• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
the tour guy travel blog

The Tour Guythe tour guy travel blog

  • Destinations
    • Amalfi Coast
    • Amsterdam
    • Athens
    • Barcelona
    • Capri
    • Florence
    • Granada
    • Iceland
    • Las Vegas
    • London
    • Madrid
    • Milan
    • New York City
    • Paris
    • Rome
    • San Francisco
    • Segovia
    • Sicily
    • Tuscany
    • Vatican City
    • Venice
  • Attractions
    • 9/11 Memorial
    • Accademia Gallery
    • Acropolis
    • Alcázar of Segovia
    • Alhambra
    • Borghese Gallery
    • Buckingham Palace
    • Colosseum
    • Doge’s Palace
    • Eiffel Tower
    • Louvre Museum
    • The Met
    • Montserrat Monastery
    • Pantheon
    • Paris Catacombs
    • Sagrada Familia
    • Sistine Chapel
    • St. Mark’s Basilica
    • St. Peter’s Basilica
    • Statue of Liberty
    • Stonehenge
    • The Last Supper
    • Tower of London
    • Uffizi Gallery
    • Vatican Museum
    • Versailles
    • Westminster Abbey
    • Windsor Castle
  • Shop Tours
  • Sign In
Home > travel-blog > Iceland > Reykjavik > Where To Stay in Reykjavík in 2025

Where To Stay in Reykjavík in 2025

Jenna Gottlieb Last Updated: December 12, 2024

Planning a trip to Reykjavík but unsure where to stay? Keep reading! Iceland’s capital is a small, charming city with a concentrated city center called 101 Reykjavík. While there’s one main neighborhood of interest to tourists, you have quite a bit of choice. In this article, we’ll detail where to stay in Reykjavík, so you experience the best of the city.


Pro Tip: It’s easier to organize your trip when you have all your resources in one place. Bookmark this post along with our article on the best restaurants and the top things to do in Reykjavík.

Where To Stay In Reykjavík: Best Hotels and Neighborhoods

Like all cities, Reykjvaík is divided into neighborhoods. However, because Reykjavík is quite small most of the city’s attractions and hotels are concentrated in one area. In this article, we’ll focus on the best hotels in downtown Reykjavík and the Old Harbor/Grandi area.

Reykjavík is a very walkable city. So, if you stay anywhere in the 101 postcode, you’ll be central to most attractions, museums, shops, and restaurants. You’ll find hotels at every budget here from affordable to high-end luxury (Reykjavik EDITION, anyone?) Here are the neighborhoods we’ll cover so you can decide which Reykjvaík hotels best suit your style and plans.

  • Downtown Reykjavík
  • Old Harbor/Grandi

Our Partnership with Booking.com. If you like our content, please book by clicking on our Booking.com links. The price is the same for you, and we get a small commission that helps support our blog. We’ve partnered with Booking.com because they have the most options, great prices, and a solid loyalty program. Just about every hotel is on Booking so our recommendations are not incentivized.


Downtown Reykjavík (Miðborg)

Where is the happening place in the city? In 101 Reykjavík, also known as Miðborg. The postcode has earned it’s reputation over the years as musicians, artists, and other creatives tend to call 101 home, meaning it has a cool vibe.

You’ll find music venues, art galleries, eclectic shops, and most bars and restaurants in Reykjavík here. Admittedly, 101 has become more touristy in the last several years, but there‘s no escaping that, as Reykjavík is so small. Almost everyone stays in 101 Reykjavik—families, solo travelers, overnighters, adventurers, foodies, etc.

The main street in 101 is Laugavegur, and we recommend you start exploring here. Stop by the bakery Sandholt for a coffee and kleina (Icelandic donut) and visit shops, people watch, and plan which attractions you want to see. There are plenty of great places to eat and drink on Laugavegur and, of course, fantastic hotels for romance, luxury, and proximity to tasty restaurants.

