 15 min | 25 min | Buses nearby; tour pick-ups | €€€ |
| Skólavörðuholt | Calm, views | Quiet | 5 min | 15 min | 10 min | Buses at the foot of the hill; tour pick-ups | €€€ |
| Kvosin and the Pond | The pond, old streets | Quiet, busy on bar streets at weekends | 15 min | 10 min | 15 min | Buses at Lækjartorg | €€€ |
| Hlemmur and Austurbær | Value, buses | Quiet, some noise near Hlemmur | 10 min | 20 min | 20 min | Buses: Hlemmur hub | €€ |
| Vesturbær | A local base, calm | Quiet | 25 min | 20 min | 20 min | Buses to the center | €€ |
| Laugardalur | Families, camping | Quiet | 45 min | 50 min | 50 min | Buses to Hlemmur and the center | €€ |
Walking times run from the middle of each area: the straight line plus a third for real streets, at an easy pace, rounded to five minutes. Reykjavík is compact, so the outer areas are a short bus ride or a long walk, not a trip. Price is our read of a standard double in the same week, from € (cheapest) to €€€€ (dearest), until booking-site prices replace it.
Where the neighborhoods are
Laugavegur and the old center, for a first visit
The shops, cafes and bars of the main street, with the harbor and the church both a short walk away, at the highest prices in the city.
Laugavegur and the streets around it are the middle of Reykjavík: the main shopping street, the bars of Hverfisgata and Ingólfsstræti, and the small lane of Skólavörðustígur running up to the church. Harpa and the harbor are about ten minutes' walk, Hallgrímskirkja about ten, and the city bus hub at Lækjartorg is at the western end. Tour companies pick up from many hotels in this area, so you rarely need to go to the bus terminal.
It is the dearest area for rooms and a meal, and the busiest. Bars and clubs stay open late on Friday and Saturday nights, and the pavements are loud until the early hours. Ask for a room at the back or on a high floor if you sleep lightly, and check the street, because side streets are much quieter than the main one.
Good for
- A first trip of two to four nights
- Walking to most of the town and the harbor
- Tour pick-ups from the hotel and the buses at Lækjartorg
Think twice if
- You sleep lightly and your room faces the main street on a weekend night
- You want to save money: rooms and meals here cost the most
- You want a street that feels local
Staying in Laugavegur and the old center: nearby sights, food and getting around
The Old Harbour and Grandi, for boats and food halls
Whale-watching boats, museums and food halls on the water, a ten minute walk from the main street and quieter at night.
The old harbor is where the whale-watching and puffin boats leave, and the former fish sheds along Grandagarður now hold museums, restaurants and the Grandi food hall. Harpa and the middle of town are about ten to fifteen minutes' walk east, and Vesturbær's pool is about the same to the west. Hotels sit in converted buildings and newer blocks along the harbor road.
It is calmer than Laugavegur at night, apart from a few harbor bars and the odd late boat, and the sea air is cold and windy for most of the year. The streets between the harbor and the main street are working roads rather than pretty ones, and in winter the wind from the bay is sharp.
Good for
- Boat trips, the harbor walk and Grandi's food halls
- Quieter nights than the main street
- A short walk to Harpa and the center
Think twice if
- You want shops and cafes right outside your door
- You dislike wind and a cold waterfront walk in winter
- You want old streets rather than a working harbor
Staying in Old Harbour and Grandi: nearby sights, food and getting around
Skólavörðuholt, for a calm base under the church
The hill under Hallgrímskirkja, with small shops, galleries and cafes, a short walk from Laugavegur.
Skólavörðuholt is the hill the big church stands on, with Skólavörðustígur running down the middle, small galleries and design shops on the way, and quiet residential streets around the top. Laugavegur is about five to ten minutes downhill, Harpa about fifteen, and the Einar Jónsson sculpture garden is nearby. Hotels here are small and often converted houses or guesthouses.
It is calm at night, with little more than the odd bar on the lower slope, and the church draws visitors during the day. The catch is the hill: it is a short walk down and a steeper one back, and ice makes the lane slippery in winter. Wind at the top of the hill can be strong.
Good for
- Quiet nights close to the main street
- Small shops, galleries and cafes on the way down
- Views of the city and the church at the door
Think twice if
- You want to avoid a steep walk home, in ice especially
- You want a wide choice of large hotels
- You'd choose a place right beside the nightlife
Staying in Skólavörðuholt: nearby sights, food and getting around
Kvosin and the Pond, for the oldest streets
The oldest part of town around the pond, the parliament and the cathedral, a few minutes west of Laugavegur.
