Where to stay in Iceland

Traveling to Iceland can be an amazing, life-changing experience. Whether you are visiting for the first time or a frequent traveler, there is something for everyone to enjoy in this magical country!

I’ve travelled around Iceland a few times as a semi full-time traveller and can gladly share my knowledge with fellow travellers who are unsure where to stay in Iceland.

With tons of incredible hotels, resorts, guesthouses and campgrounds available, finding the perfect place to rest your head can seem daunting. Luckily, I know some great tips and tricks that will help make your vacation one for the books!

Inexpensive flights and free stop-overs between the US and Europe have made Iceland a prime tourist destination in recent years. But towns in Iceland are few and far between, and budget travellers lured in by the low cost of flights may be surprised at the high cost of food and accommodation in Iceland.

However, the popularity of the country means there are all types of Iceland lodging for those on a budget and especially those looking for a little bit of luxury. Figuring out where to stay in Iceland is much easier than you think once you know your options!

Overtourism in the peak seasons combined with small fishing villages means you should book far in advance if you’re looking for where to stay in Iceland other than Reykjavik, the capital city.

There are lots of unique places to stay in Iceland near its diverse scenery, hot springs, waterfalls, beaches, glaciers, national parks, wildlife, and more. You don’t want to miss out! And if you are traveling on a budget, you will also be able to find cheaper Iceland accommodations closer to the big towns and cities.

Iceland is also a fantastic place to travel year-round. So if you’re looking for where to stay in Iceland in winter or where to stay in Iceland in the summer, it makes no difference. The best places in Iceland to stay are well equipped for all seasons.

This guide will answer the question, “where should I stay in Iceland?” for all types of travelers. It includes a list of the best towns and cities to stay in Iceland and the best accommodation in Iceland for all budgets and travel styles to help you plan the perfect trip.

Check out the below guide for Iceland accommodation options. This where to stay in Iceland guide is perfect for your 2023 trips!

Wondering should you stay in one place in Iceland? Staying in one place in Iceland can be a great way to enjoy the country, especially if you plan to explore and get to know one particular area or go on day trips.

You can stay long enough to get a more local perspective on the culture and lifestyle of the people living there.

Plus, it will also give you more time to explore local attractions such as museums, churches, and nature parks without feeling rushed. If you’re looking for an immersive experience, staying in one place gives you that opportunity.

Reykjavik – Best Area to Stay in Iceland for First Timers

Reykjavik is Iceland’s capital and largest city. Most people who visit Iceland spend at least part of their trip here, as it’s the best location to stay in Iceland for your first visit to the country.

For a capital city, Reykjavik is relatively small and most attractions are well within walking distance of the downtown area.

Why stay in Reykjavik:

Wondering where to stay in Iceland for a week? Reykjavik is a great base, as it’s close to Iceland’s main international airport and most day tours are based out of Reykjavik.

The city has a ton of cultural attractions, amazing restaurants, and a vibrant nightlife scene. 

To be in the heart of everything, you’ll want to stay in one of the Reykjavik hotels close to Laugavegur, the city’s main street.

Be warned if you stay right on Laugavegur, however, you may hear partiers well into the morning. Slightly outside this area are East Town and West Town, each no more than 20 minutes walking from the city centre.

Things to do in Reykjavik:

• Hallgrímskirkja

The Hallgrímskirkja church is one of the city’s most prominent landmarks, and its distinctive design and size make it a popular place to go and take photos.

The building’s design was inspired by the Icelandic landscape, particularly the country’s basalt columns and glaciers, and it stands about 75 metres high, making it the largest church in Iceland.

• Sun Voyager 

Another amazing place to take photos in Reykjavik is the Sun Voyager sculpture along the waterfront. Made from stainless steel, it depicts an abstract Viking ship and is described by the artist, Jón Gunnar Árnason, as a “dreamboat”. The sculpture is five metres tall and 18 metres long, so you can’t miss it.

• Harpa Concert Hall

One of the city’s most fascinating buildings is the Harper Concert Hall. It was built with a geometric pattern of glass panels that reflect the surrounding landscape and change colour throughout the day as the natural light changes.

