Where to sleep in Iceland? Here’s our complete guide comparing the best places to stay in Iceland, depending on your program (summer or winter):
- Map of the main places to sleep,
- The benefits of each and our accommodation recommendations,
- The different types of accommodation available in Iceland,
- …
This opinion is completely independent, based on our experiences. We visited the region anonymously, making our own choices and paying our bills in full.
Content
Where to stay in Iceland – map and summary
Map of towns to stay in Iceland
In this article, we present them not in order of preference, but by geography, doing the whole of Iceland counter-clockwise.
To help you locate all the places we mention in this article, here’s a map:
Here are a few driving times to give you an idea of summer travel times:
- Reykjavik to Vik: approx. 3h
- Vik to Höfn: approx. 3h30
- Höfn to Egilsstadir: approx. 3h
- Egilsstadir to Akureyri: approx. 3h
- Akureyri to Reykjavik: approx. 5h
- Akureyri to Isafjördur: approx. 6.5 hours
The main cities where to sleep in Iceland
If you don’t want to read the whole article, here are the essential points to remember:
- Reykjavik
The capital, the starting point for most trips. Wide choice of hotels, restaurants and day trips.
See availability directly - Vik
In the heart of the south coast, ideal for black sand beaches, waterfalls and glaciers.
See availability directly
- Akureyri
Convenient base for northern and whale-watching.
See availability directly - Höfn
Gateway to the Eastern Fjords, a fishing village at the foot of the glaciers.
See availability directly
Where to stay in Iceland for the most beautiful scenery
Each region of Iceland has its own character, and it’s hard to choose just one.
- The south coast boasts powerful waterfalls, black sand beaches and glacial lagoons.
- The north, around Lake Myvatn, reveals striking volcanic landscapes.
- The Snaefellsnes Peninsula offers a condensed version of everything Iceland has to offer, only smaller.
- The less accessible Western Fjords are seductive for their isolation and breathtaking panoramas.
Our favorite region:
- in summer: The north, around Lake Myvatn with its otherworldly landscapes – see our favorite accommodations
- in winter: we have a soft spot for Snaefellsnes and its contrasts between volcanic black and snowy white – see our favorite accommodations
Where to stay in Iceland for the northern lights
To maximize your chances of spotting the northern lights (between September and March), choose accommodations far from light pollution. Northern Iceland is often considered more favorable thanks to clearer skies, but this is not an absolute rule. Some hotels even offer a night alarm service to warn you when auroral activity is high. Among our recommendations:
- Hotel Ranga – on the south coast between Selfoss and Seljalandsfoss, with astronomical observatory.
Check photos and availability - Hotel Laxá – on the northern shores of Lake Myvatn, a secluded setting ideal for birdwatching.
Check photos and availability - Hotel Husafell – isolated on the Silver Circle, surrounded by glaciers and lava fields.
Check photos and availability
It’s time to book!
Compare everything: companies, prices, schedules and availability.
Types of accommodation in Iceland
Hotels
Icelandic hotels offer classic comfort and are located in all the main towns. You’ll find different ranges, especially in Reykjavik.
B&Bs and guesthouses
Guesthouses and B&Bs offer a more personal alternative: the welcome is often warm and direct contact with the locals is a real bonus to the trip. Please note that many guesthouses offer shared bathrooms. We advise you to check this point carefully before booking if it is important to you.
Icelandic Farm Holidays
Farm stays are a typically Icelandic experience, available mainly in summer. You’ll sleep on working farms, often located off the beaten track, in the midst of breathtaking scenery. This is your chance to get up close to the local way of life: some farms raise Icelandic horses, others sheep.
Apartment rentals
If you like to cook and have your own space, apartment rental is a good option, especially in Reykjavik and Akureyri. It’s also a great way to reduce your meal budget, as restaurants in Iceland are relatively expensive. Outside the major cities, the rental offer is more limited.
Camping and camper vans
Iceland has around 170 campsites throughout the country, a great way to travel at a lower cost in summer. If you’re staying several weeks, the Camping Card gives you access to a network of campsites for a flat rate. Wild camping is regulated: since 2013, it’s been complicated to pitch your tent outside designated areas, especially as the land is often privately owned with no obvious signage. See motorhome and van options.
RENTING A CAR IN Iceland
Discover the best offers on Discovercars, our preferred platform!
On Route 1, no 4WD required, off Route 1, it depends on your plans.
