Best Neighborhood To Stay In Reykjavik – Plan your trip to Iceland with my tips for staying in Reykjavik! Learn which neighborhoods, hotels and hostels are good options based on your budget and goals.
As I’m sure you already know, Iceland is a fantastic destination for all kinds of people, from families to solo travelers.
Best Neighborhood To Stay In Reykjavik
There are many different places to stay in Iceland because of its different landscapes, and every time I visit I find something new.
Where To Stay In Reykjavik
Visitors can explore epic waterfalls, hike through volcanoes or use the city as a starting point to drive the famous Ring of Iceland.
For those who are planning a visit and wondering about the best places to stay in Iceland, I have put together this free guide to the best places and accommodation options in the country!
When it comes to staying in Iceland, hotels can be expensive, and there aren’t many options compared to other places. However, other methods such as housing can help save money.
Especially if you plan to visit during the high summer, finding a good place to stay can be very difficult.
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From budget hostels to backpackers to Reykjavik hotels, family hotels, campsites and even RV rentals, this guide will tell you where to stay for fun in Iceland.
The busy heart of Reykjavik is the central Miðborg district, especially Laugavegur street, where you can find shopping, restaurants, nightlife and all kinds of interesting things.
Located on the west side of the city centre, Vesturbær is a mix of places to stay and small cafes. It’s quiet in the middle.
To the east of the city is a residential area for local workers, with many parks and playgrounds. The name means “hills” and places here are much cheaper than in the city center.
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Laugardalur is a sports and entertainment center in Reykjavík. Known as ‘Hot Spring Valley’, this is where you’ll find the local playground and campground.
Reykjavik is the capital of Iceland, and many travelers stop there from the start. The city welcomes visitors with a cosmopolitan mix of restaurants, cafes, street art, museums and home to tourism businesses.
If you want to be at all the action, stay on Laugavegur Street. But there are also some great neighborhoods in Reykjavik, which I will share below.
Kvosin Downtown Hotel is the place to enjoy yourself while staying in Reykjavík. Housed in a restored 1900s building, the boutique hotel offers the largest rooms you’ll find in Reykjavik, decorated in modern Scandinavian style and featuring artwork by local artists.
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Hotel Ódinsvé is an amazing hotel in Iceland with a window overlooking Reykjavik to enjoy the magic every day of your stay. Snaps Restaurant, in the hotel, offers amazing Danish cuisine. Furthermore, the shopper’s paradise, the shopping street Laugavegur, is about 200 meters from the hotel.
Rey Apartments is located between the main shopping area and Reykjavík’s trendy Skolavordustigur district. The stylish modern apartments have free Wi-Fi and fully equipped kitchens and living rooms. Sunhollin geothermal pool is 10 minutes away!
Awards and is one of the best places to stay in Reykjavík if you are traveling on a budget. Located in the center of the city, it has a large balcony to admire the city from above. They often organize music and events, have good wifi and friendly staff.
The Golden Circle is a circular route of 300 kilometers, from the capital Reykjavik to the center of Iceland, and back in one day. It’s the perfect introduction to Iceland if you’re short on time or on vacation.
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From ancient historical sites to beautiful natural sites, the Golden Circle has it all. You can join an organized tour of the Golden Circle or rent a car and drive yourself at your own pace.
Most people base themselves from Reykjavik on this tour, but you can also spend the night along the Golden Circle. The towns of Selfoss and Hveragerði are good options for this.
Here are my top recommendations for Golden Circle hotels, resorts and campsites to fit your budget.
Frost & Fire Hotel – This unique hotel in Iceland is located near a geothermal field, which gives you the feeling of being among nature. Thingvellir National Park is only 40 minutes away. Relax in the spa-like facilities, which include two hot tubs, an outdoor pool, a hot spring Jacuzzi and a sauna. You can even cook an egg in a natural hot spring for breakfast!
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Ion Adventure Hotel – The view of the northern lights is the real reason to stay at this hotel near Thingvellir National Park. The hotel is located on Mount Hengill and has a restaurant, heated pool, spa and sauna. The common room is where you share your stories while meeting other adventure seekers.
Eldhestar – Just half an hour from the capital, this Icelandic eco-hotel offers everything you need to relax. You can drink hot tea in the lounge by the fireplace or enjoy a drink in the bar. Each room has a private entrance with nature-inspired decor. Eldhestar has a wooden outdoor hot tub and is located next to an Icelandic horse farm.
Guesthouse Bjarney – Rooms share a fully equipped kitchen, bathroom and laundry. On the terrace you can organize a barbecue for your travel companions or new friends you make while talking in the living room. To take the experience to the next level, stay in a trailer instead of a regular room.
SKYR Guesthouse – This guesthouse has spacious rooms equipped with TVs and coffee and tea. Enjoy good coffee and delicious food while you plan to enjoy a trip to the resort or shopping at the market. There is free wireless internet inside and free parking. If you don’t want to drive, rent a bike from the guest house and explore the area.
The Best Places To Stay In Reykjavik
Guesthouse Inga – The location of this guesthouse in the Golden Circle is excellent, as the open roof brings the beauty of the northern lights over the place. The rooms are large, tidy, and some have beautiful views of the surrounding countryside. The shared bathroom is modern and clean. You will also need a shared living room.
Selfoss Hostel – Everything you need for a good night’s sleep before exploring Iceland further. The clean and functional rooms have free Wi-Fi and a view of Ingolfsfjall mountain. There is free parking, which is great as well if you rent a car in Iceland. It also has a large shared kitchen and bathroom.
Hot Springs Hostel – Amazing views of the mountains greet you every morning when you look out the window. If you want to relax in the hostel, there is wifi, and you can also spend some time at the playground. However, the fantastic scenery of Reykjafjall mountain around the hostel invites you to a hiking trip.
The south coast of Iceland is full of natural wonders and is ideal for sightseeing outside the capital. If you are traveling the entire ring road on Route 1, this is usually the next stop after your trip around the Golden Circle.
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The south coast is home to Iceland’s other waterfalls, such as Seljalandfoss and Skogafoss. Reynisfjara Black Beach, Sólheimajökull glacier and Eyjafjallajokull volcano are some of the highlights.
One of the largest tourist towns is Vik [MAP], with accommodation, restaurants and various activities in the area. So it’s a good place to stay for one or two nights.
Here are my recommendations for the best hotels, hostels and campsites on the south coast of Iceland to suit your budget.
Hotel Kria – This new luxury accommodation hotel near Vik opened in 2018. The rooms are modern in design and have all the facilities one would expect from a luxury hotel. During your stay at Kria, you can enjoy a wonderful view of the mountain, a cocktail in its bar or a delicious meal in the restaurant serving Icelandic specialties. The breakfast buffet offers food from local farms.
Hallgrimskirkja Cathedral Images
Black Beach Suites – For breathtaking views of the mountains and sea, step onto the slopes of this resort on Iceland’s south coast. You can prepare food in your house; There is a fridge, microwave and toaster. The black sand beach is 4 km from this property, and fun activities in the area include outdoor dining, skiing and golf.
The Barn – is close to Vik and provides a great base for exploring the south coast of Iceland. With parking and free Wi-Fi, the island is ideal for honeymooners. The rooms offer complete privacy, making this hostel a good choice for couples. Some rooms have mountain views and bunk beds are available.
Icelandair Hotel Vík – This hotel is less than 5 km from major attractions such as Reynisfjall Mountain, Vikura River and Lake Höfðabrekkulón. Located right on the beach, and close to restaurants and other amenities, this Icelandic hotel is one of a kind