Affordable: Studio Apartment Near Wildlife
If you are looking for one of the most budget-friendly places to stay in Reykjavik, book this Studio Apartment. This 344 square-foot home is ideal for solo travelers or couples who want to save money.
The hosts are super friendly and accommodating, helping to make this stay great. The double bed, full kitchen, and big shower make this place comfortable and perfect for the price.
This is a quiet neighborhood where you can spot the Northern Lights if the conditions are right. It is close to a bus stop so it is easy to get around.
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Affordable: Blue House B& B
The Blue House B& B is a great choice on the Seltjarnarnes Peninsula. There are three different houses all with varying room sizes that can fit anywhere from two to twelve people. Splitting the price between your travel buddies helps to keep this property affordable.
Some rooms have more of a hostel feel with shared bathrooms, while others are completely private. You will enjoy free wifi, TVs with Netflix, and a self-service continental breakfast .
This is a beautiful area of the city with easy parking. It is a short walk to the beach and a public, outdoor, geothermal pool.
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Mid-Range: Icelandair Hotel Reykjavik Marina
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Luxury: Modern and Spacious House in Seltjarnarnes
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Accommodation In Lake Myvatn
When visiting , it’s important to remember that this is one of the most visited places in Iceland and you should therefore remember to book your accommodation well in advance to avoid high prices. The best place to stay in the area is Reykjahlid, both in terms of hotel offerings and location, since from there you can reach places like , the and quickly and easily.
It’s worth noting that the name “Myvtan” means “lake of midges”, so-named due to the high number of the pesky flies around the lake in summer. Make sure to bring insect repellent, and if all else fails you should be able to buy mosquito nets in Reykjahlid.
Where To Stay Near The Glacier Lagoon Hfn
Continuing your drive, youll eventually reach the fishing village of Höfn. Höfn means harbor because it sits on one of the few natural harbors found in Iceland.
This is the next major town after Vik, about a 4-hour drive away. While four hours doesnt seem like much, theres so much to do in between these two Icelandic towns that you may want to spend a night here.
Hofn is the town closest to Jökulsárlón glacier lagoon and Vatnajokull National Park. Watching the sunrise from Jökulsárlón was one of the highlights of my trip, so you might want to sleep nearby.
Here are my suggestions for the top hotels, hostels, and campgrounds near Hofn and the glacier lagoon depending on your budget.
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The Golden Circle Is Where To Stay In Iceland For Access To The Islands Biggest Tourist Attractions
The Golden Circle is famous in Iceland and is home to many incredible tourist attractions including three of the most popular attractions in the country. It is one of the best places to see on your Iceland Itinerary!
These stops include Gullfoss, the two-tiered golden waterfall, Geysir, the geothermal hot spot, home to the erupting geyser Strokkur, and Thingvellir National Park, the UNESCO World Heritage Site which is the ancient birthplace of Icelands parliament. For many first-timers in Iceland, this route is their first adventure outside of the city, and for good reason.
This route provides a great introduction to Icelands unique and stunning natural wonders and all of them are easily accessible.
The Golden Circle can range anywhere from a half to full-day trip depending on how many steps you take along the way. If youre looking to explore on your own timetable, the Golden Circle is easily driven by rental car, but if youre looking for a guided tour, theres no shortage of options.
If you decide to make a full-day trip out of the Golden Circle you might try expanding your adventures beyond the three major tourist attractions.
Some other worthwhile stops include Kerid Crater, a volcanic crater with a lake at the bottom, Reykjadalur Hot Springs where you can bathe in a hot river, and Laugarvatn Fontana which includes spas and geothermal baths along the lake.
This is one of the best stops along the Ring Road in Icelandand you really shouldnt miss it!
Luxury Hotels On Icelands South Coast
Hotel Kria For a luxurious stay near Vik this new hotel opened in 2018. The rooms have a modern design and all the facilities one can expect from a high-class hotel. During your stay at Kria you can enjoy amazing mountain views, a cocktail at their bar or a delicious meal at their restaurant, which serves Icelandic specialties. The breakfast buffet features food from local farms.
Black Beach Suites For unparalleled view of the mountain and the sea, just step into the terrace at this property on Icelands South Coast. You can prepare food in your room theres a fridge, a microwave and a toaster. The black sand beach is just 4km from this property, and fun activities in the vicinity are outdoor dining, skiing and golfing.
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Best Hotel In Reykjavik Guesthouse Galtafell
Choosing to stay at a hotel in Reykjavik can mean spending quite a lot of dough. Avoid the buyers remorse and go with Guesthouse Galtafell. This downtown family-run guesthouse is positively delightful. Plus, youll be just a one-minute walk away from the popular Laugavegur shopping street which is wonderful to walk around and window-shop. Its one of the best Reykjavik hotels for the money.
