Best Hotels in Iceland — Biggest Selection & Lowest Prices Guaranteed

Best Hotels in Iceland — Biggest Selection & Lowest Prices Guaranteed

Discover the top hotels in Iceland’s largest travel marketplace, all with a best-price guarantee. Whether you’re seeking a chic hotel in Reykjavik or a budget-friendly stay along the South Coast, explore our incredible selection of unique accommodations tailored to your needs.

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Hotels & places to stay in all the top cities in Iceland

Your Guide to the Best Hotels in Iceland

Iceland attracts travelers for many reasons, from its otherworldly landscapes to its rich cultural heritage. Some come to witness the spectacular northern lights, while others seek the thrill of road trips along the famous Ring Road. Many visitors also explore Reykjavik's vibrant culture and nightlife for a few days.

No matter the reason for your visit, the top places to stay in Iceland offer the perfect home away from home, providing the comfort and relaxation you need to recharge and fuel your next adventure.

What To Expect From Iceland Hotels? 

Iceland offers a wide range of accommodation options for all kinds of travelers. Here’s a look at what you can expect when booking hotels in Iceland:

  • A Range of Options - There are various accommodations to suit every traveler, from hotels to cozy cottages, apartments, guesthouses, and hostels in Iceland. Whether you're looking for family-friendly hotels, pet-friendly accommodations, or eco-lodges focused on sustainability, you'll find your perfect accommodation in Iceland. There are many hotels in Iceland's larger cities, but you'll also find excellent options if you venture into some of Iceland's underrated gems.

  • Amenities Tailored to Your Needs - Iceland's hotels offer modern amenities such as free Wi-Fi, flat-screen TVs, and minibars, along with additional facilities like spas, gyms, and on-site restaurants. For budget-conscious travelers, shared dorms with kitchens and laundry areas are available. If you're looking to indulge, Iceland's luxury hotels feature penthouse suites. Hotels near Keflavik Airport and other airports in the country often offer the added convenience of airport shuttles.

  • Proximity to Iceland's Must-See Sites - Hotels in Iceland are often strategically located for easy access to the country's best attractions. Whether you're staying in Reykjavik to explore its culture and nightlife or in rural areas near glaciers, you'll be well-positioned to do so. Stays near the Golden Circle gives you quick access to Thingvellir National Park and the Geysir geothermal area, both within an hour's drive. Many hotels in Iceland are also conveniently located along the Ring Road, ideal for road trip travelers.

  • Novelty for a Unique Iceland Experience - For those looking to experience something beyond Iceland's well-known spots, there are plenty of unique accommodations to explore. Choose from volcano huts, rural cottages, or charming farm stays in Iceland. If you're visiting in the summer, glamping offers a comfortable yet adventurous way to experience Iceland's nature up close. The Highlands, one of the less-traveled areas, is a perfect addition to your list if you prefer venturing off the beaten path.

  • Access to Tours and Rentals in Iceland - Staying in hotels in Iceland also connects you to some of the best car rentals and tours in the country. Many tour operators use large hotels in the capital city as convenient pickup points for tours and day trips that depart from Reykjavik. Choosing a central location makes it easy to join excursions directly from where you're staying. This added convenience is one of the many benefits of staying in well-located hotels in Iceland.

How To Pick Your Iceland Hotel

One of the primary considerations when picking where to stay in Iceland is the sights you want to check off your bucket list. Do you want to explore self-drive tours in Iceland or join tours around the Ring Road? If proximity to famous landmarks is a priority, you'll be pleased to know that many hotels in Iceland are conveniently located near iconic spots.

For example, Fosshotel Glacier Lagoon is situated next to the stunning Jokulsarlon glacier lagoon, while Hotel Skoga in Hvolsvollur is just a 5-minute walk from the famous Skogafoss waterfall. If you plan to stay in Reykjavik, pick one that's in the city center, like Midgardur by Center Hotels. Some other things to consider are your budget, the length of your stay, and timing.

Camping in Iceland is an excellent option in the summer but not ideal in winter. For those on a northern lights hunt, igloo hotels are a unique winter experience, offering the perfect spot to view the magical auroras. The easiest way to guarantee accommodation wherever you're going in the country is by booking vacation packages in Iceland. This ensures that all your preferences are taken into account.

Hotels Near Iceland's Must-Visit Spots

If you're looking to stay near Iceland's iconic attractions, here are some great hotels that offer both convenience and comfort:

Where To Stay Near the Blue Lagoon

To stay close to the Blue Lagoon, choose from hotels near Keflavik Airport, just 15 minutes away from this stunning spa. Hotel Berg is a great option, offering an airport shuttle for added convenience. Getting to the Blue Lagoon is easy with plenty of car rentals at Keflavik Airport, or you can book a transfer directly to the Blue Lagoon. There's also more to the Keflavik area (think volcanoes and museums) than just a transit hub to other parts of the country. 