The building includes several performance spaces, including a 1,800-seat concert hall and a 1,000-seat conference hall, but you can also just stop by to admire the architecture.

• National Museum of Iceland

One of the country’s must-visit museums is the National Museum of Iceland. The collections include artefacts and exhibits spanning the entire history of Iceland, from the country’s settlement in the 9th century to the present day.

The exhibits are divided into sections that include Viking Age artifacts, medieval manuscripts, and folk culture exhibits.

Where to stay in Reykjavik

Cheapest Hostels in Reykjavik:
Loft HI Hostel
Reykjavik Downtown HI Hostel
Kex Hostel

Budget Hotels in Reykjavik: 
Hotel Cabin
Hotel Vik Arctic Comfort

Mid-Range Hotels in Reykjavik:
CenterHotel Thingholt
Centerhotel Arnarhvoll
Radisson Blu 1919 Hotel, Reykjavik
CenterHotel Skjaldbreid

Family Friendly Hotels in Reykjavik:
CenterHotel Klopp
Kvosin Downtown Hotel
Reykjavik Residence Hotel
CenterHotel Plaza

Luxury Hotels in Reykjavik: 
101 hotel
Reykjavik Konsulat Hotel, Curio Collection By Hilton
Canopy by Hilton Reykjavik City Centre

Self contained apartment/rentals in Reykjavik: 
Apartment 1
Apartment 2
Apartment 3
Apartment 4
Apartment 5
Apartment 6

Keflavik – Where To Stay in Iceland Near Blue Lagoon

Keflavik is a charming town located on the Reykjanes Peninsula in southwestern Iceland. It is best known for its proximity to Keflavik International Airport, as well as the Blue Lagoon.

Why stay in Keflavik:

While most visitors to Iceland choose to stay in Reykjavik, Keflavik offers many hotel options as well for those wishing to be closer to the Blue Lagoon and other local attractions on the peninsula. Being located near the airport is also a benefit.

Things to do in Keflavik:

• The Blue Lagoon

The Blue Lagoon is just 20 kilometres from Keflavik and is a must-do in Iceland. It is a thermal spring heated by the local geothermal plant where you can swim outside in warm waters and try local spa treatments.

• Reykjanes Geopark

Reykjanes Geopark is a UNESCO Global Geopark with a diverse range of geological and cultural features, including volcanoes, lava fields, geothermal areas, hot springs and cultural sites. Here you can go hiking and birdwatching, see the Gunnuhver mud pools, or visit the Bridge Between Continents.

• Viking World

The Viking World Museum is close to the airport and showcases the history and culture of the Vikings, who played a significant role in Icelandic history.

The museum’s main attraction is the full-scale replica of the Viking ship Íslendingur. You can also see a range of Viking-related exhibits and artefacts, including weapons, tools and household items.

Where to Stay in Keflavik

Cheapest Hostels in Keflavik:
Guesthouse Keflavik

Budget Hotels in Keflavik: 
B&B Guesthouse
A. Bernhard Bed and Breakfast
Nupan Deluxe
Blue Viking Guesthouse

Mid-Range Hotels in Keflavik:
Hotel Keflavik
Hotel Berg
Hotel Duus

Family Friendly Hotels in Keflavik:
Hotel Keilir by Reykjavik Keflavik Airport
Hotel Jazz
Sea View Apartment
Little white castle

Luxury Hotels in Keflavik: 
Diamond Suites Luxury Boutique Hotel

Self contained apartment/rentals in Keflavik: 
Apartment 1
Apartment 2

Selfoss and Hveragerði – Where To Stay in Iceland in the Golden Circle

Selfoss and Hveragerði are two towns located in the southwestern part of Iceland, not far from the capital city of Reykjavik.

Both towns are located along the popular tourist route known as the Golden Circle, which includes some of Iceland’s most famous natural attractions. There are a lot of popular tours along the Golden Circle.

Although Selfoss is larger and more developed than Hveragerði, the latter is known as the “hot springs capital of Iceland”.

Why stay in Selfoss and Hveragerði:

For travellers who want to stay close to the Golden Circle to spend more time at each location, Selfoss and Hveragerði are good locations for an overnight stop, or if you want an extended stay to explore the southern area of Iceland.