Location 1 – Reykjavik
Why stay in Reykjavik?
Reykjavik is Iceland’s natural gateway and the city with the widest choice of accommodation, from luxury hotels to small guesthouses. It’s the only really viable option if you don’t rent a car, as all day trips leave from the capital: Golden Circle, south coast, Snaefellsnes, whale watching, northern lights hunting in winter.
Beyond its role as a logistical base, Reykjavik is also well worth a visit. We enjoyed its varied gastronomic scene, its museums and the atmosphere of its central districts. The town remains compact, however, and is easily visited on foot. If your primary objective is to discover Icelandic nature, we think one or two nights will suffice before you hit the road.
Where to stay in Reykjavik – selection of hotels
- Luxury: Black Pearl Apartment Hotel, self-contained apartments in the heart of the city.
See photos, prices and availability - Charming: Reykjavik Konsulat Hotel, carefully decorated, refined atmosphere without being ostentatious.
See photos, prices and availability - Convenient: Kvosin Downtown Hotel, quiet location, close to tour pick-up points.
See photos, prices and availability - Apartments: Rey Apartments, spacious and well-equipped, right in the center.
See photos, prices and availability
See directly the best rated accommodations in Reykjavik.
Location 2 – Fludir on the Golden Circle
Why stay at the Golden Circle
The Golden Circle is Iceland’s most famous itinerary, accessible in just one day from Reykjavik. Yet spending a night there really does change the experience. You can visit the sites early in the morning or at the end of the day, when the tourist groups have left for the capital. We particularly enjoyed watching the Strokkur geyser erupt in the early hours of the morning, in complete peace and quiet.
You’ll find plenty of accommodation all around the region.
The largest concentration is in Fludir, a small hamlet in the heart of the region, which offers direct access to the Secret Lagoon, a natural hot spring for open-air bathing. It’s an excellent base for combining the Golden Circle and the start of the South Coast. Alternatively, Selfoss offers more services and a strategic position between the two regions.
Where to stay on the Golden Circle – selection of hotels
- Hotel Geysir – a stone’s throw from the Strokkur geyser (closed in late December and January).
See photos, prices and availability - Hotel Gullfoss – 3km from the waterfall, ideal for a sunrise visit.
See photos, prices and availability - The Hill Hotel at Fludir – modern comfort, warm atmosphere and easy access to the Secret Lagoon.
See photos, prices and availability
See the top-rated Golden Circle accommodations directly .
Location 3 – Vik, in the heart of the south coast
Why stay in Vik
Vik is a coastal village in southern Iceland, strategically located for exploring the region’s main attractions. From this base, you can reach the Seljalandsfoss and Skogafoss waterfalls, the black sand beach of Reynisfjara, the Myrdalsjökull glacier and the activities that surround it (glacier hiking, snowmobiling).
The village itself remains small, with a few restaurants and a handful of shops. And that’s exactly what makes it so appealing: in the evening, after a day out in nature, the atmosphere is calm and restful.
Where to stay in Vik – selection of hotels
- Hotel Vik i Myrdal – in the village, modern rooms and quality restaurant.
See photos, prices and availability - Hotel Kria – on the edge of the village, with large windows overlooking the surrounding countryside.
See photos, prices and availability - Hotel Katla – 5min drive from Vik, in the heart of nature. We recommend the renovated rooms.
See photos, prices and availability
See Vik’s top-rated accommodations directly.
Location 4 – Around Jokulsarlon
Why stay around Jokulsarlon
The Jokulsarlon glacial lagoon, where icebergs break off the glacier and drift out to sea, is one of Iceland’s most striking sites. Staying close by means you can access it at sunrise or sunset, when the light completely transforms the atmosphere of the place. Diamond Beach, just opposite, where blocks of ice wash up on the black sand, is also worth seeing at different times of the day.
There is no village to speak of around Jokulsarlon. The accommodations are located in the surrounding countryside, on either side of the lagoon.
Where to stay around Jokulsarlon – selection of hotels
- Hali Country Hotel – closest to Jokulsarlon, approx. 15min drive (closed in December and January).
See photos, prices and availability - Fosshotel Glacier Lagoon – 30min west, elegant, well-equipped accommodation.
See photos, prices and availability - Hotel Smyrlabjorg – 30min to the east, in a more rustic style.
See photos, prices and availability
See directly the best rated accommodations around Jokulsarlon.
