Reykjavík Travel Guide: Where to Stay in Iceland's North Atlantic Capital
Reykjavík is the Icelandic capital — the world's northernmost national capital, with 60% of Iceland's population in the metropolitan area — that travelers use as the gateway to the Golden Circle, the Blue Lagoon, and the volcanic landscapes that have made Iceland Europe's most-visited Nordic destination.
The last decade has transformed the city from a stopover into a destination of its own — Sky Lagoon opening in 2021 gave Reykjavik its own world-class geothermal bath without driving to the Blue Lagoon, Harpa's glass-and-steel concert hall anchored the redeveloped harbour, and The Reykjavik EDITION arrived as the city's first true luxury design hotel. The new-Nordic restaurant scene led by Dill — Iceland's first Michelin star — has matured. The result is a city you can easily spend a full long weekend in before you ever rent a car for the Ring Road.
Quick facts
Live right now
Where to base yourself
First-time visitor? Pick a neighborhood that matches your vibe and stay there.
Miðborg (City Centre)
The walkable downtown
Reykjavik's compact centre — Laugavegur main street, the small wooden and corrugated-iron houses, the harbour just downhill, Hallgrímskirkja on the hill above. You can walk it end to end in 20 minutes.
Grandi & Old Harbour
Former dockyards turned creative quarter
The peninsula west of the city centre — converted fish-processing buildings now housing the Marshall House contemporary art space, design studios, the Whales of Iceland museum, and a clutch of newer restaurants. Where the city's creative class actually works.
Laugardalur
The valley of pools and parkland
East of the centre — Reykjavik's biggest geothermal pool (Laugardalslaug), the Botanical Gardens, the family park and zoo. Quieter, residential, with the kind of mid-century Icelandic architecture that doesn't get photographed enough.
Kópavogur & Sky Lagoon
The southern coast
Technically a separate municipality south of Reykjavik — but practically part of the city, reached by a 15-minute drive. Home to Sky Lagoon and serious sea-cliff walks along the coast.
Where to stay
Ian Schrager's first Icelandic property, opened 2021. 253 rooms in a sharp glass-and-stone block right next to Harpa, with bay views, a serious spa, the city's best hotel bar (The Tölt), and the kind of food program that has Reykjavik locals booking just for dinner.
Sister to the famous ION Adventure Hotel out by Thingvellir — this is the central-Reykjavik design version, on Laugavegur with 18 rooms. Black, moody, with lava-stone bathrooms.
“Walking distance to everything.”
Iceland's first proper grand hotel, opened in 1930 — an Art Deco landmark facing Austurvöllur square. 99 rooms, classic dining room, the bar where Reykjavik's political and literary scene has met for ninety years.
“Charm without being twee.”
Founded by an Icelandic art collector — the lobby is a rotating gallery, the rooms are minimalist with original Icelandic art on the walls, and the basement spa is one of the city's best.
“38 rooms, walking distance to Harpa.”
67 rooms above the main shopping street — minimalist Nordic interiors, breakfast room with Hallgrímskirkja views, modest prices for the city.
“Good first-time-in-Reykjavik base.”
A 1960s hotel that has been quietly accumulating one of Iceland's finest private art collections for decades — paintings by Kjarval, Ásgrímur Jónsson, sculptures by Einar Jónsson in the corridors. Walk past every door to see a gallery.
“Family-run, slightly old-world, lovely.”
Where to eat
Iceland's first Michelin star (2017). Chef Gunnar Karl Gíslason cooks a serious New Nordic tasting menu — Icelandic langoustine, dry-cured arctic char, fermented vegetables, mountain herbs.
“The reference point for everything else in the country.”
'Food and Drink' — chef Gísli Matt's homage to old Icelandic farm cuisine, modernised. The cod head served like a feast, the lamb baked in milk.
“In a converted harbour building next to the Maritime Museum.”
Right on the Old Harbour pier — direct line to the boats unloading langoustine. Grilled local seafood, no fuss, harbour views from every table.
