Best Hotels for Road Trips in Iceland — Biggest Selection & Lowest Prices Guaranteed

Finding the right place to sleep each night can make or break a road trip through Iceland. The hotels on this page are chosen for their location along the Ring Road and near the top Iceland attractions, so whether you are driving the full loop or focusing on one region, you are always within easy reach of what matters. 

If you’re planning to rent a car in Iceland, these stops make it easy to pace your journey and enjoy the sights along the way. Browse by area and check the seasonal tips to help with your road trip planning.

Summer vs Winter Road Trips in Iceland: How the Seasons Affect Your Hotel Choices

Knowing when you travel changes which hotels in Iceland are the best for your stay. The seasons will also dictate how far apart your stops should be, and in some cases, which regions you can reach at all.

Here are some key things you should know when planning where to stay for your Iceland road trip. 

Summer (June to August)

Summer is the peak travel season in Iceland, which is why summer tours are popular. Here is some information that might help you when picking a stay for your summer road trip. 

• Nearly 20 hours of daylight at peak: You have more time to drive, stop, and explore each day without feeling rushed.

• F-roads and highland routes open up: More of Iceland becomes accessible, giving you flexibility to add detours beyond the Ring Road.

• Hotels usually fill 3 to 6 months in advance: The South Coast and Glacier Lagoon areas fill fastest, so book hotels in the South Coast before anything else.

• Prices are at their highest: Expect high rates across all regions, particularly in July and August. Booking in advance will help. 

Winter (November to March)

Winter in Iceland brings seasonal closures, affecting not only some establishments but also certain roads. Here is what you need to know.

• Only 4 to 7 hours of usable daylight: Keep daily drives short and build in extra time for slower road conditions.

• Four-wheel drive with snow tires is non-negotiable: Most car rentals in Iceland will require this during the winter months.

• Some remote properties close seasonally: Always confirm your chosen hotels are open before booking, especially in the Westfjords and East Iceland.

• Northern lights viewing from rural hotels: Clear nights away from city light pollution give you a real chance of seeing the northern lights from your doorstep.

Shoulder seasons (April to May and September to October)

Spring and fall in Iceland are some of the best times for a road trip. Below are a few things to keep in mind.

• Better availability and lower prices than peak summer: You get more flexibility without the full summer rush.

• September and October add northern lights potential: You still have reasonable daylight hours, but dark enough skies to catch the aurora.

• Mild weather: Temperatures are comfortable for road trips. 

• Some remote hotels run reduced hours: For remote hotels in Iceland, particularly in East Iceland and the Westfjords, verify their operation in advance.

Where To Stay Along the Ring Road

Route 1, also known as the Ring Road, circles Iceland at roughly 828 miles (1,332 kilometers). The key is breaking it into comfortable daily stretches of three to five hours while staying close to the sights you came for. Here is what each region offers and where to sleep.

Staying in Reykjavik on an Iceland Road Trip

Reykjavik, the capital city, is the main gateway for travelers in Iceland and a natural place to begin or end your road trip. Most tours to the South Coast or the Golden Circle depart from Reykjavik, making it a practical first night even if you plan to move quickly. 

Staying in the city center gives you access to car rentals, fuel stations, and everything you need before heading out. Here are some things to expect from road trip hotels in Reykjavik: 

Top Reykjavik Hotels for Iceland Road Trips 

• Alda Hotel: Located on Laugavegur Street, this hotel is ideal for early departures. It is close to practical amenities such as grocery stores and gas stations, making it convenient for last-minute shopping or road trip preparation.

• Hotel Fron: Another hotel on Laugavegur Street in Reykjavik, this hotel offers good value for an overnight stay. It is within walking distance of many Reykjavik attractions, so you can make the most of your time even if you are only staying one night.

• Hotel Muli: Situated about a 10-minute drive from the city center, this hotel is a great option if you are looking for a more affordable stay. You remain close to essential road trip services while saving on accommodation costs.

