Best Accommodation in Iceland — Biggest Selection & Lowest Prices Guaranteed

Accommodation in Iceland spans the full range of hotels in Iceland, guesthouses, apartments, cottages, and glamping, so every kind of traveler can find a comfortable base. Options run from central city hotels to remote countryside lodges, at prices that suit tight budgets and travelers ready to splurge alike.

Because most visitors tour the country by road, where you stay shapes the whole trip. Bases along the Ring Road put the Golden Circle, the South Coast, and the fjords within reach, and pairing a stay with self-drive tours or rental cars makes the whole island accessible.

Whether you want budget accommodations in Reykjavik, quiet countryside stays near the waterfalls, or a rural hotel positioned for northern lights tours, the choice is wide. Read on for the best places to stay in each region of Iceland.

Best Hotels and Accommodations in Reykjavik and the Capital Region

Reykjavik and the surrounding capital region hold Iceland's widest choice of hotels in Reykjavik, from downtown boutique stays to spacious apartment hotels near the city's museums and restaurants. Most trips begin and end here, and Reykjavik puts you within easy reach of the Golden Circle, the airport, and the coast.

• Skuggi Hotel: A 3-star hotel in central Reykjavik, a short walk from Laugavegur shopping street and Hallgrimskirkja Church, with bright rooms and a rooftop terrace over the city.

• ODDSSON Midtown Hotel: A design-led hotel in east Reykjavik, about 10 minutes from downtown by car or bus, with playful interiors, an on-site bakery, and easy parking.

• Reykjavik Lights Hotel: A modern 3-star hotel on Sudurlandsbraut near Laugardalur park, themed around Iceland's shifting light, roughly 10 minutes from the city center.

• Reykjavik Residence Apartment Hotel: A 4-star apartment hotel set in restored early-1900s townhouses downtown, with full kitchens and living space for families and longer stays.

Best Places To Stay in South Iceland

South Iceland lines up the country's most-visited sights, and its hotels in South Iceland let you wake up beside waterfalls, black sand beaches, and glaciers. These stays spread from the Golden Circle to the edge of Jokulsarlon Glacier Lagoon, keeping the region's highlights within a short drive.

• Fosshotel Glacier Lagoon: A 4-star hotel on the southeast coast near Hnappavellir, the closest large hotel to Jokulsarlon Glacier Lagoon, with a restaurant and wide views of the surrounding peaks.

• Hotel Katla: A 3-star hotel just outside Vik at Hofdabrekka, framed by mossy cliffs, with a geothermal hot tub and quick access to Reynisfjara Black Sand Beach.

• Hotel Grimsborgir: A 4-star property near Selfoss on the doorstep of the Golden Circle, with upscale suites and cottages that suit families touring Thingvellir National Park and Geysir.

• Landhotel: A 4-star hotel near the town of Hella with wide views toward Hekla Volcano, a peaceful countryside base between Reykjavik and the South Coast waterfalls.

Best Hotels and Accommodations in North Iceland

North Iceland rewards travelers who venture beyond the South, and its hotels in North Iceland sit close to geothermal fields, waterfalls, and whale-filled bays. Many cluster around Lake Myvatn and the northern capital of Akureyri, with fjord towns further along the coast.

• Fosshotel Myvatn: A 4-star hotel on the shore of Lake Myvatn with a distinctive grass roof and panoramic windows, minutes from the Myvatn Nature Baths and Godafoss Waterfall.

• Hotel Kea Akureyri: A 4-star hotel in the heart of Akureyri beside the town's landmark church, within walking distance of restaurants, shops, and the botanical garden.

• Fosshotel Husavik: A 3-star hotel in Husavik, Iceland's whale-watching capital, a short stroll from the harbor and the town's well-known whale museum.

• Siglo Hotel: A 4-star hotel on the harbor of Siglufjordur, a former herring town, with a geothermal hot pool and sauna overlooking the boats and mountains.

