Hlemmur Square sits on Laugavegur 105 at the eastern edge of Reykjavik's main commercial corridor, placing guests within walking distance of the city's most concentrated stretch of restaurants, bars, and design shops. Where the larger international hotels sit further from that density, this address trades on proximity and neighbourhood immersion as its primary value proposition.

The Address That Does the Work
Reykjavik's accommodation market has sorted itself into a recognisable pattern over the past decade: large international flags cluster around the waterfront and business district, while smaller independent properties have positioned themselves along or just off Laugavegur, the city's primary commercial artery. Hlemmur Square sits at number 105 on that street, near the Hlemmur end, which places it at the junction where Laugavegur begins to thin out from tourist-facing retail into a more local rhythm of coffee bars, bookshops, and neighbourhood restaurants. That address is not incidental — it is the central fact around which the stay is organised.
The Hlemmur bus terminal, one of Reykjavik's main public transit nodes, sits effectively at the property's doorstep, which makes airport connections and day trips to the Ring Road considerably more practical than from hotels further into the old town. Guests who want to use Reykjavik as a base for wider Iceland itineraries — day trips to ION Adventure Hotel, Nesjavellir territory, or longer routes south toward Hotel Ranga in Hella and beyond , will find the transit access here more functional than the same price-point alternatives deeper in the city centre.
The Laugavegur Context
Understanding what Laugavegur offers is the prerequisite to understanding why this location matters. The street and its immediate side streets contain the highest density of independently operated restaurants in Reykjavik, including the newer generation of Icelandic kitchens that have moved away from the lamb-and-skyr formula toward more technically precise Scandinavian cooking. The evening pattern on Laugavegur is walkable in a way that few Icelandic cities can sustain: you can move from a pre-dinner drink to a restaurant to a bar without needing transport. For a city that operates largely in the dark for half the year, that compactness is worth paying attention to when choosing a base.
Properties at the western end of Laugavegur, closer to Aðalstræti and the old town, are within the same general corridor but separated from the Hlemmur end by a meaningful walk in winter conditions. The Apotek Hotel by Keahotels and the Canopy by Hilton Reykjavik City Centre occupy that western-central zone, with different trade-offs: more immediate access to the harbour and government quarter, but slightly less proximity to the transit infrastructure that makes the Hlemmur end useful for travellers moving in and out of the city.
Where It Sits in the Reykjavik Accommodation Field
Reykjavik's premium independent tier is relatively compact. The 101 Hotel Reykjavik has set the design-led independent benchmark in the city for years, with a positioning that targets style-conscious travellers who want Icelandic materials and a certain editorial quality in the interiors. The Hotel Holt, with its art collection focus, operates in a different register entirely. Hlemmur Square enters the field as a property whose primary distinction is locational rather than heritage or collection-based, which is a legitimate competitive position in a city where geography is genuinely consequential.
For travellers who want the international flag assurance, the Hilton Reykjavik Nordica is the established reference point, though it sits further from the Laugavegur strip. The Reykjavik EDITION represents the upper bracket of the international luxury segment. Hlemmur Square is not competing in either of those registers; it positions itself where independent character and walkable address overlap, which is a narrower but defensible niche.
Beyond Reykjavik: Using the City as a Gateway
Iceland's accommodation landscape rewards planning. The properties most travellers remember are rarely in the capital: Eleven Deplar Farm in Ólafsfjarðar offers helicopter access and extreme remoteness in the north; Hótel Búðir on the Snæfellsnes Peninsula occupies a position at the edge of a lava field with a quality of stillness that no urban property can replicate; The Retreat at Blue Lagoon Iceland remains the country's most discussed luxury property for a reason that has less to do with the spa and more to do with the volcanic landscape it inhabits.
A Reykjavik base that handles transit well , as the Hlemmur Square address does , is a practical complement to an itinerary that includes those properties. Travellers splitting time between the capital and rural Iceland benefit from an in-city hotel that connects efficiently to departure points, whether that means the Hlemmur bus station for public routes or Reykjavik's domestic airport for northern destinations. For context on other southern Iceland options, Skálakot Hotel in Hvolsvöllur, Vogafjós Farm Resort, and Hótel Klaustur Iceland all sit along or near the southern ring route and serve different traveller profiles depending on how far east you intend to travel.
If Reykjavik is part of a wider multi-destination itinerary, the contrast with properties at the other end of the scale , Aman New York or the Hotel Bel-Air in Los Angeles , is instructive. Reykjavik simply operates at a different density and price logic, and Hlemmur Square's positioning reflects that: the value here is concentrated in access rather than in amenity depth.
Planning Your Stay
Laugavegur 105 is direct to reach from Keflavík International Airport via the Flybus service, which operates directly to the Hlemmur terminal. That removes the coordination friction that affects visitors staying in parts of the city further from established bus routes. Reykjavik's walking distances are short enough that most of the central restaurant and bar scene referenced in our full Reykjavik restaurants guide falls within a fifteen-to-twenty minute walk from this address. Summer arrivals will find the extended daylight makes that walkability even more useful; winter visitors should factor in wind and ice conditions when choosing between walking and the city bus network, for which Hlemmur acts as a central hub. Other independently minded travellers considering Reykjavik might also weigh the Alda Hotel, the Black Pearl, and Hotel Borg by Keahotels as alternatives within the same general central zone, each with a distinct positional logic relative to the city's main points of interest.
Frequently Asked Questions
- What is the atmosphere like at Hlemmur Square?
- The atmosphere tracks with its address more than any singular design statement. Laugavegur 105 places the property at the active eastern edge of Reykjavik's main street, where the pace is more local and less tourist-saturated than the harbour-adjacent blocks. The feel is urban and walkable rather than resort-adjacent, which suits travellers who want the city rather than a retreat from it. Without confirmed price or award data, the precise tier positioning is difficult to fix, but the neighbourhood character is readable from the address alone.
- Which room category should I book at Hlemmur Square?
- Room category data for Hlemmur Square is not currently in the EP Club database. Given the absence of confirmed style, price range, or award signals, the practical advice is to book directly or through a verified channel and ask specifically about rooms on upper floors facing away from Laugavegur, where street noise on weekend nights can be significant in properties along this stretch. That applies across the Laugavegur corridor regardless of property.
- Why do people choose Hlemmur Square?
- The Hlemmur address is the primary draw. It places guests at Reykjavik's main bus hub, within walking distance of the densest concentration of independent restaurants and bars in the city, and on the street that functions as the city's social spine. For travellers using Reykjavik as a gateway to wider Iceland, that transit access is a functional advantage that properties in the old town or waterfront zone do not offer to the same degree.
- Is Hlemmur Square a good base for exploring both Reykjavik and the rest of Iceland?
- The Laugavegur 105 address is among the most transit-connected in central Reykjavik, with the Hlemmur bus terminal providing routes across the capital and connections to long-distance services heading toward the south coast and Ring Road. Travellers combining a city stay with rural Iceland properties such as Hótel Reykjahlíð in Reykjahlíð or UMI Hotel in Vík will find the logistics of departure and return considerably simpler from this location than from hotels without adjacent bus access.
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