Best Hotels & Accommodation in Iceland — Biggest Selection & Lowest Prices Guaranteed

When planning your trip to Iceland, finding the perfect place to stay can make all the difference in turning your adventure into an unforgettable experience. Fortunately, Guide to Iceland provides the largest selection of hotels and accommodations at the lowest prices, ensuring you find the perfect place to stay while exploring the Land of Fire and Ice.

Whether you’re looking for mid-range hotels, cozy guesthouses, self-catering cottages, luxury hotels, or unique stays like igloos, our extensive range of options caters to every traveler and budget. 

Uniquely, all accommodation bookings on Guide to Iceland include free cancellation and a full refund up to 24 hours before arrival, giving you peace of mind as you plan your trip. With 24/7 service and support, we’re here to assist you at every step, ensuring your stay in Iceland is seamless and unforgettable. 

Read on to discover everything you need to know about the best hotels and accommodations in Iceland, including the best types of stays, when to book, what to expect, and more.

Top 3 Hotels in Iceland

The most popular type of accommodations for travelers are hotels in Iceland. This option is great for anyone looking for privacy and premium amenities.

Hotels often feature on-site restaurants, flat-screen TVs, and sometimes private hot tubs for unwinding after a day of adventure. Hotels in Iceland are popular for those seeking privacy and convenience, large groups, and travelers who prefer luxurious stays. Here are the top 3 hotels in Iceland:

1. The Reykjavik EDITION

The best hotel in Iceland is The Reykjavik EDITION, offering an unparalleled 5-star experience in the heart of Reykjavik. With its luxurious rooms, Michelin-recommended Tides restaurant, rooftop bar, and Nordic-inspired spa, it sets a high standard for accommodations in Iceland. Situated along the vibrant waterfront, it’s within walking distance of Harpa Concert Hall, the old harbor, and Reykjavik’s main attractions.

2. Sand Hotel

Sand Hotel is another top choice for travelers seeking boutique luxury in central Reykjavik. Located on the vibrant Laugavegur shopping street, this hotel offers stylish modern rooms and superior customer service. Guests can enjoy nearby cultural attractions like Hallgrimskirkja church, Reykjavik Art Museum, and Hljomskalagardur park.

A highlight of staying at Sand Hotel is Sandholt Bakery on the ground floor, serving a delicious breakfast and delectable treats. Its unbeatable location and sophisticated charm make it perfect for anyone looking to enjoy Reykjavik’s lively culture in comfort and style.

3. Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon is a premium 4-star hotel near Jokulsarlon glacier lagoon and Diamond Beach, making it an ideal choice for South Coast adventurers. The hotel offers a variety of luxury accommodations, from standard rooms to suites, all featuring countryside or glacier views.

Guests can unwind in the sauna, enjoy room service, or dine at the on-site restaurant, which serves fresh local produce and Icelandic delicacies. Its trendy design, great service, and proximity to Vatnajökull National Park ensure a memorable stay amidst Iceland’s natural wonders.

Top 3 Hostels in Iceland

Another popular type of accommodation is hostels in Iceland, especially for budget-conscious travelers and those looking to socialize. Some hostels provide shared kitchens and cozy common spaces, fostering a sense of community among guests. Hostels in Iceland are popular for budget travelers, solo adventurers, and those seeking a lively, social atmosphere. Here are the top 3 hostels in Iceland:

1. KEX Hostel 

KEX Hostel, housed in a former biscuit factory in Reykjavik, offers dorms and private rooms with a vibrant social scene, bar, and restaurant. It's centrally located near Hallgrimskirkja church and the Laugavegur shopping street.

2. HI Loft Hostel 

HI Loft Hostel is a lively, budget-friendly hostel in downtown Reykjavik. It features dorms with private bathrooms, a communal kitchen, and a rooftop terrace. Perfect for exploring Reykjavik’s main attractions.

3. Akureyri Backpackers

Akureyri Backpackers is a social, budget-friendly hostel in Akureyri. It features dorms, private rooms, a bar, and a restaurant. Ideal for exploring Lake Myvatn, Godafoss waterfall, and local attractions in northern Iceland.

Top 3 Guesthouses in Iceland

Guesthouses in Iceland offer a welcoming, home-away-from-home atmosphere, often run by locals eager to share their insider knowledge. Some include optional breakfasts and shared living spaces, creating a warm and social environment. Guesthouses in Iceland are popular for families and couples, travelers who enjoy a local, personal touch and solo travelers looking for affordable comfort. Here are the top 3 guesthouses in Iceland: 

1. Englendingavik Guesthouse 

Englendingavik Guesthouse is a cozy retreat on the waterfront of Borgarnes town in West Iceland. Surrounded by stunning views and birdlife, it features charming rooms with modern amenities. A shared hot tub, delicious Icelandic restaurant, and nearby attractions like the Settlement Center and Borgarnes swimming pool make it ideal for families and couples exploring the region.