OUR GUIDE TO PLANNING A Dream trip
- 8 maps that make planning easier
- + 100 pre-selected locations
- Practical advice
- + 130 photos to help you choose
Location 5 – Höfn, gateway to the eastern fjords
Why stay in Höfn
Höfn is a small port town located between the southern coast and the eastern fjords. It’s a logical stop-off point if you’re touring Iceland via Route 1. The village makes its living from lobster fishing, and several local restaurants offer excellent preparations.
We loved the authentic atmosphere and the views of the snow-capped mountains. We fell in love with the atmosphere of this small town!
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 Egilsstadir.
Where to stay in Höfn – selection of hotels
- 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 .
Location 6 – Egilsstadir, gateway to the eastern fjords
Why stay in Egilsstadir
Egilsstadir is the main town in eastern Iceland and a strategic stopover if you’re touring the country on Route 1. The town has all the services you need: supermarkets, petrol stations, restaurants. It’s a good place to end the day after exploring the Eastern Fjords, whose winding roads demand time and attention.
The area around Egilsstadir offers a variety of landscapes: Lake Lagarfljót, one of Iceland’s rare forests (Hallormsstadaskógur) and waterfalls accessible by a short detour. In winter, we were lucky enough to observe the Northern Lights from the field in front of our hotel, an experience we won’t soon forget.
Where to stay in Egilsstadir – selection of hotels
- Gistihusid – Lake Hotel Egilsstadir – modern, friendly lakeside hotel.
See photos, prices and availability - Hérad – Berjaya Iceland Hotels – simple and practical, opposite an open field for viewing the northern lights.
See photos, prices and availability
See directly the best rated accommodations in Egilsstadir.
Location 7 – Reykjahlid to Lake Myvatn
Why stay at Lake Myvatn
The Lake Myvatn region is one of Iceland’s most geologically fascinating. Around this shallow lake are a variety of volcanic formations: the pseudocraters of Skutustadagir, the lava labyrinth of Dimmuborgir, the geothermal zone of Hverir, where fumaroles and pools of bubbling mud are a reminder of underground activity, and the Hverfjall crater. We were captivated by these landscapes that seem to belong to another planet.
Reykjahlid is the main lakeside village, but accommodation is scattered all around. The Myvatn Nature Baths offer a less crowded alternative to the Blue Lagoon, in a volcanic setting. It’s also from here that you can visit Dettifoss, Europe’s most powerful waterfall, and Godafoss, one of the most elegant. We recommend spending at least two nights here to enjoy the richness of the surroundings.
Where to stay on Lake Myvatn – selection of hotels
- Fosshotel Myvatn – modern, beautiful lake views.
See photos, prices and availability - Salt – Hotel Myvatn – right next to the Skutustadagir pseudocraters.
See photos, prices and availability - Myvatn – Berjaya Iceland Hotels – classic, good location, large panoramic windows.
See photos, prices and availability
More ideas in our article: where to sleep on Lake Myvatn.
or View directly the best rated accommodations in Myvatn.
Location 8 – Akureyri, capital of the North
Why stay in Akureyri
Akureyri is often referred to as the capital of the North, and is Iceland’s second-largest conurbation (though still modest in size). The city has a domestic airport, good restaurants, several museums and a pleasant urban atmosphere. In winter, you can even ski on the Hlidarfjall slopes, just a few minutes from the center.
We were seduced by its position, at the head of the Eyjafjördur fjord, which makes it a convenient starting point for exploring Lake Myvatn, Husavik and the northern landscapes. It’s also the starting point for many whale-watching excursions.
Where to stay in Akureyri – selection of hotels
- Akureyri Berjaya – modern, pleasant bar and central location.
See photos, prices and availability - Saga Apartments Akureyri – convenient apartments, very central location.
See photos, prices and availability - Hotel Akureyri Dynheimar – central location, stylish interior design.
See photos, prices and availability
See directly the best rated accommodations in Akureyri.
Location 9 – Grundarfjördur on the Snaefellsnes peninsula
Why stay in Grundarfjördur?
Grundarfjördur is a small fishing port nestled in the heart of the Snaefellsnes peninsula. Its location makes it the ideal base for visiting Kirkjufell, the conical mountain considered one of Iceland’s most photogenic sites. We stayed here and enjoyed being able to reach Kirkjufell in just a few minutes, both at sunrise and sunset.