Why I love Downtown Reykjavík:

  • The high concentration of great museums and art galleries
  • Numerous cool bars to grab a drink with a friend, like Kaldi and Kaffibarinn
  • Best place to shop
  • Lots of cool restaurants (check out the best restaurants in Reykjavík)

Attractions in Downtown Reykjavík:

  • Hallgrímskirkja
  • Tjörnin
  • Hafnarhús-Reykjavík Art Museum
  • Laugardalslaug swimming pool
  • National Gallery

Best restaurants in Downtown Reykjavík

  • Þrir Frakkar
  • Grillmarkaðurinn
  • Fiskfélagið
  • Sushi Social
  • Mat Bar

Best hotels in Downtown Reykjavík:

Kvosin Downtown Hotel

Photo courtesy of Kvosin Hotel

$$$ I 4 Star I Modern I Close to Tjörnin and National Gallery

Kvosin Hotel is a modern boutique hotel in downtown Reykjavík. Rooms are sleek and Scandinavian cool with accents from local Icelandic designers, including organic toiletries from local brand, Sóley. I recommend heading downstairs to Aldamót Bar, a great spot to enjoy late-evening cocktails.

Location, photos, and booking

Alda Hotel

room in alda hotel
Photo courtesy of Alda Hotel

$$ I 4 Star I Cozy Rooms | Mini Fridges | Restaurant

Located right on the main street, Laugavegur, the Alda Hotel just makes sense. I love that they offer breakfast, which is convenient if you have a day trip planned. Rooms are comfortable even if not totally new, but they have a mini fridge which is helpful for families with kids or anyone staying longer.

Location, photos, and booking

Canopy by Hilton Reykjavík

Photo courtesy of Canopy by Hilton

€€€€ I 4 Star I Upscale I Stylish and Central

Canopy by Hilton, which is just steps from Laugavegur, is full of art and interesting architecture with a hip lobby and spacious rooms. The room decor features soft, muted colors, hardwood floors, and exquisite linens. Each room has a Nespresso coffee maker and a memory foam bed.

Location, photos, and booking

Kex Hostel

Photo courtesy of Kex Hostel

€ I 2 Star I Budget Friendly I Young and Hip

Kex Hostel is more than just accommodation—it‘s where music lovers and the cool crowd meet up for drinks and live music. They offer both dorm and private rooms. In the front lounge, there’s a bar, restaurant, and a small stage for live bands to perform. Solo travelers and young people will love staying here.

Location, photos, and booking

101 Hotel

Photo courtesy of 101 Hotel

€€€€ I 4 Star I Luxury I Close to Cultural Attractions

Reykjavík‘s 101 Hotel is nordic luxury done right with cozy rooms and a modern monochrome color palette. Some rooms even have a fireplace! Expect walk-in showers, disc players with a Bose sound dock, bathrobes, and slippers. Close to the National Theater and The Culture House, the location is excellent.

Location, photos, and booking

Sand Hotel

€€+ I 4 Star I Contemporary I Located on Laugavegur

I love how modern this hotel is! Rooms have that Scandinavian chic feel with a mix of elegance. The hotel boasts an unbeatable location on the main street, Laugavegur, and directly above one of the best bakeries in the city, Sandholt. This is idea for people who want a refined hotel that’s not overpriced and still close to everything.

Location, photos, and booking

Hotel Borg

Photo courtesy of Hotel Borg

€€€€ I 4 Star I Old-Time Charm I Steps from Althing

Hótel Borg is a 56-room hotel built in 1930. It’s elegant, modern, and steeped in old-world charm. Rooms have custom-made furniture and very comfortable beds. The in-house restaurant is a favorite and the hotel is close to attarctions, shops, and restaurants.

Location, photos, and booking

Hótel Frón

€€ I 3 Star I Apartment Accommodation I Convenient Location

Located on Laugavegur, Hótel Frón offers guests single and double rooms and apartments. They’re clean, bright, and comfortable. Stay in one of their apartments for the kitchen and some cool features like Jacuzzi bathtubs. It’s also conveniently close to the bars on Laugavegur.

