Where to stay in Iceland [Best Places to Stay for 2025]
When planning a trip to Iceland, a destination famous for its otherworldly beauty, it’s essential to consider the best accommodation options in Iceland that cater to your needs and budget.
Drawing from my extensive travel experience in Iceland, I aim to provide valuable insights for both new and seasoned travelers about where to stay in Iceland for 2025.
Iceland has become an increasingly popular travel destination, thanks in part to budget-friendly airfares and convenient stopover options. This surge in tourism has led to a diverse array of accommodation choices, catering to various preferences and budgets.
Despite its relatively small and sparsely populated towns, and the higher cost of living, Iceland offers a range of accommodations, from budget to luxury.
Due to the growing issue of overtourism during peak seasons, I recommend booking your stay well in advance, particularly if you plan to venture beyond the capital city of Reykjavik.
The country’s breathtaking landscape, features hot springs, waterfalls, volcanoes, and other natural wonders, ensuring a memorable experience regardless of where you choose to stay in Iceland.
For budget-conscious travelers, more affordable lodging options are typically found near larger towns and cities. Iceland’s accommodations are designed to provide comfort throughout the year, whether you visit during the chilly winter months or the milder summer months.
This guide has been created to assist you in selecting the best place to stay in Iceland, highlighting the top towns, cities, and accommodation options that align with various budgets and travel styles.
This will ensure a memorable and well-planned trip to Iceland in 2025, complemented by recommendations for exciting things to do to explore during your stay in Iceland.
In a hurry and need the answer quick?
- Best area to stay in Iceland for first time: Reykjavik
- Where to stay in Iceland on a budget: Reykjavik
- Where to stay in Iceland for family: Keflavik
- Best Hostel in Iceland: The Barn (Vik)
- Best Budget Hotel in Iceland: Center Hotels Plaza (Reykjavik)
- Best Mid Range Hotel in Iceland: Aurora Igloo (Hella)
- Best Family Hotel in Iceland: Konvin Hotel by Reykjavik Keflavik (Keflavik)
- Best Luxury Hotel in Iceland: The Reykjavik EDITION (Reykjavik)
Please note, while pricing is great to have in articles, due to the seasonal fluctuation, I don’t want to provide inaccurate information.
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Discover the best places to stay in Iceland in this informative video! Whether you’re looking for luxury, budget-friendly accommodation options, unique local experiences, or you’re unsure what neighborhood to stay in Iceland, our guide covers it all.
Dive into Iceland neighborhoods and find your perfect home away from home. Watch now for insider tips and make your Iceland trip unforgettable!
Reykjavik – Best Area to Stay in Iceland for First Timers
As Iceland’s capital and largest city, Reykjavik is the ideal starting point for first-time visitors to Iceland. This city, though modest in size for a capital, offers easy access to most attractions on foot, especially from the downtown area.
Who is Reykjavik Ideal for:
- First-time visitors to Iceland
- Travellers looking a central base for exploring
- Those interested in unique Icelandic architecture and history
What’s Good About Reykjavik:
- A good base for most day tours in Iceland
- Rich cultural scene with excellent restaurants and vibrant nightlife
- Walkable city with major attractions within walking distance
What’s Not So Good About Reykjavik:
- Potential noise in accommodations close to Laugavegur due to nightlife
- Limited options for quiet, secluded stays
Why Stay in Reykjavik:
Choosing to stay in Reykjavik means being at the heart of Iceland’s cultural pulse. Whether it’s for the convenience of being near the airport, the ease of joining day tours, or immersing in the local culture, Reykjavik stands out as the best place to stay in Reykjavik for first timers to Iceland.
Reykjavik offers an unparalleled mix of cultural richness, convenience, and accessibility, making it the top choice for accommodations in Iceland, especially for those visiting for the first time.
Things to Do in Reykjavik:
- Visit Hallgrímskirkja, Iceland’s largest church with unique architecture inspired by the Icelandic landscape.
- Explore the Sun Voyager sculpture, a striking representation of a Viking ship on the waterfront.
- Experience the Harpa Concert Hall, known for its changing colors and geometric glass design.
- Discover Icelandic history at the National Museum of Iceland, featuring artifacts from Viking Age to modern times.
Here’s My List Of Places To Stay In Reykjavik
Kex Hostel – Best Hostels In Reykjavik
The conveniently located Kex Hostel is the best place to stay in Iceland, Reykjavik on a limited budget. While the dorm rooms are very bare bones, there are cosy private rooms too that are uniquely decorated. Hang out in the stylish communal lounge area, prepare a meal in the shared kitchen or dine in at Flatus Restaurant, and grab a beer at Drinx Bar and listen to live music.
Center Hotels Plaza – Best Budget hotel In Reykjavik
Center Hotels Plaza is a clean and affordable place to stay in Reykjavik’s Old Town. Most of the double and twin rooms have large windows with lovely views of the city. A delicious buffet breakfast is offered, and the Plaza Bar is a great place to chill out after a day of exploring. The staff are also super kind and accommodating, and can help you out with things like birthday surprises.
Grandi by Center Hotels – Best Mid-range hotel In Reykjavik
A wonderful, chic mid-range accommodation in Reykjavik is Grandi by Center Hotels. The 4-star hotel has a stylish restaurant and bar, a 24-hour front desk, and an elevator to reach the upper floors. The double and twin rooms have a wardrobe, a minibar, and a decent size bathroom, while the suites have an extra living area. Some of the rooms also have balconies.
Kvosin Downtown Hotel – Best Family hotel In Reykjavik
The biggest room is suitable for families, with two large beds, a sofa bed, and a kitchenette with a Nespresso machine. You might like to splurge a little on the top floor apartment, which comes with two bedrooms (one with bunk beds), a kitchen and dining table, and two large balconies with outdoor seating. Breakfast is served either in-room or at the bar, depending on your preference.
The Reykjavik EDITION – Best Luxury hotel In Reykjavik
Wondering where to stay in Iceland, Reykjavik for laid-back luxury? The Reykjavik EDITION is an amazing 5-star hotel with sleek black exteriors, and includes a spa and fitness centre, a cosy bar and a restaurant. The Scandi-style rooms and suites have comfy beds, large bathrooms, and plenty of thoughtful amenities and comforts. The floor-to-ceiling windows look out onto peaceful views of the harbour, the Harpa concert hall, or an inner courtyard.
