Where to stay in Iceland (2025): best areas + hotels

Are your trying to decide where to stay in Iceland?
The choices of towns and accommodations can be overwhelming.
Below is my complete guide to the best areas to stay in Iceland and accommodation suggestions including:

• Where to stay in towns such as Reykjavik, Vik…
• Where to stay in regions such as South Iceland, the West Fjords…
• Where to stay near attractions such as Diamond beach and the Golden Circle
• Where to stay in Iceland to see the northern lights and more!

Where to stay in Iceland – best areas on a road trip or single place

Best places to stay around Iceland (Summer and Winter)

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:

• Keflavik – near the airport on the Reykjanes peninsula – see hotel + rental deals
• Reykjavik – capital city – see hotel + rental deals
• Selfoss – between Golden Circle and South Coast – see hotel + rental deals
• Vik – near waterfalls and glaciers – see hotel + rental deals
• Höfn – gateway to the East fjords – see hotel + rental deals
• Egilsstadir – between fjords and North Iceland – see hotel + rental deals
• Reykjahlid – for the wonders of Lake Myvatn – see hotel + rental deals
• Akureyri – capital of the North – see hotel + rental deals
• Isafjordur – for the West fjords – see hotel + rental deals
• Grundarfjordur – to explore the Snaefellsnes Peninsula – see hotel + rental deals
• Borgarnes – on the Ring Road between Snaefellsnes and Silver Circle – see hotel + rental deals

Should you stay in one place in Iceland?

If you have only 3 or 4 days and it is your first time in Iceland, you can stay in Reykjavik and do day trips.
However, if you have more, then I recommend that you hit the road and change accommodations every night to be able to cover more road and discover many more of the wonders Iceland has to offer!
Here are some driving times to give you a better ideas:

If you need help planning your road trip check out my:

• 5-day Iceland itineraries
• 7-day Iceland itineraries
• 10 day Iceland itineraries
• 14 day Iceland itinerary
• Iceland road trip tips

Best places to stay in Iceland – FAQs

Which part of Iceland is more beautiful?

That is such a difficult question. All the regions are Iceland have something special:

• The South Coast has massive waterfalls, black sand beach and glacier lagoons with icebergs
• Northern Iceland has Many volcanic features more or less recent showing the power of Nature
• The Snaefellsnes peninsula is Iceland in Miniature
• The East fjords offers impressive scenery at every turn, although less varied
• The West Fjords are very impressive and away from the crowds, but more difficult to explore
• The Central Highlands offer untouched landscapes with volcanoes, waterfalls, lava fields, lakes… but you need a high clearance 4WD

My absolute favorite region in Summer is Northern Iceland, especially around Lake Myvatn. It feels like post-apocalyptique.
And my absolute favorite region in Winter is the Snaefellsnes peninsula, just a showy wonderland of contrast with black and white.

Is it worth staying in Reykjavik?

Yes, if you love cities, restaurants and want to learn more about many aspects of Iceland.
Yes, if you have only a few days and don’t want to drive.
No, if you are limited in time and are focused on see the Land of Fire and Ice.

Reykjavik is a trendy city with nice restaurants, shops and now many museums and attractions.
There are things to do for everyone such as the whale museum, the cathedral, Flyover Iceland…
However, if your primary objective when visiting Iceland is to see the power of Nature, then I think Reykjavik can be skipped.
There is so much to see all around the country!

See best rated accommodations in Reykjavik.

Where to stay in Iceland to see the Northern lights

• Best areas to stay in Iceland to see the Northern lights
  Northern Iceland is generally considered better to see the Northern light as it has clearer skies. But this is not a definitive rule
  Overall, your best chance to see the northern lights (without doing a tour) is to stay at an accommodation far away from any light pollution
• Best hotels to see the Northern lights
  If you want to just get out of bed, when receiving the Northern light alarms and have the best change of seeing them clearly, consider the following hotels:
  Hotel Ranga, with its Observatory Roof – see photos and availability
  Hofsstadir Country Hotel on top of a hillside – see photos and availability
  Hotel Husafell secluded on the Silver Circle – see photos and availability
  Thorsmork Volcano Huts, in the Central highlands, but a Giant Jeep is required to get there… 

Much more details at the end of this article.

