Types of Accommodation in Iceland

Accommodation in Iceland spans every style of stay, from full-service hotels and guesthouses to self-catering apartments and farm stays. Each type is suited for different travel needs, so the right choice depends on your budget, preferred comfort level, group size, and itinerary.

Most visitors explore Iceland by rental cars or on self-drive tours, so location matters just as much as the type of accommodation. Stays along the Ring Road, South Coast, or Golden Circle can reduce daily driving and keep you closer to major sights. Hotels in Reykjavik work well for city breaks, while countryside stays put you closer to waterfalls, glaciers, and quiet trailheads.

This guide compares the main types of accommodation in Iceland and explains who each suits best. You can find options for solo travelers, couples, families, road-trippers, and budget travelers, with featured stays in each category.

Best Hotels in Iceland

Hotels in Iceland offer the most services in one place, from on-site restaurants to daily housekeeping and private bathrooms. These stays suit travelers who value comfort and convenience, whether in the capital or beside major attractions in Iceland.

• Skuggi Hotel: This 3-star hotel near Laugavegur Street puts downtown Reykjavik within easy reach. Choose from different room types, all with private bathrooms and tea and coffee facilities. A free breakfast, bar, and lounge make it easy to relax between city outings.
• Hotel Katla: This 3-star hotel near Vik is a convenient base for exploring Reynisfjara Black Sand Beach and South Iceland's glaciers. Guests can unwind in the outdoor geothermal hot tub or sauna, then enjoy local dishes at the on-site restaurant.
• Hotel Grimsborgir: This 4-star hotel in the Golden Circle is ideal for exploring Thingvellir National Park, Gullfoss Waterfall, Geysir, and Kerid Crater. Private and communal outdoor hot tubs, an on-site restaurant, and wake-up calls for the northern lights add extra convenience.
• Siglo Hotel: This 4-star harborfront hotel in Siglufjordur puts the Herring Era Museum within walking distance. Each room offers fjord views, while an on-site restaurant, lobby, bar, outdoor hot tub, and sauna make relaxing easy.
• Hotel Jokulsarlon: This 4-star hotel is about a 10-minute drive from Jokulsarlon Glacier Lagoon and Diamond Beach. Its 120 rooms and suites include mountain and glacier views, while two hot tubs, a sauna, and a panoramic restaurant offer comfort after sightseeing.

Best Guesthouses in Iceland

If you want an affordable alternative to hotels, guesthouses in Iceland often provide access to kitchens, fewer crowds, and a home-like atmosphere. They suit Ring Road road-trippers, families who want kitchen access, and travelers seeking a quieter rural stay.

• Bjarg Borgarnes: Set in a renovated farmhouse, this waterfront guesthouse in West Iceland serves a daily breakfast buffet. Choose from double and family rooms, a studio apartment, or a private cottage with a full kitchen.
• Solheimahjaleiga Guesthouse: This family-run farm guesthouse on the South Coast sits near Solheimajokull Glacier and is about a 15-minute drive from Skogafoss Waterfall, making it an ideal base for South Coast sightseeing. Guests can enjoy panoramic views and a hearty breakfast.
• Brunnholl Country Guesthouse: This guesthouse near Hofn has an on-site restaurant and famous on-site ice cream. Vatnajokull Glacier is just 3.7 miles (6 kilometers) away, making it perfect for travelers looking for ice cave tours and glacier hikes.
• Horgsland Guesthouse: Located between Vik and Hofn, Horgsland is a practical stop for Ring Road road trippers. Choose between traditional guesthouse rooms and timber cottages with kitchens, with Fjadrargljufur Canyon about 20 minutes away.
• Klausturhof Guesthouse: This Kirkjubaejarklaustur guesthouse stands below Systrafoss Waterfall. It offers a choice of private or shared bathrooms and rooms for one to four guests. Free WiFi and parking are included, with a continental breakfast served each morning.

Best Apartments in Iceland

Apartments in Iceland provide extra space and self-catering facilities, making them practical for families and groups of friends. Many include kitchens, separate living areas, or laundry facilities. Apartments in Reykjavik and apartments in Akureyri are common, some with grocery stores nearby so you can prepare your own meals.