Keflavik – Where To Stay in Iceland Near Blue Lagoon
Keflavik, located on the Reykjanes Peninsula, is a small town known for its close proximity to both Keflavik International Airport and the famous Blue Lagoon. Its location makes it a strategic and convenient choice for visitors to Iceland.
*Please note, the Blue Lagoon is within an area that volcanic eruption and activity through 2024- 2025 – They are currently open, but this can change at a moments notice. You can stay up to date on their website.
Who Keflavik is Ideal for:
- Travelers who want easy access to the Blue Lagoon
- Those who prefer to stay near the airport
What’s Good About Keflavik:
- Nearness to the Blue Lagoon, making it one of the best places to stay in Iceland for Northern Lights and Blue Lagoon experiences.
- Proximity to Keflavik International Airport
- Rich geological and cultural attractions
- Array of hotel options catering to different preferences
What’s Not So Good About Keflavik:
- Fewer urban amenities compared to larger cities
- Limited nightlife and dining options
Why Stay in Keflavik:
Keflavik emerges as a great location for those prioritizing proximity to iconic Icelandic experiences like the Blue Lagoon and for its accessibility to the airport. It offers a peaceful alternative to the city life, suitable for a more relaxed Icelandic adventure.
Keflavik presents a blend of natural beauty, cultural richness, and convenience. It stands out as an excellent choice among places to stay in Iceland near the Blue Lagoon, particularly for those visiting Iceland for the first time.
Things to Do in Keflavik:
- Explore the Blue Lagoon, only 20 kilometers away, for a unique geothermal spa experience.
- Visit the Reykjanes Geopark, a UNESCO Global Geopark, offering hiking, birdwatching, and fascinating geothermal sites.
- Discover Viking history at the Viking World Museum, featuring a full-scale Viking ship replica and various Viking-era exhibits.
Here’s My List Of Places To Stay In Keflavik
Start Keflavík Airport – Best Hostels In Keflavik
For a nice budget hotel close to both the airport and the Blue Lagoon, consider Start Keflavík Airport. There are many different room options available here, from private double, twin, triple and family rooms as well as shared dorms. Breakfast begins super early here at 3:30 am, and there are shared facilities like a living room with a TV, a kitchen, and a laundry. There is also a kiosk to conveniently buy snacks and drinks.
Hotel Jazz – By Keflavik Airport – Best Budget hotel In Keflavik
Hotel Jazz is a pleasant place to stay for both affordability and convenience. With self-service check-in and check-out, the hotel has comfortable double, twin and triple rooms that include free toiletries, an electric kettle, a small fridge, a desk, and large mirrors. Plus, there are plenty of choices at the buffet breakfast to help you start your day right.
Courtyard by Marriott Reykjavik Keflavik – Best Mid-range hotel In Keflavik
Courtyard by Marriott Reykjavik Keflavik is both a practical and comfortable 4-star accommodation. With a fitness centre, a restaurant, a shared lounge and a bar, the hotel has everything you’d need for a one or two-night stay. The modern rooms come with either a king bed or two singles, and the bathrooms are quite spacious.
Konvin Hotel by Reykjavik Keflavik – Best Family hotel In Keflavik
Konvin Hotel is a modern and convenient place to stay. With numerous room options, the hotel can accommodate everyone from solo travellers to families. The family room fits up to six, and includes extra-long beds, soundproofing, facilities for tea and coffee, and a decent sized bathroom. The buffet breakfast is open between 4am and 10am, and a free shuttle service to the airport is offered.
The Retreat at Blue Lagoon Iceland – Luxury hotel In Keflavik
Undoubtedly the best place to stay in Iceland for Northern Lights and Blue Lagoon is the Retreat at Blue Lagoon Iceland. By staying here, you’ll get unlimited access to the Retreat Spa and the Retreat Lagoon, as well as the Blue Lagoon itself. Join a group yoga or hiking session, enjoy Icelandic coffee in the shared lounge, or dine at any of the three restaurants. The modern suites have a glass wall facing either fields of moss or historic lava flows, which you can also admire from your private balcony.
Selfoss and Hveragerði – Where To Stay in Iceland in the Golden Circle
Located in southwest Iceland, Selfoss and Hveragerði are charming towns along the renowned Golden Circle route. While Selfoss is more developed, Hveragerði is famous as the ‘hot springs capital of Iceland’. Both towns offer a gateway to some of Iceland’s most natural wonders.
Who Selfoss and Hveragerði are Ideal for:
- Travelers exploring the Golden Circle
- Those looking for a quieter alternative to Reykjavik
- Visitors interested in Icelandic countryside
What’s Good About Selfoss and Hveragerði:
- Proximity to key attractions in the Golden Circle
- Diverse and reasonably priced accommodations, making them top places to stay in Iceland
- Rich natural scenery, including mountains and rivers
- Abundance of geothermal areas, especially in Hveragerði
What’s Not So Good About Selfoss and Hveragerði:
- Fewer urban amenities compared to larger cities
- Limited nightlife options
Why Stay in Selfoss and Hveragerði:
Selfoss and Hveragerði are ideal for those wanting to immerse in the unique Icelandic landscapes and stay close to the famous Golden Circle. Their location makes them some of the best places to stay in Iceland in winter, offering a relaxed environment and easy access to natural attractions.
These towns provide an authentic Icelandic experience, combining the charm of rural life with the allure of Iceland’s natural beauty, making them excellent choices for an overnight or extended stay.
Things to Do in Selfoss and Hveragerði:
- Explore Reykjadalur Hot Springs in Hveragerði, known for its scenic hiking trails leading to natural hot springs.
- Visit Thingvellir National Park, a geological marvel showcasing the divide between the Eurasian and North American tectonic plates.
