Where to Stay in Reykjavik
A regional guide to accommodation across the country
Find Hotels Across Reykjavik
Compare prices from hotels across all regions
Prices via Trip.com. We may earn a commission from bookings.
Regions of Reykjavik
Each region offers a distinct character and accommodation scene. Find the one that matches your travel plans.
The heart of Iceland's capital concentrates the highest density of accommodation within walking distance of Hallgrímskirkja, Harpa concert hall, and Laugavegur shopping street. This compact area offers the most convenience for car-free travelers, with restaurants, nightlife, and tour departure points steps away, though it commands the city's highest accommodation rates and experiences weekend noise from the famous Reykjavik nightlife scene.
Reykjavik's revitalized waterfront district offers a quieter alternative to downtown while maintaining walkability to central attractions. The area features newer hotels alongside converted warehouses, with whale watching tours, maritime museums, and seafood restaurants as neighborhood draws, plus slightly lower rates than the 101 district.
This residential area east of downtown centers around Laugardalur valley with its geothermal pool complex, botanical gardens, and sports facilities. Accommodation here trends toward guesthouses and smaller hotels in quieter neighborhoods, requiring bus rides or 20-30 minute walks to downtown but offering better value and proximity to the city's best public swimming pool.
Straddling the edge of downtown and residential neighborhoods, this area around the main bus terminal offers a middle ground between central convenience and quieter surroundings. The neighborhood has seen recent development with several new hotels, and its position near Hallgrímskirkja provides easy access to downtown while maintaining a more local atmosphere.
Iceland's second-largest municipality sits directly south of Reykjavik, offering suburban accommodation with shopping centers, swimming pools, and residential calm. While requiring a car or bus for downtown access, these areas provide better parking options and slightly lower rates while remaining within 10-15 minutes of central Reykjavik.
This historic fishing town 10km south of Reykjavik maintains its own identity with a picturesque harbor, lava field setting, and folklore culture centered on hidden people (elves). Accommodation options remain limited but offer character-filled alternatives to Reykjavik proper, with good access to both the capital and South Coast attractions.
The area surrounding Iceland's international airport, 45km from Reykjavik, serves primarily as a practical base for early departures, late arrivals, or exploring the Reykjanes Peninsula's geothermal areas and Blue Lagoon. While lacking the capital's attractions, it offers significantly lower rates and makes sense for those prioritizing South Coast or Golden Circle tours over city exploration.
The suburbs north and east of Reykjavik offer proximity to nature with hiking trails, Mount Esja views, and geothermal areas while remaining within 20 minutes of downtown. These residential areas provide peaceful bases for travelers with cars who want easy access to both city and countryside.
Accommodation Landscape
What to expect from accommodation options across Reykjavik
International hotel chains have limited presence in Reykjavik, with Hilton, Radisson Blu, and Marriott operating flagship properties in premium locations. Icelandic chains like Keahotels and Fosshotel dominate the mid-range market, offering consistent quality across multiple city locations and countryside properties. The market remains heavily weighted toward independent operators, boutique hotels, and locally-owned guesthouses, reflecting Iceland's small population and independent business culture.
Guesthouses (gistiheimili) form the backbone of Reykjavik's accommodation, ranging from rooms in family homes to purpose-built properties with hotel-like amenities. Apartments and vacation rentals have exploded in popularity, offering better value for groups and families, though regulations have tightened since 2019. Many accommodations occupy converted residential buildings, giving them residential character but sometimes lacking elevators, air conditioning, or extensive facilities. Icelandic hospitality emphasizes functionality and design over elaborate service, with many properties operating with minimal staff.
Iceland's unique accommodation options include renovated turf houses (though rare in Reykjavik itself), farm stays on working sheep or horse farms in the greater capital area, and summer houses (sumarbústaður) available for short-term rental. Several properties incorporate geothermal heating systems as a feature, with some offering private hot tubs fed by geothermal water. The country's extreme seasonal light variations mean many accommodations provide blackout curtains as standard in summer and northern lights wake-up calls in winter. Eco-lodges and sustainability-focused properties have grown in number, reflecting Iceland's environmental consciousness and renewable energy abundance.
Booking Tips for Reykjavik
Country-specific advice for finding the best accommodation
Reykjavik's accommodation capacity cannot meet summer demand, with quality properties selling out 4-6 months ahead for June-August dates. Booking by February for summer travel is advisable, as last-minute options often mean either extremely high prices or locations far from downtown. Winter bookings can be made closer to travel dates, though New Year's Eve requires advance planning similar to summer.
With restaurant meals costing €20-40+ per person, apartment rentals with kitchen facilities can significantly reduce overall trip costs despite higher nightly rates. Grocery stores offer good selections at more reasonable prices than dining out, making self-catering apartments or guesthouses with kitchen access particularly valuable for budget-conscious travelers. Many mid-range hotels include basic breakfast, which should factor into value calculations.
Travelers renting cars can access better-value accommodations in suburbs and surrounding towns, while those relying on public transport should prioritize central locations despite higher costs. Parking in downtown Reykjavik is expensive and limited, making central hotels less advantageous for drivers. Bus service is reliable but limited after hours, affecting accommodation choices for those planning to experience Reykjavik's famous nightlife without a car.
Iceland's weather can disrupt travel plans year-round, making flexible cancellation policies valuable despite often higher rates. Many Icelandic properties enforce strict cancellation deadlines, particularly during high season, with some requiring full prepayment months in advance. Travel insurance covering accommodation costs is advisable given Iceland's unpredictable conditions and potential flight disruptions.
Accommodation descriptions in Iceland may not include features considered standard elsewhere—verify whether breakfast, parking, WiFi, and private bathrooms are included, as these vary widely even within price categories. Some guesthouses offer shared bathroom facilities even at mid-range prices, while others charge separately for parking or breakfast. Air conditioning is rare and generally unnecessary even in summer, but heating quality matters for winter stays.
When to Book
Timing matters for both price and availability across Reykjavik
For June-August travel, book 4-6 months in advance (by February) to secure preferred locations and reasonable rates. Waiting until spring often means limited availability, downtown properties sold out, and prices 30-50% higher than early-booking rates. New Year's Eve accommodation should be booked by September at latest.
May and September accommodation can be booked 2-3 months ahead for good selection, though popular properties still fill early. These months offer the best balance of availability, pricing, and weather, making them increasingly popular and requiring more advance planning than previously. Aurora season weekends (September-March) book faster than midweek dates.
November and January-February offer the most flexibility, with booking 2-4 weeks ahead usually sufficient except around New Year's. Some properties offer last-minute deals during these months, and negotiation may be possible for longer stays. However, some suburban and rural accommodations close entirely, limiting options outside central Reykjavik.
Iceland's accommodation market rewards early booking more than most destinations, with summer prices doubling or properties selling out entirely for those who wait. Book 4-6 months ahead for summer, 2-3 months for shoulder season, and 1-2 months for winter unless traveling around New Year's. Direct booking with properties sometimes yields better rates than third-party platforms, and many Icelandic operators respond well to email inquiries about longer stays or group bookings.
Good to Know
Local customs and practical information for Reykjavik