The Best Hotels in Iceland: A Study of 115 Hotels

We analyzed 115 hotels in Iceland listed on Guide to Iceland, Iceland's biggest travel marketplace. The study rests on 268,578 guest reviews from Google and Booking.com, our own customer reviews, prices paid across 36,866 booked room-nights, and hotel rates checked monthly for the next 12 months.

The study identifies the highest-rated hotels, the cheapest worth staying in, and the best-value hotels that score higher than their prices suggest. The highest-rated hotel in Iceland is Black Beach Suites in Vik, at 65,294 ISK per night. Fosshotel Myvatn is the best-value hotel at 32,494 ISK per night, while Hotel Skulagardur near Asbyrgi is the cheapest hotel worth booking.

Choosing among the hotels in Iceland is harder than it looks. Prices for a single night run from around 22,000 ISK to almost 80,000 ISK, and almost every property has strong reviews. With strong reviews almost everywhere, it's hard to tell whether a higher rate actually buys a better hotel stay in Iceland.

To find out whether a higher price buys a better hotel, we looked at what guests rate, what they actually paid, and how prices change through the year. A hotel's price in Iceland explains surprisingly little about how guests rate it. Some of the country’s best-rated stays cost less than the national median, and the most expensive stretches of the Ring Road don't rate any better for it.

This study covers hotels in Iceland only, not hostels, guesthouses, or apartments. The study ranks the top picks nationally, names the best hotel in each region, and shows what to expect month by month for the year ahead.

Key Findings of This Iceland Hotels Study

• The highest-rated hotels in Iceland are all outside Reykjavik. Black Beach Suites in Vik tops the index, followed by Siglo Hotel, Hotel Jokulsarlon, Magma Hotel, and Hofsstadir Country Hotel.

• Reykjavik is cheaper than the rest of the country, not pricier. Capital-area hotels have a median of 38,100 ISK per night against 44,100 ISK elsewhere, and guests rate them the same.

• Fosshotel Myvatn is the best value hotel in Iceland. At 32,494 ISK per night, Fosshotel Myvatn scores 95.8 on the index. Fosshotel Myvatn's rate is closer to the hotels on the cheapest list than to anything else rated 95 or higher.

• Paying more barely buys a better hotel in Iceland. The nightly rate explains only 23% of the variation in how guests rate a hotel. Going from the cheapest quarter of hotels to the most expensive costs 67% more for a rating only half a point higher.

• Hotel prices in Iceland vary 3.6-fold, while ratings hardly vary at all. The median hotel costs 43,873 ISK (about 365 USD) per night, ranging from 22,160 to 79,771 ISK. Meanwhile, 84% of hotels sit between 4.1 and 4.7 on Google.

• Good hotels in Iceland start at around 25,000 ISK per night. Hotel Skulagardur near Asbyrgi is the cheapest hotel in the study that still rates above average, at 25,680 ISK per night.

• The Jokulsarlon coast is the most expensive stretch in Iceland. The corridor's median of 50,475 ISK per night is 16% above the rest of the country, and its ratings aren't any better. The exception is the four hotels closest to Jokulsarlon Glacier Lagoon, which are expensive but rate highly.

• Hotels near Keflavik Airport are the cheapest but the lowest rated. The Reykjanes Peninsula has the weakest hotel ratings of any region in the study. People book hotels near the airport for the flight, not the stay.

• A July night costs about twice as much as a December one. The median rate is 47,993 ISK in July against 21,844 ISK in December. Winter is cheap partly because hotels close: only ten of the fifteen top hotels sell a room on a January night, against all fifteen in May.

• Breakfast is what guests argue about most. It's the most praised subject and the most common complaint. Room temperature, room size, bathroom, and thin walls all draw more complaints than praise.

The Highest-Rated Hotels in Iceland

The five highest-rated hotels in Iceland received the highest combined guest ratings in the study, regardless of price. None of the five highest-rated hotels is a budget option.

1. Black Beach Suites, Vik: 65,294 ISK per night, index 100.0, 4,839 reviews.

   • Black Beach Suites offers modern studio suites on the road to Reynisfjara, with floor-to-ceiling windows overlooking the black sand coast. Guests praise the views and spacious suites. Common complaints include having to check in at the hostel across the road and the lack of food service on site.