Here’s My List Of Places To Stay In Selfoss and Hveragerði
Selfoss Hostel – Best Hostels In Selfoss and Hveragerði
For a charming and homey budget-friendly stay, Selfoss Hostel is a great pick. Walking distance to the Selfoss Geothermal Swimming Pool, the hotel is great value for money and has views of the garden or Ingolfsfjall Mountain. Brightly-painted rooms are available with single, double, triple or quadruple beds, or you can stay in the mixed dorm room.
Thoristun Apartments – Best Budget hotel In Selfoss and Hveragerði
Save some money by staying in a self-catering apartment at Thoristun Apartments. There are deluxe studios for one or two travellers, and three-bedroom apartments for groups and families. All rooms come with a kitchen, a lounge area, and a large outdoor terrace to enjoy if the sun is out. The property also has a barbecue you can use.
Hotel South Coast – Best Mid-range hotel In Selfoss and Hveragerði
With a restaurant, a fitness centre, a wellness centre and a bar, Hotel South Coast is a terrific mid-range accommodation in the Golden Circle. The affordable double and triple rooms are modern and comfortable, with soundproofing, a spacious bathroom and a coffee machine. Some rooms also include a sofa bed and a seating area to watch TV, and a buffet breakfast is offered daily.
Hótel Eldhestar – Best Family hotel In Selfoss and Hveragerði
Hotel Eldhestar is a great eco-friendly lodging in Iceland that is also suitable for families. Surrounded by Icelandic nature, there is an outdoor wooden hot tub, a communal fireplace and lounge, a sun terrace and a bar. Onsite horse riding tours can also be arranged. The family room has five single beds, a sofa and a TV, and there are private entrances to each room.
Frost and Fire Hotel – Best Luxury hotel In Selfoss and Hveragerði
For affordable luxury in the Golden Circle, you can’t go wrong at Frost and Fire Hotel. Located by the Geothermal Park Hveragerði, the hotel has an outdoor pool, two hot tubs, a sauna, and a restaurant that takes dinner reservations. The modern and airy rooms are decorated with artwork by local Icelandic artists and have beautiful views of the River Varmá or the surrounding landscape.
Höfn – Where To Stay in Iceland Near the Glacier Lagoon
Höfn, a quaint fishing town on Iceland’s southeast coast, is known for its proximity to Vatnajökull glacier, the country’s largest glacier. This town is not just a hub for glacier exploration but also a culinary delight, especially known for its local lobster and seafood.
Who Höfn is Ideal for:
- Travelers who want to check out the of glacier
- Those seeking a quieter, less touristy experience
- Travelers looking for top places to stay in Iceland near natural wonders
What’s Good About Höfn:
- Closest accommodation point to Vatnajökull glacier
- Excellent seafood dining options
- Central location for exploring southeastern Iceland
- Peaceful alternative to busier tourist spots
What’s Not So Good About Höfn:
- Fewer entertainment and nightlife options
- More remote compared to larger towns or cities
Why Stay in Höfn:
Höfn is perfect for a glacier experience, offering a calm and authentic Icelandic environment. Its position near key natural attractions and its culinary scene make it a unique destination.
Things to Do in Höfn:
- Experience glacier hiking at Vatnajökull, with guided tours providing all necessary equipment for a safe and thrilling adventure.
- Take a boat tour on Jökulsárlón, the largest glacier lagoon in Iceland.
- Go hiking at Skaftafell National Park, home to the stunning Svartifoss waterfall, known for its surrounding black basalt columns.
Here’s My List Of Places To Stay In Höfn
Höfn Hostel – Best Hostels In Höfn
Höfn Hostel is an environmentally-friendly hostel that’s perfect for budget travellers visiting the Glacier Lagoon. There are simple bunk-bed dorms and private rooms with shared bathrooms, or you can pay a little extra for your own bathroom. The hostel has a dining hall, a shared kitchen and a shared TV lounge, so you can hang out and meet other travellers. However, keep in mind that breakfast is only available during the summer.
Milk Factory – Best Budget hotel In Höfn
Located inside a former milk factory, this affordable bed and breakfast is nicely renovated and has picture-perfect views of Vatnajökull National Park. Milk Factory offers free use of bicycles, and adventurous activities can easily be arranged here. The double and family rooms are very minimalist, with a wardrobe, a small desk, a TV, and a private bathroom.
REY Stays – Best Mid-range hotel In Höfn
For travellers who like to be self-sufficient, REY Stays is a great accommodation option. The studios and two-bedroom apartments all come with a private entrance, a fully-equipped kitchen or kitchenette, and a quiet terrace with views of the surrounding nature. The two-bedroom apartment also has an additional living room.
Hotel Höfn – Best Family hotel In Höfn
Hotel Höfn offers a pleasant and enjoyable stay that is very reasonably-priced for Iceland. The restaurant serves local specialities, which you can enjoy on the furnished terrace if the weather allows. There are single rooms suitable for a solo traveller, as well as cosy family rooms with connecting doors. If you’re lucky, you may even have glacier views from your window.
Egilsstaðir – Best Place to Stay in Iceland for Nature Lovers
Egilsstaðir, a peaceful town in the East Fjords, is a gem for nature lovers. This city in a more secluded part of Iceland offers a unique inland experience near the country’s largest forest, Hallormsstaður, and several majestic fjords.
Who Egilsstaðir is Ideal for:
- Nature lovers exploring the East Fjords
- Hikers and outdoor adventurers
- Those seeking a quiet, rural Icelandic experience
What’s Good About Egilsstaðir:
- Central location for exploring the East Fjords
- Proximity to Hallormsstaður forest and various fjords
- Range of accommodation options despite its small size
What’s Not So Good About Egilsstaðir:
- Limited urban amenities
- Smaller population and fewer cultural activities
Why Stay in Egilsstaðir:
Egilsstaðir is perfect for those who wish to immerse themselves in Iceland’s nature away from the more crowded tourist areas. Its position makes it an ideal base for exploring the surrounding fjords and forests.
Things to Do in Egilsstaðir:
- Hike to Hengifoss, a stunning waterfall with distinctive red rock formations, via a scenic route along the Fossá River.
- Explore the East Iceland Heritage Museum to delve into the region’s history, geology, and traditional crafts.
