Reykjavik — Neighborhood Guide
Reykjavik's Old Harbour is the city's most dynamic neighbourhood in recent years — a former working fishing harbour transformed into a collection of craft breweries, seafood restaurants, whale-watching tour companies, and design spaces that have made it the city's most exciting new cultural district.
Quick Answer
Reykjavik's Old Harbour is the city's most dynamic neighbourhood in recent years — a former working fishing harbour transformed into a collection of craft breweries, seafood restaurants, whale-watching tour companies, and design spaces that have made it the city's most exciting new cultural district.
5 hotels reviewed · Price range: $, $$$, $$, $$$$ · Last updated March 2026
About This Guide
The Old Harbour (Grandi/Gamla Höfn) sits at the northern edge of the city centre, with the harbour basin and the dramatic Esja mountain as a constant backdrop. The neighbourhood has been colonised by excellent restaurant openings, the popular Marshall House gallery-restaurant, the Saga Museum, and the best fish and chips in Iceland. Kex Hostel anchored the neighbourhood's creative transformation, and it remains the most atmospheric part of the city for independent exploration.
Insider Tips
The best dining in Old Harbour is usually one street back from the main tourist thoroughfare.
Ask your hotel concierge for their personal favourite spots in Old Harbour — they often know hidden gems.
Walking is the best way to experience Old Harbour — most attractions are within a 15-minute stroll.
Our Picks
5 hotels · Updated February 2026
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
Reykjavik's most sophisticated boutique hotel sits at the top of Laugavegur, the city's famous shopping street, with beautifully designed rooms incorporating Icelandic craft materials — sand, lava stone, and driftwood. The rooftop hot tub with Hallgrímskirkja views and the warm, personal service make it a consistent favourite.
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.
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.
Laugavegur
One of the world's great hotel experiences, The Retreat is literally built into the lava field around the Blue Lagoon geothermal spa, with private lagoon access from many suites and an extraordinary volcanic landscape setting. The 62-room property delivers an otherworldly experience that is uniquely Icelandic — nowhere else on Earth can match it.
Common Questions
The Old Harbour is the best neighbourhood for food enthusiasts, independent travellers, and those who want to experience Reykjavik's most recent and exciting cultural development away from the main tourist thoroughfare.
The Old Harbour is known for its whale-watching tours, the excellent food scene (including Slippurinn and the Marshall House), craft beer culture, the Saga Museum, and the most dramatic mountain-over-harbour views in the city.
The Old Harbour is a 15-minute walk from Laugavegur, or a short taxi ride. No direct bus connection but easily walkable from most central hotels. The flyover from Keflavik airport is 45-50 minutes.
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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