“Among the most reliable dinners in Reykjavik.”
A Parisian-style bistro with Icelandic ingredients — moules-frites, steak frites, an oyster bar, the famous lunch menu that's been a local institution for 15 years.
“Buzzy, brass-railed, properly affordable for the city.”
'The best hot dogs in town' — since 1937, served from a tiny harbourside kiosk. Order eina með öllu (one with everything: raw and fried onion, ketchup, sweet brown mustard, remoulade).
“The single most Icelandic snack you can eat.”
Museums worth your time
A glass honeycomb on the harbour by Olafur Eliasson and Henning Larsen — home to the Iceland Symphony, the Icelandic Opera, and a year-round program that includes the world's only daily kit-piece concert (How to Become Icelandic in 60 Minutes).
“Walk through the lobby even if you don't have a ticket.”
Visit website →A former 1948 herring-meal factory in Grandi, converted into three contemporary galleries — the Living Art Museum (Nýló), Kling & Bang artist-run space, and Ólafur Elíasson's studio. Free entry.
“The cultural anchor of the new Grandi quarter.”
Visit website →1,200 years of Iceland in one well-curated permanent exhibition — Viking settlers, the Christianisation, the centuries of poverty under Danish rule, independence, contemporary identity.
“The standard 2-hour orientation to the country.”
Visit website →The basalt-column-inspired church on the hill — Iceland's tallest building (74 metres), with an elevator to the tower for the best Reykjavik panorama.
“Free to enter the nave; small fee for the tower.”
Visit website →Built around the actual remains of a 10th-century Viking longhouse, found during a 2001 building excavation. Compact, well-designed, and the most direct way to understand the Settlement Era.
“Great for one rainy afternoon.”
Visit website →Only-here places
Opened 2021. A 75-metre infinity-edge geothermal pool overlooking the North Atlantic, with the 7-Step Ritual (sauna, cold plunge, mist shower, body scrub, steam, fresh-water rinse) included in the standard ticket. Closer to Reykjavik than the Blue Lagoon, less crowded, more architecturally interesting.
“Book ahead.”
Visit website →Jón Gunnar Árnason's stainless-steel Viking ship sculpture facing Mount Esja across the bay — the most photographed object in Iceland.
“Best at sunset or under aurora borealis.”
The 'Pearl' — six former hot-water storage tanks topped with a glass dome, now housing a glacier and ice cave exhibition (with a real walk-through ice cave), a planetarium, and an observation deck.
“The dome restaurant slowly rotates.”
Visit website →The small pond at the heart of the city — bordered by City Hall, Iðnó (the historic theatre), and a fringe of grand 19th-century houses. Geothermally heated underneath so it doesn't entirely freeze in winter.
“Swans and gulls.”
From late September to early April, with a dark night and clear sky, you can sometimes see the aurora from the Old Harbour or Grótta Lighthouse without leaving the city.
“Most spectacular displays still require a 30-minute drive out, but worth checking the Vedur.is forecast each evening.”
Tours & things to do in Reykjavik
In partnership with GetYourGuide, Locals Insider recommends these tours and things to do in Reykjavik.
Nature & quiet
At the far western tip of the peninsula — a small white lighthouse on a tidal island, accessible by foot when the tide's out. Best place to walk the Reykjavik shoreline.
“Aurora viewing on clear winter nights.”
Reykjavik's biggest geothermal public pool — 50-metre outdoor lap pool, slides, hot tubs at various temperatures, a steam room. Where Icelanders actually swim. Bring a towel and the small change for the locker.
“Open 6 a.m.–10 p.m.”
A 32-square-kilometre conservation reserve just outside the city — birch forest (rare for Iceland), lava fields, hiking trails, picnic spots.
“The closest you get to nature without driving out of Reykjavik.”
City festivals
- NovemberIceland Airwaves
The most internationally watched music festival in Iceland — five days of new Icelandic acts plus international names, playing venues from Harpa to bars on Laugavegur. Tickets get you into everything, so the whole city becomes a venue.
