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Iceland Accommodations – Information + 12 Suggestions and Reviews

Last updated on June 25, 2022 By Claire, the Travel Planning Geek

Wondering where to stay in Iceland?  Check out the following information about the various options you could enjoy. And after that I introduce 12 Iceland Accommodations I have experienced and that you could consider. 

Iceland Accommodations - Iceland Travel - Iceland Hotels - Where to stay in Iceland
Accommodations
Where to stay in Iceland
Accommodations Options
Reykjavik Accommodations
Golden Circle Accommodation
Vik Accommodations
Jokulsarlon Accommodations
Snaefellsnes Accommodations
Godafoss Accommodation
Myvatn Accommodation
Keflavik Accommodation
Thorsmork Accommodation

Navigate back to the complete Travel Iceland Guide

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Where to stay in Iceland

Map Iceland destinations for blog

Here is a reminder of my map of the different regions in Iceland with the main towns. 
For each region you visit you can opt to stay in one of the towns where you will find restaurants and shops or you can opt for farms and guesthouses out in Nature to wake up to beautiful views and feel closer with the Earth. 
The main Iceland Accommodation hubs are

  • Reykjavik, Keflavik (near the airport) and Selfoss in the South West - check accommodations in the region
  • Vik and Höfn on the South Coast - check accommodations in the region
  • Egilstadir for the East Fjords - check accommodations in the region
  • Lake Myvatn and Akureyri for North Iceland - check accommodations in the region
  • Isafjordur for the West fjords - check accommodations in the region
  • Grundarfordur for the Snaefellsnes peninsula - check accommodations in the region

If you want a bit more guidance and specific ideas of places to stay, I will present accommodation options for several of these regions further in the article.

Iceland accommodations Reykjavik

Accommodations Options

Iceland Hotels, B&Bs and Guesthouses

  • Hotels are like everywhere else... a classic option for Iceland accommodation.
  • B&Bs and Guesthouses are a great way to stay in Iceland. Set up in private homes, they offer personalized service and great exchanges with locals
  • I personally use Booking for all my accommodations when traveling. I find a huge choice, great rates, useful reviews and great reactivity on the rare occasions I had issues - Check out accommodations on Booking

Icelandic Farm Holidays

  • Farm holidays are similar to B&Bs but in Farmhouses often off the beaten track.
  • I allows you to connect more with the culture and traditions of Iceland
Iceland farm accommodation

Rentals in Iceland

  • If you want a place were you can feel at home, cook and have a base for your travels, renting is a great option
  • Airbnb which has more than 300 rooms and houses listed in Iceland. 

Camping in Iceland

  • Iceland has many campsites around the country offering you cheaper accommodation (over 170) - if you stay quite a while, consider the Camping Card giving you access to a network of campsites.
  • Since 2013, the law has changed and conditions to wild camp are complicated. You must understand ownership of lands. Better to use campsites.
  • If you are interested in Camping, check out the advices by BeMyTravelMuse about Camping the Iceland Ring Road or Aga's Iceland on the budget Guide

And before booking your trip, you might consider reading my article about the best time to go to Iceland depending on what you want to see and experience.


NOTES ON THE FOLLOWING REVIEWS

  • I paid for all my Iceland accommodations entirely. 
  • Opinions are my own. Reviews are based on my stay in September 2014
  • Some photos are not my own as I strangely did not take many pictures of my Iceland Accommodations but I selected photos I found representative of my stay.
  • Booking.com is what I use myself for booking. 

Reykjavik Accommodations

Reykjavik is the capital city of Iceland. This is where you find the highest number of Iceland accommodations from luxury hotels to small guesthouses. You can stay one night or stay your whole trip and do day tours from there.

OPTION 1 - Reykjavik Accommodation Suggestion:

If you want to stay centrally located, discover the Reykjavik Treasure B&B. I had only one night there but wish I had stayed more. It was very welcoming, with charm and a great location. 

Reykjavik Accommodation - Iceland Accommodation B&B

Reykjavik Accommodation

Review:

  • Location: Perfect centrally located - my rental company brought me the car there in the morning
  • State: Very clean, lots of charm, good wifi
  • Check-in: Lovely hosts, I check in late wihtout any problem and was well taken care of at breakfast with some recommendations for my trip
  • Breakfast: Nice common table, great decor, good food
CHECK AVAILABILITY & PRICES

OPTION 2 - Reykjavik Accommodation Suggestion:

Another option I experienced in Reykjavik is the hotel of Reykjavik Lights. Great facilities, the location is more for those ready to hit the road.

