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Best Area to Stay in Reykjavik: All 7 Areas Rated

Choosing the best area to stay in Reykjavik comes down to airport bus logistics and whether you have a car. Booking a boutique hotel in the historic center usually means walking your luggage to a designated city bus stop, while hotels along the eastern commercial strip offer direct airport coach drop-offs at the curb. Here is every one of the city's 7 main lodging areas compared on foot routing, pool access, and verified transit connections.

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By Emma8 min readPublished
Table of contents
Reykjavik seen from the church tower, painted metal rooftops running down to the bay with mountains across the water
Photo: G. Edward Johnson · CC BY 4.0

In Brief

What is the best area to stay in Reykjavik?

The 101 downtown core around Kvosin is the best area to stay in Reykjavik for first-time visitors because you can walk to Harpa, museums, and restaurants without a vehicle. You will walk your luggage to a numbered Flybus stop rather than get dropped at your hotel door.

Key takeaways

  • Best for first-timers on foot: The 101 downtown core sits within a 2 to 11 minute walk of the main sights, but 141 of 175 Flybus hotel drop-offs require walking to a numbered stop.
  • Best for airport coach convenience: Laugardalur and the Skeifan strip offer direct door-to-door Flybus drop-offs, avoiding the numbered walk-to stops required in 101.
  • Best for pool culture: Laugardalur sits next to Laugardalslaug, Iceland's largest public pool with adult admission set at 1,500 ISK, while Vesturbaer features Vesturbaejarlaug.
  • Best for drivers and early flights: Keflavik sits 50 km away near the runway and away from the capital's light dome, reachable via Straeto route 55 for 2,400 ISK.

Pick your budget

  • Budget

    Campsite pitches and hostel dorms

    Laugardalur

    Tent and camper van pitches beside Laugardalslaug pool with shared kitchen facilities and an 800 ISK statutory lodging tax per unit.

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  • Most popular

    Mid-range

    Mid-range city hotels and guesthouses

    Skeifan and the ring road strip: Sudurlandsbraut, Sidumuli and Grensasvegur

    Standard hotel rooms in the central Kvosin district within a 4-minute walk of Laekjartorg square and the Old Harbour.

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  • Splurge

    Boutique hotels with in-house spas

    The 101 downtown core: Kvosin, Adalstraeti and Laekjargata

    Contemporary hotel rooms on upper Laugavegur featuring an in-house wellness center with a year-round open-air hot tub.

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Reykjavik areas at a glance

The best areas to stay in Reykjavik, compared for vibe, price and who each suits.

AreaBest forPriceIn a word
The 101 downtown core: Kvosin, Adalstraeti and Laekjargatafirst timers, sightseeing$$Historic center with museums, restaurants, and harbourfront walks
Laugavegur and the old harbournightlife, shopping$$Main commercial strip and working harbor boat docks
Hlemmur and the eastern end of 101 and 105food, sightseeing$$Former central transit square with a food hall and geothermal baths
Laugardalurfamilies, budget$Recreational green valley home to Iceland's largest public pool
Vesturbaerfamilies, sightseeing$$Quiet residential streets centered around a beloved local pool
Skeifan and the ring road strip: Sudurlandsbraut, Sidumuli and Grensasvegurbudget$Commercial highway corridor with straightforward vehicle access
Keflavik and the airport areasightseeing$$Reykjanes peninsula hub beside the international runway
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Best areas to stay in Reykjavik

Ranked best-first, with the vibe, who it suits and an honest catch for each. Tap a filter to match an area to your trip.

Find your area - what matters most?

All 7 areas in Reykjavik, best first.

  • The 101 downtown core: Kvosin, Adalstraeti and Laekjargata

    $$ · Mid-range

    Historic center with museums, restaurants, and harbourfront walks

    Best for:First-timersSightseeingFood & wine

    This is Reykjavik's historic core, bordered by Austurvollur, Lake Tjornin, and Laekjargata. Staying here puts you within walking distance of Harpa concert hall (6 minutes on foot) and Hallgrimskirkja (11 minutes on foot). It suits travelers without a car who want to explore downtown galleries, historic squares, and cafes without relying on transit.