Where to stay in Iceland for honeymoon / romantic getaway

For me there is nothing better than taking a road trip and exploring the best nature Iceland has to offer.
But if you are looking for a romantic hotel to spend a few nights consider:

• Ion Hotel – Contemporary style not far from the Golden Circle – see photos and availability
• Hotel Ranga, with its Observatory Roof – see photos and availability
• Siglo hotel in a beautiful fjord far away from the crowds – see photos and availability
• Silica Hotel at Blue Lagoon, right at the incredible geothermal pool – see photos and availability
• Hotel Borg, in Reykjavik, in a 1930 building – see photos and availability

Most unique accommodations in Iceland

Looking for a very unique place to stay, to change from ordinary travels? Check out these:

• Reykjavik Domes for some glamping near Reykjavik – see photos and availability
• Valhalla Yurts, yurt in a garden with a unique style – see photos and availability
• Hotel Viking, with a strong Viking theme – see photos and availability
• Puffin Nest Capsule, if you have never stayed in a capsule hotel before – see photos and availability
• Esjan, a converted bus north of Reykjavik – see photos and availability
• Aska, a cabin in the middle of a lava field near Lake Myvant – see photos and availability
• and many more… the Icelandic are getting really creative!

Where to stay in Iceland for the Blue Lagoon

The Blue Lagoon is the most famous geothermal seawater pool in Iceland.The complex offer various spa treatment and the chance to soak in this unique blue water.

You can stay directly at the Silica Hotel at Blue Lagoon, right at the incredible geothermal pool – see photos and availability
or check out all the accommodations around the Blue Lagoon

Where to stay in Iceland in Winter? (October, December, February…)

All my answers above are applicable to Summer and Winter and all the months.
Except that the Central Highlands are not accessible and the West Fjords are very difficult to visit.
So:

• Reykjavik – capital city – see best rated accommodations
• Vik – near waterfalls and glaciers – see best rated accommodations
• Höfn – gateway to the East fjords – see best rated accommodations
• Egilsstadir – between fjords and North Iceland – see best rated accommodations
• Reykjahlid – for the wonders of Lake Myvatn – see best rated accommodations
• Akureyri – capital of the North – see best rated accommodations
• Grundarfjordur – to explore the Snaefellsnes Peninsula – see best rated accommodations
• Borgarnes – on the Ring Road between Snaefellsnes and Silver Circle – see best rated accommodations

Where to stay in Iceland at Christmas

Christmas is a unique time of the year in Iceland.
It last for 26 days with 13 “Santa Clauses”, the Yule Lads. Plus the country is covered in white and northern lights are a definite possibility.
The best places to enjoy this magic are:

• Reykjavik – with ice skating, Christmas concerts, choirs, decorations… – see best rated accommodations
• Lake Myvatn – the Yule Lads hide in the Dimmuborgir lava field (see the even calendar here)  – see best rated accommodations

Where to stay in Iceland for hiking

There are many hiking opportunities around Iceland.
Some of the best towns to base yourself and access many hikes are:

• Vik – for Skaftafell, canyons and the hike starting in Skogafoss – see best rated accommodations
• Grundarfjordur -for the hikes around the Snaefellsnes Peninsula – see best rated accommodations
• Reykjahlid – for Lake Myvatn hikes around craters and to waterfalls – see best rated accommodations

There are also incredible multi-day treks to consider.

How are the Iceland accommodations – what to expect?

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
• Please note that many guesthouses have shared bathrooms. Please check first if this is a concern for you.

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

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.
But they are mostly available in the larger towns for longer stays.

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.

Where to stay in Reykjavik – Accommodations

About Reykjavik

Reykjavik is the capital city of Iceland.
There is lots to see and do. 
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.

Best areas to stay in Reykjavik

• Midborg (downtown) also known as Reykjavik 101
  It is the heart tof the city around the cathedral.
  It filled with restaurants, cafes and bars
  From here, it is very easy to explore the city on foot.
• Vesturbær
  West of Midborg.
  The neighboorhood is getting trendier and trendier.
  It also give easy access to all Reykjavik attractions, while being cheaper.
• Hlidar
  Younger area, mostly residential where you can find hostels
  This is also where you can find hotels near main roads, allowing you to get easily out of the city
• Laugardalur
  Residential area, further away from the city center.
  Preferred area by families

My favorite accommodations in Reykjavik

My favorite hotels in Reykjavik center are:

• Luxury: Black Pearl Apartment Hotel – see photos and availability
• Charm: Reykjavik Konsulat – see photos and availability
• Boutique: Vintage Hotel – see photos and availability
• Mid-range: City Center Hotel – see photos and availability
• Apartments: Rey Apartments – see photos and availability
• Guesthouse: Reykjavik Treasure B&B – see photos and availability
• For families: Odinsve Hotel Apartments – see photos and availability

