Where should you stay on Iceland’s south coast to get the most out of the region?
There are options for everyone, from major cities to charming villages and secluded accommodations surrounded by nature.
Whether you’re looking for glaciers, waterfalls, or black-sand beaches, you’re sure to find something you’ll love.
This opinion is completely independent, based on our experiences. We visited the region anonymously, making our own choices and paying our bills in full.
Where to stay on Iceland’s south coast? Map and quick answers
If you don’t want to read the whole article listing all the best places to stay on Iceland’s south coast, here are our quick answers.
In the rest of the article, we detail each location, with hotel and accommodation options.
Let’s start with a map to help you get your bearings. The southern coast stretches from Selfoss to Höfn, with several key destinations in both summer and winter:
- Selfoss – A stopover on the Golden Circle tour
- Around Seljalandsfoss – To Get Up Close to the Waterfalls
- Vik – The main city in the center of the region
- Eldhraun Area – For a more rugged experience
- Jökulsárlón Region – To be close to the glacial lagoon
- Höfn – The main town in the eastern part of the region; an ideal stop on a road trip before or after visiting the eastern fjords
Best Hotels on Iceland’s South Coast
Luxury Hotels
- Fosshotel Glacier Lagoon – Panoramic views of the glacier and modern design, near the Jökulsárlón lagoon
– see pictures and availability - Hotel Vik in Myrdal – Contemporary Architecture in the Heart of Vik
– see pictures and availability - 360 Hotel & Thermal Baths – in Selfoss, A Unique Experience with Private Thermal Baths
– see pictures and availability
Charming Hotels
- Hotel Kria in Vik – Modern Nordic Design
– see pictures and availability - Magma Hotel – Rooms with a view of the Eldhraun lava field
– see pictures and availability
Hotels in the Heart of Nature
- Hotel Klaustur – In the Heart of the Lava Field
– see pictures and availability - Hotel Smyrlabjorg – View of the Glacier
– see pictures and availability
Destination 1: Vik
Why stay in Vik
The perfect place to stay—it’s centrally located and gives you access to everything.
It is the region’s largest city, offering:
- A central location for exploring the entire southern coast
- Black-sand beaches within walking distance
- A good selection of restaurants and services
- A perfect base for organized excursions
Location
- Travel time from Reykjavik: 2 hours 30 minutes
- Travel time to Seljalandsfoss = 50 min
- Travel time to Jökulsárlón = 2 hours 20 minutes
- Travel time to Höfn = 3 hours
Nearby attractions
- The black-sand beaches of Reynisfjara
- The Reynisdrangar Rock Formations
- The Dyrhólaey Headland
- The Loftsalahellir Cave
- Glaciers visible to the north
- The Lava Show—see lava flow right before your eyes! Book your tickets.
- Many waterfalls within an hour’s drive
Where to Stay in Vik
We recommend :
- Hotel Vik in Myrdal – Modern design with a restaurant
- see prices, pictures and availability
- Hotel Kria – Large windows with views of nature
- see prices, pictures and availability
- Hotel Katla – Great value for the money with an on-site restaurant
- see prices, pictures and availability
- or View Vik’s top-rated accommodations directly.
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On Route 1, no 4WD required, off Route 1, it depends on your plans.
Destination 2: Around Jökulsárlón
Why Stay Near Jökulsárlón
Ideal place for:
- Explore the glacial lagoon at different times of the day (sunset and sunrise, and under the Northern Lights)
- Photographing Icebergs on Diamond Beach
- Watching the Northern Lights in Winter
- Being close to Vatnajökull National Park
Nearby attractions
- The Jokulsarlon Glacial Lagoon
- Diamond Beach
- Boat on the lagoon
- Ice Caves in Winter
Where to Stay Near Jökulsárlón
We recommend :
- Hotel Jökulsárlón – Glacier Lagoon – the closest one, with beautiful views
See photos, prices and availability – and book! - Fosshotel Glacier Lagoon – 30 minutes west, offering elegant and well-equipped accommodations.
See photos, prices and availability - Hali Country Hotel – closest to Jokulsarlon, approx. 15min drive (closed in December and January).
See photos, prices and availability - Smyrlabjorg Hotel —30 minutes east, with a more rustic style.
See photos, prices and availability - See our article on hotels in the area, or check out the top-rated accommodations near Jökulsárlón.
OUR GUIDES TO PLAN YOUR Dream trip
Destination 3: Höfn
Why stay in Höfn
Ideal place to stay for:
- Making the transition to the Eastern Fjords
- Experience an authentic fishing village
- Explore the eastern end of the southern coast
- Enjoy the best Icelandic langoustine dishes
Höfn offers enough services (supermarket, petrol stations, restaurants) to make it a comfortable stopover. It’s also a good starting point for exploring the eastern fjords if you don’t want to go all the way to Egilsstaðir.
Nearby attractions
- The traditional fishing port
- The Vestrahorn Mountains
- Artworks: The Universe Sculpture
- The Jokulsarlon Lagoon, a 1-hour drive away
Where to Stay in Höfn
- Höfn Berjaya Iceland Hotel – conveniently located with sea and harbor views.