These two small towns, about 40 to 50 kilometres from Reykjavik, offer plenty of overnight options that are usually less expensive than Reykjavik, and have a good assortment of dining options as well.

Both towns are situated in the middle of beautiful natural landscapes, with mountains, geothermal areas and rivers close by.

Things to do in Selfoss and Hveragerði:

•  Reykjadalur Hot Springs

This geothermal area located in Hveragerði is known for its scenic hiking trails which bring you to some beautiful natural hot springs.

The area is super laid back and not overdeveloped, with sheep and horses grazing nearby during the summer, so make sure you read the signs to know which water is suitable for bathing in.

Since there are no bathrooms here, you may want to put on your swimwear before you leave for your hike.

• Thingvellir National Park

A little over half an hour of driving from either town will bring you to the famous Thingvellir (Þingvellir) National Park.

The park is located in a rift valley where the Eurasian and North American tectonic plates meet, making it one of the few places in the world where you can see two continents pulling apart.

This geological phenomenon has created stunning natural landscapes, including towering cliffs, deep ravines, and crystal-clear lakes and rivers.

Where to Stay in Selfoss and Hveragerði

Cheapest Hostels in Selfoss and Hveragerði:
Au44 Hostel
Selfoss Hostel

Mid-Range Hotels in Selfoss and Hveragerði:
Thoristun Apartments
Hotel Ork
Reykjadalur Guesthouse

Family Friendly Hotels in Selfoss and Hveragerði:
Guesthouse Nordheimar
Hotel South Coast

Affordable Luxury Hotels in Selfoss and Hveragerði:
Hotel Ranga (best places to stay in Iceland for northern lights)
Ion Adventure Hotel

Self contained apartment/rentals in Selfoss and Hveragerði:
Apartment 1
Apartment 2
Apartment 3

Höfn – Where To Stay in Iceland Near the Glacier Lagoon

Höfn is a fishing town on the southeast coast of Iceland. It is the closest town to Vatnajökull, the country’s largest glacier, that offers overnight accommodation.

Known for its local lobster in particular, there are several restaurants in the town that specialise in seafood, and you can also purchase fresh seafood from the harbour.

Why stay in Höfn:

Höfn is a good central location for exploring the southeastern region of Iceland for a couple of days or more. It’s ideal if you are hoping to spend as much time as possible getting to know the nearby glaciers.

Since Höfn is a relatively small and quiet town, it can be a refreshing break from the busier tourist areas in Iceland.

Things to do in Höfn:

• Glacier hiking at Vatnajökull

Iceland’s largest glacier, Vatnajökull, covers an area of more than 8,000 square kilometres and contains stunning ice caves and ice falls.

Glacier hiking is popular in Iceland no matter the season, and Vatnajökull is one of the most incredible places you can do this activity.

The tour operators will have all of the necessary equipment for you, such as crampons, ice axes, helmets and harnesses, and give you a safety briefing before heading out on the ice.

• Boat tour on Jökulsárlón

The largest glacier lagoon in Iceland is Jökulsárlón, about an hour’s drive from Höfn. This natural wonder is formed by melting ice from the glacier.

The lake is filled with icebergs of all shapes and sizes, sometimes including massive chunks that can measure up to 30 metres high.

These icebergs have a fascinating blue hue about them due to the way light refracts through the ice. The best way to see these icebergs up close is on a boat tour.

• Hiking at Skaftafell National Park

Skaftafell is a stunning nature reserve near Vatnajökull and is a great destination for hiking and other outdoor activities.

The most popular hike is the trail to Svartifoss, a waterfall surrounded by black basalt columns that is considered one of the most beautiful waterfalls in Iceland.

Where to Stay in Höfn

Cheapest Hostels in Höfn
Hofn Hostel
Hotel Edda Hofn

Budget Hotels in Höfn: 
Hofn Guesthouse
Guesthouse Hvammur
Old Airline Guesthouse

Mid-Range Hotels in Höfn:
Hofn Inn
Arnanes Country Hotel
Apotek Guesthouse
Milk Factory

Family Friendly Hotels in Höfn:
Hotel Jokull
Fosshotel Vatnajokull
Díma Studio Apartments
Hotel Mikael

Egilsstaðir – Best Place to Stay in Iceland for Nature Lovers

If you are touring the East Fjords, one of the more remote spots in Iceland, Egilsstaðir is the main town where you will find accommodation options.