Staying in the Golden Circle Area on an Iceland Road Trip

The Golden Circle is best covered as an early stop on your Iceland road trip heading east, or as a day trip from Reykjavik on your first full day. Staying in Selfoss or Hveragerdi lets you cover the full Golden Circle without backtracking. Both towns sit on the main road toward the South Coast, keeping your route logical.

Top Golden Circle Hotels for Iceland Road Trips 

• Hotel Grimsborgir: Just 10 minutes from Kerid Crater, this hotel has a restaurant and offers complimentary breakfast on site. It’s a convenient stop between the Golden Circle and the South Coast.

• Efstidalur Farm Hotel: This is a luxury stay set right in the heart of the Golden Circle. After a long day of driving and sightseeing, the on-site hot tub makes it one of the more rewarding stops on the route.

• Hotel South Coast: Located in the center of Selfoss, this hotel sits at a strategic point between the Golden Circle and the South Coast. It’s a practical overnight stay for preparing for the drive the next day.

Staying in the South Coast on an Iceland Road Trip

South Coast attractions are some of the most popular in the country, which is why most travelers spend at least two nights in this area if their schedule allows. To make the most of your time here, joining South Coast guided tours is highly recommended. If you are on a self-drive Ring Road tour, you can use this South Coast guide to plan your stops along the way.

Top South Coast Hotels for Iceland Road Trips

• Black Beach Suites: Located in Vík, just a short walk from Reynisfjara Beach, this property offers striking coastal views and is a great spot for northern lights viewing in the South Coast. It also gives easy access to fuel, supermarkets, and other road trip essentials.

• Magma Hotel: Situated near Kirkjubaejarklaustur on the eastern end of the South Coast, this is a higher-end option for travelers looking for more upscale amenities, including an in-house bistro with views over the surrounding lava fields.

• Hotel Jokulsarlon (Glacier Lagoon Hotel): Located only 7 miles (11 kilometers) from the famous Jokulsarlon Glacier Lagoon, this hotel makes it easy to catch the lagoon at sunrise before the crowds arrive.

Staying in East Iceland on an Iceland Road Trip

East Iceland offers a quieter, slower stretch of the Ring Road that provides a welcome contrast after the busy South Coast. The winding coastal roads through the Eastfjords are among the most scenic drives in the country. 

Egilsstadir is the main service hub in the area, making it a practical stop to restock fuel and supplies before continuing north. If time permits, the Eastfjords also reward travelers who venture a little further off the Ring Road for some of the most unspoiled scenery in Iceland.

Top East Iceland Hotels for Road Trips

• Hotel Aldan: Located in the charming fjord village of Seydisfjordur, this three-star hotel offers free parking and an on-site restaurant. It’s just half an hour from Egilsstadir, making it a great base for exploring more of the Eastfjords.

• The Wilderness Center: Doubling as an attraction in its own right, this unique property offers both dormitory beds and private suites to suit all budget ranges. It is also home to a fantastic museum that runs through the summer months.

• Hotel 1001 Nott: A fantastic woodland retreat in East Iceland offering rooms with mountain or lake views over the banks of Lake Lagarfljot, where you can unwind in outdoor hot tubs after a long day on the road.

Staying in North Iceland on an Iceland Road Trip

North Iceland is one of the most underrated regions along the Ring Road. It deserves more than just a single night if your schedule allows. 

Akureyri serves as the main hub, offering supermarkets, restaurants, and a solid range of hotels. Staying here places you close to major highlights like the Diamond Circle, which includes attractions such as Husavik, Lake Myvatn, Dettifoss Waterfall, and Asbyrgi Canyon.

Top North Iceland Hotels for Road Trips

• Siglo Hotel: Located in the harbor town of Siglufjordur, this hotel features a swimming pool, sauna, and geothermal hot tub. It is also close to basic services in the town center. 