Location, photos, and booking

Old Harbor/Grandi

The Old Harbor/Grandi area is one of the most exciting areas of Reykjavík as it’s undergone quite a transformation over the past 10 years. The Old Harbor used to be a hub for fishermen and not much else, but now you’ll find restaurants like Sægreifinn and Le Kock, and museums like Whales of Iceland and the Saga Museum.

The harbor is also where all-year whale watching tours and summer puffin tours depart, as well as northern lights boat tours in the winter months. There are fewer hotels to choose from as the area continues to develop, but there are some great choices. This area is perfect for anyone who prefers to stay in the city, but just out of the busier downtown area.

Why I love the Old Harbor/Grandi area:

  • Quieter than the heart of downtown Reykjavík
  • Close proximity to the harbor where whale-watching tours depart
  • Great restaurants
  • Excellent museums and attractions nearby

Attractions near the Old Harbor/Grandi area:

  • Harpa Concert Hall
  • Sólfar Sun Voyager
  • Flyover Iceland
  • Saga Museum
  • Whale-watching from Reykjavík Harbor

Best restaurants in the Old Harbor/Grandi area:

  • Sægreifinn
  • Flatey Pizza
  • Grandi Mathöll
  • Le Kock
  • Matur og Dykkur

Best hotels in the Old Harbor/Grandi area:

What started as an up-and-coming district is now a full-fledged place to hang out. It‘s a little quieter in this part of town, but there‘s still plenty to do. Here are three hotels that we highly recommend.

Reykjavik Marina – Berjaya Iceland Hotels

Photo courtesy of Reykjavík Marina

€€€ I 4 Star I Marine Chic I Harbor Views

One of the most design conscious of the Berjaya Hotel chain, Reykjavík Marina displays art throughout the hotel and rooms, featuring everything from large murals by Icelandic artists to impressive wood sculptures. Rooms are minimalist and modern, and the hotel is home to one of the best cocktail bars in Reykjavík, Slippbarinn.

Location, photos, and booking

The Reykjavík EDITION

Photo courtesy of The Reykjavík EDITION

€€€€ I 5 Star I Nordic Luxury I Restaurant and Bar | Next to Harpa | Stunning Views

Looking for a luxury hotel experience in Reykjavík? This is it. This 5-star hotel is located right next to Harpa with stunning ocean and mountain views. Rooms feature design elements curated by the world-renowned hotelier Ian Schrager, with bespoke furniture, lush rugs, and Icelandic art.

Location, photos, and booking

Exeter Hótel

Photo courtesy of Exeter Hotel

€€+ I 4 Star I Industrial Style I Mountain Views

Exeter Hótel is situated in a cool spot, just across the street from the harbor, so many rooms have fantastic mountain and ocean views. The hotel has a bit of a masculine modern feel to it with a lot of metal and leather decor, and it is above the wildly popular bakery, Deig (you can get bagels here, a rare find), and restaurant, Le Kock.

Location, photos, and booking

  • spend a day in reykjavik
    How to Spend a Day in Reykjavík in 2025
  • reykjavik top foods to try feature
    Top 13 Foods To Try in Reykjavík in 2025
  • hallgrimskirkja in reykjavik in the day
    Top 16 Things To Do in Reykjavík in 2025
  • Iceland street with people sitting down drinking coffee. In the background people are walking.
    The 11 Best Restaurants in Reykjavík in 2025
  • Arizona-Biltmore
    Where to Stay in Phoenix in 2025: Best Neighborhoods…
  • L’Auberge De Sedona
    Where To Stay In Sedona, Arizona In 2025: Best…

Reader Interactions

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Footer

COMPANY

  • About Us
  • Travel Blog
  • In The Press
  • Guidebook Sitemap

POLICY & TERMS

  • Cancellation Policy
  • Terms & Conditions
  • Privacy Policy

FIND US ON

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • YouTube

WE ACCEPT

we accept payments

Copyright © 2025 The Tour Guy. All rights reserved.