Where To Stay In Snaefellsnes Peninsula

Staying in Hotel Snaefellsnes places you in the heart of the Snaefellsnes peninsula, often called "Iceland in miniature." One of the most iconic landmarks here is Mount Kirkjufell, famous for its appearance in Game of Thrones, located just 35 minutes away from the hotel. If you book an Iceland vacation package that includes the Snaefellsnes peninsula, choosing hotels in Snaefellsnes for an overnight stay is a fantastic option.

Where To Stay In Westfjords

Hraunsnef Country Hotel welcomes you on your journey to the Westfjords. Self-drive tours in Iceland are an excellent way to explore this remote and sparsely populated region. The Westfjords Way, also known as Iceland's Ring Road 2, opened in 2020 and offers one of the most breathtaking drives, circling the stunning region. While there, don't forget to visit popular landmarks such as Hornstrandir Nature Reserve, Latrabjarg cliffs, and Dynjandi waterfall. 

Where To Stay In North Iceland

Hotel Kea, the only 4-star hotel in Akureyri, North Iceland's charming town, provides views of Eyjafjordur and an unbeatable location just steps from the town's iconic landmarks. You'll enjoy views across Eyjafjordur and be within easy reach of all the major sights. While in the region, consider going dog-sledding in Myvatn or horseback riding in North Iceland's countryside. For other ideas, check out the must-see places in North Iceland

Where To Stay In East Iceland

Hotel 1001 Nott, one of the top hotels in East Iceland, offers modern rooms with stunning mountain or lake views. Located on the banks of Lake Lagarfljot and surrounded by Iceland's largest forest, this hotel offers easy access to Egilsstadir. The Eastfjords, with their dramatic landscapes, beautiful bays, and small villages, offer some of the sunniest weather in the country and are home to Iceland's incredible wildlife, including puffins, seals, reindeer, and foxes.

Luxury Hotels In Iceland 

For those looking to experience Iceland in the most luxurious way possible, luxury hotels are available throughout the country. For the ultimate in comfort and convenience, you can also explore luxury tours and vacation packages in Iceland.

Hotel Jokulsarlon (Glacier Lagoon Hotel)

Hotel Jokulsarlon offers an exceptional opportunity to experience the beauty of Southeast Iceland's natural wonders. The suites are perfect for those seeking extra space, with floor-to-ceiling windows, a king-size double bed, a living room, a sofa bed, and a bathtub. All rooms have comfortable bedding, en-suite bathrooms, espresso machines, and Wi-Fi access.

Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon is a 4-star hotel nestled in a breathtaking location near the iconic Jokulsarlon glacier lagoon on Iceland's South Coast. The hotel offers a range of elegant rooms, from spacious family suites to luxurious accommodations for couples and solo travelers. Guests can indulge in exquisite dining at the on-site restaurant, a welcome and convenient retreat in a remote setting. 

Midgardur by Center Hotels

Located in the heart of Reykjavik, Midgardur by Center Hotels is a 4-star hotel that offers easy access to major attractions. Harpa and downtown Reykjavik are just a 20-minute walk away. Book a Superior Room to enjoy access to the luxurious Midgardur Spa, which features geothermally heated hot tubs, a sauna, and a range of massage treatments.

Hotel Geysir

Hotel Geysir is located by the Geysir geothermal area on Iceland's Golden Circle. It's surrounded by bubbling springs and geysers. The hotel offers a variety of rooms, including the expansive Geysir Suite for those seeking ultimate luxury. Guests can enjoy five on-site restaurants, with the Geysir Restaurant and Geysir Glima Restaurant offering the finest dining experiences.

Budget-Friendly Accommodations In Iceland

If you're looking to explore Iceland on a budget, hostels are the best option. To save even more, check out this selection of tour combo deals in Iceland for discounts on your adventures.

The Freezer Hostel

The Freezer Hostel offers affordable prices if you book months in advance. Located on the Snaefellsnes peninsula, this lively hostel is renowned for its cultural center and theater. Situated in the coastal village of Rif, it features dormitory-style rooms, making it an affordable and welcoming option for travelers.

Husey Hostel & Horse Farm

Husey Hostel & Horse Farm is a remote hostel located in a tranquil bay in the Eastfjords with good rates if booked well in advance. You'll find a black sand beach and a glacial river within walking distance. The hostel offers twin rooms and family rooms for two or three guests. You're also invited to explore the farm and meet the friendly Icelandic horses.

KEX Hostel

KEX Hostel in Reykjavik offers spots in an 8-bed dormitory. Popular with both locals and foreign travelers, KEX is known for its lively atmosphere, live music, and social environment. It's a great place to meet fellow travelers and is conveniently located just off Reykjavik's seafront, a short walk from the main shopping street, Laugavegur.

Frequently asked questions

What are the best hotels in Reykjavik?

