Accommodations in Iceland That Are Second to None

The best place to stay in Reykjavik is based on my recommendations! Find out where the best areas, hotels, and hostels are based on your needs and budget.

Whether you’re traveling with your family or on your own, you’ve probably heard that Iceland is a wonderful vacation spot.

Food and lodging in Iceland are still expensive, despite the fact that flights to the country have gotten more affordable.

Because of the country’s diverse landscape, I always discover something new in Iceland each time I visit.

Exploring enormous falls, hiking across volcanic terrain, or driving Iceland’s fabled Ring Road are all possible day trips from Reykjavik.

I’ve put together this free guide of Iceland’s top areas and lodging alternatives for anyone who are thinking about visiting and aren’t sure where to stay.

Iceland’s best lodging options

Iceland’s hotels might be pricey, and there aren’t as many options as in other areas when it comes to lodging. Guesthouses, on the other hand, can help you save money.

To receive the best rates, it’s recommended to book your Iceland lodging early.

Very if you’re coming during the height of the tourist season in the summer, when finding a place to stay might be particularly challenging.

Whether you’re on a tight budget or looking for a luxurious stay in Reykjavik or a family-owned farm, this guide will help you find the best places to stay in Iceland.

The best hotels in Reykjavik


Downtown Reykjavik’s bustling Miborg neighborhood, particularly Laugavegur Street, is home to a wide variety of attractions, including shops, restaurants, nightclubs, and other entertainment.


With its residential areas and little shops and cafes interspersed, Vesturbr lies just west of the city center. It’s quieter here than in the city.


East of the city, a working-class neighborhood with many parks and playgrounds. The area’s name translates to “the hills,” and lodgings are far less expensive than in the city proper.


Reykjavik’s sports and recreation center, Laugardalur, is located here. The “hot spring valley” is where the local sports stadium and a campground are located.

Reykjavik Accommodations

Reykjavik, the capital of Iceland, is where most tourists begin their journey. Restaurants, bars, cafes, street art, museums, and tour company headquarters can be found throughout the city.

Laugavegur Street is a great place to be if you want to be close to the activity. But Reykjavik also has several fantastic neighborhoods that I’ll discuss in the next paragraphs.

This is a list of hotels, hostels, and campgrounds in Reykjavik that I recommend based on your price range.

This is a 5-star hotel: Kvosin Downtown.

The Kvosin Downtown Hotel in Reykjavik is the place to stay if you want to be pampered. It’s located in a restored 1900s building and features some of Reykjavik’s largest rooms, all designed in a modern Scandinavian style with original artwork by local artists.

In the middle: Hotel dinsvé

The Hotel dinsvé in Reykjavik is a good place to stay if you want to see the city from a window every day of your vacation. In the hotel’s Snaps Restaurant you’ll find exquisite Danish cuisine. A shopping mecca, Laugavegur Shopping Street, is also within walking distance.

BUDGET: Rey Apartments.

Reykjavik’s trendy Skolavordustigur neighborhood and the city’s main shopping district are separated by the Rey Apartments. Each unit comes with free internet access as well as fully equipped kitchens and living areas. It’s only a 10-minute drive to the Sunhollin geothermal swimming pool!

Loft Hostel is a backpacker Hostel

One of the most cost-effective options in Reykjavik for backpackers is Loft Hostel, winner of two Best Hostel awards. It’s in the middle of everything, and it has a huge balcony where you can take in the sights. As a result of their excellent wifi and nice staff they frequently organize music and other activities.

Reykjavik Area Campgrounds & RV Parks

Located in the Laugardalur neighborhood of Reykjavik, this modern campground provides a kitchenette and self-service laundry and bathroom facilities. Wheelchairs are welcome here. Dogs are welcome, so bring a furry companion along with you. There is no charge for either parking or using the wireless internet.

Hafnarfjörur Camping is a great option for those on a budget who want to stay in Iceland while enjoying the lovely surroundings of Vdistaatn. You may enjoy a peaceful camping experience about 30 minutes from Keflavik International Airport. A laundry machine is one of several modern conveniences at this campground, which caters to families. The hostel across the street has free Wi-Fi.

