Reykjavik attracts countless visitors every year, as it is the main entry point for exploring the Land of Ice and Fire. The stunning metropolis is a wonderland of exploration, with natural attractions like whale watching just at your doorstep. But choosing the best place to stay on your visit can be a challenge, as it will have a significant impact on your enjoyment of your Icelandic escape.
In this article, we highlight the best places to stay in Reykjavik that will suit various travellers. We explore the best areas and neighbourhoods in the city for families, budget travellers, luxury travellers and visitors who have their hearts set on seeing the northern lights.
So if you’re eager to explore the wonders of the city but are struggling to find a place to stay in Reykjavik, this is the article for you.
Reykjavik is a very safe city, ranking number one on the World Peace Index. There are plenty of exciting attractions that make it an excellent place for a family holiday in Iceland. While the bustling city centre may be too loud for families with children, the neighbourhood of Laugardalur is the perfect place to make your base for an unforgettable family getaway.
Staying in Laugardalur for a family vacation in Reykjavik can be a great choice. Laugardalur is a neighbourhood located just east of Reykjavik’s city centre, complete with a variety of attractions and amenities suitable for families. It’s a relatively quiet and safe area, which can be reassuring for those travelling with children.
Laugardalur offers a mix of accommodation options, including hotels, guesthouses, and vacation rentals. Many of these accommodations cater specifically to families and offer spacious rooms or apartments with kitchen facilities, making it convenient for larger families or those looking to self-cater on their trip.
Laugardalur is surrounded by green spaces and parks, making it a great area for families who enjoy outdoor activities. You can go for family walks, play sports or enjoy a picnic in the nearby recreational areas. The neighbourhood is also well-connected to the city centre by bus, making it easy to access downtown Reykjavik and its attractions.
The Laugardalslaug geothermal swimming pool is one of Reykjavik’s largest and most family-friendly pools. It features numerous hot tubs, water slides and a children’s pool with play equipment. It’s an excellent place for the whole family to relax and have fun.
Also located in Laugardalur is the Reykjavik Zoo and Family Park. This family fun park is home to a small petting zoo with Icelandic farm animals that will be a real treat for the little ones. Kids can also enjoy activities like pony rides, go-karting and even some fun amusement park rides.
With so many exciting activities and attractions nearby, Laugardalur is an excellent choice for families visiting Reykjavik. The serene district is quieter than inner city areas and is the perfect setting for a magical family escape in Iceland.
Travellers may be saddened to know that there is no certainty that you will see the aurora borealis on your visit. The northern lights are even harder to see when in the city centre as the light pollution seriously hinders visibility.
If you are staying in a hotel with a sea view, you may be lucky enough to see the lights from your accommodation, but this isn’t guaranteed. It is recommended that you take a specific northern lights tour if you want to maximise the likelihood that you’ll see the aurora borealis. If you do want to base your accommodation choice around this natural phenomenon, you will need to stay outside of the city.
For the best results, consider staying in Garður which is just an hour’s drive away from Reykjavik. Settled on the edge of the Reykjanes peninsula, the small coastal town is brimming with natural splendour and is far away from the bright lights of the capital.
Garður is known for its rugged landscapes, volcanic activity and refreshing coastal breeze. The town’s location on the tip of the peninsula provides unmatched views of the Atlantic Ocean which adds so much charm to the quaint town.
There are some truly beautiful places to stay in Garður. You will find guesthouses and lodges that provide a rustic setting where you can relax in the bliss of the Reykjanes Peninsula. For a fabulous stay, consider spending a few nights in Nordic Natura, a stunning lodge with terraced rooms that offer unparalleled views of the natural landscape.
Garður is a gateway to exploring the Reykjanes Peninsula, which is famous for its unique geological features, including geothermal areas, lava fields and hot springs. The Blue Lagoon, one of Iceland’s most popular tourist attractions, is also located nearby.
It’s one of the best places to visit in Iceland to see the northern lights as there is minimal light pollution in the town. The Garður lighthouse is a popular tourist attraction that provides a useful vantage point for witnessing the wondrous natural phenomenon.
Reykjavik has a reputation for being an expensive city, especially when it comes to accommodation. However, you can still enjoy a fairly inexpensive trip by opting to stay outside of the city centre.
In this section, we recommend the best place to stay in Reykjavik on a budget and also include some affordable activities that you can enjoy on your visit.
Staying in Hlíðar can be a great choice for budget travellers looking to explore Iceland’s capital city without breaking the bank. Reykjavik is known for its safety, and Hlíðar is no exception. It’s a peaceful and convenient neighbourhood for budget travellers, with easy access to essential services.
