Planning a family trip to Iceland often starts in Reykjavik, the country’s vibrant capital. Choosing the right area to stay can make all the difference for convenience, comfort, and creating memorable experiences for both adults and kids. In this guide, we’ll break down the best neighborhoods in Reykjavik for families, explore budget, mid-range, and luxury accommodations, and share practical tips on getting around the city with children, including public transport, parking, and stroller-friendly options.
Whether you’re looking for a bustling downtown experience, a quiet residential stay, or easy access to family-friendly attractions, this guide will help you pick the perfect spot for your Reykjavik adventure.
Table of contents
Read Our Full 10-Day Itinerary!
Bookmark these reads for later:
- How to Plan a Trip to Iceland: A Complete First-Timer’s Guide
- Iceland Packing List for Families: What to Pack for All Seasons
- Travel Tips for Families Visiting Iceland: Everything You Need to Know
- Top Things to Do in Reykjavik: Complete Guide to Iceland’s Capital
- Where to Stay in Reykjavik: Best Areas + Family-Friendly Hotels
- Renting a Car in Iceland: Complete Guide to Rentals & Driving Tips
- Best Things to Do in Iceland for Kids: Ultimate Guide to Family Adventures
- 50 Incredible Things to Do in Iceland: Must-See Places & Experiences
- How to Save Money in Iceland: Budget Travel Tips That Actually Work
- Best Places to Eat in Reykjavik: A Quick Food Guide to Must-Try Restaurants
- 8 Iceland Hidden Gems You Need to Experience for Yourself
- Best Time to Visit Iceland for Families: Weather, Seasons & Safety Tips
- 10 Fun Facts About Iceland That Surprise Most Travelers
Shop Our Kids Activity Workbooks – Available As Instant PDF Downloads!
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Best Neighborhoods to Stay in Reykjavik for Families
Reykjavik may be a small city, but each neighborhood offers a very different experience. Choosing the right area can affect everything from how easy it is to explore attractions, to getting to tour pick-up points, to finding kid-friendly restaurants and parks. Here’s a breakdown of the best neighborhoods for families, including what makes each one special, its pros and cons, and tips for getting around.
Read more about the best things to do in Reykjavik!
1. Miðborg (Downtown Reykjavik)
Overview: The city’s vibrant heart, full of shops, restaurants, museums, and cultural landmarks. Ideal for first-time visitors.
Pros:
- Walking distance to Hallgrímskirkja, Harpa Concert Hall, and Laugavegur shopping street.
- Easy access to most tour pick-up points.
- Plenty of restaurants, cafes, and grocery stores nearby.
Cons:
- Can be noisy, especially in the evenings.
- Accommodation tends to be pricier.
- Limited free parking; street parking is metered, so that’s an added cost.
Transportation:
- Very walkable, stroller-friendly.
- Frequent bus lines for day trips outside downtown.
- Parking garages are available, but can be expensive.
2. Vesturbær (West Town)
Overview: A quiet residential area near the harbor and old Reykjavik streets.
Pros:
- Peaceful and kid-friendly.
- Close to the waterfront, parks, and the University of Iceland.
- Small, family-friendly cafes and bakeries.
Cons:
- Fewer hotels; more guesthouses and apartments.
- Less nightlife.
Transportation:
- 5–10 minute bus ride to downtown.
- Easy access to harbor tours.
- On-site private parking is common at guesthouses/apartments.
3. Laugardalur (Recreation District)
Overview: Known for its botanical gardens, large swimming pool (Laugardalslaug), and sports facilities — ideal for families.
Pros:
- Fantastic for families with kids.
- Spacious accommodations with kitchens and laundry.
- Less tourist-heavy than downtown.
Cons:
- 10–15 minutes from central attractions.
- Fewer restaurants and shops nearby.
Transportation:
- Regular bus service to downtown.
- Street parking and some hotel parking available.
- Stroller-friendly sidewalks.
4. Hlíðar / Öskjuhlíð
Overview: Quiet, leafy residential neighborhoods south of the city center.
Pros:
- Peaceful streets and scenic surroundings.
