You’re standing on Aðalstræti. It’s the oldest street in Reykjavik. If you look down through a glass floor inside a building nearby, you’ll see the ruins of a longhouse from the 800s. This isn't just a tourist trap; it’s the literal foundation of Iceland. Right in the middle of this historical weight sits Hotel Reykjavik Centrum.
Most people booking a trip to Iceland get overwhelmed. They look at the sleek, glass-fronted towers near the shore or the budget hostels tucked away in the suburbs. But if you want to actually feel the pulse of the city—the real, slightly moody, very colorful Reykjavik—you end up here.
The hotel is built over an archaeological site. No, really. During its construction in 2005, they found some of the oldest human remains and structures in the country. Instead of paving over it, they preserved it. Now, the Settlement Exhibition is practically your neighbor.
The Weird History of the Three Houses
Hotel Reykjavik Centrum isn't just one boring block of concrete. It’s actually three distinct, historic-style buildings that were meticulously restored or reconstructed to look like the 18th-century skyline. One of them is Fjalakötturinn. That name sounds like a mouthful, but it was once the site of Iceland’s first cinema.
Walking into the lobby feels a bit like stepping into a time capsule that someone accidentally upgraded with high-speed Wi-Fi and very expensive Nordic furniture. It’s cozy. It’s wood-heavy. It smells like old books and rain, which, honestly, is the quintessential scent of Iceland.
The rooms vary wildly. You might get a small, snug space that feels like a ship's cabin, or a sprawling suite with slanted ceilings that make you feel like you’re living in a local’s attic. They didn't go for that "Ikea showroom" look that’s taking over most modern hotels. Thank god. Instead, you get deep reds, dark woods, and windows that actually open so you can hear the bells of the Dómkirkjan cathedral nearby.
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Location: The "Five-Minute Rule"
Location is everything. People say that about every hotel, but for Hotel Reykjavik Centrum, it’s a mathematical fact.
- You are a two-minute walk from the Parliament building (Alþingi).
- You are three minutes from the Pond (Tjörnin), where you can feed ducks or watch the locals slip on ice in the winter.
- You are basically on top of the best bars in the city.
If you stay at one of the big chain hotels out by the harbor or the bus terminal, you’re going to spend a fortune on taxis or waste twenty minutes walking against the wind just to get a coffee. At the Centrum, you step out the front door, turn left, and you’re at Brauð & Co for a cinnamon roll before your brain is even fully awake.
There is a downside, though. Being in the heart of the old town means it gets loud. Icelanders love to party. On a Friday night, the streets of Reykjavik are not a library. If you’re a light sleeper, ask for a room facing the inner courtyard. It’s the difference between hearing a distant seagull and hearing a group of Vikings singing karaoke at 2:00 AM.
What Most People Get Wrong About the Amenities
People see "4-star hotel" and expect a massive gym and a sprawling spa. If that’s what you want, go to the Hilton Nordica. Hotel Reykjavik Centrum is boutique in spirit. The "gym" situation is minimal. You're expected to get your exercise by hiking up Hallgrímskirkja or walking the coastline.
What they do have is Uppsalir. It’s their bar and café. In the afternoon, it’s quiet enough to actually get some work done or read a book. By evening, it transforms into this dimly lit, intimate spot where the gin and tonics are terrifyingly expensive—welcome to Iceland—but perfectly mixed.
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The breakfast is another thing. Most hotel breakfasts in Europe are just a sad croissant and some watery juice. Here, they lean into the Nordic diet. Think smoked fish, thick skyr, and bread that feels like it could be used as a weapon because it’s so dense and hearty. It's the kind of fuel you need if you're about to sit on a tour bus for ten hours to look at waterfalls.
Navigating the Logistics of Aðalstræti
Parking is a nightmare. Let's just be honest about that. If you rent a car, don't expect to park it right in front of the lobby. The hotel is in a pedestrian-heavy zone with limited street parking. There are parking garages nearby, like the one under Vesturgata, but they aren't free.
Most savvy travelers use the airport shuttle. The Flybus drops you off at a designated "Bus Stop 1" which is just a short walk from the hotel. Don't try to lug three suitcases through the cobblestones if it’s snowing. Just don’t.
The Settlement Context
Staying here and not visiting the museum downstairs is a crime. The Settlement Exhibition (Landnámssýningin) is built around a 10th-century longhouse. It’s surreal to think that while you’re upstairs checking your emails, there is a thousand-year-old wall just a few meters below your feet. It gives the hotel a sense of permanence.
Is it Worth the Price Tag?
Iceland is expensive. You already know this. You’ll pay more for a beer here than you will for a steak in many other countries. Hotel Reykjavik Centrum sits in that mid-to-high price bracket. You’re paying for the history and the fact that you can stumble home from the downtown bars in thirty seconds.
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Is it "luxury"? No, not in the gold-plated faucet sense. It’s "Icelandic luxury," which means it’s clean, functional, incredibly well-designed, and warm. In a country where the weather is trying to kill you half the time, warmth is the ultimate luxury.
The staff aren't the overly-rehearsed, script-reading types. They’re locals. They’ll tell you which tourist traps to avoid and which hidden hot springs are actually worth the drive. That kind of insider knowledge is worth the extra 50 bucks a night.
Actionable Steps for Your Stay
If you’ve decided to book, don't just click "reserve" and hope for the best. Follow these specific steps to actually enjoy the experience:
- Request a High Floor: The street noise is significantly muffled once you get above the second floor.
- Book the Breakfast Package: Buying breakfast separately in Reykjavik will cost you $30+ at a cafe. The hotel’s buffet is usually a much better deal.
- Skip the Rental Car for the First Two Days: Stay at the Centrum, walk the city, do your museums, and then pick up a car when you’re ready to head out to the Ring Road. You’ll save a fortune on parking fees.
- Check the "Happenings" at Reykjavik Art Museum: It’s literally around the corner. They often have events that aren't advertised in the main tourist brochures.
- Download the "Parka" App: If you do insist on having a car, this app is the only way to manage the confusing parking zones around the hotel without getting a massive fine.
The reality is that Hotel Reykjavik Centrum isn't trying to be the trendiest hotel in the world. It’s trying to be a gateway to what Reykjavik used to be. It’s sturdy, it’s historical, and it puts you exactly where you need to be to see the city properly. Grab a coffee at Kaffibrennslan across the street, sit on the hotel’s front steps, and just watch the city move. That’s the real Iceland.