where to stay in iceland
Iceland’s dramatic landscapes – geysers, waterfalls, glaciers, black‑sand beaches, and volcanic black dunes – are dwarfed only by the country’s eclectic mix of accommodations. Whether you’re a solo backpacker, a couples looking for a romantic getaway, or a family searching for kid‑friendly lodging, Iceland offers everything from luxury hotels and boutique guesthouses to far‑flung farm stays and glamping tents.
This guide will help you decide where to stay based on your budget, travel style, travel destinations, and season. We’ll break down options by region and give you practical tips so you can book the right place and dive straight into exploring the land of fire and ice.
1. Why Location Matters
Unlike many destinations where a “city center” or “downtown” can be the hub, Iceland’s attractions are often spread out across the island. Choosing the right base can save on travel time and fuel costs:
| Region | Typical Travel Time to Major Attractions | Why It’s Worth It |
|---|---|---|
| Reykjavík | < 30 min by road | Heart of culture, nightlife, museums, luxury hotels |
| Golden Circle | 1–1.5 hr round‑trip | Classic sites (Þingvellir, Geysir, Gullfoss) |
| South Coast | 30 min–1 hr | Waterfalls (Seljalandsfoss, Skógafoss), black sand beach |
| Westfjords | 2–3 hr | Secluded wildlife, dramatic cliffs |
| North Iceland | 2–3 hr | Akureyri town, Lake Myvatn, Dettifoss |
| East Fjords | 2–3 hr | Fjords, fishing villages |
| Snæfellsnes Peninsula | 1–2 hr | Snæfellsjökull glacier & volcano |
If you plan a multi‑region trip, it’s efficient to choose a central point (often Reykjavik) and rent a car for short drives, or stay at a location in the southwest that offers weekend trips to the Golden Circle and South Coast.
2. Accommodation Types – Quick Reference
| Type | Pros | Cons | Typical Price (€ / night) |
|---|---|---|---|
| Luxury Hotels | – City views, spa, fine dining | – Expensive | 200–400 |
| Mid‑Range Hotels | – Comfortable rooms, amenities | – Some may be mid‑size | 80–150 |
| Guesthouses / Bed & Breakfast | – Local vibe, breakfast | – Limited services | 60–120 |
| Hostels | – Budget-friendly, social | – Shared spaces, less privacy | 20–60 |
| Farm Stays (Ferðabúðir) | – Authentic rural experience | – Remote, may lack Wi‑Fi | 50–100 |
| Campsites / Glamping | – Close to nature, sometimes cabins | – Season limits, fewer conveniences | 30–80 |
| Airbnb / Short‑Term Rentals | – Flexibility, space | – Requires research | 70–180 |
| Specialty Lodging (e.g., ice hotel) | – Unique experience | – Very niche & pricey | 150–300 |
3. By Region
3.1 Reykjavik – The Cultural Hub
Best for: First‑time visitors, nightlife, shopping, museums, and those who enjoy city conveniences.
| Accommodation | Highlights |
|---|---|
| Hotel Borg | Classic 14th‑floor rooms, lake view |
| Kvosand Hotel | Central location, old‑world charm |
| Sunni | Boutique with local artistry |
| **Backpackers Villa | Lofty hostel with shared kitchen and bar |
| Airbnb near Laugavegur | Cozy apartments with kitchen |
Tip – Book early, especially in July‑August. Prices triple in high season. Look for “Reykjavik early‐bird” deals: You’ll get a 20–30% discount in May or September.
3.2 Golden Circle – The Classic Circuit
Best for: Travelers who want the iconic sights (Þingvellir, Geysir, Gullfoss) in a relaxed setting.
| Accommodation | Highlights |
|---|---|
| Hotel Geysir | Top‑tier comfort, thermal pool |
| **Hotel Grimsborgir | Medieval ambiance, modern luxury |
| **Hengil Hotel | Icelandic architecture, garden |
| **Seljalands Farm | Rustic farm stay with goat feeding |
| **Lophellir Camping | Pool, sundeck, tent sites close to Geysir |
Tips – If you’re driving, stopping near Geysir or Hveragerði offers great campgrounds. For a romantic weekend: stay at a farm in Hveragerði and enjoy an Icelandic RV kitchen and sauna.