- Close to Perlan Museum and walking trails.
- Larger accommodations with parking.
Cons:
- Not within walking distance to most restaurants or attractions.
- Less frequent bus service than downtown.
Transportation:
- Bus lines available, but less frequent.
- On-site parking is usually included.
- Easy car access for day trips.
Quick Tips:
- Miðborg: Best for sightseeing, tours, and first-time visitors.
- Laugardalur: Perfect for families with young kids and outdoor activities.
- Vesturbær / Hlíðar: Quiet, local experience, suitable for longer stays or those wanting more space.
Best Budget Stays in Reykjavik for Families
Traveling to Reykjavik with kids doesn’t have to break the bank. There are plenty of affordable, family-friendly accommodations that offer comfort, convenience, and key amenities like kitchens, laundry, and Wi-Fi. In this section, we’ve rounded up the best budget hotels, guesthouses, and apartments in Reykjavik that are perfect for families, with options near popular neighborhoods, attractions, and tour pick-up points.
Alva Hotel Brautarholt
Area: Hlíðar
This hotel is located just southeast of the main downtown core, in the residential Hlíðar neighborhood. It’s close to Laugavegur (the main shopping street) but slightly outside the busiest part of Miðborg.
✔ Quieter than the heart of downtown.
✔ Walkable to central attractions (10–15 minutes).
✔ Good access to bus routes.
This cozy downtown hotel offers a great base for exploring Reykjavik’s highlights without overspending. It’s an especially solid choice for families who want simple, clean rooms with easy access to shops, restaurants, and city tours.
Why families love it:
- Free Wi-Fi in all rooms and public spaces.
- On-site restaurant and snack bar/deli for quick meals.
- Continental breakfast available daily (for an additional fee).
- Mini-fridge in rooms for storing snacks and kids’ drinks.
- Free self-parking on site (limited spaces).
- Located near bus stops and within walking distance of central Reykjavik attractions.
This is a great choice if you want reliable basics, a good location near downtown, and value for money during your family trip.
Mengi Apartments
Area: Miðborg (Downtown / 101 Reykjavik)
Located in the 101 postal code, Mengi Apartments sit in the heart of downtown Reykjavik.
✔ Walking distance to Hallgrímskirkja, Laugavegur, restaurants, and tour pick-ups
✔ Very central and convenient
✔ Ideal if you don’t have a rental car
These stylish apartments are a popular choice for families or groups who prefer a bit more space and independence during a Reykjavik stay. With comforts like kitchens and living areas, they’re ideal for families wanting to prepare meals or relax after sightseeing.
Why families love it:
- Spacious apartment units with kitchen facilities — perfect for cooking meals and storing snacks.
- Free Wi-Fi throughout the apartments.
- Comfortable living spaces that feel more like a home than a typical hotel.
- Excellent guest reviews for cleanliness and overall quality.
- Central Reykjavik location, within easy walking distance of shops, restaurants, and tour pick-ups.
This is a fantastic choice if your family values extra space, a kitchen, and a self-contained feel while still being close to downtown.
Thingholt Hotel Apartments from Center Hotels
Area: Miðborg (Downtown / 101 Reykjavik)
These apartments are also in the central 101 district, just steps from Reykjavik’s main shopping and dining streets.
✔ Extremely walkable
✔ Close to major attractions and tour meeting points
✔ Great for short stays without a car
Why families love it:
- Fully equipped kitchen or kitchenette in most apartments, including refrigerator, stovetop, and utensils — helpful for meals and snacks.
- Free Wi-Fi, smart TVs, and comfortable bedding in all units.
- Variety of apartment sizes up to two-bedroom units — suitable for families of different sizes.
- Steps from Laugavegur, Reykjavik’s main shopping street, with easy access to restaurants, cafes, and attractions.
- Optional breakfast and access to spa facilities at the adjacent Center Hotels building (extra fee).
This is a great choice if you want apartment space right in the heart of the city with easy access to restaurants, tours, and public transport.