2. Siglo Hotel, Siglufjordur: 50,745 ISK per night, index 98.9, 2,517 reviews.

   • Siglo Hotel is a marina hotel in a former herring town in the far north, with an outdoor hot tub overlooking the water and a restaurant that guests rate as highly as the rooms. Siglo Hotel's main drawback is the location, which requires a roughly two-hour detour from the Ring Road.

3. Hotel Jokulsarlon, Southeast Iceland: 59,052 ISK per night, index 98.7, 3,204 reviews.

   • Opened in 2024, Hotel Jokulsarlon sits along a remote stretch of the glacier coast, with hot tubs and a cold plunge on a deck facing the mountains. Guests praise the setting, spa deck, and restaurant. Breakfast is not included in the room rate, the most common complaint, and the nearest alternative dining options are about 15 minutes away in either direction.

4. Magma Hotel, near Kirkjubaejarklaustur: 69,098 ISK per night, index 97.7, 1,835 reviews.

   • Magma Hotel's turf-roofed cabins are scattered around a lake, with a separate restaurant building. Magma Hotel is the most expensive hotel across all three lists. Guests value the privacy and dark skies, though the cabins are compact and the restaurant is the only dining option for miles.

5. Hofsstadir Country Hotel, Skagafjordur: 51,020 ISK per night, index 97.5, 1,542 reviews.

   • Hofsstadir is a family-run country hotel on a working horse farm, with every room facing a wide valley. Guests praise the food as well as the views, though some find the rooms sparse for the price and note that noise carries between rooms.

None of these five hotels is in Reykjavik, and you can reach each one easily by car. If you're planning a road trip, compare options for car rental in Iceland.

The Cheapest Hotels in Iceland That Are Worth Booking

The five cheapest hotels in this study are ranked by nightly rate among properties that score above the study average on both Google and Booking.com. The quality threshold matters: a low price is only a good deal if guests are happy with their stay.

1. Hotel Skulagardur, Asbyrgi: 25,680 ISK per night, index 90.9, 1,073 reviews.

   • Hotel Skulagardur is a former boarding school from the 1950s converted into a country hotel in northeast Iceland, near Asbyrgi Canyon and about 30 minutes from Husavik. Hotel Skulagardur has spacious communal areas, a guest kitchen, free coffee throughout the day, and simple, compact bedrooms.

2. Eldhestar Hotel, Olfus: 29,333 ISK per night, index 90.8, 3,369 reviews.

   • Eldhestar is a riding-farm hotel about 40 minutes from Reykjavik, well placed for exploring the Golden Circle and starting a trip along the South Coast. Guests come for the horses and praise the breakfast.

3. Reykjavik Lights Hotel, Reykjavik: 32,083 ISK per night, index 90.0, 6,260 reviews.

   • Reykjavik Lights is a modern mid-range hotel in Laugardalur, about a 12-minute drive from downtown, with free covered parking and nearby Flybus and tour pickups. Rooms are small, and opinions on the location vary.

4. Storm Hotel, Reykjavik: 32,197 ISK per night, index 90.6, 5,209 reviews.

   • A minimalist hotel within a 15- to 20-minute walk of central Reykjavik, with tour pickups at bus stop 12 outside and a small free car park behind the building. Breakfast is included in Storm Hotel's rate. Rooms are functional, while the wet-room bathrooms receive mixed reviews.

5. Fosshotel Reykholt, Borgarfjordur: 32,402 ISK per night, index 92.1, 1,902 reviews.

   • Fosshotel Reykholt is a quiet hotel in a historic settlement in West Iceland, with a geothermal pool nearby. Fosshotel Reykholt's setting and facilities make it a good place to spend a night exploring the region rather than simply stopping to sleep.

The Best Value Hotels in Iceland

In this study, best value means scoring higher than expected for a hotel's nightly rate. Because more expensive hotels tend to receive slightly higher ratings, we estimated the score each hotel should earn at its price and measured how far its actual score exceeded that estimate.

The five best-value hotels beat that benchmark by the widest margins, offering higher ratings than their prices alone would suggest.

1. Fosshotel Myvatn, Lake Myvatn: 32,494 ISK per night, index 95.8, 3,276 reviews.

   • Fosshotel Myvatn is a 4-star hotel with floor-to-ceiling windows overlooking the lake, yet its nightly rate is closer to those of the cheapest hotels in the study than to other properties scoring 95 or higher. Our Lake Myvatn guide covers nearby sights and activities.