Kvosin is the old center around Austurstræti, with the parliament, the cathedral and the pond Tjörnin, where swans and geese gather and where the pond freezes in winter. Lækjartorg is at its eastern edge, so the buses are close, and Harpa and the harbor are about ten minutes' walk. The National Museum and the city hall are on the pond's edge.
Rooms are a little cheaper than on the main street and the area is quieter after the offices and shops close, though some bars on Austurstræti stay busy at weekends. Hotels here are mostly older buildings, and some have steep stairs and small lifts.
Good for
- The pond and the oldest buildings on foot
- Walking to Harpa, the harbor and Laugavegur
- A calmer evening than the main street
Think twice if
- You want lots of cafes and shops beside the door in the evening
- You'd choose a place near the Austurstræti bars on a weekend night
- Stairs are hard for you: check the lift
Staying in Kvosin and the Pond: nearby sights, food and getting around
Hlemmur and Austurbær, for value near the center
The east end of Laugavegur, around the Hlemmur food hall and the bus hub, with lower prices and a more residential feel.
Hlemmur is the old bus station, now a food hall and the main hub for city buses, at the eastern end of Laugavegur, and Austurbær is the district of mostly flats and small hotels around it. Laugavegur's shops and bars are on the doorstep, Hallgrímskirkja about fifteen minutes' walk west, and Harpa about twenty. The Sun Voyager is about fifteen minutes' walk to the north.
Rooms and guesthouses cost less than in the middle of town, and most of the area is quiet at night. Laugavegur's far end and the bus station can be busy and a little rough in the small hours, but most visitors have no trouble. It is not the prettiest part of the city.
Good for
- Lower prices a short walk from the main street
- Buses from Hlemmur to the rest of the city
- The food hall at the door
Think twice if
- You want to be in the middle of the old streets
- You want pretty streets rather than flats and offices
- You'll walk home late and would rather be on a busy, lit street
Staying in Hlemmur and Austurbær: nearby sights, food and getting around
Vesturbær, for a local, residential stay
The west side, with the main swimming pool, the university and quiet streets of houses, a 20 to 30 minute walk from the center.
Vesturbær is the residential district west of the pond, with Vesturbæjarlaug, the swimming pool that locals use every morning, a bakery or two, and rows of small painted houses. The old harbor and Grandi are about fifteen minutes' walk, Lækjartorg about twenty-five, and the National Museum and the university are on the eastern edge.
There are few hotels here, so most stays are guesthouses and apartments, and rooms cost less than in the middle of town. It is quiet at night and feels like a neighborhood, but you will walk or take a bus into town, and the wind on the west side can be strong.
Good for
- Calm nights and a neighborhood feel
- The swimming pool and a bakery on the corner
- Lower prices than the center
Think twice if
- You want to walk to Laugavegur in ten minutes
- You want a wide choice of hotels
- You want bars and restaurants at the door
Staying in Vesturbær: nearby sights, food and getting around
Laugardalur, for the big pool and the campsite
A green valley east of the center with the biggest pool, the botanical garden and the campsite, about three kilometers out.
Laugardalur is the valley east of Hlemmur, with the Laugardalslaug pool complex, the botanical garden, the family park and zoo, and the city's main campsite and a few hostels and hotels. Buses run to the center in about ten to fifteen minutes, and the walk takes about forty-five. It is also where the big sports halls and the national stadium stand.
It is calm and green and often cheaper than the center, and suits families and anyone coming by campervan. The catch is that you leave the area for restaurants and nights out, and in winter the wind and darkness make the evening walk less appealing.
Good for
- The big pool, the garden and a park for children
- A campsite and hostels at lower prices
- Quiet nights
Think twice if
- You want to walk to the old streets and the harbor
- You'll go out in the evenings and don't want to ride back
- You want a wide choice of restaurants at the door
Staying in Laugardalur: nearby sights, food and getting around
Where not to stay in Reykjavík, and what to do instead
Every booking site lists these places to stay in Reykjavík. We would skip them, or at least choose with care. Nobody pays a commission on a warning.
- A room on the main street on a Friday or Saturday night, if you need sleep
Bars and clubs stay open late and the pavement is loud. Ask for a room at the back, or stay on Skólavörðuholt and walk down.
