Renting a car is a fun way to travel and discover new places but one of the headaches of such travel is Parking. My husband and I have done big road trips around the US and parts of Europe and when we were looking for accommodation, parking was always a big factor. Especially in Europe, we would avoid hotels in the center of the cities we visited (driving on the outskirts of Paris was bad enough and let’s not even discuss the medieval towns of Italy) and where exactly we ended up often depended on where we could find accommodation with free parking on premises.

Many hotels in Europe and the US charge for parking whether said parking is on premises or in a parking garage nearby. In Europe, we found that anything from 10 to 30 EUR per day was the norm, depending on the place, and in LA we paid an obscene amount of money for valet parking at our honeymoon-splurge hotel.

Then there’s always the issue of how safe street parking is, both in the terms of break-in and such but also just because a lot of towns in Europe have very narrow streets and pint-size parking spots and you’re basically playing Russian Roulette with your rental car parking on some of them. Will the bumper still be there the next morning? Will the side of the car be scratched because someone miscalculated just how narrow the street is? You just never know.

The US is a bit better when it comes to the width of the lanes and the sizes of parking spots at least. OK, it’s a lot better – many US cities and towns feel like they were made for cars first. However, we found that some towns had some strange rules when it came to where you could park and for how long and such which I’m sure is super easy to figure out when you actually live there.

When we visit my friend in Gothenburg the parking around his house is a nightmare and often times we find a parking space at night but someone has to wake up really early and move the car in the morning because of all the restrictions of that space. Or we need to park far away from his house to avoid that whole thing.

If you’re traveling to Reykjavík with a rental car, I can hopefully relieve some of your parking-related anxieties by telling you that parking is pretty easy and straight forward in Iceland’s capital and not that expensive. I wrote a whole post about parking in Reykjavík that you should probably check out if you plan to visit Reykjavik in a car.

Additionally, opposed to most hotels I’ve encountered on our road trips (most, not all) – the hotels in Reykjavík that do offer parking on premises usually do so for free. I think they see it as a selling point for the hotel that they can offer free parking.

Inspired by a recent trip, I decided to check how many hotels in Reykjavík offer free parking and I found out that there are quite a few actually. More than I imagined, in fact. I compiled this list of hotels, guesthouses and hostels that stuck out and called every single one them to ask about their parking facilities. All of them had very friendly and helpful reception staff that were more than happy to help.

What they all have in common is that they can’t guarantee free parking and they don’t offer advanced reservations. Most of the people I talked to told me that they usually have enough spaces for everyone but it can occasionally happen that they’re completely booked out. Almost all of these hotels have paid or free street parking close by in case that happens.

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The inconvenient truth

On our most recent trip around Europe, I felt a considerate amount of guilt for all the driving we did when there’s an amazing network of trains and buses that can get you between places in a more environmentally friendly way. I took some comfort in the fact that we only used the car to get between places and used public transportation or walked around the towns and cities we visited, which was the majority of our trip, but it still felt a bit wrong in the current climate.

There’s no way to get around the fact that traveling in a rental car, especially if there’s only one person in the car, is not great for the environment and there are other ways to see the country that are better for our planet. It’s not easy to use public transportation to visit many of our natural wonders but there are plenty of tours that you can do that leave a smaller carbon footprint.

I just thought I’d put it out there in case you share my worries for the environment.

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Easy walking distance to everything

Exeter Hotel

Exeter Hotel is quite new and it’s located between the heart of the downtown area and the old harbor and is in comfortable walking distance from both. It’s got quite an industrial look with bare concrete and metal and there’s a fun fast food joint, bakery and bar on the first floor that has decently priced cocktails and does brunch on the weekend. If you happen to be finishing your drink around the closing time they’ve been known to give away some free donuts if they have any left from the day.

Out of all the hotels on this list, I think I would probably put Exeter hotel on the top of my list if I was looking for accommodation in Reykjavík (and the price fit my budget and all).

Parking

Exeter hotel has a parking garage underneath the hotel with 13 spaces. After 17:00 it starts to fill up and it does happen that the parking gets full and you’ll need to find parking elsewhere. Most of the parking in close proximity to the hotel is paid street parking.

Hótel Holt

Hótel Holt is in the middle of the downtown residential area and in a comfortable walking distance from everything. It’s kind of old school with dark wooden furniture and has always had an excellent restaurant on the first floor (it’s just been taken over by new owners and I haven’t been there since they opened again). They have one of the biggest privately owned Icelandic art collections and display a lot of it on their walls and even offer art walks for the guests of the restaurants. They also have a wine cellar that they’ve been known to offer tours to.

Maybe not the freshest or hippest hotel in town but a good location for those who appreciate a more classic feel.

