Reykjavik — Neighborhood Guide
Hlemmur is Reykjavik's eastern gateway — the neighbourhood around the Hlemmur bus terminal and food market, where Laugavegur meets the city's more residential east side. It has become the city's most interesting food neighbourhood, anchored by the Hlemmur Mathöll food hall.
Quick Answer
Hlemmur is Reykjavik's eastern gateway — the neighbourhood around the Hlemmur bus terminal and food market, where Laugavegur meets the city's more residential east side. It has become the city's most interesting food neighbourhood, anchored by the Hlemmur Mathöll food hall.
5 hotels reviewed · Price range: $$$, $$, $, $$$$ · Last updated March 2026
About This Guide
The Hlemmur area has transformed from a slightly overlooked bus terminus district into one of Reykjavik's most exciting culinary destinations. The Hlemmur Mathöll food hall — housed in the old bus station building — concentrates some of the city's most creative chefs in a dynamic shared space. The neighbourhood's position at the top of Laugavegur makes it convenient for exploring the main strip while feeling slightly removed from the tourist density.
Insider Tips
The best dining in Hlemmur is usually one street back from the main tourist thoroughfare.
Ask your hotel concierge for their personal favourite spots in Hlemmur — they often know hidden gems.
Walking is the best way to experience Hlemmur — most attractions are within a 15-minute stroll.
Our Picks
5 hotels · Updated February 2026
Hlemmur
Canopy Reykjavik is the most design-forward new hotel in the city, occupying a striking contemporary building in the Hlemmur food hall district with Nordic-minimal interiors, a rooftop hot tub with mountain views, and a genuine connection to the local neighbourhood rather than the tourist strip. Consistently one of the city's best hotel openings.
Hlemmur
A sleek, design-driven boutique hotel at the eastern end of Laugavegur near Hlemmur square, Alda delivers Nordic-minimal interiors, well-proportioned rooms, and excellent value at the quieter end of the main shopping street. One of the city's best boutique options for independent travellers who want design without the premium price.
Old Harbour
Iceland's most beloved hostel, Kex occupies a former biscuit factory on the Old Harbour waterfront with an extraordinary industrial-chic interior, an excellent bar-restaurant serving some of Reykjavik's best burgers, and a social atmosphere that has made it a global design hostel benchmark. An exceptional value stay in one of the world's most expensive cities.
Laugavegur
Jutting from a lava field beside Iceland's Golden Circle, Ion Adventure Hotel is the country's most architecturally extraordinary property — glass walls opening to tundra and geothermal hot springs, a Northern Lights bar that must be seen to be believed, and activities ranging from glacier hikes to dog sledding. An utterly unique experience 45 minutes from Reykjavik.
Laugavegur
A magnificently restored early-20th-century pharmacy building on Austurstræti, Apotek is one of Reykjavik's most atmospheric boutique hotels — a place where the original apothecary shelving, marble counters, and tiled floors have been incorporated into an elegant contemporary design. The best-value luxury stay on the main boulevard.
Keep Exploring
Common Questions
Hlemmur is the best neighbourhood for foodie travellers and those who want a design hotel experience with more local character than the central Laugavegur tourist strip.
Hlemmur is known for the Hlemmur Mathöll food hall, the Canopy by Hilton hotel, and serving as the eastern gateway where Laugavegur's commercial energy meets Reykjavik's more residential neighbourhoods.
Hlemmur is the city's main bus hub, providing connections to all areas of Reykjavik. The Flybus from Keflavik Airport stops at BSÍ bus terminal, 10 minutes' walk from Hlemmur.
More Destinations
Prices and availability change daily. Lock in the best rate by booking early — most of our top picks offer free cancellation.
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