Hotels in the Golden Circle: Selfoss and Hverageri – Where to Stay

The Golden Circle is a 300-mile circular trek from Reykjavik to the middle of Iceland and back in one day. If you’re short on time or have a stopover, this is a great way to get a taste of Iceland.

The Golden Circle contains a little bit of everything, from ancient historical landmarks to breathtaking natural wonders. Tours of the Golden Circle are available, but you may also drive yourself around the area by renting a car.

Most tourists begin their journey in Reykjavik, although there are plenty of places to stop along the way to spend the night. Selfoss and Hverageri are ideal places to start.

Depending on your budget, here are my picks for the best Golden Circle inns, hostels, and campgrounds.

Golden Circle hotels are some of the best in the world.

Iceland’s Frost and Fire Hotel is located near a geothermal area, allowing guests to feel like they’re in the center of nature. We are only a short distance from Thingvellir National Park. Two hot tubs, an outdoor swimming pool, a hot spring-powered Jacuzzi, and a sauna are available at the spa-like facilities. For breakfast, you could even use a natural hot spring to boil an egg.

The northern lights can be seen from the Ion Adventure Hotel, which is located near Thingvellir National Park. In addition to a heated pool and a spa, the hotel also features a restaurant and sauna on Mount Hengill. The community room is where you meet other adventurers and share your tales of escapism.

Golden Circle Hotels in the Moderate Price Range

Eco-friendly hotel Eldhestar is just a short drive from Reykjavk, the capital of Iceland. In the lounge close to the fireplace, you can have a cup of hot tea or a cocktail. Each room has its own entrance and is decorated in a natural manner. Within walking distance of a working Icelandic horse farm, Eldhestar features an outdoor wooden hot tub.

There is a shared kitchen, bathroom, and laundry area in the guesthouse. To make the most of your time at the communal area, you can throw a BBQ on your private terrace. Instead of a standard hotel room, consider staying in a mobile home for the whole immersive experience.

Golden Circle hotels that aren’t too pricey

Rooms at the Skyr Guesthouse feature a television, a coffee/tea maker, and free WiFi. While you contemplate whether or not to go trekking or shopping at the market, you may enjoy a delicious lunch and a cup of coffee on site. Everyone has access to free Wi-Fi and parking. Rent a bike from the guesthouse if you don’t want to drive and explore the area.

On the Golden Circle, the Guesthouse Inga’s location is ideal for spotting the Northern Lights, which can be seen from the property. In addition to being big and well maintained, the apartments also include beautiful views of the surrounding countryside. The bathrooms in the common areas are modern and well-kept. In addition, the common lounge is a must-visit.

Hostels in the Golden Circle at a Low Price

Before continuing your exploration of Iceland, stay at Selfoss Hostel where you’ll have all you need for a good night’s sleep! Free internet and a view of the Ingolfsfjall mountain may be found in the well-kept, practical rooms. When you rent a car in Iceland, free parking is a huge perk. A large shared kitchen and a hot tub are also available.

Hot Springs Hostel – Breathtaking mountain vistas welcome you every morning from your room’s window. Wi-Fi is available at the hostel, and there is also a play area for children to enjoy. Reykjafjall Mountain’s awe-inspiring scenery are just a short walk from the hostel.

Accommodations in Vik, Iceland’s South Coast

The South Coast of Iceland is teeming with natural treasures, making it an ideal destination for a getaway from the capital. In most cases, this is the next destination after a drive around Iceland’s Golden Circle on Route 1.

Waterfalls such as Seljalandfoss and Skogafoss can be found along Iceland’s south coast. These include Reynisfjara Black Beach, Sólheimajökull Glacier, and the Eyjäskylä Volcano.

One of the main cities travelers visit is Vik [MAP], which has numerous hotel options, restaurants, and other attractions nearby. If you want to spend the night or two, it’s an excellent option.

Depending on your budget, these are my top picks for South Iceland’s hotels, hostels, and campgrounds.

South Iceland’s High-End Accommodations

A new hotel near Vik opened its doors in 2018 called Hotel Kria. A high-end hotel’s rooms feature a contemporary decor and all of the amenities one would expect. During your stay at Kria, you’ll be able to take in stunning mountain views, sip a cocktail at their bar, or dine on Icelandic specialties at their restaurant. Food from local farmers is served at the breakfast buffet.