Best Mid-Range Family Hotels in Reykjavik
For families looking for a balance between comfort and affordability, mid-range accommodations in Reykjavik offer spacious rooms, extra amenities, and convenient locations without the luxury price tag. These options often include family-friendly features like kitchenettes, laundry facilities, and easy access to both downtown attractions and kid-friendly activities. In this section, we highlight the best mid-range hotels, guesthouses, and apartments that make exploring Reykjavik stress-free and enjoyable for the whole family.
Fosshotel Reykjavik
Area: Hlíðar / Edge of Miðborg (105 Reykjavik)
Located just on the edge of downtown, Fosshotel Reykjavík sits in the 105 district near the business area and within walking distance of Laugavegur shopping street and many major attractions.
✔ Walking distance to downtown Reykjavik
✔ Close to tour bus stops and common pick-up points
✔ Paid on-site parking available
✔ Easy access to public bus routes
✔ Quieter than staying in the heart of 101
Fosshotel Reykjavík is one of Reykjavik’s best mid-range options for families who want a comfortable, spacious hotel experience in a central neighborhood — right on the edge of the bustling Miðborg (downtown) district. It’s Iceland’s largest hotel, towering above the city’s business and shopping area and within easy walking distance of shops, restaurants, major attractions, and many tour pick-up points.
Why families love it:
- Spacious modern rooms with free Wi-Fi and cribs/infant beds available — great for families with young kids.
- In-room refrigerators and laundry facilities make longer stays easier.
- On-site Haust restaurant, bar/lounge, and coffee shop for meals without having to leave the hotel.
- Paid self-parking on site — very helpful if you’re renting a car.
- Tour companies often stop right outside for easy departures.
- Steps from Laugavegur, Reykjavik’s main shopping street, and within walking distance of Hallgrímskirkja and the Old Harbour.
This is a fantastic choice if you want a centrally located hotel with plenty of space, kid-friendly amenities, and easy access to Reykjavik’s top sights and tours — all without stepping up into luxury pricing.
Reykjavik Marina – Berjaya Iceland Hotels
Area: Vesturbær / Old Harbour (101 Reykjavik)
✔ Steps from the Old Harbour and whale-watching boat tours
✔ Close to Harpa Concert Hall, Maritime Museum, and shops
✔ Easy walking distance to downtown Reykjavik sites
✔ Free Wi-Fi throughout the hotel
✔ Family rooms and suites available
✔ On-site restaurant and bar/lounge (buffet breakfast available for a fee)
These stylish hotel rooms and suites sit right by the Old Harbour in the Vesturbær neighborhood — a short stroll to downtown Reykjavik and scenic waterfront walks. Reykjavik Marina offers a fun, creative vibe while keeping you close to attractions, restaurants, and tour departures.
Why families love it:
- Spacious and uniquely styled rooms, including family rooms with harbor views — great for keeping kids comfortable.
- Free Wi-Fi in every room and public area for streaming shows or planning days out.
- On-site Slippbarinn restaurant and bar for meals and relaxed evenings.
- Tour and ticket assistance available at the front desk — helpful for booking whale-watching or day tours.
- Steps from the water and old dock area — ideal for family walks and harbor views.
This is a great choice if you want a central, walkable location with easy access to Reykjavik’s harbor, tours, and downtown sights, while still enjoying distinct rooms and family-friendly amenities.
Guesthouse Galtafell
Area: Miðborg (Downtown / 101 Reykjavik)
✔ Quiet downtown setting
✔ Walkable to shops, restaurants, and museums
✔ Close to the BSI bus terminal for tours and transfers
✔ Free Wi-Fi and a garden area
This charming guesthouse is nestled on a quiet street within the central 101 Reykjavik area, just a short walk from Laugavegur (Reykjavik’s main shopping street), Hallgrímskirkja Church, and the city’s top attractions. Its location makes it easy to explore on foot while still feeling peaceful and residential.
Why families love it:
- Comfortable rooms and apartments with free Wi-Fi, flat-screen TVs, and tea/coffee facilities — great for relaxing after a day exploring Reykjavik.
- Options range from cozy rooms to spacious units with kitchenettes — helpful for families who want space and flexibility.