Here’s My List Of Places To Stay In Egilsstaðir
Tehúsið Hostel – Best Hostels In Egilsstaðir
Travellers with a limited budget will enjoy staying at Tehúsið Hostel. There are all-female and mixed dorms, and even 10-bed rooms available to book if you are with a big group of friends. This hostel is very sociable, with a lively restaurant and bar that offers karaoke. A shared kitchen is also available, and bicycles can be rented here too.
Skipalaekur Guesthouse – Best Budget hotel In Egilsstaðir
Stay in a clean and affordable location overlooking Lake Lagarfljót at Skipalaekur Guesthouse. All rooms come with double or twin beds and include a wardrobe, a fridge, an electric kettle, a flat-screen TV, free WiFi, and garden access. There is also a well-equipped kitchen at the guesthouse with everything you need to prepare breakfast.
Ormurinn Cottages – Best Mid-range hotel In Egilsstaðir
Located in front of Lake Lagarfljót, Ormurinn Cottages have both large and studio accommodations to fit either couples or small families. The modern and private cottages come with a kitchenette, a sofa bed, a lovely front porch, free WiFi, and high, sloping ceilings. Easily enter a code upon arrival, and take in the peaceful scenery all around.
Gistihúsið – Lake Hotel Egilsstadir – Best Family hotel In Egilsstaðir
Inside of a renovated farmhouse is a charming guesthouse called Gistihúsið – Lake Hotel Egilsstadir. There are single, double and twin rooms available here, some of which have either lake or mountain views. The guesthouse is both family-friendly and affordable, with international dishes served at the in-house restaurant, a communal lounge, and in-room tea and coffee facilities. The property is still located next to a dairy farm, so you and the kids might be able to spot some cows.
Hotel 1001 Nott – Best Luxury hotel In Egilsstaðir
Hotel 1001 Nott is the go-to for a luxurious stay in this part of Iceland. There are outdoor hot tubs overlooking the lake, an on-site bar, and a 24-hour front desk. The large windows in the rooms allow you to wake up to scenic mountain or lake views. Despite being only five kilometres from the town centre, it feels like you are in the middle of nowhere and can simply enjoy the peace and quiet.
Akureyri – Where To Stay in Iceland for couples
Akureyri, the second-largest city in Iceland, offers a good blend of natural beauty and cultural experiences for visitors. Located on the famous Ring Road, this town is an excellent base for exploring northern Iceland, making it ideal for couples seeking both adventure and relaxation.
Who Akureyri is Ideal for:
- Couples looking for a romantic getaway
- Nature lovers interested in fjords, valleys, and waterfalls
- Foodies exploring Iceland’s culinary scene
What’s Good About Akureyri:
- Rich in cultural attractions like museums and modern art galleries
- Scenic landscapes perfect for romantic outings
- Renowned culinary scene with a variety of dining options
What’s Not So Good About Akureyri:
- Challenging driving conditions on the Ring Road in winter
- More limited activities compared to Iceland’s capital, Reykjavik
Why Stay in Akureyri:
Akureyri is a perfect choice for couples due to its picturesque setting, and diverse activities. From enjoying the Icelandic nature to indulging in local culinary delights, it offers a well-rounded experience.
Akureyri stands out as a charming and multifaceted destination, offering couples an ideal mix of adventure, culture, and romance in the heart of northern Iceland.
Things to Do in Akureyri:
- Ski or snowboard at Hlíðarfjall Ski Resort, boasting a range of slopes suitable for all skill levels.
- Visit the Akureyri Botanic Garden, one of the world’s northernmost botanical gardens, featuring over 6,000 plant species.
- Explore the Akureyri Art Museum to admire contemporary art by Icelandic artists.
Here’s My List Of Places To Stay In Akureyri
Akureyri Hostel – Best Hostels In Akureyri
Both family-owned and budget-friendly, Akureyri Hostel is a convenient place to stay while in Akureyri. Although you will likely have to share a bathroom, there are sinks and mirrors within the room. The shared kitchen is well-equipped, and you can hang out in the TV lounge or the outdoor area by the picnic tables. I’m not a big hostel person but I really enjoyed my short stay here, it’s warm, cosy and everyone was so lovely!
Torg Guest House – Best Budget hotel In Akureyri
Centrally located in the middle of the Town Square, the Torg Guest House provides affordable double rooms as well as one and two-bedroom apartments. Although there are no staff at reception, there is a simple self check-in service and emergency phone numbers are provided. Set inside a historic house, the small rooms are renovated and modern, with high-quality beds and sofas, plus a coffee machine. The apartments also include a kitchenette and a living area.
Hotel Kea by Keahotels – Best Mid-range hotel In Akureyri
Found on Akureyri’s pedestrian street, Hotel Kea by Keahotels is a great accommodation that isn’t too pricey. The in-house Mulaberg Bistro & Bar prepares local dishes with seasonal produce and offers an extensive wine list. The dark, modern interiors create a really wonderful atmosphere that’s perfect for a romantic dinner. The minimalist rooms have wooden floors, tea and coffee facilities, a minibar and a desk.
Akureyri – Berjaya Iceland Hotels – Best Family hotel In Akureyri
The bright, airy and modern Berjaya Akureyri Hotel is a terrific place for couples or families to stay. The family room includes a double bed and a bunk bed separated by a wall for a bit of privacy, plus a sofa, a TV and a coffee machine. Dine in at the restaurant on the ground floor, or have afternoon tea and warm up by the fireplace at the Lounge Bar.
North Mountain View Suites – Best Luxury hotel In Akureyri
Another luxury apartment option in the Akureyri, Iceland area is the North Mountain View Suites. These modern two-bedroom apartments come with a hot tub, a spa bath, a private kitchen, a barbecue, and a patio to admire the views of the mountains from. Complementary wine or champagne with chocolates is also offered.
Hvolsvollur – where to stay in iceland in winter
Hvolsvollur, in the southern part of Iceland’s Ring Road, is a quaint and lesser-known destination. Just 100 kilometers east of Reykjavik, this small town offers a more secluded and authentic Icelandic experience, making it an excellent choice for winter stays.