• Reykjavik Residence Apartment Hotel: This 4-star apartment hotel puts you in central Reykjavik, close to Hallgrimskirkja and Harpa Concert Hall. Set in renovated historic buildings, its self-catering studios and suites give you more space and the flexibility to prepare meals.
• Stay Apartments Bolholt: These Reykjavik apartments come in studio, one-, and two-bedroom layouts, with some offering mountain or city views. Full kitchenettes, free WiFi, and parking make them a practical choice for families and longer stays.
• Saga Circle Villas: These luxury villas near Selfoss offer space for families and small groups, with kitchenettes and private hot tubs. Thingvellir National Park is about 17 miles (28 kilometers) away, making the property a convenient base for exploring the Golden Circle.
• Stay Apartments Einholt: An apartment complex near Hlemmur Bus Station offers fully equipped kitchenettes, free WiFi, and parking. Its central location makes it convenient for independent travelers and families exploring Reykjavik.
• Bakki Apartments & Hostel: This affordable property in coastal Eyrarbakki offers private self-catering apartments and budget dorms near the ocean. It is less than an hour from Reykjavik and the Golden Circle, making it a convenient base for exploring South Iceland.

Best Bed and Breakfasts in Iceland

Bed and breakfasts in Iceland pair a private room with breakfast on-site, which is especially useful since early-opening restaurants are rare outside Reykjavik. Often family-run or small in scale, they also offer a more personal stay and helpful local tips for your journey.

• Guesthouse Skalafell: This guesthouse near Jokulsarlon Glacier Lagoon and Vatnajokull National Park is a convenient base for glacier adventures in Iceland. An on-site restaurant, mountain and glacier views, and a terrace add to its appeal.
• KEF Guesthouse: This guesthouse near Keflavik International Airport makes early flights and late arrivals easier, with a complimentary airport shuttle and early breakfast buffet. The Blue Lagoon is about a 20-minute drive away from the property.
• Lilja Guesthouse: A family-run guesthouse near Hofn with mountain and glacier views, plus an on-site restaurant and bar. Its quiet countryside setting and low light pollution make it an excellent choice for travelers hoping to see the northern lights.
• Guesthouse Brekka: Set near the Laxa River, this family-run guesthouse offers 41 rooms and an on-site restaurant serving a continental buffet. Its location between Lake Myvatn and Husavik makes it a convenient base for whale watching and North Iceland sightseeing.
• Sel Guesthouse: This intimate 9-room guesthouse near Fludir in the Golden Circle region has welcomed guests since 1974. A generous breakfast and peaceful rural setting make it a comfortable base, with South Coast waterfalls about an hour away.

Best Farm Stays in Iceland

Farm stays in Iceland let you experience the quiet countryside, with working farms, open landscapes, and a closer look at rural life. You can meet farm animals, enjoy local food, or join activities such as horseback riding, while the low light pollution creates better conditions for northern lights viewing.

• Arnanes Country Hotel: This 3-star farm hotel near Hofn offers wide views of glaciers and mountains. Its 22 rooms include private or shared facilities, with breakfast and free parking. Vestrahorn Mountain rises about ten minutes away.
• Eldhestar Hotel: This eco-friendly hotel sits on a working horse farm near Hveragerdi and includes free breakfast. It has rooms with private entrances, an outdoor hot tub, and an on-site restaurant.
• Midhraun Lava Resort: This family-friendly farm stay on the Snaefellsnes Peninsula offers rooms, cottages, apartments, and houses. Geothermal baths, a sauna, and an on-site restaurant make it easy to relax after exploring the peninsula.
• Farmhouse Lodge: This farm stay near Vik puts you close to black sand beaches, glaciers, and volcanoes. Choose from solo, double, or triple rooms that suit different budgets. With dark skies and little light pollution, it is perfect for northern lights viewing.
• Efstidalur Farm Hotel: This family-run Golden Circle hotel sits about 15 minutes from Geysir and 30 minutes from Gullfoss Waterfall. Rustic rooms, a farm-to-table restaurant, homemade ice cream, and a hot tub let you experience Icelandic farm life between sightseeing stops.

Best Cottages in Iceland

Cottages in Iceland give you more privacy and the freedom of self-catering, often with your own private kitchen, hot tub, and outdoor space with views of mountains, fjords, or lava fields. You will find many cottages in South Iceland and cabins in North Iceland, where you can enjoy a quiet base close to nature.