Otherwise, you can consider these options depending on what you are looking for:

• HOSTEL – The Reykjavik City Hostel has a good rating inside Reykjavik – check out photos and availability
• DESIGN – If you like modern design, have a look at the 41- a Townhouse hotel! – check out photos and availability
• 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 availability
• ROMANTIC – Hotel Borg, in Reykjavik, in a 1930 building – see photos and availability
• UNIQUE  – Reykjavik Domes for some glamping near Reykjavik – see photos and availability
• I also stayed at Castle House Luxury with a spacious room and good price – check out photos and availability
• 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, it is not centrally located – see photos and availability
• But there is a wide range of places to stay in the capital city – Choose among the best rated accommodations in Reykjavik

Or read my article dedicated to where to stay in Reykjavik

Where to stay on the Golden Circle – Accommodations

About the Golden Circle

The Golden Circle Iceland is a great road North of Reykjavik, which includes some of the top attractions in Iceland such as :

• Thingvellir National Park with the Earth Crust fissure and historical significance
• Gullfoss, a magnificent waterfall in two giant steps
• and the Haukadalur geothermal area, with mud pools and a geyser that erupts every 5 to 8 minutes.

Best areas to stay on the Golden Circle

Depending on your interest you could choose:

• To stay near Haukadalur to enjoy a sunrise with the geyser – see options
• To stay in Laugarvatn, where you can find a few accommodations by the lake and its hot springs – check out options
• To stay in Fludir, a little out of the way, to be able to soak in the hot waters of the Secret Lagoon at the end of the day – check out best rated accommodations
• Otherwise you can also find a large choice of accommodations in Selfoss, a town on the Ring Road that connects the Golden Circle with the South Coast – see best rated accommodations

Best Golden Circle Accommodations

I stayed at two different accommodations in the area:

• 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 – see photos and availability
• I stayed at the Icelandair Hotel in Fludir which was really nice, modern and clean – see photos and availability

Otherwise consider :

• The Ion Hotel – Contemporary style – see photos and availability
• Skyggnir Bed and Breakfast not far from Fludir, but in nature  – see photos and availability
• Litli geysir hotel, not far from the geyser – see photos and availability
• Hotel Gullfoss, just 3km from the waterfall – see photos and availability
• Hotel South coast in the heart of Selfoss – see photos and availability

Where to stay in South Iceland 

About the South Coast

The West of the South coast is one of the most popular areas in Iceland as it is home to:

• Impressive waterfalls such as Seljalandsfoss and Skogafoss
• Black sand beaches such as Reynisfjara
• Glaciers
• Glacier lagoons such as Jokulsarlon
• Icebergs on black sand at Diamond Beach
• …

Best areas to stay in South Iceland

Between Selfoss and Höfn, there is 5h of driving.

The main accommodation hub on the South coast of Iceland are:

• Selfoss, as a transition between the Golden circle and the South Coast – see best rated accommodations
• Vik, the heart of the South Coast a nice place to explore glaciers, waterfalls and black sand beaches – see best rated accommodations
• Höfn, the gateway to the East Fjords and a very charming little seaside town – see best rated accommodations

And you can also find many accommodations in Nature along the Ring road, including some not far from Diamond beach and Jokulsarlon

Where to stay in Vik – Accommodations

I have stayed at 2 different accommodations around Vik:

• Hotel Vik i Myrdal with a choice of modern rooms and old huts. Plus a delicious restaurant – See more photos and availabilities
• Hotel Katla Hofdabrekka, close to Vik but more in nature, large comfortable rooms and nice staff – See more photos and availabilities

Otherwise check out the best rated accommodations in Vik

Where to stay near Diamond beach – Jokulsarlon

There are no accommodations at Diamond beach or Jokulsarlon.
But you can find a few hotels or guesthouses in the area, and these will allow you to get there for sunset, sunrise or the northern lights faster 

• I stayed at the Hotel Smyrlabjorg, 30 min drive East of Jokulsarlon. It was clean and practical – Check out photos and availability
• The closest accommodations with great ratings are Hali Country Hotel and Skyrhusid Guesthouse. 
• see all options

Or read my article about where to stay near Jokulsarlon.

Where to stay in Höfn – Accommodations

I have stayed at Höfn Berjaya. Right by the harbor it was clean and practical – see more photos and availability

Otherwise, check out the best rated accommodations in Höfn

More ideas and info in my article about where to stay in South Iceland.

