Where to Stay in Reykjavik 2026
Reykjavik is compact and walkable — almost any central hotel puts you within reach of restaurants, attractions, and aurora tour pickups. Here's how to choose.
Best Areas
Downtown / Laugavegur
The main street. Restaurants, bars, shops, galleries all within walking distance. Tour operators pick up from every corner. Best for most visitors.Old Harbour (Grandi)
Up-and-coming food district. Fishmarket restaurants, whale watching departure point, slightly quieter than downtown. 10-min walk to Laugavegur.Hlemmur / East Side
Budget-friendlier. Still walkable to downtown (15 min). More local feel, good bus connections.Budget (£40–80/night)
- KEX Hostel — Iconic backpacker hostel on the harbour. Dorms from £40, privates from £90. Great bar.
- Loft Hostel — Central, social, rooftop terrace. From £40/dorm.
- Airbnb apartments — Studios from £60/night. Best value for couples.
Mid-Range (£100–200/night)
- CenterHotel Miðgarður — Boutique hotel on Laugavegur. From £120.
- Canopy by Hilton — Modern, central, good breakfast. From £150.
- Hotel Borg — Art Deco classic on the main square. From £180.
Luxury (£200–500/night)
- The Reykjavik EDITION — Marriott's luxury brand. Spa, restaurant, design-forward. From £300.
- Deplar Farm (day trip distance) — Exclusive luxury lodge in Troll Peninsula. From £1,500/night all-inclusive.
- ION Adventure Hotel — 45 min from Reykjavik. Northern lights hot tub. From £250.
Aurora Tips for Reykjavik
- City light pollution means you won't see aurora from your hotel window
- All aurora tours depart from downtown and drive 30–60 min to dark sites
- Self-drive option: rent a car and drive to Þingvellir National Park (40 min) for dark skies
- Blue Lagoon offers occasional aurora viewing from the water (book evening slots in winter)
Frequently Asked Questions
Can I see northern lights from Reykjavik?
Occasionally during strong storms (Kp 5+), faint aurora is visible from Grótta lighthouse on the western tip. For proper viewing, you need to leave the city.How many nights in Reykjavik?
2–3 nights is ideal. Use it as a base for Golden Circle, south coast, and aurora tours. Add more nights if doing the Ring Road.Read our 3-day Reykjavik itinerary and Iceland vs Norway comparison.