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Best Location To Stay In Iceland

Where To Stay In Iceland: Best Hotels By Area

10 Best Places to Visit in Iceland – Travel Video

Youve booked your plane flights to the land of fire and ice and now youre wondering where to stay in Iceland? First of all, get excited because youre in for the trip of a lifetime.

Second, were here to help. In Iceland, there are an abundance of activities to do and sights to see that will leave you hungry for more. The island is essentially one stunning natural wonder after the next.

Even the drive between locations will have your jaw-dropping. Every region of Iceland is worth a visit for different reasons.

Weve dissected the country by area and picked out select hotels to help you decide where to stay in Iceland during your trip. In addition to a handful of hotel options, weve explained the tourist draws of each area and why that area of Iceland deserves a portion of your time.

Iceland in the summer can be a spectacular place to tent camp or rent a campervan, but sometimes staying in a hotel or hostel is the best option, and we hope our guide will be helpful to you as you plan your trip.

Dont forget that we have 3-Day Iceland Itinerary, 4-Day Iceland Itinerary, and 5-Day Iceland itinerary options to help you continue to plan your trip!

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The 10 Best Places To Stay In Iceland Check Out Our Selection Of Great Places To Stay In Iceland

  • 9.2Wonderful860 reviews

    Boasting a terrace and free WiFi, Blue Hotel Fagrilundur On The Golden Circle is situated in Reykholt.The rooms in the hotel are fitted with a flat-screen TV. Rooms include a private bathroom with a shower, a hairdryer and free toiletries. Guest rooms will provide guests with a fridge.

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  • Place to Stay in Drangsnes

    9.8Exceptional105 reviews

    Set in Drangsnes in the Westfjords region, Hvammur 4 with private hot tub features a balcony and garden views. The property is 19 km from Djupavik and free private parking is featured.The holiday home includes 1 bedroom, 1 bathroom with a hot tub and a shower, a seating area, and a kitchen with a microwave. Towels and bed linen are offered in this accommodation.

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Iceblue Lodge B& b Selfoss

Located on the edge of the 5000 year old Grímsneshraun lava field, Iceblue Lodge B& B is a family run bed and breakfast on the property where the family lives. It has seven rooms: three which share a bathroom and four rooms with their own private bathroom and deck. Theres also a hot tub and a sauna for guests to use, as well as natural hot springs located nearby.

Iceblue Lodge B& B is close to the sites of the Golden Circle like Gullfoss and Geysir, making it a great choice for exploring some of Icelands most popular attractions. There is absolutely no light pollution, so your deck or right from the jacuzzi are excellent spots to watch for the Northern Lights.

The B& B does not have a restaurant, but its located just a 20 minute drive from Selfoss, which is the biggest city in South Iceland and has a number of restaurant options. Reykholt is also just a 20 minute drive and we recommend Restaurant Mika. Family-run, the restaurant offers a selection of Icelandic dishes and sources from local farms. Try the deep fried coconut panko crusted Icelandic langoustines, lobster soup or the lamb.

Iceblue Lodge does offer super jeep tours, including a Golden Circle and a Northern Lights tour. They also offer packages that include airport pick-up, two nights with breakfast and two super jeep tours. Note the Iceblue Lodge does close for the winter season from October.

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Best Places To Stay In Iceland In The More Remote Destinations

The above places are the most visited in Iceland, but accommodation exists in its most remote reaches too. The Highlands, for example, are rarely seen outside of group hikes, yet there are several places on its edge where you can stay.

The Wilderness Centre, Highland Centre, and Thorsmork Volcano Huts are examples that are open year-round they invite their guests to explore this incredible region during their days and sleep in comfort at night. The former two also have a range of lodgings, from shared dorms to private rooms, while the latter also has private cottages.

As mentioned earlier, you can spend several weeks in Iceland without ever needing to stay in a hotel or hostel due to the many camping options available. Camping in Iceland can be made easy by taking a self-drive tour in a vehicle with a rooftop tent or traveling in a campervan.

It’s also possible to buy a camping card, which gives you access to many of the sites around Iceland, and their website can direct you to where these are and what amenities they have.

Things To See And Do In Husavik

Top 10 Most Beautiful Places To Visit Before You Die!
  • The whole family will be dazzled watching the humpback whales swim through the frigid waters of Skjalfandi Bay
  • You can always add a puffin-watching tour to your trip too. Those quirky little birds sure are entertaining!
  • Theres also the Exploration Museum that focuses on space missions
  • Walk around the beautiful Lake Myvatn and explore the surrounding areas

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Best Hotel In Vesturbr: Reykjavik 107

Reykjavik 107 is a cute little place in the heart of the neighborhood. Its not the most modern one, but still incredibly charming and homely. The guesthouse offers cute and spacious rooms with a shared bathroom. Its a perfect place for a solo traveller or a couple that wants to keep the expenses low. If youre travelling with a car, youll be pleased to know that the place offers free parking spots as well!