See photos, prices and availability - Guesthouse Dyngja – near the port, studios and apartments. A more economical option.
See photos, prices and availability - Old Airline Guesthouse – simple rooms, shared bathrooms, good value for money.
See photos, prices and availability - See directly the best rated accommodations in Höfn .
Destination 4: Around Seljalandsfoss
Why Stay Near Seljalandsfoss
Ideal place for:
- Watch the waterfalls early in the morning or late in the evening
- Photographing the sunset behind the waterfall
- Explore the region without the crowds of tourists
- Enjoy the tranquility of the Icelandic countryside
Nearby attractions
- Seljalandsfoss Waterfall
- The Hidden Gljúfrabúi Waterfall
- The Vestmann Islands (ferry from Landeyjahöfn)
- Skógafoss Waterfall, 30 minutes away
- Local Hiking Trails
Where to Stay Near Seljalandsfoss
- Bru Guesthouse – Fully Equipped Cabins
– see prices, pictures and availability - Seljalandsfoss Horizons – Modern Cottages
– see prices, pictures and availability - The Dimon Hotel, surrounded by trees—a rare sight in Iceland
– see prices, pictures and availability - Kviholmi Premium Apartments, modern
– see prices, pictures and availability - Hotel Selja – Distant panoramic views of the waterfall
– see prices, pictures and availability - Or View the Top-Rated Accommodations
Destination 5: Around Skógafoss
Why Stay Near Skógafoss
Perfect place for:
- Start your hikes at Fimmvörðuháls early
- Explore the Skógar Folk Museum
- Photographing the waterfall in different lighting conditions
- Have easy access to both Vik and Seljalandsfoss
Nearby attractions
- The Imposing Skógafoss Waterfall
- The Skógar Folk Museum
- The Plane Wreck at Sólheimajökull
- The Sólheimajökull Glacier
- The start of the Fimmvörðuháls Trail
Where to Stay Near Skógafoss
We recommend :
- Skógafoss Hotel – Direct view of the waterfall
– see pictures and availability - Drangshlid Hotel by Tröll, Practical Information
– see pictures and availability - Skoga Hotel
– see pictures and availability - Or view all options
Destination 6: Eldhraun Lava Field / Skaftafell
Why Stay Here
Perfect place for:
- to be surrounded by nature
- Start your hikes in Skaftafell early
Nearby attractions
- Vast lava fields
- Skaftafell Glacier and Hiking Trails
Where to sleep
We recommend :
- Magma Hotel – Rooms with a view of the Eldhraun lava field
– see pictures and availability - Hotel Klaustur: Practical Information
– see pictures and availability - Fosshotel Nupar, modern and spacious
– see pictures and availability - Or view all options
Selfoss, Golden Circle
Why stay in Selfoss? Although technically located at the junction of the Golden Circle and the South Coast, Selfoss is a strategic base for the beginning or end of your trip. It’s the largest city in the south, perfect for stocking up on supplies.
But it’s a city, so you’re less surrounded by nature.
This is for you if:
- Are you looking for accommodations that are cheaper than those in Vik?
- You want to have access to many supermarkets and restaurants.
- Are you traveling with your family and looking for urban comfort?
Our recommendations:
- 360 Hotel Boutique & Spa: Located just off Route 1, an incredible luxury experience (mentioned above).
– see pictures and availability - Hotel South Coast: Modern and very well located in the city center.
– View photos andavailability - Selfoss Hotel, in the city center
– see pictures and availability - See the best rated accommodations in Selfoss
It’s time to book!
Compare everything: companies, prices, schedules and availability.
Frequently asked questions
What’s the best place to stay when exploring the south coast?
Vik is the most central option, offering easy access to attractions to the east and west.
Is it possible to visit the south coast from Reykjavik?
The western part (up to Vik) can be visited on a day trip, but for Jökulsárlón and the eastern part, it’s best to stay overnight.
Where should you stay to see the Northern Lights?
Remote accommodations, such as the Magma Hotel or those around Jökulsárlón, offer the best viewing conditions, far from any light pollution.
Camping on the South Coast
There are several well-equipped campgrounds:
- Vik Campground
- Skaftafell Campground
- Höfn Campground
Note: Wild camping has been heavily regulated in Iceland since 2013.
Practical advice
- Book early for the summer (June–August)—it’s peak season
- In winter, choose accommodations near Route 1
- Check to see if there is a restaurant on site or nearby
- To see the Northern Lights, choose secluded accommodations
- Plan to stay in several different places if you want to explore the entire region
PLAN YOUR SUMMER TRIP TO iceland
- Best of
What to do in Iceland
The most beautiful waterfalls
The most beautiful black sand beaches
Volcanic craters to climb
Lava caves to visit
Best excursions from Reykjavik
- Practical advice
Summer travel tips
How to rent a car in Iceland
Driving tips
Where to stay in Iceland
Itineraries: 3 days – 4 days – 5 days – 1 week – 10 days
- The must-dos
What to do in Reykjavik
Best attractions in the Golden Circle
South Coast attractions
Snaefellsnes Peninsula
Silver Circle
Lake Myvatn attractions