Where To Stay In Reykjavik
- 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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Where To Stay In Iceland For First Time Visitors
Justine JenkinsPsst! This blog post might have affiliate links in it, which earn us a small amount of commission if you buy or book something through them – at no extra cost to you.
If youre busy planning your first trip to Iceland and are wondering where to stay, then weve got you covered with this useful guide all about where to stay in Iceland for first time visitors.
Youll learn about three popular areas in Iceland: Reykjavik, the Golden Circle and Vik, including what there is to do in each area and top Iceland hotels to consider.
We hope you find it useful but most importantly, we hope you enjoy your trip!
If its dramatic landscapes, towering waterfalls, interesting culture and the Northern Lights that youre after then we can think of nowhere better. Iceland is one of our favourite countries, and as we got engaged there, it holds such a deep place within both our hearts.
We hope youll make just as many magical memories during your own trip and were thrilled to be able to share some of our Iceland travel tips and inspiration with you to help you do so.
Lets get cracking!
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Reykjavik is Icelands capital. Its a small city, which means you can easily see the top sights in just one or two days before moving on to see the rest of Iceland like the Golden Circle, Ring Road, South Coast and beyond.
Best Places To Stay In Laugardalur/104
Affordable: Nordurey Hotel City Garden
The Nordurey Hotel City Garden is one of the best hotels to stay in Reykjavik if you want to be out of the noise of the city center. Couples or a group can stay here with rooms fitting anywhere from two to six people.
Each room has free wifi, a desk to work at, a flat-screen TV, and a hairdryer. Even though this hotel is in a more quiet area, it is only a mile or two away from many Reykjavik attractions so you do not need to worry about being too far from the action.
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Affordable: Cosy House in 104 Reykjavik
If you are looking for one of the best budget places to stay in Reykjavik with just what you need and no-frills, consider the Cosy House in 104 Reykjavik. This 400-square-foot house is perfect for a solo traveler or couple who would rather spend money on experiences than a place to sleep.
While it is on the cheap side, it still has everything you need to be comfortable. There is a full kitchen, a flat-screen TV, wifi, and a comfortable sofa and bed. It is on a quiet street, but not far from downtown.
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Mid-Range: Cosy Harbour Apartment
The Cosy Harbour Apartment is one of the best accommodations in Reykjavik for families. There is a queen-sized bed and two twin beds. If you are traveling with a baby, there is also a crib and high chair.
The inside is super modern with antique touches. You will feel right at home in this ground-floor apartment.
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Hvolsvollur One Of The Most Unique Places To Stay In Iceland
Now lets talk about tiny Hvolsvollur is an absolutely teeny-tiny town located in South Iceland. It only has a population of 950 people! What makes staying in Hvolsvollur so unique is not just the sheer novelty of staying in such a tiny town, but also the number of wonderful hiking routes in the area. One of our favourite hikes involves seeing the strange rock Drangurinn that sits by the farm Drangshlíð, which is under the towering Eyjafjöll mountains.
Hvolsvollur is also just a hop, skip, and a jump away from some of Icelands other beautiful sites like natural caves and lovely waterfalls as well as being on the south coast of the country. If youre looking to take some epic photos in Iceland, then this is a great base.
So choosing to stay in the tiny town of Hvolsvollur will bring you even closer to your travel companions, and to some of Icelands most beautiful landmarks. Stay off the beaten path in Hvolsvollur, and cosy up with all that is, well, incredible!
Surprise, surprise. Hvolsvollur is a tiny town with very few places to stay. Obviously, you wont find a Marriott or a Hilton in sight! That being said, these special accommodation options are where true memories are made. We love the unique factor and the charm!
Photo: Diego Delso
Should You Stay In One Place In Iceland
If you have only 3 or 4 days and it is your first time in Iceland, you can stay in Reykjavik and do day trips.However, if you have more, then I recommend that you hit the road and change accommodations every night to be able to cover more road and discover many more of the wonders Iceland has to offer!Here are some driving times to give you a better ideas:
Iceland Ring Road driving times
If you need help planning your road trip check out my:
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Best Places To Stay In The Westman Islands
Most visitors to Iceland that make it to the Westman Islands only go as a day trip. Once youre there, we guarantee that youll wish you had stayed longer.
During the summer months puffins and other nesting sea birds love to make the Westman Islands their home. Theres things to do like hiking the infamous volcano that erupted and covered most of it like a modern day Pompeii, golfers will love the 18-hole golf course that is considered one of the most unique in the world and you wont want to miss a rib boat ride around one of the newest islands on the planet.