- Free street parking available nearby for guests traveling with a car.
- Airport shuttle service offered for an additional fee (handy for arriving or departing families).
- Highly rated for cleanliness and location, with easy access to downtown sights and the bus station.
This is a lovely choice if your family values a central, peaceful location with space and flexibility, especially for longer stays in Reykjavik.
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Best Luxury Stays for Families in Reykjavik
If you’re looking to make your Reykjavik trip extra special, luxury accommodations provide spacious family-friendly rooms, premium amenities, and convenient locations near top attractions. From high-end hotels to upscale apartments, these options offer extras like full kitchens, concierge services, on-site dining, and easy access to tours and transport. In this section, we showcase the best luxury stays for families that combine comfort, style, and convenience — perfect for creating unforgettable memories in Iceland’s capital.
Radisson Blu 1919 Hotel, Reykjavik
Area: Miðborg (Downtown / 101 Reykjavik)
✔ Extremely walkable — close to shops, restaurants, and the Old Harbour
✔ Bars, cafes, and attractions within minutes on foot
✔ Ideal base for city exploration without a car
✔ Nearby public transport for airport shuttles or day trips
This iconic hotel sits right in the heart of downtown Reykjavik, just steps from Laugavegur shopping street, the waterfront, and many of the city’s top sights. Its central location makes it especially convenient for families who want easy access to attractions, restaurants, and tours.
Why families love it:
- Spacious, modern rooms with free Wi‑Fi, blackout drapes, and minibars — great for relaxing after a day of exploring.
- Cribs/infant beds available on request and laundry facilities — helpful for younger kids.
- On‑site restaurant, bar, and coffee shop make dining easy without leaving the hotel.
- Fitness center and daily housekeeping add convenience for longer stays.
- Tour and ticket assistance at the front desk makes booking excursions simple.
This is a fantastic choice if you want a central, full‑service hotel with stylish rooms and plenty of amenities, all within easy walking distance of Reykjavik’s best family‑friendly activities.
The Reykjavik EDITION
Area: Miðborg (Downtown / 101 Reykjavik)
✔ Stunning harbor and city views
✔ Within walking distance of Harpa Concert Hall and shops
✔ Spa, fitness center, and rooftop bar on site
✔ Easy access to tour pick‑ups and transport
Located right on the harbor with panoramic views and stylish interiors, The Reykjavik EDITION is one of Iceland’s most upscale city hotels, blending sophisticated design with Icelandic character — perfect for families who want both luxury and a prime downtown location.
Why families love it:
- Spacious, modern rooms and suites with premium amenities and free Wi‑Fi — great for unwinding after a day of sightseeing.
- On‑site Tides restaurant serves seasonal Nordic cuisine — ideal for relaxed dinners without leaving the property.
- Wellness facilities, including a spa offering a relaxing treat for parents.
- Central location makes it a superb base for exploring Reykjavik’s cultural and historic sights on foot.
This is a fantastic choice if you want sharp design, luxury service, and a downtown view, all while being steps from Reykjavik’s best attractions and tours.
Hotel Borg by Keahotels
Area: Miðborg (Downtown / 101 Reykjavik)
✔ Heart of downtown near shops, cafes, and museums
✔ Elegant rooms with high ceilings and classic design
✔ On‑site restaurant and fitness facilities
✔ Close to major tour meeting points
Located on historic Austurvöllur Square in the heart of Reykjavik, Hotel Borg is a classic luxury option with timeless Art Deco elegance and modern amenities — ideal for families who want comfort, culture, and a premier city center address.
Why families love it:
- Stylish, spacious rooms with free Wi‑Fi and modern comforts make it easy to relax after a busy day in the city.
- Excellent restaurant offers refined meals without venturing far from the hotel.
- Walking distance to family‑friendly attractions like the National Museum, Laugavegur shopping street, and geothermal pools.
- Concierge service can help arrange tours and excursions perfect for kids and adults alike.
This is a great choice if you want a mix of historic charm, modern luxury, and unbeatable downtown access for your family’s Reykjavik stay.