Step out onto the terrace at the Black Beach Suites on Iceland’s South Coast for a breathtaking view of the mountains and the sea. You have a refrigerator, a microwave, and a toaster in your room, so you can make your own food. This hotel is about 4 kilometers from a black sand beach, where guests may enjoy outdoor eating, skiing, and golfing.

South Iceland’s Mid-Range Hotel Accommodations

The Barn is an excellent place to stay if you want to explore the South Icelandic coast from a central location. Parking and free Wi-Fi make it ideal for those who prefer to drive around the island in a rental car. Couples will appreciate the hostel’s private rooms, which make it an excellent choice. There are private rooms with a view of the mountains, as well as dorms with draperies for the more budget-conscious traveler.

Reynisfjall Mountain, Vikura River, and Lake Höfabrekkulón are all within a short drive of Icelandair Hotel Vk. This hotel in Iceland is ideally located right next to the beach and within walking distance of restaurants and other conveniences. Family, twin, and triple rooms are all available.

Accommodations For a Limited Budget in Iceland’s South Coast.

The rooms of the Hotel Geirland have views of the surrounding mountains. Some of the cabins are secluded and surrounded by a lush garden. Guests can order breakfast and dinner a la carte, and they can also request a pre-packed lunch to be delivered ahead of time. Visit the hotel’s main building to use the Internet or catch up on your favorite television show.

If you’re lucky, you’ll obtain a room with a stunning view of the ocean at the Reyir Guesthouse, a family-owned establishment just a few feet from the beach. When you don’t want to eat outside, you can prepare a meal in the community kitchen or use the shared restroom facilities.

Several Cheap Hostels in Iceland’s South Coast.

To get to Vik’s famous black beaches, take a 10-minute stroll from Puffin Hostel in town. It has a fully stocked kitchen and a communal room for relaxing. Bathrooms and common areas are available in the basic rooms.

Hotels Near the Glacier Lagoon in Höfn – where to stay

Höfn, a little fishing village, is the next stop on your journey. There are just a few natural harbors in Iceland, and the town of Höfn rests on one of them.

Vik is about a four-hour journey away, and this is the next large city. There is so much to see and do between these two Icelandic cities that you may want to spend a night here, despite the four-hour drive.

As a result, Hofn is the nearest settlement to Jökulsárlón glacial lagoon and Vatnajokull National Park. One of the pleasures of my vacation was seeing the sunrise from Jökulsárlón, so if you can, try to find a place to stay near there.

I’ve put together a list of the best lodging options for those looking to visit Hofn and the glacier lagoon.

Hotels in and around Hofn

Guests at the Aurora Cabins hotel in Iceland may be able to catch a glimpse of the aurora borealis from the cottage porch. The surrounding tiny hill has a bench on top, making it an ideal site to take in the city lights. All the cabins have a microwave and toaster in the kitchen, as well as free wifi, as well as a balcony or patio with seats. Couples will love it here!

Mid-Priced Accommodations Near Höfn

Hotel Hofn – The sea and surrounding glaciers can be seen from several of the hotel rooms. If you’re driving a rented car, you’ll appreciate the hotel’s private parking. You can savor Icelandic delicacies on the terrace of the restaurant. Silfurnes Golf Club and Hofn Harbour are only a 10-minute walk away, while the Jokulsarlon glacier lagoon is an hour away.

The Jökullhotel – Located just a short drive from Höfn, this hotel provides guests with breathtaking views of the Aurora Borealis. Vatnajökull, Iceland’s largest glacier, should persuade you to extend your visit. In some rooms, the bathroom is private, but in others, there is a communal bathroom. You may park for free, plus there’s a pub there.

Hofn’s Hostels: Low Cost Accommodations

Guesthouse Skyrhusid is located just a few feet from Jokulsarlon Glacier Lagoon. There is nothing like looking up at the mountain for inspiration. Wash basins are provided in each room at this country-style guesthouse, and the bathrooms are shared. On-site dining options include two dining establishments. Visitors to Thorbergssetur Historical Museum can learn about the area’s past.