Parking

Hótel Holt has 18 spaces in two separate parking areas which are both right next to the hotel. It doesn’t fill up often but it can happen, in which case, there is paid and free street parking in close proximity of the hotel. It’s good to mention it in the booking that you will be needing parking.

Skuggi Hotel

Skuggi Hotel is a fairly new hotel in an area that is kind of up and coming. It’s in a short walking distance from everything and not far from Hlemmur Food Hall which is great. It gets good reviews and we always had a lot of guests on our walking tours staying there. From what I’ve seen, their rates are pretty fair too.

Parking

Skuggi Hotel has around 27 spaces (“less than 30, more than 20 – let’s say 27” is the answer I got when I called them) in their own parking area next to the hotel.

Eyja Guldsmeden

The Guldsmeden hotels are eco-conscious family-owned boutique hotels with 11 locations around the world.  Eyja Guldsmeden is currently their only Reykjavík location but apparently, they’re opening a new hotel in downtown Reykjavík soon.

Eyja is a bit further away from the downtown area but still in a good walking distance. Although the immediate environment is maybe not the most exciting it will take you less than five minutes to walk to Hlemmur Food Hall at the top of the main shopping street Laugavegur and you have a Bónus supermarket right next door. If you plan to dine in the heart of the downtown area it will take you about 20 minutes to walk back.

Parking

Eyja Guldsmeden doesn’t have a designated parking area or garage but there are spaces right in front of the hotel that hardly ever fill up.

Hótel Klettur

Hótel Klettur is a simple 3-star hotel in the up and coming area around Hlemmur. We have had a lot of guests who have stayed there throughout the years and they all say the same: simple, conveniently located and reasonable rates. There’s a great little coffee shop just around the corner and it will only take you a couple of minutes to walk to Hlemmur at the top of Laugavegur shopping street.

Parking

Hótel Klettur has free underground parking with plenty of spaces but if the hotel is fully booked the parking can fill up too. There’s paid and free street parking in close proximity to the hotel if that happens.

Fosshótel Rauðará

Fosshótel Rauðará is located on a residential street that looks kind of run down and is maybe not the most exciting in the city but it’s perfectly safe and only a few minutes walk from Hlemmur at the top of Laugavegur shopping street. It’s also in comfortable walking distance from Hallgrímskirkja church and Sundhöllin pool and at the end of the street, in the opposite direction from Hlemmur, there’s a nice park with a frisbee golf course, beach volleyball court and one of the Reykjavík City Art Museums.

Parking

Fosshótel Rauðará has a parking garage next to the hotel. It doesn’t usually fill up but if it does, there’s free street parking in close proximity to the hotel.

Fosshótel Lind

Fosshótel Lind is a 2-minute walk from Hlemmur at the top of Laugavegur shopping street and across the street from Iceland’s ministry of foreign affairs. Across the street, there’s also a really nice seafood restaurant called Restó and behind the hotel, there’s a big playground for kids. The area doesn’t look like much but it’s very close to everything.

Parking

Fosshótel Lind has a parking area behind the hotel that doesn’t fill up often. In case it does, there’s paid and free street parking in close proximity to the hotel and the reception staff is happy to point you in the right direction.

Fosshótel Barón

Fosshótel Barón is located on a street called Skúlagata that runs parallel with Hverfisgata and then Laugavegur, but closer to the ocean. It’s in short walking distance from Laugavegur and Hverfisgata where you’ll find a lot of restaurants and bars and it will not take you long to walk down to the ocean to explore sights like the Sun Voyager.

Right next to Fosshótel Barón you have Kex hostel that has a nice bar and a restaurant and behind it a sizable convenience store that is quite expensive but always open. If you’re arriving late at night, there’s also a Dominos across the street that is open till midnight on weekdays and 3 am on the weekends.

Parking

Fosshótel Barón has two parking areas, one in front of the hotel and one in the back. Neither one fills up often but it can happen

Guesthouse Sunna

Guesthouse Sunna is very conveniently located right next to Hallgrímskikja church and Skólavörðustígur where you’ll find a lot of restaurants, cafes and artisan shops. There’s a convenient store very close by that is open 24 hours if you’re arriving really early in the morning or late in the night.

It’s a clean and simple guesthouse that always gets great reviews. When I spent the day with Rick Steves this is where he was staying and he told me he really enjoyed it.

Parking

Guesthouse Sunna has space for about 10 cars in a little parking area behind the guesthouse. If it’s full, paid and free street parking is in close proximity to the guest house.

Not near but not far

Icelandair Natura

I would say Icelandair Natura is a great option if you have a car because they have a lot of parking spaces but its location is a bit awkward if you want to leave the car at the hotel and walk or use public transport to get into the downtown area. It’s about half an hour walk downtown and it’s a bit complicated to take the bus but last time I knew, they offered all their guests a free bus pass.