Beyond Kirkjufell, the Snaefellsnes peninsula abounds with sites to discover: the Snaefellsjökull glacier (made famous by Jules Verne in Journey to the Center of the Earth, published in 1864), the lava cliffs of Arnarstapi, the black sand beach of Djúpalónssandur, the village of Stykkishólmur. We recommend a minimum of two nights in the area for a leisurely tour of the peninsula.
Where to stay in Grundarfjördur – selection of hotels
- Guesthouse 43: rooms with sea and mountain views, shared bathroom.
See prices, pictures and availability - Hellnafell: Apartment with large windows and a direct view of Kirkjufell!
See prices, pictures and availability - Guesthouse The Old Post Office: Excellent location, convenient and clean. We had an excellent night here. Please note that some rooms have private bathrooms.
See prices, pictures and availability
More ideas in our article on where to sleep on the Snaefellsnes peninsula.
or View directly the best rated accommodations in Grundarfjordur.
UNFORGETTABLE ACTIVITIES IN Iceland
- Swimming in the Silfra fissure
- Horseback riding
- Hiking on a glacier
- Whale watching (from Reykjavik, Husavik or Akureyri)
Location 10 – Borgarnes
Why stay in Borgarnes
Borgarnes is about 1 hour’s drive north of Reykjavik, on Route 1. It’s a strategic stop for those wishing to explore the Snaefellsnes peninsula without driving too far from the capital. We were delighted to be able to leave early in the morning for Snaefellsnes, having already made a good part of the journey the day before.
The town also offers access to the Silver Circle, a lesser-known itinerary that includes the Hraunfossar waterfall, the Vidgelmir lava caves and the Deildartunguhver hot spring. The Borgarfjördur fjord, which surrounds the town, provides a peaceful backdrop, especially at sunset.
Where to sleep in Borgarnes – Hotels
- Hotel Hamar – modern rooms, private patios, views of the Borgarfjördur fjord, outdoor sauna and Jacuzzis.
See photos, prices and availability - Hotel Stafholt – out of town, surrounded by nature.
See photos, prices and availability - Kria Cottages – cottages on the other side of the water, at the foot of small mountains.
See photos, prices and availability
3 other locations if you have time for detours
Seydisfjordur
Seydisfjördur is without doubt Iceland’s most photogenic village. Nestled at the end of a narrow fjord in the Eastern Fjords, it features a handful of pastel-painted wooden houses, a blue church that has become the village’s emblem, and a rainbow street that leads straight to the Smyril Line ferry pier. The village attracts a creative community, with artists’ studios, a café-bouquiniste and a music festival every summer.
See top rated accommodations in Seydisfjördur
Husavik
Husavik is a small fishing port in northern Iceland, famous for its whale-watching excursions. Skjálfandi Bay is regularly home to humpback whales, white-beaked dolphins and, more rarely, blue whales. We found the boat trips from Husavik among the best organized in the country, in a remarkable natural setting.
The village itself has a discreet charm: colorful wooden houses, a wooden church (one of Iceland’s oldest), the Whale Museum and a peaceful maritime atmosphere.
See top-rated accommodations in Husavik
Isafjördur and the West Fjords
Isafjördur is the largest town in the Western Fjords, which in Iceland means a community of just a few thousand inhabitants. But this is where most of the services and accommodation in this remote region are concentrated. The Western Fjords are the least visited part of Iceland, and that’s precisely what makes them so attractive: gravel roads winding along narrow fjords, breathtaking cliffs and a feeling of being at the end of the world.
We recommend this region to travellers with time (minimum 3 to 4 days) and some experience of driving on unpaved roads.
See directly the best rated accommodations in Isafjordur.
Sleeping in the Highlands
Iceland’s central highlands – Landmannalaugar, Thórsmörk, Kjölur – have no hotels in the classical sense. Accommodation is in mountain huts run by the Ferðafélag Íslands (FÍ) association, or in other outdoor facilities. These are rudimentary dormitories with bunks, shared kitchen and sometimes cold showers – the comfort is spartan, but the experience is unique. Some sites also offer camping pitches next to the refuges. Places must be booked in advance, as capacity is limited and the season short (usually July-August).
Please note: the highlands are only accessible by 4×4 vehicle, and the F trails are only open in summer. Don’t attempt these routes with a standard car.