Who Hvolsvollur is Ideal for:
- Travelers seeking a peaceful, off-the-beaten-path experience
- Nature lovers exploring the south of Iceland
What’s Good About Hvolsvollur:
- Relaxed setting away from crowded tourist areas
- Proximity to southern Iceland’s attractions along the Ring Road
- Availability of essential services and amenities
What’s Not So Good About Hvolsvollur:
- Limited accommodation and dining options
- Less urban and fewer entertainment choices compared to larger cities
Why Stay in Hvolsvollur:
Hvolsvollur is a prime location for those who wish to explore southern Iceland’s natural features while enjoying a quieter and more authentic Icelandic village atmosphere. Its cultural offerings add depth to the travel experience, especially in winter.
Hvolsvollur stands out as one of the best places to stay in Iceland in winter, offering a unique blend of peace, cultural enrichment, and natural beauty.
Things to Do in Hvolsvollur:
- Discover Icelandic lore at the Saga Centre, an interactive museum located in Valhalla Restaurant.
- Explore the LAVA Centre to learn about Iceland’s geology and volcanic history through interactive exhibits.
- Experience horseback riding with local stables, offering guided tours through stunning landscapes.
Here’s My List Of Places To Stay In Hvolsvollur
Midgard Base Camp – Best Hostels In Hvolsvollur
For a budget accommodation, Midgard Base Camp has a wonderful atmosphere and an impressive range of facilities on offer. You’ll find a shared lounge and bar with evening entertainment, a quality restaurant, a rooftop hot tub and sauna, and table football. The dorms are shared with three to five other people, and come with privacy curtains for each bunk bed, a reading light and charging ports. If you prefer to have your own space, double and family rooms with private bathrooms are available too.
Hotel Hvolsvollur – Best Budget hotel In Hvolsvollur
Found in a scenic and historic location, Hotel Hvolsvollur is an ideal place to stay for day trips around the south of Iceland. The terrific restaurant here gives you the opportunity to try unique Icelandic specialities. With single, twin, double and family rooms, the hotel caters to all travellers looking for an affordable stay.
Hotel Rangá – Best Mid-range hotel In Hvolsvollur
With its own stargazing observatory, Hotel Ranga is a cosy 4-star hotel with plenty of character. The rooms and suites are uniquely designed in a myriad of themes, and have views of Mount Hekla or the Eyjafjallajökull volcano. Enjoy the outdoor hot tubs, receive Northern Lights wake-up calls, and dine by the river at the organic restaurant.
Borg Apartments – Best Family hotel In Hvolsvollur
Family-run Borg Apartments offer self-catering studios and apartments suitable for families. The apartments include a fully-equipped kitchen, a dining table, a private bathroom, free WiFi and a TV. If you have a family of more than four or five people, you can request interconnected apartments so that you can all stay close together. The property is close to hiking trails and is within walking distance of a grocery store.
Aurora Lodge Hotel – Best Luxury hotel In Hvolsvollur
Enjoy casual luxury at the charming Aurora Lodge Hotel. Located along the banks of the East Rangá River, the hotel features two outdoor hot tubs overlooking mountains and glaciers. Stop by the morning breakfast buffet, warm up in the cosy lobby, and order a cocktail at the lounge bar. Depending on the time of year, you can also see the Northern Lights from here. Although the restaurant is closed for dinner, the kind staff can usually prepare a bowl of delicious soup and bread if you ask.
Snæfellsnes Peninsula – Where To Stay in Iceland for Adventure
The Snæfellsnes Peninsula, extending 90 kilometers, is a treasure trove of Iceland’s most dramatic landscapes. Though a bit off the main Ring Road, it offers a less crowded and more adventurous experience.
Who Snæfellsnes Peninsula is Ideal for:
- Adventure seekers and outdoor enthusiasts
- Nature lovers drawn to unique landscapes
- Travelers looking for a less touristy Icelandic experience
What’s Good About Snæfellsnes Peninsula:
- Diverse and stunning natural scenery including glaciers, lava fields, and waterfalls
- Charming small villages for overnight stays
- Opportunities for unique activities like glacier hiking and whale watching
- Rich geological formations like the Gerðuberg Cliffs
What’s Not So Good About Snæfellsnes Peninsula:
- Fewer accommodation options compared to larger cities
- More isolated, requiring longer travel times from Reykjavik
Why Stay in Snæfellsnes Peninsula:
Staying in the Snæfellsnes Peninsula is ideal for those looking or a more intimate encounter with Iceland’s wild nature. It’s perfect for adventurers who enjoy exploring diverse landscapes and experiencing unique outdoor activities, making it an ideal place to stay for those seeking an adventurous journey in Iceland.
Things to Do in Snæfellsnes Peninsula:
- Explore Snæfellsjökull National Park, home to the renowned Snæfellsjökull glacier, offering hiking and ice cave exploration.
- Go whale watching from Ólafsvík, with chances to see these majestic creatures up close.
- Visit the Gerðuberg Cliffs, a striking natural formation of symmetrical basalt columns.
Here’s My List Of Places To Stay In Snæfellsnes Peninsula
The Freezer Hostel & Culture Center – Best Hostels In Snæfellsnes Peninsula
Formerly a fish processing factory, this artsy building is now a converted hotel and professional theatre. The affordable shared dorms are vibrantly painted by local artists in different themes that reflect Icelandic culture and tradition. Private triple and family rooms with a bathroom are available too. Some of the communal facilities include a lounge area, a kitchen and a bar. During summer, there are regular events and performances held in the evenings.
The Old Post Office Guesthouse – Best Budget hotel In Snæfellsnes Peninsula
The Old Post Office Guesthouse has budget-friendly single, double and triple rooms, all with views of the surrounding mountains. While the rooms are very no-frills, the beds are really comfortable and the space is always kept clean. Plus, if the sun is out, you’ll get a lot of natural light shining in. At the guest house, you’ll share a communal kitchen and a furnished terrace with the other guests.
Kirkjufell Hotel – Best Mid-range hotel In Snæfellsnes Peninsula
For a mid-range accommodation option on the Snæfellsnes Peninsula, consider the Kirkjufell Hotel. There are single, twin and double rooms that include a TV, an electric kettle to make tea and coffee, and a private bathroom. Some of the rooms have soundproof walls and an extra seating area. It’s an affordable place to stay if you need somewhere clean and comfortable to come back to after a day of exploring.