2. Efstidalur Farm Hotel, Golden Circle: 34,964 ISK per night, index 95.1, 4,036 reviews.

   • Efstidalur Farm Hotel is a working dairy farm with guest rooms above the cowshed and an ice cream bar downstairs. It sits on the Laugarvatn road between Thingvellir National Park and Geysir Geothermal Area.

3. Blue Hotel Fagrilundur, Reykholt in South Iceland: 36,029 ISK per night, index 95.5, 2,651 reviews.

   • Blue Hotel Fagrilundur is a quiet, modern hotel well placed for exploring the Golden Circle, with access to the area's sights without staying in busier Selfoss.

4. Hotel Snaefellsnes, near Stykkisholmur: 37,130 ISK per night, index 92.4, 2,118 reviews.

   • Hotel Snaefellsnes is a 4-star countryside hotel and a convenient base for exploring the Snaefellsnes Peninsula. See our Snaefellsnes guide to plan your route around the region.

5. Hotel Hrifunes, South Iceland: 35,886 ISK per night, index 91.3, 2,533 reviews.

   • Hotel Hrifunes is a small countryside hotel between Vik and Kirkjubaejarklaustur, known for its dinners and dark skies. Some rooms at Hotel Hrifunes have shared bathrooms, so check the room details before booking.

Does Paying More Get You a Better Hotel in Iceland?

Paying more barely buys a better hotel in Iceland. Across 115 hotels, nightly price explains just 23% of the variation in guest ratings. Moving from the cheapest quarter of hotels to the most expensive costs 67% more but raises the Booking.com score by only half a point.

The median hotel in the study costs 43,873 ISK per night, or roughly 365 USD. Prices range from 22,160 ISK per night at the cheapest hotel to 79,771 ISK per night at the most expensive, a 3.6-fold difference.

Guest ratings vary far less than prices across the 115 hotels. Half of the hotels score between 4.2 and 4.5 on Google, and 84% fall between 4.1 and 4.7. In other words, you can pay three times as much and still end up with a hotel in the same narrow band of guest satisfaction.

Eight of the 30 highest-rated hotels in the study fall within the two cheapest price quarters, showing that a higher price does not guarantee a place among the top-rated stays.

Reykjavik is another surprise in the price data. Hotels in the capital area are cheaper on average than those elsewhere in Iceland. The 31 capital-area hotels have a median nightly rate of 38,100 ISK, compared with 44,100 ISK for the 84 hotels outside the capital area. Capital-area and countryside hotels also have nearly identical Google ratings, at 4.34 and 4.37, respectively.

Where To Stay in Iceland: The Best Hotel in Every Region

Choosing a hotel in Iceland often comes down to where you plan to spend the night, whether that's in the north, along the South Coast, near Keflavik Airport for an early flight, or at a stop along the Ring Road.

The regional breakdown in this study applies the same three categories to each area: highest-rated, cheapest worth booking, and best value. Hotels must reach a rating index of 82.9 to qualify. Where no hotel meets the criteria for a category, we leave it empty rather than name a property that falls short.

The Reykjanes Peninsula, around Keflavik Airport, has the lowest median hotel prices in the study but the weakest ratings by a clear margin. The Reykjanes Peninsula's mean Booking.com score is 7.97, compared with 8.31 to 8.68 in every other region. Many visitors stay on the Reykjanes Peninsula for convenient airport access rather than the hotel experience itself.

Outside Reykjanes, hotel ratings are relatively close across four regions. North and West Iceland offer guest satisfaction comparable to the South Coast, with median nightly rates around 3,000 and 7,000 ISK lower, respectively.

Best Hotels in Reykjavik and the Capital Area

The study analyzed 31 hotels in Reykjavik and the capital area, with a median nightly rate of 38,100 ISK.

• Highest-rated: Hotel Reykjavik Saga at 61,356 ISK per night.

• Cheapest: Reykjavik Lights Hotel at 32,083 ISK per night.

• Best value: Storm Hotel at 32,197 ISK per night.

Hotel Reykjavik Saga sits beside Tjornin Pond, within walking distance of Harpa Concert Hall and Hallgrimskirkja Church. Hotel Reykjavik Saga has no car park, so check the options for parking in Reykjavik before choosing a hotel in the city center.

For more options, browse hotels in Reykjavik, and check out our Reykjavik guide and top things to do in Reykjavik.