Where to stay in the Snaefellsnes Peninsula

About the Snaefellsnes Peninsula

The Snaefellsnes peninsula is often considered a mini Iceland.
Driving around you can discover: fjords, glacier, lava fields and cliffs, volcanic craters, lava cave, black sand beaches…
Its main attraction is the mountain of Kirkjufell and its waterfalls.

Best areas to stay on the Snaefellsnes Peninsula

There are various options you can consider:

• Grundarfjordur, my favorite, on the North Shore – you are right next to the magical Kirkjufell to see it for sunset, sunrise and under the northern lights – see best rated accommodations 
• Hellnar / Arnarstapi, on the South Shore along the lava cliffs – see best rated accommodations
• Stykkisholmur, to be surrounded by water (but implies more driving) – see best rated accommodations
• Borgarnes – not on the peninsula, but a practical location to balance your driving times if coming from further around the Ring Road – see best rated accommodations

Snaefellsnes accommodations

I had the opportunity to test 3 accommodations in the area:

• 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, it was even better with a beautiful rainbow over Kirkjufell – Check out photos and availability
• The Old Post Office Guesthouse with shared bathroom (also in Grundarfjordur). It was comfortable, clean and very well located – Check out photos and availability
• Hotel Hamar in Borgarnes with great sauna and open views – check out photos and availability

Otherwise consider:

• Hotel Budir – Located in none of the towns listed, it is surrounded by nature with a restaurant and a great location to explore the peninsula – see photos and availability
• Hotel Egilsen – Inside the stunning red house, in Stykkisholmur. A cosy place to stay! – see photos and availability
• Bjarg Apartments in Gundarfjordur, one of the best rated options – check out photos and availability
• Fosshotel Hellnar between mountain and sea – check out photos and availability
• Akkeri Guesthouse in Stykkisholmur – check out photos and availability

More ideas and info in my article about where to stay on Snaefellsnes.

Where to stay in North Iceland – Akureyri and more

About Northern Iceland

North Iceland is less visited than the South. Yet it also offer incredible landscapes, especially around Lake Myvatn. For example you could see:

• the powerful Dettifoss waterfall
• the giant lava formation in Dimmuborgir
• Pseudocraters on a lake
• the elegant Godafoss waterfalls
• Lava fields still fuming
• …

Best areas to stay in North Iceland

• Akureyri, the capital of the North – see best rated accommodations
• Myvatn with so many incredible attractions around – see best rated accommodations
• Egilsstadir, gateway between North Iceland and East fjords – see best rated accommodations
• Husavik, for a charming smaller town and whale watching activities – see best rated accommodations

Where to stay in Akureyri – Accommodations

Consider:

• Where I stayed: Hotel Akureyri Berjaya which was very modern with a nice bar and great location – see photos and availability
• Hafdals Hotel – Outside of the Akureyri, but not far. Spacious rooms with beautiful views. – see photos and availability

But you can also consider:

• Halllandsnes Apartments with self catering amenities – see photos and availability
• Saga Apartments Akureyri for very central rentals – see photos and availability
• Hotel Akureyri Dynheimar is a very central location and a unique design – see photos and availability

Other North Iceland Accommodations

I stayed at:

• Dimmuborgir Guesthouse right by lake Myvatn, with views of some pseudocraters  – see photos and availability
• Hotel Herad in Egilsstadir, which was very practical – see photos and availability
• Fossholl Guesthouse right next to Godafoss – perfect to go see the sunset – see photos and availability

But you can also consider:

• Hotel Laxa – By lake Myvatn – Modern room with large windows to enjoy the views of the lake – see photos and availability
• Hotel 1001 Nott – Outside Egilsstadir with large windows overlooking only nature – see photos and availability
• Siglo Hotel  in a charming tiny town North of Akureyri – see photos and availability (but further from the attractions)
• Sel – Hotel Myvatn right next to the pseudocraters – see photos and availability
• IcelandAir Hotel in Myvatn, modern, classic and well-located – see photos and availability
• Northern Lights – Hofsstadir Country Hotel on top of a hillside, West of Akureyri – see photos and availability
• Unique  – Aska, a cabin in the middle of a lava field near Lake Myvatn – see photos and availability
• Skjálfandi in Husavik – see photos and availability

More ideas and info in my article about where to stay in North Iceland.

Where to stay near Iceland’s airport – Keflavik Accommodation

About the airport

The Internationl Airport is not in Reykjavik.
It is located in Keflavik, in the Reykjanes peninsula.
It is a 45min drive from Reykjavik.