Egilsstaðir actually sits inland on a river and is close to Iceland’s largest forest, Hallormsstaður, with access to several major fjords. 

Why stay in Egilsstaðir:

While Egilsstaðir is a small village with under 3,000 residents, visitors to the East Fjords will find a small range of hotel and hostel options for an overnight stay.

The small population and abundance of nature here make Egilsstaðir a great place for wildlife spotting as well.

Things to do in Egilsstaðir:

• Hike to Hengifoss

One of the most popular activities around Egilsstaðir is a hike to Hengifoss, a unique waterfall with red rock formations.

The hike from the car park takes about two to three hours and follows a well-marked path along the Fossá River. Before reaching Hengifoss, you’ll also pass by Litlanesfoss waterfall.

• East Iceland Heritage Museum

If you feel like learning about the history of the region, the East Iceland Heritage Museum is a great place to check out.

The museum is housed in a historic building, and the collections and exhibitions cover areas like local geology, the history of the town of Egilsstaðir, and traditional crafts such as knitting and woodcarving.

Where to Stay in Egilsstaðir

Cheapest Hostels in Egilsstaðir:
Tehúsið Hostel

Budget Hotels in Egilsstaðir: 
Eyjolfsstadir Guesthouse
Lyngás Guesthouse
Birta Guesthouse
Arctic East Apartment Egilsstaðir

Mid-Range Hotels in Egilsstaðir:
Icelandair Hotel Herad
Hotel Edda – Egilsstadir
Guesthouse Egilsstaðir-Lake Hotel

Family Friendly Hotels in Egilsstaðir:
Gistihusid – Lake Hotel Egilsstadir
Skipalaekur Iceland
Hotel Valaskjalf
Hérað – Berjaya Iceland Hotels

Akureyri – Where To Stay in Iceland Ring Road North

Akureyri is the second-largest city in Iceland and one of the best places to stay in the northern part of the country. This town of 20,000 residents is right on Iceland’s Ring Road, so it makes for a great stopping place. 

Why stay in Akureyri:

In addition to the natural beauty like waterfalls, fjords and valleys, visitors to Akureyri will also find cultural attractions like museums and churches. There’s also a great culinary scene, and plenty of accommodation options to choose from.

Driving the Ring Road is not recommended in winter (for tourists, at least), so if you’re looking for where to stay in Iceland outside of this time, Akureyri and other larger towns on the Ring Road are ideal.

Things to do in Akureyri:

• Hlíðarfjall Ski Resort 

Just west of Akureyri is Hlíðarfjall mountain, which has arguably the best ski resort in Iceland. It offers a range of ski slopes for skiers of all levels, from beginners to advanced. The ski season at Hlíðarfjall typically runs from late November to early May, depending on snow conditions.

• Botanic Garden

The Akureyri Botanic Garden is one of the northernmost botanical gardens in the world, and it is home to a diverse collection of plants from Iceland and other parts of the world.

The garden features over 6,000 plant species and is divided into different sections, including the Icelandic plant collection, the Arctic-Alpine collection, the Asian collection, the North American collection and the European collection. 

• Akureyri Art Museum

This modern art museum features works by Icelandic artists, including paintings, sculptures, photographs and installations.

The collection includes works from the 20th century to the present day, with a focus on contemporary art. Located in the centre of town with free admission, it’s a great place to pop into while staying in Akureyri.

Where to Stay in Akureyri

Cheapest Hostels in Akureyri:
Akureyri Hostel HI
Hafnarstraeti Hostel

Budget Hotels in Akureyri:
K16Apartments
Akureyri Guesthouse

Mid-Range Hotels in Akureyri:
Hotel Nordurland by Keahotels
Lava Apartments
Hotel Ibudir
Torg Guesthouse

Family Friendly Hotels in Akureyri:
Hotel Kea by Keahotels
Our Guesthouse
Saeluhus Hotel Akureyri

Self contained apartment/rentals in Akureyri:
Apartment 1
Apartment 2
Apartment 3
Apartment 4
Apartment 5

Hvolsvollur – Where To Stay in Iceland Ring Road South

Hvolsvollur is a great little town to stop at while driving around the southern part of Iceland’s Ring Road.

