Reykjavik is one of Europe’s most charming capitals, but how much do you know about its history? Let’s take a walk through this Icelandic city’s storied past and explore how it took shape.

The very beginning

A Norseman by the name of Ingólfur Arnarson was the first person to call what we now know as Reykjavik home. He had spent a winter holed up at Ingólfshöfði, a windswept cape on the southern coast of Iceland, before arriving in the place he dubbed “Smoky Bay” in 874AD. Other farms sprang up in the surrounding area, but Reykjavik as an urban centre was still a long way off.

One of those smallholdings was called Grjóti, and the name references the rocky fields that extended down the hill. The farmhouse would have stood at the top of what we now know as Grjótagata, a five minute walk from Exeter Hotel. Towards the end of the 18th century, there were turf houses here. Also around this time the rocks that littered the ground here were used to build Reykjavik Cathedral (Dómkirkjan).

A trading centre

For a long time, Iceland was entirely rural, but during the 18th century, Reykjavik grew as it pivoted in function to became a hub for trade. This change was spearheaded by an Icelander called Skúli Magnusson. Having worked at an early age for a Danish merchant’s company, he became a successful entrepreneur, and his businesses spanned a broad range of products: agricultural machinery, sulphur processing, wool, rope-making leather work, shipbuilding and fishing.

By 1703, when the first census was taken, the population of the whole of Iceland had grown  only to 50,358, which gives us an idea of how small Reykjavik still was. Nevertheless, in the second half of the 18th century, a number of important buildings were constructed, among them a prison, a cathedral and a school.

In 1786, Denmark granted Reykjavik a trading charter. As the port grew, so too did the city’s population. When a new base was sought for the Alþing in the 19th century, Reykjavik was the obvious choice. Once parliament arrived, the settlement’s future was assured, though its population continued to grow slowly – in 1901, just 6321 people lived in Reykjavik.

The capital city of a newly independent Iceland

The transition towards independence gathered momentum through the 19th century. When the Danish authorities granted Iceland home rule in 1904, Reykjavik was the centre of administration. By 1918, it was home to 15,328 people – 18,815 in the capital region as a whole. In 1944, when independence was finally achieved, Reykjavik became the capital of the new nation.  

A capital with charm

Reykjavik retains some its historic charm, particularly in Grjótaþorpið, the city’s oldest neighbourhood. The name translates as “stone village”. A cluster of buildings replaced the farm and the turf farms were also cleared for redevelopment. Today, the Grjótaþorpið neighbourhood is bounded by Aðalstræti (Reykjavik’s oldest street), Vesturgata, Túngata and Garðastræti – Exeter Hotel is right on the edge of it.

 You’ll get a sense of what the capital used to look like as you wander slightly further afield, around the area surrounding Tjörnin. There, you’ll find important buildings such as that housing the National Gallery of Iceland (originally an ice house) and Alþingishúsið, a landmark stone building dating back to 1880.

Other buildings worth seeking out include Stjórnarráðshúsið (the Prime Minister 's Office) on Lækjargata and the Reykjavik City Museum on Aðalstræti. Vesturbær, also referred to as the Old West Side, is a largely residential area that blends historic elements with modern day affluence. The Old Harbour is another appealing area with bags of character.

Where to learn about Reykjavik’s history

During your stay at the Exeter Hotel, you may wish to learn more about Reykjavik’s history. In fact, you don’t have to even set foot beyond our boundary to do so: originally the Gröndalshús was situated in what’s now the hotel garden. A replica of the exterior of this building can be seen in the hotel lobby.

Of course, there’s more to learn and we’d encourage you to head over to at least a couple of the city’s museums to do so. Key events in the past, both for the capital and the country as a whole, are explored via the collections and exhibitions on display at the National Museum, a 15 minute stroll away past Tjörnin lake.

Visiting the Árbær Open Air Museum also helps to bring the past to life. Here, on the edge of Reykjavik, you’ll find a group of historic buildings that have been moved here from the city centre to preserve them. In summer, staff members in period costume re-enact the lifestyles of the past.

Of course, one of the greatest joys of staying in a compact city such as Reykjavik is simply exploring on foot, either on a guided tour or on your own. Why not take a stroll while you’re our guest and discover the history and charm of Reykjavik for yourself?