It’s a great place to meet other guests at Höfn Guesthouse. Even if you stay in the main building, you’ll be able to choose between a double and a twin bed. Communal bathrooms are available, and there’s free WiFi. Taking a stroll along the waterfront is a great alternative to the nearby Höfn Swimming Pool.

Hostels Near Höfn at a Low Cost

Hostel Höfn is a great place to stay if you want to be close to town while yet getting great views of the Vatnajökull Glacier. A television room and a restroom are among the shared amenities. There is a golf course about 3 kilometers away from the hostel, and hiking is a great way to see the area. There is always free parking available, even if you don’t make a reservation in advance.

For those looking for a home away from home, Lilja Guesthouse is the place to stay. The coffee maker and free WiFi are standard amenities in these peaceful quarters. Guests can appreciate the neighboring mountains while sipping coffee in the common room.

Making a Round Trip Through Iceland’s Golden Circle

The Golden Circle is a popular day trip in Iceland that involves self-driving. A layover in Reykjavik can be made more enjoyable by doing the 300-kilometer (190-mile) route, which includes a number of attractive monuments.

Driving the Iceland Golden Circle Route in a single day instead of the island’s significantly longer Ring Road is a terrific way to see more of the country (which encircles the entire country and takes at least 7 days).

You’re wondering, “What is the Golden Circle?” Reykjavik to Iceland’s southern highlands and back is a 190-mile drive. Even better, you can do the entire journey in just one day!

If you’re travelling to Europe and have a short layover, this is a great option.

You can proceed at your own pace when self-driving around Iceland’s Golden Circle.

My buddy Kiersten and I leased a car and drove the Golden Circle (Gullni hringurinn in Icelandic) for a full day, stopping at all the excellent spots along the way.

Restrictions on Travel to Iceland 2022

Iceland has reopened its doors to all visitors, including Americans. Proof of your COVID-19 vaccinations or a negative test result is required before you can enter the country, however.

Several hotels, attractions, and private tours are now open with revised health & safety procedures in place, and you must still adhere to specific rules and regulations.

Driving in Iceland isn’t too tough if you follow a few standards, depending on when you go. And the Golden Circle Road is in excellent condition.

In order to drive the golden circle, you don’t need a 4×4.

During the peak summer months, traffic on the Golden Circle can be heavy due to an increase of visitors. Get out of the house early to avoid traffic.

I like to drive myself around the Golden Circle rather than take a guided tour because I can stop whenever I want and explore other parts of the area.

Iceland Car Rental

Discover Cars is the best place to book a car. In order to help you get the best deal possible, they search both local and international automobile rental providers for you. Renting a car in Iceland couldn’t be simpler than this.

The roads of Iceland are often slippery when the weather becomes cold. At any one time, even the most pleasant of weather conditions might rapidly shift. However, Vegagerdin, an Icelandic website that displays current road conditions in real time, is an excellent resource.

Despite the high cost of gasoline in Iceland ($7.50 per gallon), a full tank should be plenty for a trip around the Golden Circle. Some international payment cards may necessitate an in-store fee rather than a pump-side transaction.

A Waterfall in Gullfoss

Gullfoss, the next major attraction in Iceland’s Golden Circle, is where the huge Hvtá River abruptly vanishes into a canyon.

It’s not hard to see why Gullfoss is referred to as “gold waterfall” in Icelandic.

There’s a bend in the river that drops it 100 feet into a cleft in the ground, creating a dense mist and many rainbows in the process. Gullfoss is one of Iceland’s most famous tourist attractions because of its spectacular landscape.

Visitors can walk along the edge of the roaring fall of water after descending a steep staircase from the parking area.

This waterfall, Gullfoss, is located off the main highway, so you’ll have to detour a bit to get back to Reykjavik.

lake in the Keri Crater

A visit to Kerid Crater Lake completed our Golden Circle tour. As the sun began to drop over this crimson volcanic crater, we turned into the parking lot.

With time, the top of the volcano has crumbled, leaving an empty magma chamber underneath it. Deep blue water fills the crater’s depths, highlighting the red and green hues on the surface.

It simply takes five minutes to descend to the crater’s depths. If you have a few minutes, stop at Kerid Crater, which isn’t as well-known as the other Golden Circle sights.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button