Hotel Langaholt – Best Family hotel In Snæfellsnes Peninsula
Hotel Langaholt is a beautiful family-run guesthouse that welcomes children of all ages. The quadruple rooms have added bunk-beds and are located on the ground floor. For both glacier and sea views, go with the large double room. The restaurant easily accommodates dietary requirements, and there is even an on-site golf course.
Hellnafell – Best Luxury hotel In Snæfellsnes Peninsula
For a private stay with family or a group of friends, Hellnafell is a four-bedroom apartment you can book with unforgettable mountain and sea views. The apartment comes with everything you’d need, including free WiFi, a kitchen, a living area with a flat-screen TV, a dining table, and a bathroom with a walk-in shower. Security is provided, and the property is disability-friendly.
Vik – Where To Stay In Iceland for Northern Lights
Vik, a scenic town on Iceland’s southern coast, about 180 kilometers from Reykjavik, offers a blend of stunning natural beauty and adventure. Though small, it provides essential amenities and is famed for its unique black sand beaches and perfect viewing opportunities for the Northern Lights.
Who Vik is Ideal for:
- Aurora Borealis (Northern Lights) enthusiasts
- Visitors interested in unique geological features
- Travelers looking for a quieter, picturesque Icelandic town
What’s Good About Vik:
- Excellent location for seeing the Northern Lights, during winter
- Home to the famous Reynisfjara Black Sand Beach
- Proximity to the Mýrdalsjökull Glacier, ideal for ice-related activities
- Small-town charm with basic necessary amenities
What’s Not So Good About Vik:
- Limited urban attractions and entertainment options
- Unpredictable weather conditions, especially near the glacier
- Caution needed due to strong (sneaker) waves at the black sand beach
Why Stay in Vik:
Vik is the perfect destination for those aiming to experience the Northern Lights and enjoy unique Icelandic adventures like black sand beaches and glacier exploration. Its calm environment offers a more intimate connection with nature.
Things to Do in Vik:
- Witness the Northern Lights from various viewpoints in and around Vik, particularly during the darker winter months.
- Visit Reynisfjara Black Sand Beach, known for its dramatic volcanic landscape and imposing cliffs.
- Explore the Mýrdalsjökull Glacier, offering opportunities for ice climbing, snowmobiling, and guided tours.
Here’s My List Of Places To Stay In Vik
The Barn – Best Hostels In Vik
The best place to stay in Iceland for Northern Lights on a budget is The Barn. The single and double dorm beds come with blackout drapes to help you get a good night’s rest, and the double rooms with private or shared bathrooms are stylish and cosy. The Barn has a communal kitchen, a bar and common area stocked with board games and books, and lockers for your belongings.
Puffin Hotel Vík – Best Budget hotel In Vik
A 10-minute walk away from the black sand beaches, Puffin Hotel is an inexpensive place to stay in Vik. The double, twin and triple rooms are comfortable and come with facilities to make your own tea or hot chocolate, as well as a TV with plenty of English channels. Some of the rooms also have a small private terrace or a private entrance. Talk to the staff to arrange a scenic Jeep tour, or head to the Katla Geopark Museum located right next door.
Vik Cottages – Best Mid-range hotel In Vik
3-star Vik Cottages has beautiful minimalist rooms surrounded by mountain landscapes and lavender fields. There is an on-site restaurant, a bar, a tour desk, luggage storage and free WiFi. The double rooms include a terrace, tea and coffee facilities, and a small desk. While the cottages feel secluded, it is only a short walk away from restaurants and a supermarket.
Hotel Vík í Mýrdal – Best Family hotel In Vik
For a memorable place to stay with family, you won’t be disappointed by Hotel Vík í Mýrdal. The lofted family room has three beds, a private bathroom with toiletries, soundproof walls, a wardrobe, a flat-screen TV, and tea and coffee facilities. Modern double and triple rooms are available here too. The restaurant and bar has an industrial yet cosy design, with a fireplace and floor-to-ceiling windows to admire the nature outside.
Hótel Kría – Best Luxury hotel In Vik
Hótel Kría is an upscale accommodation in Vik that can definitely be considered the best place to stay in Iceland in winter. The hotel includes a garden, a cocktail bar, and an in-house restaurant serving traditional Icelandic dishes. There is also a breakfast buffet with vegetarian options and surrounding mountain views. The suite is the most luxurious option to choose from, with a private entrance, a separate bedroom, a bathtub, and a living area.
Husavik – Where To Stay in Iceland at Christmas
Husavik, a quaint fishing town on Iceland’s north coast, offers a unique blend of adventure and festive charm. Especially during Christmas, this small town transforms into a picturesque winter wonderland, embodying the essence of a traditional Nordic holiday.
Who Husavik is Ideal for:
- Christmas lovers seeking an authentic Nordic holiday experience
- Whale watching lovers
- Those interested in local Icelandic culture and history
What’s Good About Husavik:
- Christmas celebrations with traditional Icelandic festivities
- Renowned as the whale watching capital of Iceland
- Charming atmosphere with traditional Icelandic architecture
What’s Not So Good About Husavik:
- Limited entertainment and dining options compared to larger cities
- Remote location, potentially difficult for travel unless you have a car
Why Stay in Husavik:
Husavik is a perfect winter destination for those seeking an authentic Christmas experience in a Nordic country. With its festive atmosphere, unique whale watching opportunities, and cultural heritage, it offers a memorable stay.
Things to Do in Husavik:
- Immerse in the Christmas spirit with festive markets, tree lighting ceremonies, and learning about the Yule Lads.
- Visit the Husavik Museum to explore exhibits on local fishing, traditional clothing, and geology, including a traditional turf house.
- Experience whale watching with a variety of tours, offering sightings of humpback whales, minke whales, blue whales, and more.
Here’s My List Of Places To Stay In Husavik
Húsavík Green Hostel – Best Hostels In Husavik
Húsavík Green Hostel is a charming budget stay with a central location. Both dorms and private rooms share a communal bathroom, as well as a shared kitchen and lounge filled with books and board games. The hosts are very caring and helpful, making you feel welcome.