Best Hotels in South Iceland

South Iceland has the largest selection in the study, with 34 hotels and a median nightly rate of 45,869 ISK. South Iceland is also the most expensive region in the study for hotel stays.

• Highest-rated: Black Beach Suites at 65,294 ISK per night.

• Cheapest: Eldhestar Hotel at 29,333 ISK per night.

• Best value: Efstidalur Farm Hotel at 34,964 ISK per night.

See our South Coast guide, and browse hotels in Selfoss, hotels in Vik and hotels in South Iceland for more places to stay along the route.

Best Hotels in West Iceland and the Snaefellsnes Peninsula

The study analyzed nine hotels in West Iceland and Snaefellsnes, with a median nightly rate of 38,215 ISK.

• Highest-rated: Hotel Budir at 59,997 ISK per night.

• Cheapest: Fosshotel Reykholt at 32,402 ISK per night.

• Best value: Hotel Snaefellsnes at 37,130 ISK per night.

For more options, browse accommodation in Snaefellsnes, compare hotels in Stykkisholmur, and explore hotels in Borgarnes. Our Snaefellsnes guide and West Iceland guide cover what to see from each base.

Best Hotels in North Iceland

The study analyzed 19 hotels in North Iceland, with a median nightly rate of 42,930 ISK.

• Highest-rated: Siglo Hotel at 50,745 ISK per night.

• Cheapest: Hotel Skulagardur at 25,680 ISK per night.

• Best value: Fosshotel Myvatn at 32,494 ISK per night.

For more places to stay and things to do, see more Akureyri hotels options and our guide to the things to do in Akureyri. You can also browse hotels in North Iceland or read our North Iceland guide.

Best Hotels in East Iceland

The study analyzed 15 hotels in East Iceland, with a median nightly rate of 44,284 ISK. East Iceland's hotel ratings are the weakest outside the Reykjanes Peninsula.

• Highest-rated: Fosshotel Eastfjords at 48,008 ISK per night.

• Cheapest: Hotel Hallormsstadur at 44,284 ISK per night.

• Best value: Hotel Studlagil at 33,166 ISK per night.

Compare hotels in Egilsstadir, explore our guide to things to do in Egilsstadir, and read the Eastfjords travel guide.

Best Hotels in the Westfjords

Only four hotels in the Westfjords meet the study's entry criteria, and the median nightly rate is 45,455 ISK.

• Highest-rated: Country Hotel Heydalur at 44,176 ISK per night.

• Cheapest: Hotel Flokalundur at 43,873 ISK per night.

• Best value: None of the remaining Westfjords hotels scored higher than expected for their price, so the region has no qualifying best-value pick.

Hotel Flokalundur operates seasonally, usually from May through September, so check its opening dates before planning a stay.

Read our Westfjords guide before planning the drive, and browse hotels in the Westfjords for more options.

Best Hotels on the Reykjanes Peninsula and Near the Airport

Three hotels near Keflavik Airport met the study's criteria, with a median nightly rate of 33,427 ISK.

• Highest-rated: Courtyard by Marriott Reykjavik Keflavik Airport at 34,744 ISK per night.

No other hotel near Keflavik Airport meets the quality threshold for the cheapest or best-value categories, so neither ranking has a qualifying pick in the region.

Browse hotels in Keflavik for more airport-area accommodation options.

The Best Hotels Near Jokulsarlon Glacier Lagoon

The stretch of Iceland's southeast coast that most visitors drive to see Jokulsarlon Glacier Lagoon has the country's third-highest-rated hotel, but also some of its weakest value for money. Both findings hold at once, and which one a traveler meets depends on where they stay.

Thirteen hotels between Kirkjubaejarklaustur and Hofn met this study's entry criteria. Together, the 13 corridor hotels account for 3,966 of the 36,866 booked room-nights in the analysis, just under a ninth of the total.

The corridor hotels don't have a separate regional ranking because the study divides Iceland into seven regions. Seven of the 13 fall under South Iceland, where hotels around Vik and the Golden Circle lead their respective categories. The other six fall under East Iceland, where hotels in the Eastfjords rank.

As a result, the Jokulsarlon stretch of the Ring Road, which many visitors cover over two days, has no dedicated place in the regional rankings.