Tips for Choosing the Best Place to Stay in Reykjavik with Kids
Choosing the right accommodation in Reykjavik can make a huge difference in your family’s experience. From walking distance to attractions to easy access to tours and kid-friendly amenities, the right choice can simplify your trip and keep everyone happy. Here are some practical, family-tested tips to help you decide where to stay.
Decide If You’ll Have a Rental Car
If you plan to rent a car, you’ll have more flexibility to stay in quieter residential neighborhoods like Vesturbær or Hlíðar, which often offer larger apartments or homes and peaceful surroundings.
If you won’t have a car, staying downtown (Miðborg) is easiest. You’ll be within walking distance of restaurants, grocery stores, playgrounds, and tour pick-up points without relying on taxis or buses.
Prioritize Walkability for Short Stays
For families spending just a few nights, walkability can be a game-changer. Being able to walk to dinner, grab snacks, or visit local shops after a day of sightseeing makes traveling with kids far easier.
Downtown Reykjavik hotels are ideal if you want:
- Easy access to food, ice cream shops, and cafes.
- Nearby supermarkets and pharmacies.
- Minimal driving after sightseeing.
Consider the Season
Reykjavik weather can be unpredictable, especially during winter or rainy months (October–April). Look for accommodations with:
- Indoor common areas for relaxing when it’s cold or rainy.
- Proximity to indoor attractions (museums, swimming pools, Perlan).
- Optional covered parking or heated garages.
This ensures your family can enjoy Reykjavik comfortable, even if the weather isn’t ideal.
Look for Pools or Family-Friendly Facilities
After long sightseeing days or tours, kids love having a place to unwind. Many family-friendly hotels and apartments in Reykjavik offer:
- Small indoor pools or hot tubs.
- Play areas or nearby parks.
- Kitchenettes for preparing snacks or simple meals.
On-Site Dining or Kitchens Makes Life Easier
Hotels with breakfast included or apartments with kitchens simplify mornings and evenings. This is especially helpful for families with younger kids or early tours.
Benefits include:
- Saving money on meals.
- Quick and stress-free departures for early tours.
- Flexibility to prepare food for picky eaters.
Book True Family Rooms
Not all “family-friendly” accommodations have enough space. Look for:
- Family rooms or suites with multiple beds.
- Extra space for luggage, strollers, or baby gear.
- Separate sleeping areas if traveling with older kids.
This is particularly important for longer stays or if your family needs more space to relax after sightseeing.
Balance Location With Experience
Downtown Reykjavik offers convenience and easy access to tours and restaurants, while neighborhoods like Laugardalur or Vesturbær provide a quieter, more local experience.
Ask yourself:
- Do we want to be in the city center or in a peaceful neighborhood?
- Will we rely on public transport or have a car?
- Are we looking for a resort-style stay or a self-contained apartment?
There’s no wrong choice—just the one that best fits your family’s travel style.
Think About Your Kids’ Ages
- Toddlers & young kids: Look for walkable locations, family rooms, playgrounds, and nearby parks.
- Older kids & teens: Consider hotels with pools, easy access to adventure tours, or larger apartments with more freedom.
Matching your accommodation to your children’s ages can make your Reykjavik trip far more enjoyable for everyone.
Final Thoughts: Where to Stay in Reykjavik, Iceland
Choosing the right place to stay in Reykjavik can make a big difference in your family’s Iceland adventure. From bustling downtown streets to peaceful residential neighborhoods, each area offers its own unique advantages depending on your travel style, budget, and kids’ ages. Whether you’re looking for budget-friendly apartments, comfortable mid-range hotels, or luxury accommodations with extra amenities, Reykjavik has plenty of family-friendly options to make your stay convenient and memorable.
Remember to consider factors like walkability, access to tours, kid-friendly facilities, and public transport when deciding where to stay. With the right neighborhood and accommodation, you can explore Reykjavik comfortably, enjoy local attractions, and create lasting memories with your family.
No matter which area or hotel you choose, Reykjavik’s charm, culture, and family-friendly experiences ensure a trip that everyone will love.
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