Post-Plaza Guesthouse – Best Budget hotel In Husavik
A modern accommodation at an affordable price, the Post-Plaza Guesthouse has comfortable double and twin rooms with a homey feel. The rooms come with private bathrooms, and certain rooms also have a balcony. The kitchen is shared among all guests, with free tea and coffee available any time of day.
Fosshotel Husavik – Best Mid-range hotel In Husavik
Fosshotel Husavik is a great mid-range accommodation with an open lounge and bar area. The rooms are modern and sleek with hints of colour here and there. Request a room with a view of the mountains if you can. There are connecting rooms for families, and an in-house restaurant for convenient dining.
Bjarnabúð – Best Family hotel In Husavik
Bjarnabúð is the perfect accommodation in Húsavík, offering studio, one and two-bedroom apartments with harbour views. The apartments are well renovated and clean, coming with a private entrance, a terrace, a kitchen with a dishwasher and oven, and a comfortable lounge area. A convenient minimart is found onsite for drinks and snacks.
Laugarvatn – Where To Stay in Iceland in summer
Laugarvatn, a small village in southwestern Iceland, is a hidden gem with just 200 residents. Known for being a calm natural beauty in Iceland, it’s a popular destination during the summer, it’s beautiful here year-round.
Who Laugarvatn is Ideal for:
- Couples seeking a peaceful, romantic trip
- Spa and wellness lovers
- History buffs interested in unique Icelandic living traditions
What’s Good About Laugarvatn:
- Proximity to the popular Golden Circle Route
- Home to the relaxing Fontana Spa, offering a variety of treatments
- Rich in scenic beauty with lakes and mountains
- Features Laugarvatnshellir, a historical cave inhabited in the early 20th century
What’s Not So Good About Laugarvatn:
- Limited attractions and activities compared to larger towns
- Fewer dining and entertainment options
Why Stay in Laugarvatn:
Laugarvatn is an ideal destination for travelers who want a mix of relaxation, natural beauty, and a touch of Icelandic history. Its relaxed environment and wellness-focused attractions offer a perfect escape, especially for couples.
Things to Do in Laugarvatn:
- Visit Fontana Spa for geothermal pools, steam baths, saunas, and natural Icelandic treatments.
- Explore Laugarvatnshellir, a cave turned into a living space, offering insights into unique Icelandic living history.
Here’s My List Of Places To Stay In Laugarvatn
Héradsskólinn Historic Guesthouse – Best Hostels In Laugarvatn
Located inside a former school building from the 1920s, the Héradsskólinn Historic Guesthouse offers affordable dorm rooms, large family rooms, and homey double rooms with private bathrooms. Enjoy breakfast, lunch or dinner at the bistro, relax in the library, or grab a drink at the bar. The guesthouse has a children’s playground, and the Laugarvatn Fontana spa is close by.
Bjork Guesthouse – Best Budget hotel In Laugarvatn
The lovely Bjork Guesthouse is a convenient place to stay in Laugarvatn on a budget. The rooms have beautiful parquet floors, large bathrooms, and a kettle for tea and coffee. If you visit during the summer, you can enjoy the garden and picnic area.
Blue Hotel Fagrilundur – Best Mid-range hotel In Laugarvatn
Blue Hotel Fagrilundur is a newly-built structure surrounded by greenery. With two outdoor hot tubs, the hotel makes for a relaxing stop along the Golden Circle. There are double and twin rooms with disability access available, with silky robes and comfy slippers included. Breakfast is included, and there is a restaurant across the street for lunch or dinner.
Hótel Laugarvatn – Best Family hotel In Laugarvatn
Looking for where to stay Iceland for families? Hótel Laugarvatn has you covered. The family rooms come with five beds, a bath and a wardrobe. The modern dining area has a big flat-screen TV, and drinks and snacks are available at the bar. Packed lunches are also provided upon request.
Luxury and Modern Cabin – Best Luxury hotel In Laugarvatn
Another perfectly-described accommodation is the Luxury and Modern Cabin. This four-bedroom cabin includes a fireplace, a kitchen, two bathrooms, and a lounge room with a big flat-screen TV. Outside, you’ll find a garden, an electric vehicle charging station, and even space to land a helicopter. Plus, you can’t forget the hot tub on the terrace.
Hella – Where to stay in Iceland for Horse riding
Hella, a charming small town in southern Iceland, is situated along the river Ytri-Rangá. It lies 94 kilometers east of Reykjavík on the Hringvegur, located between Selfoss and Hvolsvöllur.
Who Hella is Ideal for:
- Horse lovers looking for horse riding experiences
- Travelers exploring the Golden Circle and South Iceland
- Northern Lights seekers
What’s Good About Hella:
- Proximity to popular attractions like Gullfoss, Geysir, and Jokulsarlon glacier lagoon
- Home to unique horse riding experiences
- Favorable location for being able to see the Northern Lights
- Historical significance with roots dating back to Iceland’s earliest settlers
What’s Not So Good About Hella:
- Limited urban amenities and entertainment options
- Smaller selection of dining and shopping venues
Why Stay in Hella:
Hella serves as an ideal base for both adventure and relaxation. Its location on the Ring Road makes it convenient for visiting South Iceland’s popular sites, and its horse riding facilities offer a unique way to explore the Icelandic landscape.
Things to Do in Hella:
- Enjoy horse riding at Hella Horse Rental or Icelandic HorseWorld, experiencing Iceland’s landscape on horseback.
- Explore the Golden Circle, including Thingvellir National Park, Gullfoss, and Geysir.
- Enjoy Northern Lights viewing, benefiting from the low light pollution in the area.
- Discover the town’s history and its connection to Iceland’s early settlement.
Here’s My List Of Places To Stay In Hella
Kanslarinn Hostel – Best Hostels In Hella
If you want to stick to a budget, Kanslarinn Hostel is where you’ll want to stay. The standard rooms have everything you need, like an electric kettle, a TV, reading lights, and extra-long beds. Although you’ll share a bathroom, there is a sink and a mirror within the room. You’ll also get a great breakfast for the price.