- A hotel near the airport at Keflavík, for a city break
It saves a ride on the first and last day, but the town is 50 km away and the area has little to do. Stay in Reykjavík and take the Flybus.
- A cheap room far out in the suburbs, to save money
The drive or bus takes the time and the savings. Hlemmur or Vesturbær save money and keep you within a walk or a short bus ride of town.
- A room above the Austurstræti bars at a weekend
Great for the evening and loud until the early hours. Ask for a back room, or stay near the pond.
- A stay too far to reach tours in winter, if you rely on pick-ups
Tour buses collect from set stops, and a few areas are not on the route. Check pick-up details with the tour company before you book.
Which neighborhood suits you
First time in Reykjavík
Around Laugavegur, or Kvosin for a quieter street.
Couples
Skólavörðuholt for a calm hill, or the Old Harbour for the water.
Families with children
Laugardalur for the pool and park, or Vesturbær for quiet streets.
A tight budget
Hlemmur and Austurbær, or Laugardalur and its hostels.
Restaurants and bars
Laugavegur, with the Hverfisgata bars and the food hall at Hlemmur close.
Sights on foot
Laugavegur or Kvosin, with Harpa, the church and the harbor close.
Peace and quiet
Boat trips
The Old Harbour, with the whale-watching boats at the door.
A local feel
Vesturbær, with the pool and a bakery close.
Before you book a room in Reykjavík
The practical things that decide whether a good hotel in Reykjavík makes a good stay.
- The overnight taxIceland charges a flat overnight tax per room, not per person, on hotels and guesthouses. Travel sources give it as 800 ISK a night from 2025, about 6 US dollars, after 666 ISK in 2024, with half that for campsites. It is often added at booking or at check-in, so read the total before you pay. Rates change, and your hotel will tell you the current figure.
- From Keflavík airportThe airport is about 50 km south-west of the city. The Flybus runs from the arrivals hall to the BSÍ bus terminal in about 45 minutes, timed to flights, from about 3,999 ISK one way. A version with hotel drop-off at selected hotels takes longer, about 70 minutes, and costs more. Book online or at the kiosks in the airport.
- Taxis and car hireA taxi from the airport takes about 45 minutes and costs much more than the bus. A hire car is useful for the south coast and the Golden Circle, but parking in the middle of town is limited and charged, so ask your hotel.
- Tours and pick-upsMost day tours collect from set bus stops or from hotels in the center. Ask about the pick-up point when you book, because some outer areas are not on the route.
- Lifts and stairsMany old buildings in the center have steep stairs and small lifts or none. If stairs are hard for you, check the floor and the lift before you book.
- Book early in summer and over New YearRooms are scarce and dear in June to August and around New Year. Book as soon as your dates are fixed.
Where to stay in Reykjavík: questions people ask
What's the best area to stay in Reykjavík for a first visit?
Around Laugavegur, the main street. The harbor, the church and Lækjartorg are all within about fifteen minutes' walk, and tours often pick up from hotels here. It is also the dearest and loudest area, so Skólavörðuholt or Kvosin are good calmer choices nearby.
Is Laugavegur noisy at night?
At weekends, yes. Bars and clubs on and around the street stay open late, and the pavement is loud until the early hours. Midweek it is calm. Ask for a room at the back if you sleep lightly.
Is it better to stay in the center or near the harbor?
The center for shops and bars, the harbor for boats, food halls and quieter nights. Both are a ten minute walk from each other, so it is a matter of taste.
Is Reykjavík safe at night?
Mostly, yes. Iceland is one of the safest countries in Europe, and the center is calm even late. Take normal care, and note that icy pavements are a bigger risk than people in winter.
How do I get from Keflavík airport to Reykjavík?
The Flybus runs to the BSÍ terminal in about 45 minutes, from about 3,999 ISK one way, and a version with hotel drop-off takes longer and costs more. A taxi is faster in theory and costs much more.
Do you need a car in Reykjavík?
Not in town. The center is walkable and buses cover the rest. A car helps for the south coast and the Golden Circle in summer, and a tour is simpler in winter.
Is there a tourist tax in Reykjavík?
Yes, a small flat overnight charge per room, about 800 ISK a night according to travel sources for 2025 onwards. It is not per person, and your booking or hotel will show it.
How many nights should I stay in Reykjavík?
Three nights cover the city, a Golden Circle tour and a day on the south coast or at the Blue Lagoon. A fourth night adds a whale-watching trip or a slower day.
