Last updated September 16, 2026

The rainbow-painted Skólavörðustígur street leading up to Hallgrímskirkja church in downtown Reykjavík

Holger Uwe Schmitt / Wikimedia Commons, CC BY-SA 4.0

Reykjavík

Where to Stay in Miðborg (Downtown / 101), Reykjavík

Miðborg — known locally and on maps simply by its 101 postcode — is Reykjavík's original downtown, a tight grid of low-rise, corrugated-iron-clad buildings between the Tjörnin pond and the harbor. Laugavegur, the main shopping and restaurant street, runs the length of it; Skólavörðustígur, painted in rainbow stripes, climbs from Laugavegur up to Hallgrímskirkja, the church tower that anchors the skyline. Austurvöllur square, home to the Alþingi (parliament) and Dómkirkjan cathedral, and Harpa, the glass concert hall on the water's edge, both sit within a few minutes' walk. This is where the vast majority of Reykjavík's restaurants, bars, and shops are concentrated, and it's the area most first-time visitors picture when they picture Reykjavík at all.

What it's actually like to stay here

Lively and compact — Laugavegur and the streets around it are busy with cafés, design shops, and record stores by day, and Reykjavík's well-known bar scene by night. The steep walk up rainbow-striped Skólavörðustígur to Hallgrímskirkja is one of the area's signature stretches. Side streets off Laugavegur, and the older Grjótaþorp and Kvosin pockets near Austurvöllur, are noticeably quieter than the main strip.

Stay here if

Best for first-time visitors who want to be within walking distance of essentially everything — restaurants, museums, Hallgrímskirkja, Harpa — and for anyone prioritizing Reykjavík's nightlife, which is genuinely concentrated on and around Laugavegur.

Stay elsewhere if

Consider the Old Harbour & Grandi instead if a quiet night's sleep matters more than being in the thick of it — Laugavegur's weekend bar crowd can be heard from nearby hotel rooms well past midnight.

Walkability
Very walkable — the whole area, from Hallgrímskirkja at the top of the hill down to the harbor's edge, covers about 20 minutes on foot, and most of what matters sits within a 10-minute radius of Laugavegur.
Noise at night
Mixed by street: Laugavegur and Austurstræti get loud on weekend nights as bars fill up, sometimes past 1-3am, while parallel streets like Hverfisgata and the Grjótaþorp lanes near Austurvöllur stay noticeably calmer.

Best Hotels in Miðborg (Downtown / 101), Reykjavík

Canopy by Hilton Reykjavik City Centre

★★★★
  • 🏆 Our overall pick
  • 📍 Best location

Our take A modern, well-run hotel a two-minute walk off Laugavegur, with none of the compromises that can come with an older downtown building.

Highlights

  • Heated bathroom floors and consistently modern, comfortable rooms
  • A two-minute walk to Laugavegur and Skólavörðustígur's shops, restaurants, and bars
  • A parking garage across the road, handy for picking up a rental car

What to know

  • Street-facing rooms can pick up city and weekend-nightlife noise into the early hours
  • Being this central means downtown's summer and holiday crowds are right outside
Check availability on Booking.com

Reykjavik Konsulat Hotel, Curio Collection by Hilton

★★★★
  • ✨ Best luxury
  • 🏛️ Best for architecture & design

Our take A genuinely historic downtown building given a design-led renovation, with a geothermal-inspired bathhouse that's unusual to find this close to Austurvöllur.

Highlights

  • A historic downtown building renovated with a cohesive, design-forward aesthetic rather than generic luxury-chain decor
  • An on-site bathhouse with a soaking pool inspired by Iceland's geothermal bathing culture
  • A few minutes' walk from Austurvöllur, Harpa Concert Hall, and Reykjavík's oldest quarter

What to know

  • Some rooms face a busy downtown street and can pick up weekend bar noise
  • The historic building's footprint means fewer room configurations than a purpose-built hotel
Check availability on Booking.com

Hotel Frón

★★★
  • 💰 Best value

Our take A no-frills mid-range option directly on Laugavegur, steps from the restaurants, shops, and bars of downtown Reykjavík, at well under central-address rates.

Highlights

  • A genuine Laugavegur address, steps from restaurants, shops, and bars
  • Simple, comfortable rooms including family-sized options
  • Priced well below most hotels with a Laugavegur address

What to know

  • Laugavegur-facing rooms are exposed to real street and weekend-nightlife noise
  • Rooms are functional rather than design-led — this isn't a boutique stay
Check availability on Booking.com

Transportation & practical information

Almost everything here is a walk, not a ride — Strætó city buses hub nearby at Hlemmur (east end of Laugavegur) and Lækjartorg, and the BSÍ bus terminal for the Flybus and long-distance buses is about a 15-minute walk from Austurvöllur.

Almost everyone visiting Reykjavík has a rental car for the rest of Iceland — the city is the usual pick-up and drop-off point for the Golden Circle and the Ring Road, with agencies at Keflavík Airport and in town. You just won't need it here: Miðborg and the Old Harbour are walkable and a short bus ride apart, and downtown parking is paid and tight enough that it's worth timing the rental to your driving days rather than your whole stay.

Related areas

Fishing boats moored in Reykjavík's Old Harbour under a clear blue sky, with the waterfront warehouses of Grandi behind

Richard Bartz / Wikimedia Commons, CC BY-SA 3.0

Old Harbour & Grandi

Best for: Nature lovers, Families

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