100 kilometres east of Reykjavik, this little off-the-beaten-path residential area has only a few hotels and campsites.

Why stay in Hvolsvollur:

Although there are only about 1,000 people living in Hvolsvollur, the town serves as a hub for the surrounding areas, providing essential services and amenities such as shops, restaurants and a hospital.

It’s a prime location for exploring the south of Iceland and the attractions around the Ring Road, yet it has a few local cultural gems of its own to explore.

Things to do in Hvolsvollur:

• Saga Centre

The Saga Centre is a small museum located inside Valhalla Restaurant in Hvolsvollur. It tells the story of the Icelandic sagas through interactive exhibits, displays and multimedia presentations. It’s a great place to learn about the country’s history and culture, particularly after you’ve had a great meal.

• LAVA Centre

Another great museum in Hvolsvollur is the LAVA Centre, which focuses on Iceland’s geology and volcanic activity. It features exhibitions, virtual reality experiences and educational displays that are informative, entertaining and interactive.

• Horseback riding

Hvolsvollur is an amazing place to go horseback riding. There are several stables in the area, including Skalakot and River Horses, that offer memorable guided tours throughout the countryside.

Where to Stay in Hvolsvollur

Budget Hotels in
 Hvolsvollur
Borg Apartments

Mid range Hotels in
 Hvolsvollur
Hótel Hvolsvöllur
Midgard Base Camp & Restaurant
Gistiheimilið Spói
Hotel Selja

Family Friendly Hotels in
 Hvolsvollur
Guesthouse Vestri-Garðsauki
Summer house – Fíflholt
Brú Guesthouse
Fíflholt

Self Contained Apartments in Hvolsvollur
Apartment 1

Snæfellsnes Peninsula – Where To Stay in Iceland for Adventure

The Snæfellsnes Peninsula is 90 kilometres long and contains some of Iceland’s most spectacular scenery.

Since this peninsula is a detour from the popular Ring Road, it is often overlooked by visitors to Iceland. 

Why stay in Snæfellsnes Peninsula:

Those wishing to venture to the peninsula will be rewarded with stunning scenery, beautiful waterfalls, and many small villages where you can stay overnight.

There are no large cities on the peninsula, but you’ll still find a few accommodation options in towns like Helnar, Olavsvik, and Rif.

Things to do in Snæfellsnes Peninsula:

• Snæfellsjökull National Park

Snæfellsjökull National Park is a beautiful and unique national park covering 170 square kilometres of the peninsula.

Among the different landscapes like lava fields and volcanic craters is the Snæfellsjökull glacier, the highlight of the park. If you’re interested in hiking the glacier, a tour guide can take you to explore the crevasses, ice caves and stunning ice formations.

• Whale watching

One of the best places in Iceland to go whale watching is around the Snæfellsnes Peninsula. Set sail from the little village of Ólafsvík and head out to Breiðafjörður Bay with the captain of the boat, who will know the best places to spot these magnificent creatures.

• Gerðuberg Cliffs

The Gerðuberg Cliffs are a unique geological formation created from ancient volcanic activity. The cliffs are made from surprisingly symmetrical basalt columns, standing 14 metres high and spanning 500 metres along the western side of the peninsula.

Where to Stay on Snæfellsnes Peninsula

Cheapest Hostels in Snæfellsnes Peninsula:
Hostel B47
Bus Hostel
Kex Hostel

Budget Hotels in Snæfellsnes Peninsula:
Hotel Cabin

Mid-Range Hotels in Snæfellsnes Peninsula:
Centerhotel Midgardur
Alda Hotel Reykjavik
CenterHotel Thingholt

Family Friendly Hotels in Snæfellsnes Peninsula:
CenterHotel Klopp
Kvosin Downtown Hotel
Storm Hotel by Keahotels

Luxury Hotels in Snæfellsnes Peninsula:
Apotek Hotel by Keahotels

Self contained apartment/rentals in Snæfellsnes Peninsula:
Apartment 1
Apartment 2
Apartment 3

Vik – Where To Stay In Iceland for Northern Lights

Vik is a town on the southern coast of Iceland, around 180 kilometres from Reykjavik. While it isn’t huge by any means, it still has a few basic shops and amenities.