Best Accommodations In Reykjavik

I stayed at 4 different accommodations in Reykjavik . All were very good.

Reykjavik Accommodation: Reykjavik Treasure

Otherwise, you can consider these options depending on what you are looking for:

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Reykjavik Best Places To Stay Iceland

Reykjavik is Icelands capital and largest city, and is most likely where you will begin and end your Iceland vacation and is best location to stay in Iceland. For a capital city, Reykjavik is relatively small and most attractions are well within walking distance of the downtown area. For this reason your budget will be the leading factor, rather than location, in choosing where to stay in Reykjavik Iceland. Where to stay in Iceland for a week? Reykjavik is a great spot to base yourself, you arent too far from 2 of Icelands airports and most day tours are based out of Reykjavik.

Laugavegur is main street through Reykjavik, where youll find shopping, eating and lodging. To be in the heart of everything, youll want to stay close to Laugavegur. Be warned if you stay right on Laugavegur, you may hear partiers well into the wee hours. Slightly outside this area are East Town and West Town, each no more than 20 minutes walking from the city center, below is a list of Reykjavik hotels. Wondering where is the best place to stay in Reykjavik, check out our below suggestions:

Renting A Campervan In Iceland


There are many ways to explore Iceland. Most people rent a car while staying in hotels, or book a campervan while sleeping in the vehicle. Convenience is one of the main reasons people choose to rent a campervan.

Renting a campervan in Iceland can save you a lot of time and money. You can prepare your own food on the go and save money on accommodation. It also gives you a lot of flexibility to change your plans anytime you want.

But life on the road might take its toll, especially if you have small kids. Not all campervans have a toilet and you might miss showering on a regular basis.

The weather depends on luck and what time of year you visit. A worst-case scenario is that you might have to cook in the rain, snow, or deal with high winds and cold temperatures.

After many trips to Iceland, Ive both stayed in hotels as well as rented a campervan. I highly recommend Happy Campers if you decide to go that route!

Travel Planning Resources For Iceland
Packing Guide

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Things To See And Do In Akureyri

  • A trip to Akureyri wouldnt be complete without taking a dip in the Akureyri geothermal pools
  • Be charmed by the traditional houses on Hafnarstræti Street
  • In the winter, you can take snowmobiling tours around the mountain, or you can even go skiing down Hlidarfjall
  • If youre here in the summer, check out the awesome whale watching opportunities too.

Best Places To Stay In Vesturbr

Affordable: Refurinn Reykjavik Guesthouse

The Refurinn Reykjavik Guesthouse is in a great location and is within walking distance of many Reykjavik attractions. If you want a place to stay that feels more like a home than a hotel, book here.

The guesthouse is set up similarly to a hostel. While you will have a private bedroom, the bathrooms and kitchen are shared. Everything is kept very clean and well-stocked. You will have the chance to meet fellow travelers when you stay here.

Wifi, luggage storage, and free parking are available.

Check Rates:

Mid-Range: Harbor Apartments

Sometimes one of the best places to stay in Reykjavik is apartments and not hostels or hotels! In Vesturbær in particular, there are TONS of people who rent out their apartments or villas for tourists.

One that guests seem to love is theHarbor Apartment with Ocean and Mountain Views. The apartments rented out in this complex feature a patio, a fully equipped kitchen, a seating area, a private bathroom, and comfortable rooms.

The accommodations and beautiful views from terraces, patios, and balconies really help catch the eye of tourists. These apartments are spacious, located in the heart of everything, and are well equipped to handle you and your adventures. Spread out, enjoy the space, and the views of course!

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Luxury: Ocean View Luxury Apartment in Central Reykjavik

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Luxury: Luxurious Private Villas

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Best Hotel In Laugarvatn Farmhotel Efstidalur

This hotel is set on a farm in the Golden Circle. Expect a very nice and unique stay on this farm! Youll love the rustic, wooden cabins and the views of the cows out in the barn. When youre not distracted by the cute cows, youll be dazzled by the views of the surrounding mountain! Our favourite part about the Farmhotel Efstidalur is that during the summer, this hotel offers horseback riding and traditional cooking classes! Talk about memorable!

Best Airbnb In Hlidar: Affordable Private Room

29 Amazing Places To Visit On A Vacation To Iceland

You wont find another Airbnb in Iceland thats as cheap as this one. You get a super comfy room to yourself. Youll be living in the house of a local family, and all common areas are shared so make sure to be respectful. Youll be located around 20m from the heart of the city, meaning that theres a lot to explore during the day. If you dont know where to start, you can ask your host family for recommendations or advice on what to see first.