Hlíðar offers a range of budget-friendly accommodation options, including hostels, guesthouses and budget hotels. These accommodations often provide comfortable rooms at lower rates compared to establishments in the city centre.
Hlíðar is located just east of the city centre, so it’s very close to many of the city’s attractions and amenities. You can easily access the downtown area by taking a short bus ride or by walking if you’re looking to save on transportation costs.
Many of Reykjavik’s most famous landmarks and attractions are free to visit, which is excellent for travellers looking to avoid extra trip expenses. In Hlíðar, you can easily explore places like Hallgrímskirkja, Harpa Concert Hall and the scenic waterfront promenade without spending a penny.
However, if you are eager to visit the top attractions in Reykjavik but are worried about cost, consider purchasing a city card. This handy card will give you free access to many attractions and museums across the city and is perfect for those who want to do lots of sightseeing on their trip.
Staying in Hlíðar provides a more local experience compared to some of the tourist-heavy areas in the city centre. You’ll have the opportunity to interact with locals and gain insight into Icelandic culture. What’s more, the inviting neighbourhood won’t stretch your wallet making it one of the most budget-friendly areas in Reykjavik.
Visiting Reykjavik on a luxury trip promises a memorable experience in a lavish setting. You can indulge in upscale accommodations, gourmet dining featuring Icelandic delicacies, and world-class spa and wellness services at renowned hotels.
If you’re thinking of taking a glamorous trip to Iceland’s capital, then there is no better place to stay than Vesturbær. Staying in Vesturbær offers luxury travellers a serene and upscale experience while still being close to the city’s cultural attractions and amenities.
Vesturbær boasts a selection of high-end hotels, boutique accommodations, and luxury apartments. Many of these properties offer spacious rooms, luxurious amenities, and stunning views of the city or the sea. Luxury accommodations often feature balconies or large windows to make the most of these scenic vistas.
Some luxury accommodations in Vesturbær offer on-site spa and wellness facilities. There’s no better way to spend your Icelandic holiday than indulging in rejuvenating spa treatments, sauna sessions or hot tubs to unwind after a day of exploration.
Vesturbær is just a short walk or a quick drive away from Reykjavik’s city centre, meaning you can easily access downtown hotspots, fine dining restaurants and high-end boutiques. The neighbourhood is home to some of Reykjavik’s finest restaurants, offering gourmet Icelandic cuisine like Atlantic Char and Icelandic Lamb. At mealtimes, you can enjoy culinary delights prepared by renowned chefs without venturing far from your accommodation.
Vesturbær is close to cultural landmarks like the National Museum of Iceland, the University of Iceland and the Nordic House. Visitors to the city can explore these sites and immerse themselves in Icelandic culture and history. Likewise, luxury travellers can easily arrange private tours to popular attractions like the Golden Circle, Blue Lagoon or glacier tours, ensuring a personalised and premium experience.
Vesturbær combines the best of both worlds: luxury and convenience. It allows visitors to experience the opulence of upscale accommodations while remaining in close proximity to the heart of Reykjavik’s cultural and culinary scene.
Whether you’re seeking relaxation, fine dining, cultural immersion or personalised experiences, Vesturbær is an excellent choice for luxury travellers looking to explore Reykjavik in style.
Reykjavik’s appeal lies not only in its breathtaking natural beauty but also in its diverse range of accommodations and neighbourhoods to suit every traveller’s needs. From the quiet streets of Laugardalur to the sweeping landscapes of Garður, there are truly some amazing places to stay in and around the capital which will only enhance your experience of Reykjavik.
Regardless of your travel style, rest assured that this vibrant city will welcome you with its unique blend of Icelandic charm and modern convenience, ensuring you have an incredible adventure in the Land of Fire and Ice.
If you’ve enjoyed this article, check out our other posts on Iceland like what to do in Iceland in 2 days and the 9 best things to add to your Iceland road trip itinerary.
The best time to visit Reykjavik will largely depend on your own preferences and planned itinerary for your trip. If you want to see the Northern Lights, then the best time to visit is in the winter months, from September to March. However, if you want to enjoy outdoor activities, then the summer months of April to August will be much more suited to your travel plans.
When visiting the Icelandic capital, you should give yourself 3 full days to make the most of the city. In 3 days, you can experience the top attractions of Reykjavik and even have time for day trips into the Reykjanes Peninsula to experience the natural beauty of the verdant rolling hills.
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