Reykjavik Accommodation - hotel

Reykjavik Accommodation

Review:

  • Location: Good to get right away on the road out of town, not so practical to get around Reykjavik
  • State: Clean, Very modern, light decor, great showers
  • Check-in: No issue, nice staff
  • Breakfast: Good Buffet
CHECK AVAILABILITY & PRICES

Other great accommodation options in Reykjavik

  • HOSTEL - The Reykjavik City Hostel has a good rating inside Reykjavik
  • CHEAPER - the other option is to stay slightly outside, for example in the Farm Akurhot Guesthouse - Check for availabity and price
  • DESIGN - If you like modern design, have a look at the 41- Townhouse hotel!
  • APARTMENT - An apartment if you want to stay several days and cook. For example check Availability and prices for Odinsvé Hotel Apartments
  • FAMILY - Have a look at the Old Charm Reykavik Apartments. They have 2 and 3 bedrooms apartments and a decor with a lot of character. Check availability and latest prices.
  • LUXURY - Head downtown in large smart apartments at the Black Pearl - Check availability an Prices 
  • LUXURY - or get slightly out of the tourist way at Embassy House, a full house superbly decorated that can host up to 10 people - Check Availability and price
  • or the Choose among the Best Rated Accommodations in Reykjavik

Golden Circle Accommodation

The Golden Circle Iceland is a great road North of Reykjavik, which includes some of the top attractions in Iceland such as the  Thingvellir National Park, Gullfoss waterfall and the Haukadalur geothermal area with geysers.

Golden Circle Accommodation Suggestion:

I had a really great stay at the Geysir Cottages (part of Hotel Geysir). The location was perfect to go check out the eruption of the Strokkur geyser when no big tourist busses were around.

Golden Circle Accommodation - Geyser cottage

Golden Circle Accommodation

Review:

  • Location: right across the road from Haukadalur and the Strokkur geyser. Just 10min from Gullfoss Waterfall.
  • State: Great, beautiful wooden decor, huts in the park, close to nature, wifi was not very stable when I visited
  • Check-in: OK
  • Breakfast: Great restaurant for both dinner and breakfast
CHECK AVAILABILITY & PRICES

Other options

For options, check out the
Best Rated accommodations on the Golden Circle across all budgets


Vik Accommodations

Option 1 - In Vik town

As you drive on the Ring Road around Iceland, Vik is one of the bigger town on the South Coast. Famous fro its black sand beaches, cliffs and lupin in June, this is a great place to stay 

A first option right in Vik is Hotel Edda Vik with a modern section and old huts.

Vik Accommodation - hotel

Vik Accommodation

Review:

  • Location: In the town of Vik, you can walk up to the little church (10min) and to the black sand beach. Great place to stop along the Ring Road on the South Coast
  • State: Very modern hotel, Good wifi, clean (if you are in the new section) - expensive
  • Check-in: Nice staff, no issues
  • Breakfast: Great dinner and breakfast
CHECK AVAILABILITY & PRICES

Option 2 - Further from the town

If you want to stay close to Vik but more into nature the Hotel Katla Hofdabrekka is a great choice. I really enjoyed walking around in the morning following the river. There were some great reflections.

Vik Accommodation - hotel isolated

Accommodation near Vik 

Review:

  • Location: Very peaceful place. Easy to go for a walk in a fjord. Short drive to the town of Vik.
  • State: Simple but clean and practical, there is a hot tub but I have not tried it
  • Check-in: Nice staff, no issues
  • Breakfast: Really great buffet breakfast
CHECK AVAILABILITY & PRICES

Other options

For options, check out the
Best Rated accommodations in Vik across all budgets


Jokulsarlon Accommodations

As you continue along the Ring Road on the South Coast of Iceland, the next big town is Hofn. Highlights of the area include the Jokulsarlon lagoon and Verstrahorn.

Jokulsarlon Accommodation Suggestion:

Between Jokulsarlon and Hofn, I stayed at Hotel Smyrlabjörg.

Jokulsarlon accommodation

Accommodation near Jokulsalron Iceland

Review:

  • Location: 30 min drive from Jokulsarlon - not too far to ba able to watch sunset and sunrise and drive back to the hotel
  • State: Not very modern but clean and practical (sometimes some scary pillows with animals LOL)
  • Check-in: No issues
  • Breakfast: Fine
  • Dinner: Nice buffet, lots of choice
CHECK AVAILABILITY & PRICES

Other options

If you want to stay even closer to Jokulsarlon to get there at night if the aurora activity is high, the closest accommodations on Booking.com with great ratings are Hali Country Hotel and Skyrhusid Guesthouse. The drive to the lagoon is only 10 minutes.


Snaefellsnes Accommodations

The Snaefellsnes peninsula is often considered a mini Iceland with fjords, glacier, lava fields and craters to admire. Its main attraction is the mountain of Kirkjufell and its waterfall.