- AugustReykjavik Culture Night (Menningarnótt)
One Saturday in August — the entire city throws open museums, galleries, courtyards and back-gardens for one free, citywide cultural night. Ends with fireworks over the Old Harbour. The best single day to be in town.
- AprilReykjavik Arts Festival
A biennial multi-arts festival (odd years are the main edition) — international and Icelandic theatre, dance, music, visual art across the city. The serious culture event.
- AugustReykjavik Pride
One of the most welcoming Prides in Europe — the whole city turns out. Parade through downtown, free concerts on Klambratún, family-friendly throughout.
Travel safety & inclusivity
Iceland regularly tops the Global Peace Index — it's literally the world's most peaceful country. Crime against tourists is functionally non-existent. The bigger risks are weather-related (especially if you're driving outside Reykjavik) and falling on icy pavements in winter. Solo travel of any kind is genuinely fine, day or night.
Iceland is among the most LGBTQ+ friendly countries in the world — comprehensive legal protections, same-sex marriage since 2010, a former lesbian Prime Minister. Reykjavik is the centre of all of this; visible same-sex affection is completely normal, and Pride is one of Europe's most-attended for a city this small.
Safety scores reflect UK FCDO & US State Department travel advisories. LGBTQ+ scores reflect Equaldex and ILGA-Europe rankings. Both refreshed quarterly.
Frequently asked about Reykjavik
Where do locals eat in Reykjavik?
Three picks across the spectrum of how Reykjavikers actually eat.
For the modern, Michelin-starred pick: Dill, at Laugavegur 59, 101 Reykjavík. Iceland's first restaurant to receive a Michelin star (2017) — chef Gunnar Karl Gíslason's New Nordic Icelandic tasting menus emphasizing foraged ingredients (Arctic char, lamb from the South Iceland highlands, Icelandic moss, dulse seaweed). Reservations 6-8 weeks ahead. The most progressive Icelandic restaurant.
For the traditional Icelandic institution: Matur og Drykkur, at Grandagarður 2, 101 Reykjavík in the old harbour area. Run inside the building of the original 1939 Icelandic seafood-canning factory — chef Hrefna Sætran's modern interpretations of traditional Icelandic dishes including fermented shark (hákarl, the brave traveller's order), the iconic Icelandic lamb meatballs, and salt-cod chowder. Casual, properly serious.
For the affordable, locals' standard: Bæjarins Beztu Pylsur, at Tryggvagata 1, 101 Reykjavík. Iceland's most famous hot dog stand since 1937 — the lamb-based hot dog topped with Icelandic crispy onions, sweet mustard, and remoulade is called the "Eina með öllu" ("one with everything"). Bill Clinton famously stopped here. Around ISK 750 (€5) per dog.
Where can I get the best seafood with champagne or sparkling wine in Reykjavik?
For Reykjavik seafood with serious Champagne, the destination is Sjávargrillið, at Skólavörðustígur 14, 101 Reykjavík.
Modern Icelandic seafood-focused restaurant — daily fresh Atlantic catch from Icelandic waters (Arctic char, halibut, langoustine, the iconic North-Atlantic cod), the lobster soup, and a properly serious wine list focusing on Champagne and traditional-method sparkling wines. The interior is decorated with driftwood and Icelandic seafaring artifacts.
For an alternative with a panoramic view and the city's most architecturally striking setting, Sky Restaurant at Center Hotels Plaza, Aðalstræti 4, 101 Reykjavík on the rooftop offers Icelandic seafood with views over the harbour and the surrounding mountains (and the Northern Lights in winter if you're lucky during dinner).
Which historical boutique hotel should I stay at in Reykjavik?
For an old-world historical stay in Reykjavik, the reference is Hotel Borg by Keahotels, at Pósthússtræti 11, 101 Reykjavík, directly on Austurvöllur (Reykjavik's main square, opposite the Icelandic Parliament).