The Jokulsarlon corridor is the most expensive stretch in the study, with a median nightly rate of 50,475 ISK compared with 43,352 ISK for the rest of the country, or 16% more. Yet the corridor's mean rating index is lower, at 86.6 compared with 87.8 elsewhere. That puts it second-lowest for value among the study's regions, ahead only of Reykjanes.

Results differ between the two main areas of the Jokulsarlon corridor.

1. The four hotels between Skaftafell and Hali, close to the lagoon, have a median nightly rate of 57,441 ISK and a mean rating index of 91.5. The hotels near the lagoon are expensive, but guest ratings are strong.

2. Around Hofn, roughly an hour farther east, five hotels have a median nightly rate of 42,685 ISK and a mean rating index of 82.9, right at the study's quality threshold. None of the Hofn hotels score above 85.9. Staying near Hofn costs less, but the ratings are generally lower, too.

Highest-rated and best value: One hotel stands out along the Jokulsarlon corridor: Hotel Jokulsarlon, which ranks third nationally in the highest-rated category. Hotel Jokulsarlon has the corridor's highest Booking.com score at 9.4, alongside ratings of 4.7 on both Google and Tripadvisor. It also ranks first among the three hotels in the corridor included in the local ranking.

Hotel Jokulsarlon also exceeds the rating predicted by its nightly rate by a wider margin than any other hotel between Kirkjubaejarklaustur and Hofn. Guide to Iceland customers booked 816 room-nights at Hotel Jokulsarlon, 39% more than at the next most-booked hotel along the corridor.

Cheapest: For a lower-priced stay that still meets the study's quality criteria, consider Fosshotel Vatnajokull, with a median nightly rate of 41,541 ISK. Fosshotel Vatnajokull is the only hotel in the corridor priced below 45,000 ISK per night that clears the quality threshold.

Compare more options on our hotels and accommodation near Jokulsarlon Glacier Lagoon page.

How Iceland Hotel Prices Change Over the Next 12 Months

Hotel ratings in this study are relatively stable over the next 12 months, but prices are not. Rates vary widely by month, and many hotels close or stop selling rooms for part of the winter. A single annual price can therefore hide how much a hotel stay actually costs on your travel dates.

To test how prices change, we checked rates for all 15 shortlisted hotels through Guide to Iceland on the 15th of each month from October 2026 to September 2027. Each search was for one night for two adults, using the cheapest room with free cancellation and breakfast where available. Of the 180 checks, 157 returned a rate.

Most missing rates were for hotels that close or stop selling rooms during winter. Seasonal availability is an important part of planning a trip to Iceland. Outside Reykjavik and the busiest parts of the South Coast, some hotels offer fewer stays during the colder months. As a result, you may have fewer accommodation options than the annual rankings suggest.

The median hotel rate was 21,844 ISK for a December night, compared with 47,993 ISK in July. Among the 11 hotels with rates available in both months, the median July rate was 2.09 times the December rate. Across all 15 hotels, the median difference between each hotel's cheapest and most expensive month was 2.04 times.

Lower winter hotel prices come with less availability. Ten of the 15 hotels had a room available for a January night, compared with all 15 in May. A hotel may look like a good option in the annual rankings but be closed on your travel dates.

If your dates are flexible, compare February and May with July before deciding when to visit. Our guide to when to visit Iceland can help you weigh the costs against weather, daylight, and seasonal activities.

Keep in mind that the annual and forward-looking prices measure different things. The annual figure is the median amount guests actually paid Guide to Iceland per room-night, across room types and party sizes.

The forward-looking figure is the rate for one specific night for two adults, using the room conditions described in this study. The annual figure shows what guests have paid; the forward-looking figure gives a more relevant price comparison when planning a future trip.

Black Beach Suites is the exception to the breakfast rule. Black Beach Suites offers self-catering suites with kitchenettes and no on-site food service, so no room with breakfast was available in any of our checks. Black Beach Suites' forward-looking prices therefore use the cheapest available room instead.

What Guests Praise and Complain About in Iceland Hotels

We read 1,199 guest reviews for the 15 hotels in these rankings. The sample includes reviews from Booking.com and Tripadvisor, along with reviews left by Guide to Iceland customers across our marketplace.

Breakfast attracts the strongest reactions, both positive and negative. Among 480 Booking.com reviews of these hotels, 55% praised breakfast and 20% complained about it. That makes breakfast both the most praised subject and the most common complaint in the sample.