Why stay in Vik:

When the timing is right, the Northern Lights can be seen from all over Iceland, even in Reykjavik! On the other hand, you could also be unlucky and not see them at all during your stay in Iceland in the dead of winter.

Regardless, those wanting to know where to stay in Iceland for the best chance of seeing the lights should choose Vik. 

Things to do in Vik:

• Watch the northern lights

Vik is a great place to base yourself for a chance to witness the Aurora Borealis (aka the Northern Lights). To increase the likelihood of seeing this stunning natural phenomenon, try to visit during the winter months when the nights are longer and the skies are darker.

December through February are typically the best months for viewing the lights, although they can be seen as early as September and as late as April.

Vik has many areas away from street lights and buildings that provide an amazing viewing experience, including the beach and the cliffs.

• Visit the black sand beaches

Although Iceland has numerous black sand beaches, Reynisfjara Black Sand Beach in Vik is perhaps the most famous with visitors from around the world.

The dramatic black sand along the beach, as well as the towering cliffs and rock formations, were formed from volcanic activity. Do be careful when you visit, as the waves at this beach are no joke and visitors have been swept away suddenly.

• Mýrdalsjökull Glacier

The Mýrdalsjökull Glacier is a massive ice cap that covers an area of about 595 square kilometres in the south of Iceland, just east of Vik. The glacier is particularly unique, as it is part of the Katla volcanic system.

While it’s a popular place for ice climbing and snowmobiling, there’s also an extensive research lab here. Weather conditions can shift very rapidly in this area, so be sure to go with an experienced guide only.

Where to Stay in Vik Iceland

Cheapest Backpacking Hostels in
 Vik
Vík HI Hostel
The Barn

Budget Hotels in
 Vik
Guesthouse Carina
Puffin Hotel Vík
Dream guesthouse Vik
Arsalir Guesthouse

Mid-Range Hotel in Vik:
Hotel Edda Vik
Guesthouse Vellir

Family Friendly Hotels in Vik
Hótel Kría
Kósý Vík
Black Beach Suites
Hotel Katla by Keahotels

Affordable Luxury Hotels in Vik
Vík Apartments
Vík Cottages
Hótel Vík

Husavik – Where To Stay in Iceland at Christmas

Husavik is a small fishing town on Iceland’s north coast that makes for a charming and authentic place to stay during the festive season.

Why stay in Husavik:

At least once, you should spend Christmas in one of the Nordic countries so you can experience what an authentic white Christmas should look like.

While many towns will be able to offer you a snowy winter wonderland, if you’re looking for where to stay in Iceland in December for some extra Christmas spirit, definitely consider Husavik.

The town really gets into the holiday spirit, with the annual tree lighting and other celebrations.

Things to do in Husavik:

• Get into the Christmas spirit

Husavik is a town that really goes all out during Christmas, so if you’re visiting during December, there will be numerous Icelandic traditions you can take part in.

As well as the tree lighting, Husavik hosts festive markets with local crafts, food and holiday decorations. You’ll also learn about Icelandic Christmas folklore, including the Yule Lads.

• Husavik Museum

Husavik Museum is a local history museum showcasing the cultural heritage of the town and the surrounding region, including exhibits on local fishing practices, traditional Icelandic clothing, and the area’s geology.

One of the main attractions here is the traditional turf house, a historic type of Icelandic architecture.

• Whale watching

Known as the whale watching capital of Iceland, Husavik is clearly an amazing place to see a variety of whale species up close.

There are several companies here offering boat tours, where you’ll be able to catch a glimpse of humpback whales, minke whales and blue whales, as well as dolphins and porpoises.