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Best Areas To Stay On The Golden Circle

Depending on your interest you could choose:

  • To stay near Haukadalur to enjoy a sunrise with the geyser – see options
  • To stay in Laugarvatn, where you can find a few accommodations by the lake and its hot springs – check out options
  • To stay in Fludir, a little out of the way, to be able to soak in the hot waters of the Secret Lagoon at the end of the day – check out best rated accommodations
  • Otherwise you can also find a large choice of accommodations in Selfoss, a town on the Ring Road that connects the Golden Circle with the South Coast – see best rated accommodations

Where to stay on the Golden Circle in Iceland

Best Hostel In Akureyri Akureyri Backpackers

In this highly functional, and ever-so cosy backpacker hostel, youre sure to enjoy a great atmosphere and budget-friendly rates. There is a small bar inside the hostel which encourages socialization and making friends fast. Also, there is a washer and dryer that guests can use for an additional charge.

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Where To Stay In Akureyi

  • For central stays: Hotel Kea is at the base of Akureyrarkirkja. Some rooms have views of Eyjafjördur Fjord and the hotel’s Múlaberg Bistro serves Icelandic dishes with a French influence.
  • For cosy stays: Icelandair Hotel mixes minamalist design with cosy comfort. A good choice for ski breaks, guests have access to an indoor pool and most rooms come with stunning views.
  • For budget stays: innovative Hafnarstræti Hostel features single and double sleeping pods instead of rooms. The hostel also has a shared kitchen, its own shop and BBQ facilities.

Where To Stay In Reykjavik

10 THINGS TO DO IN REYKJAVIK – Iceland Places to Visit (Iceland Tips)
  • For budget stays: Kex Hostel is not an average back-to-basics hostel. It’s trendy, stylish and characterful, offers a choice of dorms or private rooms and features a cafe-bar, live gigs and a gym.
  • For luxury stays: Radisson Blu 1919 is 10 minutes Reykjavik’s historic centre. Rooms are simple but modern and the excellent Grillið restaurant atop the hotel offers panoramic city views.
  • For romantic stays: House of the Snowbird is a charming, traditional house offering a range of one bedroom apartments in the historic heart of Reykjavik.

Prefer to leave planning and booking to experts? Have a look at our Iceland itineraries. All Tailor Made TripsDropdown content can be modified together with your local expert, and then booked for a stress-free holiday.

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Best Places To Stay In Iceland

Most visitors to Iceland travel around the country – either on a , by or by – to see the island’s widespread attractions, so it’s essential to know where is best to spend the night between stops.

While Iceland has become a popular destination in recent years, which has meant an increase in hotel options, this is not the case in every region. What’s more, the high cost of living in the country extends to tourist accommodation, so it’s best to do your research before travelling so that you can spend your money on other aspects of your trip, like getting a better or indulging in local .

Where To Stay In Vesturbaer

Budget Hotel

Refurinn Reykjavik Guesthouse

This budget hotel is not as inexpensive as some of the hostels in Reykjavik but you can enjoy a private room here for a bit more.

Rooms and amenities are rather bare-bones but everything is comfortable and pleasant. Theres a shared kitchen space for you to use and bathrooms are also shared. Rooms come with linens and theres free parking and free WiFi, too.

Reykjavik Konsulat Hotel, Curio Collection by Hilton

The Reykjavik Konulat Hotel is a beautiful high-end property that is located in the perfect spot, in Vesturbaer, but also so close to everything youll want to see and do in Midborg. Every room has a balcony and the views are spectacular.

Youll only be a few minutes walk from everything, or you can enjoy your meals in the onsite restaurant or via room service in your room.

You can even exchange currency at the front desk. Rooms are very comfortable and youre sure to get a great nights sleep here every night.

Centrally Located Apartment with Sea Views

This three-bedroom, split-level apartment is within walking distance from downtown and popular geothermal pools.

There are also wonderful shops, restaurants, coffee houses, and bakeries nearby. You can see the sea from the apartment and you can also enjoy the propertys shared garden as well.

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Best Places To Stay In North Iceland

Just about on the edge of the Arctic Circle, North Iceland is home to natural jewels like Europes most powerful waterfall and Icelands best whale watching. Myvatn is famous for its natural beauty and youll find the lesser visited and natural hot water pools of the Myvatn Nature Baths.

A few days is not enough to see all the North Iceland has to offer, but we recommend spending at least 3-4 days exploring. Akureyri is the capital of North Iceland and like a smaller scale Reykjavik with shops, museums, restaurants and cafes. When staying in North Iceland, we personally prefer Myvatn for its natural beauty and Northern Lights watching opportunities in the fall and winter months. Tours often depart out of either Akureyri or Myvatn, so either is a good choice for a base for where to stay in North Iceland.

The weather is also more stable in North Iceland, making it one of the best places to stay in Iceland in winter. Youll encounter less of the erratically changing weather and wind that the south has, often the best chances for seeing the Northern Lights, and far fewer tourists.

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