2. Vogafjós Guesthouse 

Vogafjós Guesthouse, on the shores of Lake Myvatn in North Iceland, offers 26 classic Icelandic-style rooms with private bathrooms. Guests can enjoy local delicacies at its café, including geothermal-baked rye bread. Its proximity to Myvatn Nature Baths, Dimmuborgir, and Dettifoss makes it a perfect base for exploring North Iceland's natural wonders.

3. Sólheimahjáleiga Guesthouse 

Sólheimahjáleiga Guesthouse is a family-run gem nestled near the Solheimajokull glacier in South Iceland. Offering a mix of budget and en suite rooms, it boasts spectacular glacier views, hearty farm breakfasts, and easy access to South Coast highlights like Skogafoss waterfall, Reynisfjara beach, and Dyrholaey peninsula.

Top 3 Cottages in Iceland

Cottages in Iceland provide a private retreat in Iceland’s breathtaking countryside. These self-contained units typically include kitchens, bathrooms, and living spaces, making them perfect for families or groups seeking flexibility. Cottages in Iceland are popular for families or groups wanting a secluded stay in Icelandic nature and those preferring self-catered accommodations. Here are the top 3 cottages in Iceland:

1. Laugarvatn Geysir Cottages

Laugarvatn Geysir Cottages offer a tranquil retreat in the heart of Iceland’s famous Golden Circle. These cozy, self-catering cottages are surrounded by stunning nature and are minutes from attractions like Geysir hot spring and Gullfoss waterfall. Each cottage features modern amenities, a private terrace, and access to a hot tub, making it ideal for families and couples exploring Iceland’s iconic sights.

2. Lundur Cottage

Lundur Cottage is a charming getaway located near Thingvellir National Park. With stunning views of Lake Thingvallavatn, it provides a cozy space equipped with a full kitchen, a living room, and a terrace. Its proximity to Thingvellir, Geysir, and Gullfoss makes it a fantastic choice for those seeking a peaceful yet centrally located base to explore the Golden Circle.

3. Hestasport Cottages

Hestasport Cottages are perfect for travelers seeking a serene stay in North Iceland. Located near the village of Varmahlid, these beautiful cottages feature geothermal hot tubs, fully equipped kitchens, and panoramic views of lush valleys and mountains. Their location is ideal for exploring nearby hiking trails, horse riding tours, and attractions like the Holar Cathedral and Grettislaug hot spring.

Top 3 Holiday Apartments in Iceland

Combine the comfort of home with the convenience of a vacation stay with holiday apartments in Iceland. Ideal for longer trips, they include fully equipped kitchens, private bathrooms, and living areas, allowing travelers to save on dining costs. Apartment rentals in Iceland are popular for families with children, long-term visitors staying for weeks, and travelers who value space and flexibility. Here are the top 3 holiday apartments in Iceland:

1. Apartment Close to Nature

Apartment Close to Nature is a peaceful retreat just outside Reykjavik in the Kopavogur municipality. Surrounded by lush greenery, it offers a serene escape with a fully equipped kitchen, modern furnishings, and easy access to Reykjavik’s attractions. Ideal for travelers seeking a balance between city life and nature.

2. Manathufa Apartment 

Manathufa Apartment is a cozy, self-catering apartment in North Iceland, offering breathtaking views of surrounding mountains and farmland. Located near Akureyri and top attractions like Lake Myvatn, this charming apartment features modern amenities and is perfect for exploring the northern region.

3. The Garage Apartments

The Garage Apartments are beautifully designed holiday homes located along the South Coast near Seljalandsfoss waterfall. Each apartment boasts a private terrace with stunning mountain views, modern kitchens, and cozy furnishings, making it an excellent choice for exploring the area’s iconic attractions.

Top 3 Glamping and Unique Stays in Iceland

For a truly memorable experience, consider glamping in Iceland for a unique stay. Glamping or “glamorous camping” includes staying in places like a glass igloo hotel, volcano huts, and more.

These accommodations combine the thrill of being close to nature with modern luxury, offering spectacular views of Iceland’s landscapes and the northern lights. Glamping in Iceland is popular for couples on a romantic getaway, adventure seekers, and travelers wanting a one-of-a-kind stay. Here are the top 3 glamping and unique stays in Iceland:

1. Aurora Igloo

Aurora Igloo offers a magical experience in North Iceland, featuring glass-domed igloos perfect for viewing the northern lights. Each cozy igloo is equipped with comfortable beds, heating, and stunning views of the surrounding wilderness, providing a truly unforgettable glamping experience.

2. Fossatún Camping Pods 

Fossatún Camping Pods are charming, eco-friendly pods located near the Hraunfossar waterfalls in West Iceland. These insulated pods offer a warm and unique stay with shared cooking and bathroom facilities. The serene setting is ideal for hiking, fishing, and soaking in local hot tubs.

3. Volcano Huts

Volcano Huts provide a remote escape in the Thorsmork Nature Reserve. Surrounded by rugged mountains and lush valleys, these cozy huts are perfect for adventurous travelers. Guests can enjoy nearby hiking trails, geothermal hot pools, and the incredible beauty of Iceland’s Highlands.

Best Region To Stay in Iceland

Choose your ideal region to stay in Iceland depending on the attractions and experiences you wish to explore.