Where to Stay in Husavik

Cheapest Backpacking Hostels in
 Husavik
Húsavík Green Hostel

Budget Hotels in
 Husavik
Höfði guesthouse
Skógar Sunset Guesthouse

Mid range Hotels in
 Husavik
Árból Guesthouse
Fosshotel Húsavík
Laugarholt Apartment

Family Friendly Hotels in
 Husavik
Post-Plaza Guesthouse
Húsavík Cape Hotel
Askja Apartment
Sólheimar Apartment

Affordable Luxury Hotels in Husavik
Skjálfandi Apartments

Laugarvatn – Where To Stay in Iceland for Couples

Laugarvatn is a tiny village in southwestern Iceland with only 200 permanent residents. While it’s a popular destination during the summer, it’s beautiful here year-round.

Why stay in Laugarvatn:

Laugarvatn is close to Iceland’s Golden Circle Route, and is perfect for couples who are seeking serenity and solitude for a romantic break.

The picturesque town has a few chilled-out attractions if you’ve had an adventurous few days and want to relax for a little bit.

Things to do in Laugarvatn:

• Fontana Spa

Laugarvatn’s best attraction is easily Fontana Spa. The geothermal spa is situated on the shores of Lake Laugarvatn, surrounded by scenic mountains. It features several outdoor hot springs and pools, as well as natural steam baths and saunas.

There’s a variety of relaxing treatments on offer here, including massages and facials which use Icelandic ingredients like volcanic ash, sea salt and birch leaves. You can even take a guided tour of the area to learn about its geothermal activity.

• Laugarvatnshellir

A unique attraction in the town is Laugarvatnshellir, one of the few caves in Iceland where people actually lived. A young couple moved into the caves in 1910, digging out the dirt and rocks to create living spaces.

While they eventually left, another couple also lived here between 1918 and 1922 with their three children, two of whom were born inside the cave. There are regular guided tours of Laugarvatnshellir, which is decorated like a typical home, and a cafe with coffee and tea available. 

Where to Stay in Laugarvatn

Cheapest Backpacking Hostels in Laugarvatn
Hótel Laugarvatn

Budget Hotels in Laugarvatn
Háholt
Bjork Guesthouse
Farmhotel Efstidalur

Mid range Hotels in Laugarvatn
Galleri Laugarvatn
Héraðsskólinn Historic Guesthouse

Family Friendly Hotels in Laugarvatn
Gistiheimilið Björk
Middalskot Cottages
Eyvindartunga farm cottage

Self Contained Apartments in Laugarvatn
Apartment 1
Apartment 2

Reykjanesbaer – Where To Stay Outside of Reykjavik/Keflavik international airport

While many tourists think that Reykjavik Airport is Iceland’s main airport, this title actually belongs to Keflavik International Airport (KEF), which is around 50 kilometres west of Reykjavik. The little town of Reykjanesbaer is just east of KEF, along the beautiful waterfront.

Why stay in Reykjanesbaer:

There are plenty of airport transfers you can book directly with your hotel no matter where you are staying in Iceland, but if you have a particularly early or late flight, you might want to stay a bit closer.

Reykjanesbaer is perfect for this, since the town is right next to the airport. There are even attractions and facilities like museums, shops and restaurants here.

Things to do in Reykjanesbaer:

• The Icelandic Museum of Rock’n’Roll

This museum found in Reykjanesbær is dedicated to the history of Icelandic music, specifically rock and roll.

There are interactive exhibits and displays with instruments and memorabilia that showcase the history of Icelandic rock music from the 1950s to the present day, including the rise of internationally-famous Icelandic artists like Björk and Sigur Rós.

• Garður Old Lighthouse

Head to the north of the peninsula to see Garður Old Lighthouse, one of the first lighthouses ever built in Iceland. Although it’s no longer used for its original purpose, it has been preserved as a cultural tourist attraction.

This area is interesting to wander around and pass some time, but be warned it is very windy here! If you’re here after midday, the lighthouse cafe, Röstin Restaurant, will be open until about 9 pm.