Icelandair Natura has a really nice day spa with an indoor pool and steam rooms and there’s an OK restaurant on premises too. It’s in close walking distance to Perlan Museum and it won’t take you long to walk to Nauthólsvík Geothermal Beach.

It’s not a bad location, just not the best if you plan to go out for dinner or drinks while in town but you can always take a taxi back.

Parking

Icelandair Natura has plenty of parking in front of the hotel that rarely gets full unless there’s a big conference or party at the hotel. Usually, those kinds of events are over by the end of the day when most people return back from their day of exploring.

Radisson Blu Hótel Saga

Radisson Blu Hótel Saga is quite a big hotel right outside of the downtown area. It’s across the street from The National Museum and the National Library and it will take you about 20 minutes to walk downtown but it’s a nice walk.

There’s not a lot in close proximity to the hotel but there is a gas station next to it that is open late that you can go to if you just need some snacks or a hot dog. If you want to get an alternative feel for Reykjavík, the University of Iceland is just across the street from the hotel and the canteen has a pretty good selection of food for very decent prices. The Student Bar is in the same area and has a lot of stuff going on along with cheap food and decently-priced drinks. If your student bar days are over, the in-house restaurant, Grillið, is widely considered one of the best in Iceland.

Parking

Radisson Blu Hotel Saga has a lot of free parking all around the hotel. The parking is partially used by students at the University of Iceland in winter so it can be quite full. However, with some patience, you should always be able to find a spot.

A little further afield

Hilton Reykjavík Nordica

The Hilton Reykjavík Nordica is located in a commercial part of Reykjavík very close to the beautiful Laugardalur valley outdoor area. The hotel itself has a restaurant called Vox that has been a popular brunch spot for locals on the weekend and people that work in the area meet for happy hour at the hotel bar after work. There are also a few fast food places close by but for more options and bars and nightlife, you will need to head into the downtown area.

It will take you about 20 minutes to walk to Hlemmur at the top of Laugavegur main shopping street (35 min to walk all the way downtown) but you can also take a bus right outside of the hotel that will bring you to the downtown area quite quickly.

Parking

The Hilton Nordica has free parking both in the front of the hotel and in the back. When there are big meetings or conferences in the hotel, it can be difficult to find a spot but those events are usually over late in the afternoon or early evening when most people return from their exploring for the day.

Grand Hotel Reykjavík

Grand Hotel Reykjavík is located in the Laugardalur valley in good walking distance to the Botanical Gardens, Petting Zoo and one of my favorite art museums: Ásmundarsafn. It’s a big hotel for Icelandic standards and has huge common areas and facilities like a restaurant and a pretty decent spa.

It’s in about 20 minutes walking distance from Hlemmur at the top of Laugavegur shopping street but you can also take a bus that stops close to the hotel.

Parking

Grand Hotel has plenty of parking around the hotel. If there’s a big conference or party at the hotel, it can be more difficult to find parking but then there’s free street parking close by.

Reykjavík Lights

Reykjavík Lights is in the same commercial area as Hilton Nordica but just a bit further away from the downtown area. There is a pizzeria close by and the Laugardalur valley is just across the street.

It’s not the most interesting area to stay in but if the price is good and you don’t mind walking or taking the bus downtown, it’s not terrible either.

Parking

Reykjavík Lights has a parking house behind the hotel on two floors. In summer there’s usually no problem finding parking but in winter they sometimes have to close the top floor because of snow and ice but it’s usually not a big problem. The area around the hotel has a lot of businesses and it’s notoriously difficult to park there so finding other parking during the day can be difficult. Likewise, if there’s a big event happening in the nearby Laugardalshöll stadium.

Reykjavík City Hostel

Reykjavík City Hostel is in the heart of the Laugardalur area, next to Laugardalur pool and a short and nice walk from the Botanical Gardens and the Petting zoo which might be worth visiting if you’re traveling with kids.

It’s a very basic hostel but it has all the amenities you need like communal kitchens and it has a nice deck and garden around the house to enjoy in good weather. You can get private rooms but if you’re on a strict budget the shared rooms are the best deal. In the summer, when the Reykjavík Campsite next door is open, it can get very lively at this hostel.

It will take you about 30 minutes to walk to Hlemmur and about 45 minutes to walk all the way downtown but bus number 14 stops right outside the hostel and will take you the long way downtown.

Parking

Reykjavík City Hostel has plenty of parking next to the hostel which they partly share with the Reykjavík Campsite. I worked in the building for a few years and never had any issues finding parking.

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