• Blue View Cabins: Self-catering cabins near Reykholt on the Golden Circle, each with a private bathroom, outdoor hot tub, and fully equipped kitchen. Choose a one-bedroom cabin for two or a larger cabin for up to four people. Gullfoss Waterfall is about a 30-minute drive away.
• Seljalandsfoss Horizons: Eight luxury log lodges just a 4-minute drive from Seljalandsfoss Waterfall on the South Coast. It offers a secluded setting with mountain views and minimal light pollution, making it a good spot for northern lights viewing.
• Volcano Huts: A practical base for exploring Thorsmork, this mountain retreat offers cabins, a geothermal pool, sauna, and on-site restaurant. It is especially convenient for hikers tackling the Laugavegur Trail, with a location close to several popular hiking routes.
• Bragdavellir Cottages: Rustic log cabins near Djupivogur in East Iceland, with mountain and ocean views and the Barn Restaurant next door. Located far from other buildings, the cabins offer a secluded stay, making them a good base for northern lights viewing.
• Holaskjol Highland Center: A remote Highland stay near Kirkjubaejarklaustur, offering cabins with kitchenettes, private bathrooms, and mountain views. It is a practical base for travelers exploring the Southern Highlands and looking for a self-catering place to stay.

Best Hostels in Iceland

Hostels in Iceland offer an affordable place to stay while making it easy to meet other travelers. Dorms and shared kitchens help keep costs down, while many hostels also have private rooms if you want a lower price without giving up your own space.

• Kex Hostel: This waterfront hostel is housed in a former biscuit factory in central Reykjavik. Choose dorms or private rooms, then catch the regular live music and jazz nights that fill its bar with locals as well as guests.
• The Barn: A design hostel near Vik with dorms, double rooms, and family rooms around a shared kitchen and bar. Its biggest draw is location, with Reynisfjara Black Sand Beach about a five-minute drive away and mountain views from some rooms.
• Akureyri Backpackers: Located right on Hafnarstraeti, this central hostel in Akureyri sits steps from restaurants and the harbor. Beyond dorms and private rooms, it runs its own cafe, bar, and sauna. Godafoss Waterfall lies 21 miles (34 kilometers) away.
• The Fox Hostel: A converted barn in Hrifunes Nature Park offering budget dorm rooms, plus an on-site pizzeria. Its location near the Ring Road makes it a practical base for exploring Iceland's glacier attractions.
• Hofn HI Hostel: This accommodation in Hofn offers dorms and private rooms, a shared kitchen, and mountain views. Its convenient location makes it a practical base for travelers visiting Vatnajokull National Park, Jokulsarlon Glacier Lagoon, and Diamond Beach.

Best Glamping in Iceland

Glamping in Iceland gives you the outdoor experience without giving up basic comforts. Skip the hassle of pitching tents, enjoy real beds and heating, and get front-row views of mountains, fjords, starry skies, and the northern lights in winter.

• Buubble Olvisholt: Sleep in a transparent dome surrounded by pine trees near a farm in Selfoss. Each of the nine bubbles has a private entrance, with a shared service house providing additional facilities nearby.
• Aurora Igloo: Enjoy a glamping experience in Hella, where you can watch the night sky and northern lights from bed. Standard igloos have shared bathroom and shower facilities a short walk away, while private igloos include their own bathroom for added privacy.
• Aurora Igloo North: This heated transparent dome near Hvammstangi features a double bed, 360-degree views of the sky, and privacy curtains for a more comfortable stay. It is about 5 miles (8 kilometers) from Kolugljufur Canyon.
• Buubble Hrosshagi: These forest bubbles near the Golden Circle let you sleep beneath a transparent roof while staying close to major sights. Geysir Geothermal Area, Gullfoss Waterfall, and the Secret Lagoon are all within easy driving distance.
• Fossatun Camping Pods: These wooden pods in West Iceland offer a simple glamping experience with shared kitchen facilities and outdoor hot tubs. The property also has a themed restaurant, troll garden, and walking trails for an easygoing stay.

How To Choose the Right Accommodation in Iceland

The best accommodation in Iceland depends on your route, trip length, budget, and travel style. Stay in Reykjavik for short trips and easy access to restaurants and day tours in Iceland.

For road trips, choose multiple accommodations along the Ring Road that break up the distance between regions. Icelandic countryside stays can put you closer to nature and the top attractions in Iceland.

From city hotels and apartments to remote cottages and glamping, Iceland offers accommodation for almost every type of trip. Compare your options by location, facilities, and distance from your planned stops, then choose stays that make your itinerary in Iceland easier.