Where to Stay in Reykjanesbaer 

Cheapest Backpacking Hostels in Reykjanesbaer
Start Hostel

Budget Hotels in Reykjanesbaer
Kef Guesthouse
Hotel Grásteinn

Mid range Hotels in Reykjanesbaer
Nupan Deluxe
Ace Guesthouse
Bank Guesthouse

Family Friendly Hotels in Reykjanesbaer
Bergás Guesthouse
Hótel Ásbrú by Keflavík airport

Affordable Luxury Hotels in Reykjanesbaer
Diamond Suites Luxury Boutique Hotel
Konvin Hotel – Keflavik Airport

Self Contained Apartments in Reykjanesbaer
Apartment 1
Apartment 2

Added Extra: Areas To Avoid in Iceland  

Iceland is an incredibly safe country so there isn’t anywhere you should avoid due to crime. The only places you should avoid in Iceland are areas that don’t have a lot of scenery or activities.

With so much to see and do in a place like Iceland, it would be such a waste to accidentally stay somewhere boring!

There isn’t much to see in villages like Húnavatnshreppur between Snæfellsnes Peninsula and Akureyri. If you’re driving Iceland Ring Road, you might want to plan less time between Fossholl and Hofteigur in the northeast and more time on the south and west coasts.

Again, they’re not bad places to visit. But when you’ve got a limited time to see the best of what Iceland can offer, you need to choose where you stay wisely.

I hope this guide has been helpful and has shown you the best places to stay in Iceland.

FAQs for Where to stay in Iceland

What part of Iceland is best to stay?

Personally I think Reykjavik is the best part to stay in Iceland because its somewhat close to the airport and a lot of day trips leave from here. It’s also the best place for people with different budget levels because there are a lot more accommodation options in Reykjavik.

Which part of Iceland is most beautiful?

There is no right answer, ALL of Iceland is incredibility beautiful, it’s almost like stepping into a different world. You can go from hot springs to snowy mountains to black sand beaches and then check out the northern lights in the evening (during winter).

Is 3 days enough to visit Iceland?

You can fully immerse yourself in Icelandic culture and landscape in three to four days. Even though you may not be able to see the entire island in three or four days, you might want to make several excursions from the capital.

I’d recommend at least a week in Iceland, to be able to see everything but can it can be quite expensive, 3 days is more than enough. Some people can even get away with visiting Iceland for 2 days.

Where can I base myself in Iceland?

As mentioned about, Reykjavik is a great place to base yourself for a trip to Iceland. Reykjavik is the place that a lot of day trip depart from and it’s a place that fits a lot of budgets accommodation wise as its the biggest city in Iceland. 

How to stay in Iceland for cheap

Iceland offer a number of cheap hostels to stay in, otherwise you can hire a camper van or hire a car and head to campsites.

How expensive to stay in Iceland

Iceland is generally fairly expensive to visit and hence why most people only visit for 2-4 days.  Iceland is in fact the 5th most expensive country in the world.

Keep an eye out for travel specials or look to stay in budget or hostel accommodation.

Final Thoughts: best places to stay iceland

As you can see, Iceland is an incredible destination for any traveler looking to explore and discover something new. From its stunning scenery to its incredible culture and history, it’s the perfect place to invest some of your hard-earned vacation days.

Whether you’re looking for a luxurious retreat or an affordable accommodation option, Travelling King has just what you need! So why not book your Icelandic accomodation today and start planning your next great adventure?

Top 5 favorites accommodation options for Iceland

❤️ Best Area first timers	Reykjavik
💸 Best Luxury Hotel	Hotel Ranga
👪 Best Hotel for For Families	Hotel Katla by Keahotels
🏨 Best Mid-Range Hotel	Hotel Keflavik
🛏️ Best Budget Hotel	Hofn Guesthouse
✨ Best Hostel	Kex Hostel

Read More about Iceland:

• Top 10 Budget Friendly Hotels in Iceland
• 15 Remarkable Things to see and Do in Iceland
• 48 Hours in Iceland – A 2 Day Itinerary
• 10 Day Itinerary for Iceland
• The Best Day Trips from Reykjavik
• 8 of the Best Volcano Tours in Iceland 
• Budget Guide to Iceland
• Luxury Travel Guide to Iceland
• Guide to Visiting Iceland
• Is a Tour to Iceland’s South Coast worth it?

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