The hippocampus is at the core of the orienting reflex / navigation and works as a comparator determining whether information should be stored in memory (if it is new) or ignored (if it is old).

The hippocampus forms a specific code about particular locations and landmarks within some coordinate system (reference frames) (provided - at least for spatial information - by the enthrorhinal cortex). This is not restricted to physical space.

Facts

References

How Your Brain Organizes Information - Can We Build an Artificial Hippocampus - Artem Kirsanov