Hotel Eyja Guldsmeden: A modern, bohemian hotel just off Laugavegur, offering a peaceful retreat away from the tourist crowds yet still within walking distance of major attractions. The hotel’s charm lies in the style of its rooms, described as ‘unstructured maximalism’.
Reykjavik Residence Hotel: This hotel features apartment-style accommodations in the vibrant heart of Reykjavik. Enjoy spacious rooms, a central location, and modern amenities, perfect for those seeking both luxury and convenience.
Iceland Parliament Hotel: Located in the heart of Reykjavik, this elegant hotel offers 163 rooms and suites, an on-site restaurant, a spa, and meeting spaces, making it an excellent choice for both leisure and business travelers.

What is the best hotel in South Iceland?

Torfhus Retreat is the best hotel in South Iceland, offering an exclusive luxury experience. Located near Selfoss within the Golden Circle, this eco-luxury hotel combines Viking-inspired architecture with modern amenities. Guests can enjoy geothermal baths, gourmet dining featuring local ingredients, and accommodations that seamlessly blend rustic charm with contemporary luxury.

What is the best hotel in East Iceland?

Hotel 1001 Nott is one of the top hotels in East Iceland. It offers stunning mountain or lake views from every modern room. Located on the banks of Lake Lagarfljot and surrounded by the country’s largest forest, this hotel provides easy access to Egilsstadir, East Iceland’s capital city.

What is the best hotel on the Snaefellsnes peninsula?

Hotel Snaefellsnes is one of the best hotels on the Snaefellsnes peninsula. This eco-friendly, family-run hotel is nestled amidst stunning landscapes. Within just 15 minutes, you can reach attractions like the Ytri Tunga seal-watching beach and the basalt cliffs of Gerduberg. In 25 minutes, you can explore the historic town of Stykkisholmur and the abandoned village of Budir.

What is the best hotel in North Iceland?

Hotel Kea is the best hotel in North Iceland. As the only 4-star hotel in Akureyri, this charming hotel offers stunning views of Eyjafjordur and an unbeatable location just steps from the town's iconic landmarks. The Church of Akureyri, Akureyri Art Museum, Hof Cultural Centre, and the public swimming pool are all within close proximity.

Do hotels in Iceland provide parking?

Most hotels in Iceland offer on-site parking for guests. However, Reykjavik's historic city center is quite compact, and large parking lots are limited. As a result, hotels in the city center may not always have parking available. In such cases, you may need to park your rental car in one of the many parking garages downtown.

Do hotels in Iceland provide WiFi for guests?

Yes, all hotels in Iceland provide free Wi-Fi for their guests. As one of the most connected countries in the world, Iceland ensures that internet access is readily available for travelers.

Do hotels in Iceland offer breakfast?

Most hotels in Iceland offer breakfast on-site for their guests. Whether it's included in the booking or available for an additional fee depends on the hotel. Be sure to check the hotel’s description to confirm whether breakfast is complimentary.

What is the best hotel in Iceland?

Black Beach Suites is the best hotel in Iceland based on traveler ratings. Located just outside the charming town of Vik, it is a short distance from the iconic Reynisfjara black sand beach and the unique Dyrholaey rock arch.
This prime location offers breathtaking ocean views and is a popular nesting site for puffins. The suites feature comfortable beds, stunning sea views, kitchenettes, private bathrooms, Wi-Fi, and parking.

Where did the Kardashians stay in Iceland?

The Kardashians stayed at Hotel Ranga, which is famously located in a prime area for viewing the northern lights.
Set in the scenic countryside of southern Iceland, Hotel Ranga is a luxurious property that offers easy access to some of Iceland's most famous natural attractions and cultural sites.

What are the best 5 star hotels in Iceland?

The Reykjavik EDITION is the top 5-star hotel in Iceland. Located in the heart of Reykjavik, just steps from the vibrant harbor and main attractions, it offers 253 stylish rooms and suites with modern amenities.
With an in-house spa, multiple bars, and a Michelin-recommended restaurant, it’s the perfect choice for travelers seeking luxury and convenience in Reykjavik's lively downtown.

Where is the best place to stay in Iceland?

Stay in Reykjavik to explore the city, go shopping, and try the local cuisine.
Stay by the Golden Circle to visit iconic sites like Thingvellir, Geysir, and Gullfoss.
Stay on the South Coast to explore Jokulsarlon glacier lagoon, black sand beaches, and waterfalls.
Stay in North Iceland to go whale watching and visit Lake Myvatn.

What Iceland hotel chains can I book?

Iceland offers several hotel chains, each with unique options for travelers:
Fosshotels: Known for hotels like Fosshotel Glacier Lagoon, a popular choice in South Iceland.
Design Hotels: Includes the stylish Ion Adventure Hotel.
Keahotels: Features hotels like Skuggi and Storm.
Center Hotels: A well-known chain with properties like Midgardur.
Curio Collection by Hilton: Includes the luxurious Iceland Parliament Hotel.

What is the best hotel in Iceland to see the northern lights?

Efstidalur Farm Hotel offers a cozy stay with the unique opportunity to view the northern lights from your own hotel bedroom. Situated in the heart of the Golden Circle, it’s ideally located near the iconic sights of Geysir, Gullfoss, and Thingvellir.
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