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Where to stay in Keflavik: airport town, not a destination

Keflavik is 3 km from the international terminal and about 50 km from Reykjavik — great for a first or last night, questionable for a fifth.

Published2026-02-03

Who Keflavik suits

Keflavik suits anyone flying in after 8pm or out before 8am. The taxi to the airport runs about 2,500-3,500 ISK versus 20,000+ from Reykjavik, and most hotels here (Hotel Berg, Diamond Suites, Keflavik Airport Hotel) run free shuttles. It also suits people planning a Reykjanes-heavy trip: the Blue Lagoon is 20 minutes away, the Bridge Between Continents 15, Gunnuhver hot springs 20, and the Fagradalsfjall eruption area within 25 (conditions permitting).

It does not suit anyone looking for 'real Iceland' on a first visit. The town of 16,000 is functional, not scenic, with a handful of restaurants clustered near the small harbour. Do not book five nights here expecting charm.

Cost and what's walkable

Airport-adjacent hotels charge more than you’d guess: 22,000-35,000 ISK for a mid-range double, sometimes higher than Reykjavik because demand is captive. Look at guesthouses in Njardvik (5 min away) for 15,000-22,000.

Walkable from central Keflavik: the harbour, the Viking World museum (20 min walk or 5 min drive), the Duus Museum, a swimming pool, and 4-5 restaurants including Kaffi Duus and Library Bistro. The airport is not walkable — it is 3 km along a highway shoulder.

Good to know

Questions, answered

Should I sleep in Keflavik on arrival or push through to Reykjavik?

If you land after 10pm, sleep in Keflavik. If you land before 6pm and have energy, take the Flybus to Reykjavik (55 min, about 3,700 ISK).

Is Keflavik the same as Reykjanesbaer?

Keflavik is a town inside the Reykjanesbaer municipality, which also includes Njardvik and Hafnir. Booking sites use the names interchangeably.

Doing good is the business: every booking through Stay Iceland funds one verified tonne of carbon removal — same room, same price, no markup.

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