OPTION 1 - Hotel

With my photography group with stayed at Framnes in Grundarfjörður. The location was great not far from the famous Kirkjufellsfoss allowing us to get there at sunset and sunrise. In the morning we were even greater by a beautiful rainbow over Kirkjufell.

Kirkjufellsfoss Accommodation - Snaefellsnes accommodation

Kirkjufellsfoss Accommodation

Review:

  • Location: In Grundarfjordur on the north coast of the Snaefellsnes Peninsula. Great access to Kirkjufellsfoss, on the seaside
  • State: Cosy interior, clean, Wifi OK
  • Check-in: A bit messy but we were a lot  to arrive at the same time
  • Breakfast: Good.
CHECK AVAILABILITY & PRICES

Option 2 - Guesthouse

When I went back to the Snaefellsnes peninsula on my own I opted for the cheaper accommodation of The Old Post Office Guesthouse with shared bathroom.

Snaefellsnes Accommodation - Guesthouse

Snaefellsnes Peninsula Accommodation

Review:

  • Location: Great location in the town, also a great place to get to Kirkjufellsfoss
  • State: Very simple, clean, sufficient
  • Check-in: Nice staff, no issues, good recommendations
  • Breakfast: N/A - common fridge and kitchen
CHECK AVAILABILITY & PRICES

Other options

For other options, check out the
Best Rated accommodations in Grundarfjordur for all budgets


Godafoss Accommodation

Godafoss is a beautiful horseshoe shape waterfall in North Iceland, just 30 min drive from Akureyri. There is not much around but a petrol station and a Guesthouse which also has a small campsite.

Godafoss Accommodation Suggestion:

I wanted to photograph Godafoss at sunset, so I decided to book one night at the Fossholl Guesthouse before heading to Myvatn.

Godafoss Accommodation - North Iceland Accommodation

Godafoss Accommodation

Review:

  • Location: Right next to the waterfall (5 minute walk) but nothing much around. Perfect fro photographers
  • State: Old but clean and comfortable, very quiet
  • Check-in: Friendly staff
  • Breakfast: Nice restaurant. Diner was good and breakfast too.
CHECK AVAILABILITY & PRICES

Myvatn Accommodation

Myvatn is one of my favorite areas in Iceland - craters, lakes, huge lava formations, geothermal areas, fuming lava fields... There are many accommodations around the lake. This Guesthouse is very close to the famous area of Dimmuborgir.

Myvatn Accommodation Suggestion:

I selected the Dimmuborgir Guesthouse for its good rating and great location. I was not disappointed. The surroundings are amazing with lava rocks, lake and Hverfjall behind. And the view for the breakfast area mesmerizing. One of my favorite iceland accommodations.

Myvatn Accommodation - Dimmuborgir Guesthouse


Myvatn Accommodation - Dimmuborgir Guesthouse

Review Dimmuborgir Guesthouse:

  • Location: Perfect - close to the many attractions at Lake Myvatn yet near the lake and very quiet
  • State: Clean, good equipment, good shower.
  • Check-in: Very friendly owners and staff. Always helpful.
  • Breakfast: Nice in a wonderful environment
CHECK AVAILABILITY & PRICES

Other options

For options, check out the
Best Rated accommodations around lake Myvatn across all budgets


Keflavik Accommodation

Keflavik is where the international airport is located. 

Keflavik Accommodation Suggestion:

Considering I had an early flight I stayed at the Nupan Deux Keflavik for a short commute to the airport.

Review:

  • Location: Close to the airport
  • State: Modern, clean, shared bathroom. Very comfortable.
  • Check-in: Nice. Very helpful staff.
  • Breakfast: My flight was too early...
CHECK AVAILABILITY & PRICES

Other options

For options, check out the
Best Rated accommodations in Keflavik across all budgets


Thorsmork Accommodation

For the more adventurous, you can hike or take a 4WD to the Thorsmork area, the Iceland Hiking hub with volcanic and greener scenery.

Thorsmork Accommodation Suggestion:

There is not much choice out there in the wild... I stayed in one of the Volcano Huts. As it is very isolated it is a great place to seen the northern lights when the conditions are good.

Thorsmork accommodation - Volcano Huts

Thorsmork accommodation - Volcano Huts

Review Volcano Huts:

  • Location: I love staying in isolated place so great - but note that a deep river crossing is required if you coming via 4WD.
  • State: Simple huts but comfortable enough.
  • Check-in: Friendly staff, great community staying there
  • Breakfast: OK. Dinner was also OK with a small buffet (considering the location it is of course limited).
CHECK AVAILABILITY & PRICES

Planning your trip to Iceland?

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14-day Iceland itinerary

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Choose your Iceland Self Drive Tour

Tourism Iceland Travel Guide

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