Where to Stay in Reykjavík
Premium neighborhoods, five-star hotels, and fine dining areas
Best Neighborhoods for Luxury Travellers
Ranked by relevance for luxury travellers visiting Reykjavík
Miðborg (City Center)
LuxuryThe vibrant heart of Reykjavík, packed with colorful buildings, shops, restaurants, and nightlife.
- +Most attractions are within walking distance.
- +Abundant dining and entertainment options.
- +Excellent public transport connections.
- -Can be very crowded, especially in summer.
- -Accommodation can be expensive.
Grandagarður / Old Harbour
LuxuryA revitalized harbor area buzzing with whale watching tours, maritime museums, and trendy eateries.
- +Gateway to popular boat tours.
- +Excellent seafood restaurants.
- +Interesting maritime history and museums.
- -Can be tourist-focused and busy.
- -Limited nightlife options.
Vesturbær
Mid-rangeA charming, more residential area offering a quieter, local feel with good amenities.
- +More affordable than the absolute center.
- +Quieter and more relaxed atmosphere.
- +Good access to local swimming pools and parks.
- -Slightly further from the main nightlife.
- -Fewer dining options compared to the city center.
Daily Budget (Luxury)
ISK 70000/day
Hidden Gems in Reykjavík
Lesser-known spots the locals love
Reykjavik Laundromat Cafe
This quirky cafe doubles as a laundromat, offering a relaxed atmosphere with excellent coffee, breakfast, and lunch options. It's a popular local hangout with a fun, eclectic vibe and a dedicated kids' play area.
Grótta Island Lighthouse
FREEA charming lighthouse situated on a small island accessible by a causeway at low tide. It offers stunning views of the surrounding coastline and is a fantastic spot for birdwatching and, in winter, aurora hunting away from city lights.
Bæjarins Beztu Pylsur
Often cited as the best hot dog stand in Reykjavik, this spot is a must-try for locals and adventurous travelers. Order 'one with everything' for a taste of their unique lamb hot dog with crispy onions and sweet mustard.
Kópavogur Swimming Pool
While many tourists flock to the Blue Lagoon, locals prefer the many public swimming pools, like this one in Kópavogur. It features several outdoor hot tubs (heitir pottar) and swimming lanes, offering an authentic Icelandic bathing experience.
1 area to be cautious about
Read our full safety guide for Reykjavík