3.3 South Coast – From Waterfalls to Black Sand
Best for: Photography lovers, hiking enthusiasts, families.
| Accommodation | Highlights |
|---|---|
| Hotel Skógafoss | Elevated view, Motel rooms |
| Hali Country Hotel | Cozy rustic rooms, good for ski travelers |
| Solaris Hotel Vik | Modern design, beachfront |
| The Brim | A green‑roofed, eco‑hotel right by the beach |
| Vik Guesthouse | Affordable B&B, next to beach |
Tip – After sunset, Vik’s black beaches transform into a surreal landscape. An early‑morning stay near the beach gives you sunrise golden shots over Dyrhólaey.
3.4 Westfjords – Iceland’s Hidden Gem
Best for: Solo travelers, photographers, wildlife watchers (birds, puffins).
| Accommodation | Highlights |
|---|---|
| Hotel Ísafjörður | Historic hotel, city center |
| Frodi Guesthouse | Remote lodge, roof top sunshine |
| Puffin Lodge | On the cliffside, great puffin viewing |
| Hotel Harpa | Off‑the‑beaten‑path, great aurora chances |
| Hólmavík Hostel | Budget, near Husavik |
Tip – Rental cars are best. You’ll have to be flexible as weather and road tunnels can close. Book "Vikings & lighthouses" packages for guided tours.
3.5 North Iceland – The Daisy of the North
Best for: Families, history buffs, Myvatn region wetland explorers.
| Accommodation | Highlights |
|---|---|
| Akureyri Hotel | Modern, near the town center |
| Hellnar Guesthouse | Cozy with Nordic décor |
| Icelandic Farm Stay – Egilsstaðir | Experience Icelandic way of life |
| Designer Swim House | 3‑day booking only |
| Youth Hostel Akureyri | Shared facilities, networked eerie vibes |
Tip – In winter, check for the "Northern Lights" packages that include a midnight trip to a light‑pollution‑free spot.
3.6 The East Fjords – The Long, Lush Fjords
Best for: Lovers of dramatic fjords, remote villages, and nature photographers.
| Accommodation | Highlights |
|---|---|
| Hafnar Hotel | Seaside bungalows, local food |
| Fishermen’s Hut | Overlooks eins Fjords |
| East Glacier Lodge | Long train ride but wholly worth it |
| Stórurð Farm | Unique loft style with a view |
| Stella Hostel | Backpacker’s paradise in Seyðisfjörður |
Tip – Solar-powered cabins are becoming more common. Book the above for an eco‑friendly experience.
3.7 Snæfellsnes Peninsula – The “Iceland in Miniature”
Best for: Tourists on the 4‑day Diamond Circle, bird watch, glacier landscapes.
| Accommodation | Highlights |
|---|---|
| Stranduser Hotel | Cliff‑side, long walk to Snæfellsjökull |
| Hotel Búðir | Rustic wooden, near Buðir Black Church |
| Íslending Classroom | Overlook of 10‑mile purple cliffs |
| Snaefells Guesthouses | Affordable, local accommodations |
| Rainbow Farmstay | Farm and vineyards, ideal for family |
Tip – Book a stay at the Black Church area for a quieter, autumn‑like pitch-black horizon pictures.
4. Budget‑Friendly Options
| Category | Example Properties / Tips | Comments |
|---|---|---|
| Hostel | Hótel Reykjavik s. | 20–40€ per night, 24hr front desk |
| Camping | Hraunfossar Camping | 30–50€, treats with a “cup of coffee” when you arrive |
| Farm Stay | Fjöri Farm | 50–80€; breakfast included with local tofu or salads |
| Airbnb | Room in a house in Reykjavik outskirts | 60–80€; better cancellation policies |
| Budget Hotel | Hotel Geysir “Economy” | 70–90€; simple, but next to natural wonder |
Advanced Tip – Reserve your lodging at least 6 months in advance during the peak summer season to lock the best rates. In winter, September and April offer mid‑season discounts without some of the tourist crowds.
