Reykjavík 101 is the city's oldest postal code and its most walkable core - the compact downtown grid where Laugavegur, Hallgrímskirkja, Harpa Concert Hall, and most of the city's restaurants and bars are all within minutes of each other on foot. The two Íslandshótel properties reviewed here - Fosshotel Reykjavík and Hotel Reykjavík Centrum - sit within this district and offer two very different entry points into the same central location, from a 16-floor tower with panoramic views to a historic street-level building built above Viking-era ruins.
What It's Like Staying In Reykjavík 101
Reykjavík 101 functions as a genuine walking city: Laugavegur and Skólavörðustígur anchor the retail and dining core, with Hallgrímskirkja church reachable on foot in under 10 minutes from most hotels and Harpa Concert Hall around 15 minutes along the seafront. Nightlife on Laugavegur runs late on weekends, which means street-level and lower-floor rooms without soundproofing can be disruptive after midnight - a real booking variable in this district. The area sees heavy tourist foot traffic from June through August, and accommodation prices in 101 can run around 40% higher than comparable hotels in surrounding districts like Hlíðar or Vesturbær.
Pros:
- * Every major Reykjavík attraction - Harpa, Hallgrímskirkja, the National Museum, the Old Harbour - is accessible without a car or bus
- * Day-trip bus pickups for the Golden Circle, South Coast, and Blue Lagoon depart from stops within the 101 district
- * The density of restaurants, coffee shops, and bars on Laugavegur means no need to plan meals in advance
Cons:
- * Weekend nightlife noise on and around Laugavegur is a genuine concern for light sleepers in lower-floor rooms
- * Parking in 101 is limited and expensive - not suitable as a base if you plan to drive across Iceland daily
- * The most central hotels command a significant price premium over virtually identical rooms 2 km east or west
Why Choose Íslandshótel Properties In Reykjavík 101
Íslandshótel is Iceland's largest hotel chain and, as of August 2024, the first hotel group in the country to hold Green Key certification across all 17 of its properties - a tangible sustainability credential rather than a marketing claim. Within 101, the brand operates two structurally different hotels: a modern high-rise tower and a heritage boutique property, which means there's no single price tier - rates at Fosshotel Reykjavík and Hotel Reykjavík Centrum reflect their scale, positioning, and room type significantly. Both properties benefit from Íslandshótel's chain-level infrastructure - 24-hour front desks, tour desk services, and luggage storage - which matters in a city where day-trip logistics and late-night arrivals are routine.
Main advantages of this hotel category here:
- * Green Key-certified across all Íslandshótel properties - independently verified sustainability, not self-reported
- * Chain consistency in service standards, safety features, and daily housekeeping in a market where independent guesthouses vary widely
- * Tour desk and airport shuttle access embedded in the hotel rather than requiring third-party arrangements
Main trade-offs in this specific zone:
- * Chain-hotel pricing in 101 means paying a location premium that smaller guesthouses on parallel streets avoid
- * Room sizes in both properties are typical of European city-centre hotels - compact by North American standards
- * During peak summer season, availability at both properties books out well in advance, reducing last-minute flexibility
Practical Booking & Area Strategy
Within 101, positioning on or near Laugavegur puts you at the epicentre of both convenience and noise - Fosshotel Reykjavík sits just 200 metres from Laugavegur on Þórunnartún, while Hotel Reykjavík Centrum is directly on Aðalstræti, one of the oldest streets in the city and close to the quieter harbour-adjacent blocks. Bus stop 12 on Lækjartorg square is the primary departure point for most organized day tours (Golden Circle, South Coast, Northern Lights excursions), and both hotels are within a 5-minute walk of it. For visitors arriving from Keflavík International Airport - around 50 km from central Reykjavík - both properties offer airport shuttle options, which is worth factoring into total cost versus taxi or Flybus. Book at least 6 weeks in advance for any June-August stay in 101; the district has limited total room stock relative to demand during midnight-sun season, and prices at both hotels increase sharply once availability tightens.
Things to do within walking range of 101 include: the Settlement Exhibition directly adjacent to Hotel Reykjavík Centrum, Harpa Concert Hall (around 15 minutes on foot along the waterfront), Hallgrímskirkja church and its tower views, the Reykjavík Art Museum on Aðalstræti, the Old Harbour fish restaurants, and Tjörnin lake. The district is considered one of the safest urban areas in Europe - night-time walking is not a concern.
Best Value Stay
Hotel Reykjavík Centrum occupies a singular position in the 101 district - a boutique-scale property built directly above Viking-age ruins on one of Reykjavík's oldest streets, Aðalstræti, 200 metres from the Reykjavík Art Museum.
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1. Hotel Reykjavik Centrum
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Best Premium Stay
Fosshotel Reykjavík is the largest hotel in Iceland by room count, with 320 rooms across 16 floors - a scale and vertical footprint that enables city and sea views unavailable at any other property in 101.
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2. Fosshotel Reykjavik
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Smart Travel & Timing Advice
Reykjavík 101 has two distinct demand spikes: June through August for the midnight sun and peak outdoor season, and late November through January for the Northern Lights and the city's Christmas market on Aðalstræti. Both periods see prices at 101 hotels increase significantly - booking either Fosshotel Reykjavík or Hotel Reykjavík Centrum during July, the busiest month, with less than 6 weeks' notice will typically mean paying top rates or finding limited room-type availability. The shoulder months of April-May and September-October offer the most favourable balance: lighter crowds in the 101 district, lower nightly rates, and still enough daylight for touring. A 3-night stay is the practical minimum for 101 - enough to walk the main sights, complete one day trip (Golden Circle or South Coast), and experience Laugavegur at its own pace. For visitors planning multiple day trips with a rental car, both properties offer luggage storage and late checkout options, but the parking premium in 101 adds up quickly - factor that in if flexibility is a priority.