The old harbour has become the most interesting part of central Reykjavik: fish restaurants, the Marshall House galleries, boats leaving for puffin and whale trips, and a short flat walk into the shopping streets. Icelandic design hotels here tend to be small, quiet and warm in a way that matters in February.
Why we recommend it
It puts you within walking distance of both dinner and the departure point for most day excursions, which removes a car journey from the start of every morning.
Good to know
Parking in central Reykjavik is metered and limited; if you are collecting a hire car, consider picking it up on the day you leave the city rather than at the airport.