Iceland's first luxury hotel — Built in 1930 by Icelandic strongman Jóhannes Jósefsson (the Olympic wrestler and Vaudeville performer who used his American performance earnings to fund the hotel). Iceland's most architecturally significant Art Deco building, fully restored and preserved with original 1930s interiors throughout. 56 rooms. The iconic Borgin Bar served as the unofficial parliament of the Icelandic government during decades of political wrangling. President Reagan and General Secretary Gorbachev's diplomatic entourages stayed during the iconic 1986 Reykjavik Summit (which was actually held at Höfði house).
Pricing from around ISK 35,000/night (€230). Bookings via the official site. For a smaller more contemporary alternative, The Reykjavík Edition at Austurbakki 2 (the Marriott-Edition design hotel opened in 2021 directly on the new Reykjavik harbour) is the design-led choice.
What is the LGBTQ+ scene like in Reykjavik?
Iceland legalised same-sex marriage in 2010 and is widely considered one of the most LGBTQ+-friendly countries in the world — former prime minister Jóhanna Sigurðardóttir (PM 2009-2013) was the world's first openly gay head of government. Reykjavík Pride in mid-August is the country's largest annual event (around 100,000 attendees in a country of just 380,000).
The neighborhood: Reykjavik is small enough that there's no defined gay quarter — venues are dispersed within the walkable central Miðborg (downtown) district.
The bars: Kiki Queer Bar at Laugavegur 22, 101 Reykjavík is Iceland's only dedicated LGBTQ+ bar — multi-level, dancefloor downstairs, more bar-and-lounge upstairs, drag nights, the most consistent queer nightlife in the country.
Saunas: Iceland's iconic geothermal pool culture (Sundhöllin, Vesturbæjarlaug, the Blue Lagoon, Sky Lagoon) is mainstream and not LGBTQ+-specific but widely visited by LGBTQ+ travellers. There are no dedicated LGBTQ+ saunas in Reykjavik — the small population doesn't sustain a separate scene.
What unique small museum, new 2024-2026 landmark, or 1-3 day itinerary should I plan for Reykjavik?
The famous-person small museum: Halldór Laxness Museum at Gljúfrasteinn, at Gljúfrasteinn, 271 Mosfellsbær (about 25 minutes outside Reykjavik). The preserved home of Iceland's only Nobel Prize for Literature winner (1955), Halldór Laxness — the modernist 1948 villa designed by Ágúst Pálsson, fully preserved with Laxness's library, Steinway piano, writing desk, and original 1948-1998 décor. Closed Mondays.
The recent landmark: Harpa Concert Hall at Austurbakki 2, 101 Reykjavík — the Henning Larsen Architects–designed concert hall opened in 2011 with the iconic Olafur Eliasson glass façade (12-sided crystalline panels echoing Icelandic basalt formations). Free to walk into during the day; ticketed for the Iceland Symphony Orchestra performances. Among the most architecturally significant buildings in the North Atlantic. For something more recent, the Sky Lagoon opened in 2021 in nearby Kópavogur — a geothermal lagoon spa modelled on Icelandic farmhouse-bath traditions, more architecturally serious and less crowded than the famous Blue Lagoon.
1-3 day itinerary: Day 1 — Reykjavik walking (Hallgrímskirkja church climb for the panorama, the colourful houses of Bergstaðir, Sun Voyager sculpture, Harpa Concert Hall, dinner at Dill). Day 2 — Golden Circle day trip (Thingvellir National Park, Geysir geothermal area, Gullfoss waterfall — all in one rental-car day). Day 3 — South Coast day trip (Seljalandsfoss and Skógafoss waterfalls, Reynisfjara black sand beach, Sólheimajökull glacier walk if booked) or Snæfellsnes Peninsula. Plus winter only: aurora-borealis viewing 9pm-1am from outside the city.
Planning more than just Reykjavik? Our Iceland travel guide covers the whole country — weather and currency live, hotels and restaurants across regions, must-visit experiences and where else to go.
Articles in this section are written by the Locals Insider editorial team. Got a Reykjavik tip we missed? Email us at hello@localsinsider.com — we read every one.
