Where to stay in Reykjavik
Reykjavik lodging is expensive and mostly small-scale — plan on paying more than a comparable European city. The main choice is location: base in 101 downtown to walk to food, bars and the tour pickups, or trade a little walkability for better value a few streets out. And because restaurant prices are steep, a self-catering apartment can pay for itself fast.
Best neighborhoods, by traveler
101 Reykjavik (downtown)
Higher pricesBest for: First-timers who want to walk to everything and catch tours from the door
Vibe: Central, lively, walkable
Trade-off: The priciest area, and weekend nights on Laugavegur are noisy.
Old Harbour / Grandi
Higher pricesBest for: Being next to the boats, Harpa and good seafood, a touch quieter
Vibe: Waterfront, calmer
Trade-off: Still central-priced; a bit more spread out.
Hlemmur / Rauðarárstígur (east edge of 101)
Mid-range pricesBest for: A short walk to downtown with slightly better value
Vibe: Local, well-connected
Trade-off: A 10–15 min walk to the main drag.
Laugardalur
Mid-range pricesBest for: Value + the big geothermal pool, if you don’t mind a bus
Vibe: Green, residential
Trade-off: A bus ride (or drive) from downtown.
Hotel or apartment?
Choose a hotel when…
- You want daily housekeeping, a front desk and an easy base for 1–4 nights.
- Breakfast included matters to you (it often is, and it saves money given café prices).
- You’re travelling solo or as a couple and don’t need a kitchen.
Choose an apartment when…
- You’re a family or group and want a kitchen — cooking a few meals is a serious saving in Iceland.
- You’re staying several nights and want laundry + space.
- You’d rather self-cater around early tour departures — but read the legal note first.