    Good to know
    Most properties cannot accommodate door-to-door coach service; Flybus drop-offs require walking with luggage to designated numbered city stops like Bus Stop 14 on Skulagata. Weekend street noise is prevalent, leading central properties such as Loft HI Hostel on Bankastraeti to provide free earplugs to guests.
    See The 101 downtown core: Kvosin, Adalstraeti and Laekjargata hotelsLive prices for your dates

  • Laugavegur and the old harbour

    $$ · Mid-range

    Main commercial strip and working harbor boat docks

    Best for:NightlifeShoppingFood & wine

    Stretching along the city's primary retail artery and wrapping around the waterfront towards Grandi, this district places you steps away from bustling restaurants, boutiques, and boat docks. It is ideal for visitors planning whale watching or northern lights cruises directly from the slips. Center Hotels Grandi sits on the harbour side 12 minutes on foot from Laekjartorg, while shops line Laugavegur.

    Good to know
    The strip hosts the capital's late-night bars, creating significant noise on Friday and Saturday nights. Airport bus transfers do not drop at hotel entrances along Laugavegur; guests must walk to designated numbered points such as Bus Stop 9 on Snorrabraut or Bus Stop 4 at Midbakki Harbour.
    See Laugavegur and the old harbour hotelsLive prices for your dates

  • Hlemmur and the eastern end of 101 and 105

    $$ · Mid-range

    Former central transit square with a food hall and geothermal baths

    Best for:Food & wineSightseeingBudget

    Centering on the eastern junction of Laugavegur, Hlemmur offers a local food hall and immediate access to Sundholl Reykjavikur, the city's historic indoor-outdoor public bath featuring hot tubs and a steam room for 1,500 ISK. It is roughly a 15 to 17-minute walk back to central Laekjartorg, placing you close to the action while sitting outside the late-night club circuit.

    Good to know
    Walking back from the central nightlife core against cold coastal winds can feel demanding in winter months. While hotels like Center Hotels Midgardur require a walk to Bus Stop 9, select properties such as Klettur Hotel and Eyja Guldsmeden on nearby streets receive direct Flybus door service.
    See Hlemmur and the eastern end of 101 and 105 hotelsLive prices for your dates

  • Laugardalur

    $ · Budget

    Recreational green valley home to Iceland's largest public pool

    Best for:FamiliesBudget

    Set east of downtown, Laugardalur is a spacious valley featuring the national soccer stadium, botanical grounds, and Laugardalslaug, a vast geothermal complex with a 50-meter outdoor pool, water slides, and multiple hot tubs. It suits families, camper van travelers, and visitors seeking a quieter stay. Dalur HI Hostel and Reykjavik Eco-Campsite offer low-cost bases directly beside the facilities.

    Good to know
    It is located 32 to 40 minutes on foot from central Laekjartorg, making walking into downtown for dinner impractical in bad weather. Unlike downtown hotels, accommodations here like Dalur HI Hostel, Grand Hotel Reykjavik, and the city campsite receive direct door-to-door Flybus airport transfers.
    See Laugardalur hotelsLive prices for your dates

  • Vesturbaer

    $$ · Mid-range

    Quiet residential streets centered around a beloved local pool

    Best for:FamiliesSightseeing

    Positioned just west of Lake Tjornin and the University of Iceland, Vesturbaer is an orderly residential quarter with neighborhood bakeries and local charm. The community anchors itself around Vesturbaejarlaug, a municipal bath complex with outdoor thermal pools, saunas, and an infrared sauna open daily for 1,500 ISK admission. Walking to Laekjartorg takes 12 to 21 minutes depending on your street.

    Good to know
    Hotel options are sparse compared to central 101, with commercial accommodations largely limited to harbourfront edges such as Center Hotels Grandi. Flybus services stop at Bus Stop A at Tungata/Aegisgata, meaning reaching lodging farther west requires a taxi or a local Straeto city bus ride.
    See Vesturbaer hotelsLive prices for your dates

  • Skeifan and the ring road strip: Sudurlandsbraut, Sidumuli and Grensasvegur

    $ · Budget

    Commercial highway corridor with straightforward vehicle access

    Best for:Budget

    This business and retail district lines the arterial roads heading east out of the capital. Filled with office blocks, auto dealerships, and retail stores, it offers functional, car-friendly accommodations like Reykjavik Lights Hotel and Oddsson Midtown. It serves drivers starting or concluding a driving tour along Route 1 who prioritize parking and quick highway connections over atmosphere.

