Axel's take on Hlemmur & Borgartún: #4 of 5 in Reykjavik, 7.3/10
A practical eastern base, with Hlemmur construction the important catch. Strong access and the best hotel value help Hlemmur, but fewer nearby attractions, less distinctive streets and construction hold it back.
Hlemmur is where Laugavegur meets a more everyday city of food-hall lunches, bus stops and the offices along Borgartún. It suits work trips near Höfðatorg and travellers happy to walk west for sightseeing. The seafront by Höfði gives this end of town an alternative to the shopping street.
Construction is the major caveat. The city's February 2026 update scheduled the next Hlemmur works from April 2026 through the end of 2027, and Strætó diverts buses around the square. Check the actual stop and street access before booking. Skip it if you want a historic setting or cannot tolerate changing pedestrian routes.
- Best for: business trips and conventions, travelers on a budget, shopping
- Skip it if: Construction disruption would spoil your stay; You want Old Town character immediately outside
- Getting around: Bus 12 serves Borgartún, with other routes using temporary stops around Hlemmur; walk west along Laugavegur; KEF: Flybus via BSÍ and booked onward shuttle; RKV: taxi.
- After dark: The Laugavegur end retains late-night eating, while visitors staying farther east describe quieter nights; choose the street rather than assuming uniform calm.
- Rates: Typical Axel rate $202 a night · usually 12% under the public rate
Where to stay in Reykjavik: every neighborhood ranked
Where to look in Hlemmur & Borgartún
- Hlemmur square. Choose this end of Laugavegur for food-hall meals and shopping, but expect construction and changing access through late 2027. Hotels here: Midgardur by Center Hotels, Fosshotel Lind, 101 Guesthouse Hotel.
- Þórunnartún near Borgartún. Look toward Borgartún for a practical business-area base rather than historic streets; the waterfront offers an alternative walking route. Hotels here: Storm Hotel by Keahotels, Fosshotel Reykjavik.
- Brautarholt–Mjölnisholt. Try these blocks for a more everyday setting with coffee stops, while keeping Hlemmur's eating options within reach. Hotels here: Hotel Orkin, Klettur Hotel.
How to choose
- Choose Storm Hotel by Keahotels if you want included breakfast, helpful staff and convenient guided-tour pickups.
- Choose Midgardur by Center Hotels if you want hot tubs and a sauna after sightseeing, and can tolerate nearby streetworks.
- Choose Hotel Orkin if you are driving with family and value included parking, breakfast and shared spaces over downtown polish.
What paying more buys
ASKA Holt is cheaper than most here but relies on remote assistance. Storm Hotel adds staffed reception and included breakfast without a large step up; much pricier Fosshotel Reykjavik offers upper-floor views, a bistro and Beer Garden, but can feel busy. Its premium is harder to justify if easy tour pickups and breakfast are your main needs. Typical rates with Axel here run from $158 a night at ASKA Holt to $363 at Fosshotel Reykjavik (last 30 days).
The best hotels in Hlemmur & Borgartún, ranked by Axel's take
Each hotel scored for what it is by Axel's own review; the rate is one stay Axel priced this week, beside the public rate for the same dates.
- Storm Hotel by Keahotels 8.8/10, modern, practical 3-star on the eastern edge of central Reykjavík. A dependable Reykjavík base with excellent breakfast and easy tour pickups. Why it's here: included breakfast and convenient tour pickups with reliably helpful reception. Accept: compact rooms, limited parking and nearby construction to check. $163 a night with Axel; no public rate was seen for these dates. Sign up free to book this rate
- Midgardur by Center Hotels 8.7/10, contemporary 4-star city hotel with a small spa on Laugavegur. A strong city base with helpful staff and worthwhile spa extras, but construction nearby. Why it's here: indoor and outdoor hot tubs with helpful reception at a mid-priced neighborhood rate. Accept: nearby construction through late 2027; standard-room spa access costs extra. $145 a night with Axel; no public rate was seen for these dates. Sign up free to book this rate
- Fosshotel Reykjavik 8.5/10, large, modern 4-star hotel near Laugavegur. A dependable sightseeing base with excellent breakfast, but a busy big-hotel feel. Why it's here: upper-floor views, popular breakfast and doorstep tour pickups in a full-service hotel. Accept: warm rooms, crowded breakfasts and peak-time elevator queues. $183 a night with Axel; no public rate was seen for these dates. Sign up free to book this rate
- Hotel Orkin 8.3/10, simple, family-friendly 3-star just outside central Reykjavik. A friendly, practical base with useful freebies, rather than downtown polish. Why it's here: included parking, breakfast and afternoon cake make a practical family road-trip stop. Accept: basic furnishings, small bathrooms and internal stairs in some rooms. $155 a night with Axel; no public rate was seen for these dates. Sign up free to book this rate
- Fosshotel Lind 8.1/10, simple 3-star near Reykjavík’s main shopping street. A dependable sightseeing base with helpful staff, but cramped bathrooms. Why it's here: helpful staff and convenient excursion access for travelers prioritizing location over style. Accept: tiny, dated bathrooms with splash-prone showers. $164 a night with Axel; no public rate was seen for these dates. Sign up free to book this rate
- Klettur Hotel 8.1/10, straightforward 3-star near Hlemmur and Laugavegur. A dependable sightseeing base, with clean rooms and useful breakfast rather than boutique charm. Why it's here: included continental breakfast and helpful tour advice for straightforward sightseeing stays. Accept: neighboring construction and a busy, repetitive breakfast buffet. $150 a night with Axel; no public rate was seen for these dates. Sign up free to book this rate
- ASKA Holt 7.4/10, no-frills, self-check-in 3-star outside Reykjavik’s central core. Comfortable rooms and useful parking, but self-service comes with real trade-offs. Why it's here: a cheaper self-service stay with comfortable beds and limited free parking. Accept: entry-code problems and uneven remote help, with mixed bathroom drainage. $121 a night with Axel against $151 a night on Expedia for the same dates and party: $30 a night less (20%). Sign up free to book this rate
- 101 Guesthouse Hotel 7.1/10, no-frills 2-star guesthouse on central Reykjavik’s main shopping street. A practical budget base for sightseeing, but comfort depends on your room. Why it's here: a cheaper Laugavegur base with a shared kitchen and nearby excursion pickups. Accept: some rooms lack windows or private bathrooms; reception hours are limited.