• Sel Hotel Myvatn: Set near the dramatic Skutustadagigar craters that make Lake Myvatn famous, this family-run hotel offers hot tubs, an on-site restaurant, and a bar, all in a scenic natural setting.

• Fljotsbakki Farm Hotel: This stay offers refurbished guest rooms in a traditional cowshed, perfect if you want to experience Icelandic rural life during your road trip. The property also has animals on site, adding to its authentic countryside charm.

Staying in West Iceland on an Iceland Road Trip

Complete your clockwise journey along the Ring Road with a stay in West Iceland, the final stretch before returning to Reykjavik. This region also serves as the gateway to the Snaefellsnes Peninsula. 

Known for its lava caves and waterfalls, West Iceland offers a mix of natural attractions and quieter landscapes. Borgarnes is the largest town in the area, where you can restock supplies, find supermarkets, and refuel before continuing your trip.

Top West Iceland Hotels for Road Trips

• Hotel Laxarbakki: Located just off the Ring Road on the southwest coast, this hotel is set in an area known for its rich birdlife and scenic hiking trails, including Glymur, Akrafjall, Hafnarfjall, and Skardsheidi. In winter, you might even see the northern lights from your room.

• Basalt Hotel: This hotel is close to many of the region’s most impressive attractions, such as the Krosslaug hot pool, located just over a mile (2 kilometers) away. You can also explore Icelandic history in the nearby village of Reykholt during your stay.

Where To Stay Off the Ring Road: Snaefellsnes Peninsula and the Westfjords

Both regions require leaving Route 1 and adding extra days, but travelers who make the effort consistently call them among the highlights of their Iceland road trip.

Staying in the Snaefellsnes Peninsula on an Iceland Road Trip 

Explore the Snaefellsnes Peninsula,  often called ‘Iceland in Miniature,’ is packed with glaciers, lava fields, sea cliffs, and a glacier-volcano national park. This 56-mile (90-kilometer) stretch is about 1.5 to 2 hours from Reykjavik. While one night is possible, staying for two nights allows you to explore both the north and south coasts of the peninsula at a more relaxed pace.

Top Snaefellsnes Hotels for Road Trips

• Hotel Egilsen: A standout historic property set in a heritage building in Stykkisholmur. The town offers a rich fishing culture and convenient amenities, including restaurants, grocery stores, and tourist services.

• Hotel Budir: A remote and scenic stay with views of the Snaefellsjokull Glacier, ideal for a special night. It is located near the famous black church of Budir, set within a striking lava field landscape.

• Adventure Hotel Hellissandur: Located in the small village of Hellissandur on the peninsula’s northwestern tip, this hotel offers a peaceful setting surrounded by the sea and lava fields. On clear days, you can enjoy views of the Atlantic Ocean and the snow-covered Snaefellsjokull Volcano.

Staying in the Westfjords on an Iceland Road Trip 

The Westfjords is Iceland’s most remote region, where dramatic fjords, puffin cliffs, and minimal crowds reward travelers who go off the typical route. You can explore the area by car or take the Baldur Ferry from Stykkisholmur to reduce driving time. The region is best visited from June to August, when roads are fully open, because many routes close or become challenging in winter.

Top Westfjords Hotels for Road Trips

• Hotel Isafjordur: Located in the town center of Isafjordur, this modern hotel offers a restaurant overlooking the harbor and some of the best services in the region.

• Fosshotel Westfjords: Located in Patreksfjordur, this reliable three-star hotel is the perfect base for exploring key attractions such as Latrabjarg cliffs and Dynjandi waterfall.

• Country Hotel Heydalur: A remote, experience-focused stay featuring geothermal hot tubs, kayaking, and horse riding. It is a great option if you are looking for something more immersive than a standard hotel stay. For more about the area, see our guide to best attractions along Iceland's Ring Road. To plan excursions from your stay, browse our self-drive tour packages in Iceland.