Riverfront Lodge Hella – Best Budget hotel In Hella
Riverfront Lodge Hella is sustainable, affordable, and very tastefully designed. The small studios have a little kitchenette with a mini fridge, tea and coffee facilities, and cutlery. There are cosy rooms with twin beds as well, with views of the river from the balcony. There is a shared lounge if you need somewhere warm to hang out, and the staff can prepare a packed lunch for you if you ask in advance.
Aurora Igloo – Best Mid-range hotel In Hella
A stay at Aurora Igloo is a once-in-a-lifetime experience that won’t cost you a fortune. Sleep underneath the stars (and the Northern Lights, if you’re lucky) in a transparent dome surrounded by nature. If you want some extra privacy, however, there are curtains available. Bathrooms are found close by, with towels provided, and there is free coffee in the lobby.
Stracta Hotel – Best Family hotel In Hella
One of the top Iceland places to stay for families is the Stracta Hotel. The modern two-bedroom apartments have an open-air hot tub, a kitchenette and a dining table, with a sofa bed to fit an additional two people. The spacious deluxe suite would also fit a family of four. The hotel has a buffet restaurant and a bar with a laid-back atmosphere and friendly staff, and there’s a big lawn for the kids to run around.
Laxá Lodge – Best Luxury hotel In Hella
Unforgettable luxury lodging in Iceland is found at Laxá Lodge. The rustic yet elegant wood-panel villa has five stylish bedrooms, five bathrooms, a fully-equipped kitchen, a long dining table underneath a chandelier, and a washing machine. Start your day on the terrace with a cup of coffee, admiring the river and garden views.
Kalfafellsstadur & Fagurhólsmýri – Where to stay in Iceland near the Jokulsarlon Glacier Lagoon
Located in the heart of Iceland’s stunning landscapes, Kalfafellsstadur and Fagurhólsmýri offer a serene and authentic Icelandic experience. These locations, not far from the breathtaking Jokulsarlon Glacier Lagoon, are perfect for those seeking a looking an icy escape in nature.
Who Kalfafellsstadur & Fagurhólsmýri is Ideal for:
- Nature enthusiasts keen on exploring the Icelandic countryside.
- Travelers looking for a peaceful get away away from the city.
- Adventure seekers aiming to be close to hiking trails and natural attractions.
What’s Good About Kalfafellsstadur & Fagurhólsmýri:
- Proximity to Jokulsarlon Glacier Lagoon, a must-see Icelandic attraction.
- Kálfafellsstaður is a hub of local culture, with farms, a church, and a community center.
- Ideal for bird watching and nature tours, especially near Ingólshöfdi.
- Close to the Oraefajokull volcano, offering unique geological sights.
What’s Not So Good About Kalfafellsstadur & Fagurhólsmýri:
- Limited options for nightlife and urban entertainment.
- Remote location may not suit those looking for frequent city amenities.
Why Stay in Kalfafellsstadur & Fagurhólsmýri:
Staying in Kalfafellsstadur and Fagurhólsmýri is a unique opportunity to enjoy southern Iceland. The close proximity to natural attractions, combined with the authentic Icelandic village experience, makes it an ideal choice for those looking for a blend of adventure and relaxation.
Things to Do in Kalfafellsstadur & Fagurhólsmýri:
- Visit the Jokulsarlon Glacier Lagoon for stunning glacial views.
- Explore the trail at Ingólshöfdi, perfect for nature lovers.
- Visit the local Kálfafellsstaður church and community center to soak in local culture.
- Go hiking or bird watching in the picturesque Icelandic countryside.
Here’s My List Of Places To Stay In Kalfafellsstadur and Fagurhólsmýri
Skyrhusid HI Hostel – Best Hostels In Kalfafellsstadur and Fagurhólsmýri
Only a 10-minute drive from the Jökulsárlón Glacier, Skyrhusid HI Hostel is an affordable accommodation that offers cosy rooms and shared facilities. The simple double, twin and triple rooms all have reading lights or lamps. The communal kitchen is stocked with groceries like milk, juice and yoghurt, plus free welcome cake and hot drinks are available. If you don’t want to cook, there are two restaurants at the hostel and a place for breakfast close by.
Gerdi Guesthouse – Best Budget hotel In Kalfafellsstadur and Fagurhólsmýri
Stay at the foot of the Vatnajökull glacier at Gerði Guesthouse. There are simple and affordable twin rooms as well as family rooms available, all with private bathrooms and heated floors. The guesthouse has a restaurant, a tour desk to arrange activities, and a shared lounge, plus free WiFi.
Adventure Hotel Hof – Best Mid-range hotel In Kalfafellsstadur and Fagurhólsmýri
Next to the Hofskirkja church, Adventure Hotel Hof is a stylish place to stay with convenient amenities and comforts. Enjoy the breakfast buffet with lots of options, and dine at the in-house restaurant for dinner. The modern double, twin, triple and family rooms have private bathrooms, an electric kettle, and cosy lamps for reading or creating a bit of ambience.
Vagnsstadir Guesthouse – Best Family hotel In Kalfafellsstadur and Fagurhólsmýri
If you want to see some Icelandic horses, Vagnsstadir Guesthouse is the perfect place to stay. There are basic twin, triple and family rooms here, enhanced by the views of the rugged landscape outside. If you’re travelling with kids, they will love meeting the pet horses living here. Stop by the breakfast buffet in the morning, which has a decent amount of options.
Fosshotel Glacier Lagoon – Best Luxury hotel In Kalfafellsstadur and Fagurhólsmýri
The Fosshotel Glacier Lagoon has an impressive interior design that creates a luxurious atmosphere. The deluxe family rooms and executive suites have a lot of space to relax, with huge bathrooms and panoramic windows to let in light. Visit the on-site waterfall, relax at the dry sauna and spa, and enjoy a delicious meal at the hotel restaurant.
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 iceland best places to stay
Final Thoughts: iceland accommodations
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?
Read more:
- 8 of the Best Volcano Tours in Iceland
- 7 of the Best Golden Circle Tours in Iceland
- 9 of the Best Iceland Glacier Tours
- 9 of the Best Iceland South Coast Tours
- Luxury Travel Guide to Iceland
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