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Where to Stay in Reykjavik for Northern Lights Tours and Early Departures

Where to Stay in Reykjavik for Northern Lights Tours and Early Departures

ByThe HotelInfo Editorial Team

For travelers planning late-night Northern Lights excursions and an early departure from Iceland, the most useful Reykjavik hotel is not necessarily the one with the grandest lobby or the longest amenity list. Location in relation to designated tour-bus stops, the Old Harbour, central Reykjavik, and the BSI Bus Terminal can have a much bigger effect on how smoothly the trip runs.

Reykjavik Excursions currently uses designated tour-bus stops throughout the downtown restricted zone, while some accommodations outside the core can receive direct pickups. Travelers should always confirm the pickup point shown on their own tour voucher because operators can use different systems and temporary roadwork can move a stop. For airport departures, Flybus services operate between BSI Bus Terminal and Keflavik International Airport, with transfers from selected hotels and designated stops also available on some bookings.

Planning snapshot

  • Best overall strategy: stay within a short, straightforward walk of a designated tour-bus stop.
  • Best for Old Harbour access: Exeter Hotel or Center Hotels Plaza.
  • Best for central sightseeing between tours: Hotel Borg, Reykjavik Konsulat Hotel, Canopy by Hilton Reykjavik City Centre, or Sand Hotel.
  • Best for a larger-hotel setting: Fosshotel Reykjavik.
  • Airport departure: confirm whether your transfer collects at the hotel, a designated bus stop, or BSI before the morning of departure.

Quick comparison

Hotel Tour-bus reference Best fit Main tradeoff
Center Hotels Plaza Bus Stop 1 First-time visitors and Old Harbour access Very central surroundings can feel busy
Hotel Borg Bus Stop 3 Upscale central stay Historic-center vehicle access is more restricted
Reykjavik Konsulat Hotel Bus Stop 3 Boutique-style central trip No hotel airport shuttle
Exeter Hotel Bus Stop 4 Old Harbour activities Not as close to the eastern end of Laugavegur
Canopy by Hilton Reykjavik City Centre Bus Stop 6 Dining, shopping, and nightlife No hotel airport shuttle
Sand Hotel Bus Stop 14 Upscale Laugavegur stay Main-street location is less convenient for cars
Hotel Reykjavik Saga Bus Stop 2 Central stay near the Pond Check the exact operator pickup instructions
Fosshotel Reykjavik Bus Stop 12 Travelers who prefer a larger property Farther from the Old Harbour than the downtown-core choices

Center Hotels Plaza: convenient for Bus Stop 1 and the Old Harbour

Center Hotels Plaza sits on Ingolfstorg square in the downtown core, within walking distance of the Old Harbour and Laugavegur. Reykjavik Excursions currently associates the property with Bus Stop 1 at City Hall, making it particularly practical for travelers who want a central base without having to navigate a long walk before a tour pickup.

The hotel is a strong moderate-to-upscale choice for first-time visitors who expect to spend much of their stay on foot. Its greatest advantage is geographic: restaurants, harbor activities, central streets, and a recognized tour pickup point are all concentrated nearby. The tradeoff is that the very qualities that make the location convenient also mean staying in one of the more active parts of central Reykjavik.

Hotel Borg: an upscale base near Bus Stop 3

Hotel Borg occupies a prominent downtown position beside Austurvollur square, close to Parliament and other central landmarks. Reykjavik Excursions lists Hotel Borg with Bus Stop 3 on Laekjargata. For travelers combining an evening aurora excursion with sightseeing on foot during the day, this arrangement is straightforward and easy to understand.

Hotel Borg sits toward the upscale end of the market and is best suited to travelers who value a polished historic-city setting. Its central location reduces the need for a car, but drivers should note that the surrounding historic streets can be narrow and parking is separate from the hotel experience. A central property also does not mean a tour coach will stop directly at the front door, so the designated pickup point still matters.

Reykjavik Konsulat Hotel: boutique character near Bus Stop 3

Reykjavik Konsulat Hotel, Curio Collection by Hilton is located on Hafnarstraeti in the city center. Hilton describes it as being within walking distance of day-tour bus stops and Harpa, while Reykjavik Excursions currently maps the hotel to Bus Stop 3. It works particularly well for couples and independent travelers who want a more intimate upscale hotel without moving away from the center.

The property does not provide its own Keflavik airport shuttle, so travelers with an early flight should arrange their airport transfer separately and verify the applicable pickup location. That small piece of advance planning is important: a hotel can be extremely central for sightseeing yet still require a short walk or separate transfer connection for a pre-dawn airport departure.

Exeter Hotel: useful for Old Harbour departures and Bus Stop 4

Exeter Hotel is on Tryggvagata beside the Old Harbour, an especially useful position for travelers whose itinerary includes harbor-based activities in addition to Northern Lights tours. Reykjavik Excursions associates Exeter Hotel with Bus Stop 4 at Midbakki Harbour.

This is a strong upscale choice for travelers who prefer the waterfront edge of downtown rather than the middle of the shopping district. Restaurants and central attractions remain accessible on foot, but the hotel’s position makes the harbor the more natural reference point. Travelers focused primarily on the eastern end of Laugavegur may prefer a hotel farther east.

Canopy by Hilton Reykjavik City Centre: central lifestyle stay near Bus Stop 6

Canopy by Hilton Reykjavik City Centre is on Smidjustigur close to Laugavegur and central shopping, dining, and nightlife. Reykjavik Excursions currently associates the hotel with Bus Stop 6 at the Culture House. Hilton does not list a hotel-operated shuttle to Keflavik, so airport transportation should be organized separately.