Explore The Mysterious Island Of Heimaey
Dive deep into another of the prettiest towns in Iceland, known as Heimaey. Heimaey is the largest island in Iceland, just four nautical miles off its south coast, near Vik. Because it is surrounded entirely by the Atlantic Ocean, you will have to either take a ferry or fly out from the mainland to get to it.
The ferry has several regularly scheduled travel times every day, and flights can be arranged in Reykjavík or Bakki , so choose whatever option works best for you and youll arrive at Heimaey in no time.
Heimaey is part of the Westman Islands, a cluster of 14 islands total, yet all are uninhabited except for Heimaey. The Westman Islands are so named due to two Irish slaves who first stepped foot on the islands in order to avoid punishment for killing their master, Hjörleifur Hróðmarsson.
However, Hróðmarssons adopted brother, Ingolfúr Arnarson, was very angry at his brothers murder and tracked the slaves to the islands and killed them both. The Irish used to be known as Westman at the time, hence the title of the Westman Islands, named after the slaves who died there.
Heimaey has a further dark history, as pirates were a major problem for towns in Iceland in the early 1600s. They would raid the Icelandic coast and capture the island residents as slaves, who had nowhere to run and no means to defend their homeland from the pirates.
Where to stay in Heimaey:
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Where To Stay In Iceland To See Northern Lights
Iceland is one of the best destinations to see northern lights because, thanks to its 65º latitude, the chances of seeing them are very high if you travel at the right time. If your trip to the island is because you want to see the Northern Lights, I recommend you check out one of the best hotels to see northern lights in Iceland.
These are the best hotels in Iceland to see the Northern Lights:
- Rangá Hotel: The best hotel to see Northern Lights in Iceland. It has an observatory at the rooftop
- Husafell Hotel: Hotel away from light pollution that is perfect for seeing the Northern Lights
- Laxnes Hotel: The best rustic hotel to see the Northern Lights in Iceland
- Reykjavik Domes: Original igloo hotel in Iceland to see the Northern Lights
- Grand Hotel Reykjavik: The best option if you want to see the Northern Lights in Reykjavik
- Aurora Cabins: Best Hotel to see the Aurora Borealis in east Iceland
- Kjarnalundur Hotel: Enjoy the Northern Lights from a Jacuzzi
- Villa Lola: The best hotel to see Northern Lights in northern Iceland
Fosshotel Hellnar Snfellsjkull Glacier
Part of the relatively new Fosshotel chain of hotels that has popped up around Iceland, Fosshotel Hellnar is located right under the Snæfellsjökull Glacier and quite near to the famous Kirkjufell mountain. Its on the coast where Orcas are often spotted swimming by in the ocean and seals lounge on the rocks, and the Snæfellsjökull Glacier National Park Visitor Center is next door to the hotel. Its definitely a top choice on the Snæfellsnes Peninsula and often fully booked, so book well in advance of your trip.
Unlike Fosshotel Glacier Lagoon, Fosshotel Hellnar has a boutique hotel feel to it and is much smaller and intimate. The rooms are bright and airy with light colors and linens. Some rooms even have balconies with ocean views. Private bathrooms, wifi and modern amenities like flat screen tvs with satellite channels are stand in all of the rooms.
The onsite restaurant is also very good and sources local produce for its menu creations.
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Budget Hotels Around Hofn
Skyrhusid Guesthouse How about a night right next to Jokulsarlon Glacier Lagoon? The view of the mountain is enchanting. The rooms at this farm-house style guesthouse have a wash basin and the bathroom is communal. There are two restaurants on the property. For history lovers, Thorbergssetur Historical Museum is on site.
Höfn Guesthouse The shared dining area is the spot to meet fellow travelers. All rooms, whether in the main building or in the annex, have either a double or twin beds. Bathrooms are communal, and theres free wifi. A lazy stroll to the harbor is perfect when you dont want to visit Höfn Swimming Pool a short distance from the guesthouse.
Ion Adventure Hotel Selfoss
Set among the mountains and lava fields on the Golden Circle route and close to Thingvellir National Park, Ion Adventure Hotel is a luxury option and a popular choice for Northern Lights viewing less than an hour outside of Reyjavik.
The rooms all boast floor to ceiling windows giving guests a view of either the lava field or the geothermal power plant and have a contemporary Scandinavian design. The hotel does have a spa and a gourmet restaurant onsite, and offers free wifi to guests. For rates from $300 per night, not including breakfast, we do except a friendlier staff and better service though. Note that TripAdvisor reviewers regularly also note the poor service and pretentious attitude of the staff at the hotel.
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