5. Luxury & Specialty Stays
| Luxury & Specialty | Why It Stands Out |
|---|---|
| ION Adventure Hotel (Reykjavik) | Art‑centric, a seven‑minute walk to Harpa Concert Hall. |
| Silkeborg Farm (East) | Michelin‑style dinners paired with local produce. |
| Mountain Hotels – Regnar, Vlasa – highly rated for upscale mountain terrain circuits. | |
| Blue Lagoon Lodge | In‑suite spa and a view of the geothermal field. |
The high price comes with “four‑star” service, local gourmet meals, private tours, and unbeatable private hot‑springs or geothermal pool experiences.
6. Booking, Timing, and Transportation
-
Seasonal Bonanza –
- High Season: Jun‑Aug (hot days and midnight sun).
- Low Season: Dec‑Feb (fewer crowds, but some roads closed).
- Shoulder: Apr‑May, Sep‑Oct (great daylight, fewer tourists).
-
Make River “CSession” – Compare prices on
- Booking.com – early‑bird discounts.
- Hotels.com – reward points after 10 nights.
- Airbnb – “short‑stay” “Lonely Planet” curation.
-
Transportation –
- In Reykjavik: T-bus (ubication, mobile ticket).
- Rental car essential for Westfjords, North & Central.
- Cancellation – Always keep an eye on “free cancel until 48 hours” escalation, especially on Airbnb.
7. Safety and Courtesy: The Icelandic Hospitality Code
| Do | Don’t |
|---|---|
| Pack waterproof gear; Icelandic weather is unpredictable. | Expect to separate from locals at the inn. |
| Check for pre‑payment options; many properties require a deposit. | Leave valuables unprotected. |
| Use local “Pushpress” thrifts, seam stores, or your property’s kitchen for meals. | Ignore "noise curfew" rules in guesthouses. |
| Respect the environment – stay on marked trails and leave no trace. | Park outside designated zones. |
8. Sample Itineraries & Accommodation Pairings
8.1 The “Classic 4‑Day” Route
| Day | Destination | Overnight |
|---|---|---|
| 1 | Reykjavik (city exploration) | Hotel Borg |
| 2 | Golden Circle – Geysir & Gullfoss | Hotel Geysir |
| 3 | South Coast – Skógafoss and Vík | The Brim |
| 4 | Return to Reykjavík via Seljalandsfoss | Sunna, Hostelbudget) |
8.2 The “Northern Lights Trek” (10 days)
| Day | Destination | Overnight |
|---|---|---|
| 1 | Reykjavik | Reykjavik Urban Hostel |
| 2‑3 | Akureyri & Lake Myvatn | Kongur Guesthouse |
| 4‑5 | Dettifoss & Húsavík | Húsavík Guesthouse |
| 6‑7 | Northeast fjords – Egilsstaðir | Egilsstaðir Farm Inn |
| 8‑10 | Back to Reykjavik | Hotel Borg |
9. Final Checklist
- Prepare: Debit or credit card with no foreign transaction fee (i.e. Amex or MasterCard Standard).
- Confirm: Cancelability; hidden fees.
- Park: Pre‑book parking spots in Reykjavik when possible.
- Local Knowledge: Check local review blogs, Lonely Planet Iceland Guide, RÚV for weather oddities.
10. Quick‑Fire Summary
| Region | Best Out‑of‑the‑Box Stay | Budget Pro | Luxury Pro |
|---|---|---|---|
| Reykjavik | Hotel Borg | Hostel s. | ION Boutique |
| Golden Circle | Hotel Geysir | Camping Beluga | Hotel Grimsborgir |
| South Coast | The Brim | Vik Guesthouse | Solaris Vík |
| Westfjords | Hotel Ísafjörður | Puffin Lodge | Faroe → Aik |
| North | Akureyri Hotel | Farmstay | Whispering Falcon Lodge |
| East | Hafnar Hotel | Stórurð Farm | Orca Glacier Suites |
| Snæfellsnes | Stranduser Hotel | Snaefells Guesthouses | Ygodur Farm & Spa |
© 2025 Your Travel Companion Team
Got more insightful questions? Drop a comment or DM us — we love helping you plan the trip of a lifetime. Happy travels!