This upscale property is a sensible choice for travelers who want their non-tour hours to be spent in the middle of the city rather than near a terminal or on the outer edge of downtown. The tradeoff is the familiar one for central Reykjavik: excellent walkability does not translate into unrestricted coach access. Knowing the correct bus stop before a late-evening excursion is more useful than assuming pickup will occur at reception.

Sand Hotel: an upscale Laugavegur option near Bus Stop 14

Sand Hotel is directly on Laugavegur, placing guests in the middle of Reykjavik’s principal shopping and dining corridor. Reykjavik Excursions currently associates it with Bus Stop 14 on Skulagata. For travelers who want an upscale boutique atmosphere and expect to explore the center almost entirely on foot, the location is compelling.

The tradeoff is vehicle convenience. Sand Hotel’s own location information notes the narrow streets of the historic center and points guests toward nearby paid parking rather than presenting the property as a car-oriented base. That makes it better for a tour-and-walking itinerary than for travelers planning to repeatedly drive in and out of downtown.

Hotel Reykjavik Saga: central convenience near Bus Stop 2

Hotel Reykjavik Saga is on Laekjargata near Lake Tjornin, the cathedral, shops, and restaurants. Reykjavik Excursions currently associates the hotel with Bus Stop 2 at the Pond. The hotel’s central position makes it a useful upscale option for travelers who want cultural sights and restaurants nearby while retaining a simple reference point for tour pickup.

Official tourism information also notes coach access at the property, but travelers should not assume that means every Northern Lights operator will collect directly outside. Different companies maintain their own pickup arrangements. The practical move is to use the location as an advantage while still following the exact pickup instructions on the tour confirmation.

Fosshotel Reykjavik: a larger hotel near Bus Stop 12

Fosshotel Reykjavik is in the business-district side of the center, a short walk from the main shopping area. With 320 rooms, it has a different scale from many of Reykjavik’s smaller downtown hotels. Reykjavik Excursions currently associates it with Bus Stop 12 at Hofdatorg.

This is a useful moderate-to-upscale option for groups, business travelers, and guests who simply prefer a larger full-service property. Its position is less intimate than staying beside Austurvollur or the Old Harbour, but the slightly more open urban setting can be appealing to travelers who do not need to be directly in the historic core.

How Northern Lights pickup changes the hotel decision

Central Reykjavik has restrictions that prevent many tour coaches from accessing every hotel entrance. Reykjavik Excursions currently uses 15 designated downtown Tour Bus Stops in addition to selected direct-doorstep locations outside the restricted center. For many downtown hotels, the relevant question is therefore not whether the property advertises tours, but how simple the walk is from the lobby to the assigned pickup stop.

Pickup time can also differ from the tour’s stated departure time. Reykjavik Excursions advises passengers using its pickup service to be ready 30 minutes before the scheduled departure because vehicles collect travelers around the city during that window.

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If you have not selected an operator yet, you can explore tours and activities and compare meeting points, pickup rules, cancellation terms, and schedules before choosing a hotel. Conditions vary by operator, so the tour confirmation should take priority over a general hotel-location guide.

Planning an early departure for Keflavik Airport

For an early international flight, confirm the transfer plan before the final night rather than assuming the hotel’s central location guarantees easy airport access. Reykjavik Excursions operates Flybus departures from BSI Bus Terminal in connection with departing flights and offers pickups at selected hotels and designated stops at specified times. Its current guidance estimates roughly 45 to 50 minutes between BSI and Keflavik Airport under normal road and weather conditions.

That estimate is not a promise of total door-to-terminal travel time. Hotel pickup, transfer connections, winter weather, traffic, and the airport check-in process can all add time. If an early flight is the most time-sensitive part of the trip, prioritize a clear transfer arrangement over shaving a few minutes off the walk to restaurants.

What travelers often overlook

A central hotel may still require a walk to a bus stop. The restricted downtown pickup system is normal, not a sign that the hotel is inconvenient.

Different tour companies can use different pickup arrangements. A stop number listed by one operator should not automatically be applied to another operator’s booking.

Northern Lights plans are weather dependent. Tour status can change, so building some flexibility into the itinerary is wiser than scheduling an aurora excursion as the only activity immediately before a critical departure.

The airport is Keflavik, not central Reykjavik. Reykjavik also has a domestic airport close to the city center. Check the airport code and transfer destination carefully when arranging an early ride.

FAQ

Is it better to stay near BSI or in downtown Reykjavik?

For most leisure travelers, downtown is the more versatile choice because restaurants, shopping, and many tour pickup points are nearby. Staying close to BSI becomes more attractive when airport transfers or bus departures dominate the itinerary.

Do Northern Lights tours pick up directly from Reykjavik hotels?

Sometimes, but not universally. Many central properties are served by designated tour-bus stops because coaches cannot access every downtown street. Selected properties outside the restricted core may allow direct doorstep pickup.

Which hotel is best for Old Harbour activities?

Exeter Hotel is directly by the Old Harbour, while Center Hotels Plaza is also well positioned for walking there. Both have nearby designated Reykjavik Excursions pickup points.

Should I rent a car just for an early airport departure?

Not necessarily. Airport buses and private transfers can make a car unnecessary for a city-based trip. A rental car makes more sense when the wider itinerary requires independent driving rather than simply as a solution for one airport transfer.

What should I verify before booking?

Check the hotel’s current operating information, your chosen tour operator’s exact pickup location, the airport-transfer procedure for your departure time, and any temporary stop changes caused by construction or road conditions.

Sources & further reading

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