Reykjavik Hotels and Accommodations (Capital Region)

Hotels and accommodations in Reykjavik are the ultimate base for travelers seeking culture, cuisine, and convenience. The city offers a variety of accommodations, including luxury hotels, boutique stays, guesthouses, and serviced apartments. Staying in Reykjavik means that you’ll have easy access to attractions including: 

• Harpa Concert Hall

• Hallgrimskirkja Church

• Laugavegur (Reykjavik’s popular walking street) 

Reykjavik is also a great place to stay in Iceland for day trips to the Golden Circle and geothermal spas such as the Blue Lagoon. For more inspiration on where to stay, discover the top 10 hotels in Reykjavik. 

South Iceland Hotels and Accommodations 

Booking your accommodation in south Iceland is a great way to be close to nature, featuring iconic attractions like:

• Seljalandsfoss and Skogafoss waterfalls.

• Reynisfjara black sand beach.

• Jokulsarlon glacier lagoon.

Towns like Vik and Hofn have rustic cottages, guesthouses, and boutique hotels with stunning views. Due to high demand in peak seasons, early booking is essential.

North Iceland Hotels and Accommodations 

Hotels and accommodations in North Iceland offer tranquility, northern lights viewing, and unique stays. The town of Akureyri is a central hub, while highlights include:

• The Myvatn geothermal area with bubbling mud pools.

• Whale watching, hiking, and volcanic landscapes.

Stay in lakeside lodges, cozy guesthouses, or top hotels, many with geothermal hot tubs for added comfort.

Hotels and Accommodations in Other Popular Regions of Iceland

Explore diverse options across Iceland, including:

• Snaefellsnes Peninsula Accommodations: Guesthouses near volcanoes, glaciers, and coastal cliffs, perfect for exploring this "Iceland in Miniature."

• Westfjords Accommodations: Remote and tranquil stays ideal for wildlife enthusiasts, offering breathtaking views and access to untouched nature.

• East Iceland Hotels: Comfortable options in the heart of East Iceland, ideal for accessing the region's waterfalls, forests, and wildlife.

Wherever you choose, Iceland’s hotels and accommodations ensure comfort while immersing you in its breathtaking beauty.

When to Book Your Hotel in Iceland

To secure the best accommodations in Iceland, plan ahead according to the season. Here is a breakdown for each season: 

• Summer (June–August) brings nearly 24 hours of daylight and lush landscapes, making it a peak travel period when accommodations near popular spots like Reykjavik, the Golden Circle, and the South Coast are in high demand; booking 9–12 months in advance is recommended. 

• Winter (December–February) transforms Iceland into a snowy wonderland, perfect for northern lights hunting and ice caving, with prime stays near aurora hotspots filling up quickly, so book 6–9 months ahead. 

• Shoulder seasons (Spring and Autumn) offer a more relaxed and budget-friendly experience, with lower prices, thinner crowds, and the chance to enjoy blooming spring landscapes or vibrant autumn colors.

Booking at least 6 months in advance ensures you secure great deals and a wide range of options with Guide to Iceland.

What to Expect from Accommodations in Iceland

Staying in Iceland means experiencing clean Nordic design paired with the unique geothermal features of the country. Here's what makes accommodations here special:

• Hot Geothermal Showers: One of the unique highlights of staying in Iceland is the geothermal heating used all over the country. This eco-friendly system ensures rooms are cozy and showers are both powerful and consistently hot. After a long day exploring Iceland’s stunning landscapes, there’s nothing better than relaxing with a rejuvenating, naturally heated shower.

• Nordic Design: Rooms are often minimalist, focusing on functionality with clean lines, comfortable furnishings, and efficient geothermal heating systems.

• Breakfast Included: Many hotels and guesthouses include a hearty breakfast with Icelandic specialties like smoked fish, fresh bread, and Skyr yogurt.

• Unique Features: Some hotels offer northern lights wake-up calls, ensuring you never miss nature's spectacular show.

• Hot Tubs and Saunas: Some stays include geothermal hot tubs or saunas, adding a luxurious and relaxing touch to your stay.

• Limited Choices During Popular Seasons: Accommodation options in Iceland can be limited during peak travel seasons, so booking well in advance is essential to secure your preferred stay.

Hotels and Accommodations in Iceland on a Budget

Traveling to Iceland on a budget is possible with a bit of planning. Opt for budget-friendly options like hostels, guesthouses, or glamping, which offer affordable rates. Some guesthouses include shared kitchen facilities, allowing you to save on dining costs by preparing your meals yourself. 

Booking early is crucial, as the most affordable accommodations fill up quickly, especially during peak travel seasons. Additionally, consider traveling during the shoulder months (May and September) when prices are lower.

Start Planning Your Stay in Iceland Today

Whether you’re after a luxury escape, a cozy guesthouse, or a scenic cottage, Iceland has accommodations to make your trip unforgettable. Find the best accommodation in Iceland to suit your preferences and budget by scrolling up to the top of this page.

If you are having any trouble booking accommodation, please contact us at info@guidetoiceland.is and we will help you source something to suit your needs with the best price guaranteed!