In remote areas of Iceland, where dining out can be expensive and the nearest restaurant may be a 40-minute drive away, hotel breakfast can make a real difference. Our guide to food in Iceland explains more about what to expect when dining out.

Six subjects receive overwhelmingly positive feedback from hotel guests in Iceland: location, beds, staff, cleanliness, restaurants, and hot tubs.

Four attract more complaints than praise:

• Room temperature is the biggest concern among the negative topics. Guests mention overheated rooms with no working thermostat nearly nine times as often as they praise room temperature.

• Thin walls attract 2.7 times more complaints than praise.

• Room size attracts 2.5 times more.

• Bathrooms are the closest split, with 67 complaints compared with 61 positive mentions. Some of these comments may reflect guests' preferences around open-plan or wet-room bathroom layouts.

Room-size complaints aren't limited to budget hotels in Iceland. The two most expensive hotels in the rankings charge around 69,000 and 65,000 ISK per night, yet guests still mention room size. At the hotel charging around 65,000 ISK, six of 32 reviews mention room size, compared with one review for the cheapest hotel in the rankings.

How We Ranked the Best Hotels in Iceland

Eligibility. We started with the 300 hotels published on Guide to Iceland, the country's biggest travel marketplace. We kept properties with at least 150 Google ratings, 40 priced room-nights since January 2024, and 30 bookings. The thresholds left 127 properties. Eight were not hotels, and four had no confident match on Booking.com, leaving 115 hotels for the study.

Ratings. Ratings come from Booking.com and Google. We adjusted each hotel's score toward the average for the study, with a stronger adjustment for hotels with fewer reviews. The adjustment ensures that a 4.9 rating from 60 guests can't outrank a 4.8 from 1,000.

The calculation used a prior of 250 Google ratings and 400 Booking.com reviews. We then standardized scores within each platform, averaged them, and rescaled the results to an index of 60 to 100, with 100 representing the highest-rated hotel in the study and 60 the lowest.

We never average raw Google and Booking.com scores directly because the platforms use different rating scales. We also checked every hotel included in a ranking against Tripadvisor and mentions on r/VisitingIceland and r/Iceland. A hotel was excluded if Tripadvisor ratings clearly contradicted the results from Google and Booking.com.

Booked prices. Prices are the median nightly rate per room across Guide to Iceland bookings at each hotel since January 2024. We excluded canceled bookings and kept stays of 1 to 21 nights, then adjusted prices to 2026 values using changes in the monthly median across all hotels.

Value. We calculated value by modeling the composite rating against the logarithm of price across all 115 hotels. Each hotel's value score reflects how far its actual rating sits above or below the rating predicted by its price. We applied the same model to every subgroup so the national, regional, and monthly comparisons use a consistent benchmark.

Forward rates. We collected forward rates through Guide to Iceland's availability service in September 2026. Each check covered the 15th of the month from October 2026 to September 2027, for one night in one room for two adults. We selected the cheapest rate that included both free cancellation and breakfast.

Across the nights checked for this study, the free-cancellation-and-breakfast rate was available 92% of the time and cost about 3% more than the cheapest room overall.

When no rate met both conditions, we used the cheapest available room instead. The fallback applied to 12 of the 157 nights with returned rates. Currency conversions use 120.35 ISK per US dollar. The dataset covers information available through September 12, 2026.

The three lists are mutually exclusive. Each list therefore features five different hotels, giving readers 15 options rather than repeating the same properties across all three lists.

Limitations of This Iceland Hotels Study

The study has two main limitations.

• The seven-region breakdown splits the southeast coast between two regions, which is why the Jokulsarlon corridor has its own section in this study.

• The study includes no verbatim guest quotes. Instead, we count and paraphrase recurring themes in guest reviews.

Conclusion

The main takeaway from this study is that a higher hotel price in Iceland does not guarantee a better stay. Nightly rates vary more than threefold, yet most hotels receive ratings within a narrow range.

The best-value list is worth a closer look, with Fosshotel Myvatn, Efstidalur Farm Hotel, and Blue Hotel Fagrilundur earning high ratings at more moderate prices.

Travel dates and location also change what a hotel in Iceland costs. July rates are about twice December rates, Reykjavik hotels cost less than those in the countryside, and a rental car makes reaching many of the highest-rated hotels easier.

Plan your route first, then compare the best hotels along the way using the regional recommendations in this study and our guide to where to stay in Iceland.