    Good to know
    The setting lacks historic charm, and walking to central downtown takes 37 to 51 minutes. However, because it sits along major transport corridors, Flybus provides direct door pick-up and drop-off at properties along Sudurlandsbraut, Sidumuli, and Grensasvegur.
    See Skeifan and the ring road strip: Sudurlandsbraut, Sidumuli and Grensasvegur hotelsLive prices for your dates

  • Keflavik and the airport area

    $$ · Mid-range

    Reykjanes peninsula hub beside the international runway

    Best for:Sightseeing

    Located roughly 50 kilometers southwest of Reykjavik on the barren Reykjanes peninsula, Keflavik is the gateway town surrounding the international airport. Boutique coastal lodgings like Hotel Berg feature rooftop pools and sit near the small boat marina. It suits travelers arriving on late flights, departing at dawn, or intending to head straight toward the Blue Lagoon.

    Good to know
    Staying here isolates you from capital city life, as reaching downtown Reykjavik requires a 40-minute drive or a 2,400 ISK one-way journey on Straeto public bus route 55. In addition, public bus route 55 does not send all scheduled trips to Reykjavik's BSI terminal, with some runs ending in Hafnarfjordur.
    See Keflavik and the airport area hotelsLive prices for your dates

Safest area to stay in Reykjavik

Reykjavik has no official neighborhood-level crime statistics published by public agencies, but the Capital Area police district oversees the entire city. Residential districts like Vesturbaer and the parklands of Laugardalur offer quiet surroundings, while central 101 experiences weekend nightlife crowds.

  • Vesturbaer is an established residential neighborhood centered around family housing and the local Vesturbaejarlaug community pool.

  • Laugardalur is a quiet recreational valley home to national sports grounds, botanical gardens, and the city campsite.

  • The 101 downtown core has heavy foot traffic at all hours, though weekend nightlife around the main bar streets brings noise.

Icelandic authorities do not publish localized neighborhood crime data. The Capital Area police district manages safety across the metropolitan area, where petty late-night disturbances around downtown bars represent the primary concern rather than violent crime.

Where not to stay in Reykjavik

Do not stay in Keflavik if you plan to spend your evenings dining or sightseeing in Reykjavik. Keflavik is roughly 50 km from downtown Reykjavik, requiring a 40-minute drive or a 2,400 ISK one-way ride on Straeto route 55, and some public bus runs terminate in Hafnarfjordur rather than downtown BSI terminal.

Getting around Reykjavik

Keflavik International Airport sits about 50 km from downtown Reykjavik. The official Flybus coach takes 45 minutes to reach the BSI Bus Terminal for 3,999 ISK per adult. Adding an onward hotel drop-off costs 5,299 ISK total, which transfers you to a smaller bus serving your lodging. Of Flybus's 175 pick-up points, 141 are numbered street stops you walk to with your luggage, and the 31 that get door service are almost all outside the 101 core. Public Straeto route 55 connects the airport to Reykjavik for 2,400 ISK. Local city buses cost 690 ISK per adult ride with contactless payment, capped at three fares a day, while eight municipal geothermal pools run by Reykjavik City provide hot tubs and saunas across town for 1,500 ISK adult admission.

Where to stay in Reykjavik: FAQ

The questions travelers ask most when choosing an area.

Official neighborhood crime statistics are not published by public agencies in Iceland, but the Capital Area police oversee the entire city. Walking through the 101 downtown core at night is standard for visitors. The primary consideration around the central shopping streets of Bankastraeti and Laugavegur is late-night weekend noise and bar crowds rather than physical danger.

Reykjavik is better for dining, culture, and tour departures, while Keflavik suits early-morning flights. Keflavik International Airport sits about 50 km from the capital, requiring a 45-minute Flybus transfer costing 3,999 ISK to the BSI Bus Terminal, or a 2,400 ISK ride on public Straeto route 55. Only stay in Keflavik if catching a dawn flight.

First-time visitors should stay in the 101 downtown core around Kvosin, Adalstraeti, or Laekjargata. Staying in 101 places you within an 11-minute walk of Hallgrimskirkja and 6 minutes of Harpa concert hall. Keep in mind that 141 of 175 Flybus hotel drop-offs require you to walk your luggage to a designated numbered city stop.

Seeing the northern lights from downtown streets is difficult due to the city's light dome. The Icelandic Met Office notes that auroral displays require dark and partly clear skies, and it publishes no city viewing sites. Most travelers book evening coach tours departing from town to reach darker country roads, where cloud cover averages are tracked nightly.

Reykjavik City runs eight public geothermal baths, including Laugardalslaug, Sundholl Reykjavikur, and Vesturbaejarlaug, with standard adult single entry costing 1,500 ISK. Most open by 06:30 on weekdays and operate until 22:00, offering multiple hot tubs, steam baths, and outdoor pools that serve as everyday community meeting spaces, making dedicated hotel spas largely unnecessary.

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