See the huts available on the Ferðafélag Íslands website
And there’s an accommodation in Thromorsk, the Volcano Huts, where we spent a night in a hut and enjoyed the aurora. See availability
Isafjördur and the West Fjords
2 other practical places to stay on a road trip in Iceland
Keflavik
Iceland’s international airport is not in Reykjavik, but in Keflavik, on the Reykjanes peninsula, about a 45-minute drive from the capital. If you arrive late at night or leave early in the morning, sleeping in Keflavik saves you an extra journey. The Reykjanes peninsula itself offers a few sights: the Blue Lagoon lies halfway between the airport and Reykjavik, and the peninsula’s volcanic landscapes are well worth a detour if you have time.
See accommodations in Keflavik
Selfoss
Selfoss is the main town in southern Iceland, with a population of around 12,000 – quite a large number for a country like Iceland. Situated on the banks of the Ölfusá River, it is the ideal base for exploring the treasures of the Golden Circle (Geysir, Gullfoss, Þingvellir) and the spectacular waterfalls of the south, such as Seljalandsfoss and Skógafoss. The town itself is functional rather than picturesque, but it concentrates the services, restaurants and accommodation of the entire region. It’s a logical step if you want to avoid Reykjavik’s high prices and still get quick access to the highlights.
See the best rated accommodations in Selfoss
Where to sleep in Iceland on a winter road trip
Travelling in Iceland in winter (October to March) is a very different experience from summer. Days are short, some roads may be closed and many accommodations don’t open, especially in January. On the other hand, it’s the season for northern lights, ice caves and snowy landscapes.
The main towns listed in this article remain accessible in winter via Route 1: Reykjavik, Vik, Höfn, Egilsstadir, Akureyri and Borgarnes. The Snaefellsnes peninsula is also accessible, although caution is advised on certain stretches. The western fjords, on the other hand, are very difficult to explore in winter.
If you’re looking for a hotel in winter, choose one with a geothermal jacuzzi or indoor pool, an on-site restaurant (so you don’t have to go out in the cold at night) and, ideally, a wake-up service for the Northern Lights.
We’ve devoted an entire article to the subject: where to stay in Iceland in winter – the best hotels.
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Frequently asked questions
How many nights in Iceland?
For a first trip focusing on the south coast and the Golden Circle, 5 days are enough. For a complete tour of Route 1, allow at least 7 to 10 days. If you wish to add the Snaefellsnes Peninsula or the Western Fjords, allow 12 to 15 days. Every extra day means shorter driving times and greater enjoyment of each stage. See our article: How long to stay away in summer
Where to stay in Iceland for a romantic getaway?
Many of Iceland’s accommodations are particularly suitable for couples:
- Hotel Ranga – astronomical observatory, secluded setting between Selfoss and the south coast.
Check photos and availability - Ion Adventure Hotel – contemporary architecture, not far from the Golden Circle.
Check photos and availability - Hotel Budir – on the Snaefellsnes peninsula, surrounded by nature and silence.
Check photos and availability
Iceland’s most original accommodations
If you’re looking for something out of the ordinary, Iceland has no shortage of creative options:
- Aurora Igloo – transparent domes to watch the northern lights from your bed.
Check photos and availability - Klettar Tower – in Fludir, a unique accommodation in the shape of a panoramic tower.
Check photos and availability - Aska – hut in the middle of a lava field near Lake Myvatn.
Check photos and availability
Where to stay in Iceland without a car
Without a car, Reykjavik remains the only really practical option. The capital is the starting point for all organized excursions: the Golden Circle, the south coast, the Snaefellsnes peninsula, whale watching and much more. The tours are well run and we found them very well organized.
If you prefer not to drive but still want to tour the country, guided tours lasting several days are available, such as this 8-day tour in a small group.
PLAN YOUR TRIP TO iceland IN WINTER
- Best of
Iceland’s winter landscapes
Best things to do in Iceland in winter
The most beautiful waterfalls
Ice caves
Best excursions from Reykjavik
- Practical advice
Getting around (coming soon)
How to rent a car in Iceland
Winter driving tips
Where to stay in Iceland in winter
Itineraries: 3 days – 4 days – 5 days – 1 week – 10 days (to come)
- The must-dos
Reykjavik in winter
Golden Circle in winter
South coast in winter
Snaefellsnes in winter
Silver Circle in winter (coming soon)
Lake Myvatn in winter
Eastern Fjords in winter
Seljalandsfoss in winter
Jokulsarlon in winter
