Reykjavík's East Side, Where the Tourists Aren't
A former office block turned hostel-hotel hybrid anchors a neighborhood locals actually use.
“Someone has taped a handwritten note to the lobby microwave that reads 'Please do not heat fish — we are all in this together.'”
The 14 bus drops you at the corner of Grensásvegur and Miklabraut, which is not the Reykjavík you came for. There are no rainbow-painted storefronts, no puffin magnets, no tour buses idling with their hazards on. There's a Bónus grocery with its signature piggy-bank logo glowing pink, a Domino's that looks like every Domino's, and a wind that hits you sideways the second you step off. You pull your hood tight and walk south along a residential stretch where every other building is a low-slung apartment block from the 1970s. A woman in a puffer jacket walks a very small dog past a very large puddle. The sky is the color of wet cement. You check your phone. The blue dot says you're here.
Oddsson Hotel sits in a converted commercial building that doesn't announce itself with any particular drama. The sign is modest. The entrance feels more like walking into a design school's common room than a hotel lobby — concrete floors, mismatched furniture that somehow coheres, a long wooden bar where a guy in a beanie is pouring himself coffee at three in the afternoon. The vibe is immediately legible: this is a place that decided to be interesting instead of expensive, and mostly pulled it off.
Na pierwszy rzut oka
- Cena: $130-220
- Najlepsze dla: You rented a car and plan to drive the Ring Road
- Zarezerwuj, jeśli: You have a rental car, hate paying for parking, and prefer a modern, contactless base over downtown charm.
- Pomiń, jeśli: You are a light sleeper (earplugs are mandatory here)
- Warto wiedzieć: Check-in is 100% digital; you receive a code via email 2 days prior.
- Wskazówka Roomer: The 'common area' fridges on each floor are a lifesaver for storing road trip snacks since standard rooms lack minibars.
The room, the shower, the breakfast situation
The rooms are small and honest about it. Yours has a bed, a shelf, a window that faces the parking area and, beyond it, the ridge of Esja across the bay. The walls are clean white. The linens are surprisingly good — thick duvet, pillows that don't collapse into nothing when you lie down. There's no minibar, no bathrobe, no leather-bound folder explaining the hotel's philosophy. There's a hook on the back of the door and a reading lamp that actually works for reading. It feels like a well-designed dorm room for adults who've made peace with simplicity.
The bathroom is shared on some floors, private on others, but either way the hot water is Icelandic hot water, which means it arrives fast and stays scalding. There's a faint sulfur smell — you get used to it by day two, and by day three you'll miss it when you're home. The pressure is strong enough to make you forget the bathroom is the size of a phone booth. Towels are white, clean, thin. Bring your own shampoo if you care about that sort of thing.
Breakfast, though — breakfast is where Oddsson quietly overdelivers. The creator who tipped me off called it 'way more than continental,' which is accurate but undersells it. There's smoked salmon, sliced cucumbers, dark rye bread dense enough to anchor a boat, skyr with berry compote, scrambled eggs, and a waffle iron that people queue for with the patient determination of someone who knows what they're about. The coffee is strong and self-serve. You eat in the same common area where people were drinking beer the night before, which gives the whole thing a morning-after-a-good-party energy. A woman at the next table is eating skyr with a fork, slowly, while reading a paperback in what looks like Danish.
“The neighborhood doesn't try to charm you. It just goes about its business, and you're welcome to watch.”
The location is the quiet argument Oddsson makes. You're a fifteen-minute walk from Hlemmur Square, which is where the east side starts getting interesting — Hlemmur Mathöll, the food hall in the old bus station, has lamb soup and Nepalese dumplings and a bar that pours local craft beer until late. Walk another ten minutes west and you're on Laugavegur, the main drag, but you're approaching it from the direction locals come from, not the direction the cruise ship crowd comes from. That distinction matters. You pass a pool — Sundhöllin, the city's oldest public swimming pool, with its hot pots and strict shower-naked-before-entering policy — and a bakery called Sandholt where a kleinur doughnut and a coffee will cost you 9 USD and twenty minutes of watching Reykjavík go by through the window.
The honest thing: the walls are not thick. You will hear the hallway. You will hear someone's alarm at six AM if they're catching a Golden Circle tour bus. Earplugs are not provided but should be. The Wi-Fi works fine for planning tomorrow but don't try to stream anything ambitious. And the neighborhood itself, after dark, is quiet in the way that residential Reykjavík is quiet — which is to say profoundly, almost eerily so, broken only by wind and the occasional taxi.
What Oddsson gets right is proportion. The common spaces are generous — there's a bar area that hosts DJs on weekends, a lounge with board games and the kind of deep couches that swallow evenings whole. The private spaces are compact but never feel cheap. It threads the needle between hostel and hotel without the identity crisis that usually produces. You're not roughing it. You're just not paying for things you don't need.
Walking out
On the morning you leave, the wind has shifted and Esja is suddenly visible across the bay, snow-dusted and sharp against a sky that's gone improbably blue. You notice things you missed arriving — a mural on the side of a building two blocks south, a cat sitting in a ground-floor window with the composure of a landlord. The 14 bus shelter has a schedule taped inside it: every twenty minutes to Hlemmur, every twenty minutes back. Someone has drawn a small whale on the timetable in ballpoint pen. You take a photo of the whale, not the mountain.
A private double at Oddsson runs around 147 USD a night, breakfast included. A bed in a shared dorm drops to roughly 57 USD. Either way, you're buying a warm room, unlimited hot water, a breakfast that actually feeds you, and a neighborhood that doesn't perform for visitors — which, after a few days on Laugavegur, turns out to be exactly what you wanted.