Best Places To Stay in West Iceland and Snaefellsnes Peninsula

West Iceland packs glaciers, lava fields, and dramatic coastline into a compact region, and its hotels in West Iceland make an easy first or last stop from Reykjavik. The Snaefellsnes Peninsula anchors the area, often called Iceland in miniature for the variety of its scenery.

• Hotel Langaholt: A 3-star hotel on the southern Snaefellsnes coast beneath Snaefellsjokull Glacier, with its own golf course, a black sand beach nearby, and a kitchen known for fresh seafood.

• Hraunsnef Country Hotel: A 3-star country hotel near Borgarnes with Old Norse styling, an outdoor hot tub, and lava-field surroundings about halfway between Reykjavik and Snaefellsnes.

• Fossatun Country Hotel: A 3-star hotel beside a small waterfall in the West Iceland countryside, with troll-themed walking trails and a handy location for Husafell and Reykholt.

• Hotel Budir: A 3-star hotel at Budir on Snaefellsnes, set beside the peninsula's iconic black church, with sweeping views over sea, lava, and the glacier.

Best Hotels and Accommodations in East Iceland

East Iceland stays quiet and scenic, and its hotels in East Iceland reward the drive with forests, fjords, and reindeer country. Most travelers base themselves around Egilsstadir before winding out to the East Fjords and colorful Seydisfjordur.

• Gistihusid Lake Hotel Egilsstadir: A 3-star hotel on the shore of Lagarfljot Lake near Egilsstadir, with an on-site spa, sauna, and lakeside rooms in a restored farmstead.

• Fosshotel Eastfjords: A 3-star hotel in the fishing village of Faskrudsfjordur, set in a restored building that celebrates the town's historic ties to French sailors.

• Hotel Hallormsstadur: A 3-star hotel inside Hallormsstadur Forest, Iceland's largest woodland, overlooking Lagarfljot Lake and close to Hengifoss Waterfall.

• Hotel Aldan: A 3-star hotel spread across historic timber houses in Seydisfjordur, an artsy fjord town known for its rainbow street and wooden church.

Popular Types of Accommodation in Iceland

Beyond hotels, Iceland offers a wide range of places to stay to match any budget and travel style.

• Guesthouses in Iceland: Family-run and central, often with shared kitchens and a personal touch, popular in Reykjavik and small towns alike.

• Cottages in Iceland: Self-contained cabins, many with private hot tubs, ideal for couples and groups who want privacy in the countryside.

• Holiday apartments in Iceland: Full kitchens and living space that suit families and longer stays, common in Reykjavik and Akureyri.

• Glamping in Iceland: Domes, pods, and tents that put you close to nature with a real bed, popular near the Golden Circle and the South Coast.

• Farm stays in Iceland: Working farms in rural settings, a genuine way to experience Icelandic country life.

• Hostels in Iceland: Budget-friendly dorms and private rooms in cities and along the main travel routes.

How To Choose Where To Stay in Iceland

The right base depends on your itinerary and the season. With only a few days, staying in Reykjavik and taking day trips keeps things simple. For a longer trip or a full loop of the country, booking a chain of one-night stops saves backtracking and adds variety to the drive.

Winter visitors chasing the aurora do best in rural areas with dark skies, where many hotels sit far from town lights and offer late check-in. Summer travelers benefit from the midnight sun and can drive well into the evening between stops.

Book early for July and August, when the best-value rooms sell out months ahead. Shoulder seasons in May, September, and October bring lower rates, and choosing a room with breakfast or a kitchen helps manage costs, since dining out in Iceland is expensive.

Wherever your route takes you, there is a place to stay that fits, from downtown city hotels to remote glass cabins under the stars. Compare stays by region, price, and style to find the right match, whether that means luxury hotels with a spa or a simple guesthouse near the trailhead.

For a closer look at each area and season, the full guide to where to stay in Iceland breaks down the best bases for every kind of trip.