Where to stay in Keflavik – accommodations

If you arrive late in the everning or leave on an early flight, there is a large choice of accommodations very close to the airport.
Considering I had an early flight I stayed at the Nupan Deux Keflavik for a short commute to the airport – see photos and availability

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

Where to stay in the West fjords of Iceland

Isafjordur is the main town in the West fjords where you will find most accommodations – check accommodations in the region
However the region is vast and driving around takes a lot of time, so you may not want to drive back to Isafjordur every day. You can find other accommodations spread around the region.

Where to stay in Iceland for Northern lights

Conditions to see the auroras

To be able to see the Northern lights you need

• A very dark night (so don’t travel in May, June, July, as they have the shortest nights)
• A cloud-free sky
• High intensity of solar eruptions

Northern Iceland is generally considered better to see the Northern light as it has clearer skies. But this is not a definitive rule.
Overall, your best chance to see the northern lights (without doing a tour) is to stay at an accommodation far away from any light pollution.

Learn more in my Iceland Aurora article.

Where to stay if booking a northern light tour

If staying in one place, you are limiting your chances of having a clear sky.
This is why you can book tours, with expert drivers that will try to find the best areas for you to see them.
Those tours are only available from the 2 main towns:

• Reykjavik – with boat, bus and private northern light tours – check out options
• Akureyri – with bus and private aurora tours – check out options

Where to stay near great locations for Northern lights

Or you might want to stay close to a great location for your photography.
Great Icelandic background to photograph the Northern lights include:

• Jokulsarlon – see best rated accommodations in the area
• Kirkjufell or Londrangar on the Snaefellsnes peninsula – see best rated accommodations in Grundarfjorfur
• Reynisfjara black sand beach – see best rated accommodations in Vik
• Hvitserkur, a 15m high basalt rock formation – accommodations further away…

Best Northern light hotels to see without getting out

Or you can choose to stay in a Hotel that is away from any town and source of light and have the potential to be a good place to see the northern lights.
Normally, you can opt to have a wake up call by the front desk telling you when they are active.
You just have to get out of bed, put on a coat and get outside!

For example you can choose:

• Hotel Ranga
  with its Observatory Roof, on the way to the South Coast
  see photos and availability
• Hofsstadir Country Hotel
  on top of a hillside, in Northern Iceland, West of Akureyri
  see photos and availability
• Hotel Husafell
  secluded on the Silver Circle, with glacier, waterfalls and lava cave nearby
  see photos and availability
• Thorsmork Volcano Huts
  but a Giant Jeep is required to get there… 
• Reykjavik Domes
  If the lights are very very strong, they can be seen in the vicinity of Reykjavik.
  But chances of excellent sighting are slim
  see photos and availability
• Northern Light Inn
  Not far from the blue lagoon
  see photos and availability
• Ion Hotel
  Contemporary style not far from the Golden Circle
  see photos and availability
• …

What part of Iceland is best to stay to explore from one place? 

As I wrote before, I think Iceland is best visited on a road trip.
However, I do understand the preference to stay in one place and not change accommodation all the time.
The best hubs around Iceland where you can enjoy many day trips and lots to see around are:

• Reykjavik
  Especially if you don’t rent a car.
  Most day trips start from there: South coast waterfalls, Jokulsarlon, Golden Circle, Silver circle, Snaefellsnes…
  see best rated accommodations
• Vik
  If you ave a car and want to explore the South coast in depth
  From here you can see waterfalls, glaciers, black sand beaches… and enjoy many activities such as visiting an Ice Cave, hiking on a glacier, kayaking on a glacial lake…
  see best rated accommodations
• Myvatn
  If you have a car and want to explore the best of the North
  see best rated accommodations

In those towns, you can see for a few days up to a week!

Want to see more of the best Iceland has to offer?

• All my favorite things to do in North Iceland – read article
• Tips to plan your Iceland road trip – read article
• Tips to rent a car in Iceland – read article
• Tips to drive around Iceland – read article
• Itinerary suggestions – read article
• 45 Most beautiful landscapes in Iceland in pictures – read article
• The best stops on the Ring Road – read article
• The best locations off the beaten path around Iceland – read article
• 21 Most beautiful waterfalls in Iceland – read article
• Top 5 places to see around Myvatn – read article
• 5 best Lava Fields in Iceland – read article
• The 10 best lava caves in Iceland – read article
• The 5 most beautiful black sand beaches in Iceland – read article
• The Golden Circle – read article
• The Snaefellsnes peninsula – read article

Planning a trip to Iceland?

Check out my travel guide to help you plan:

And keep track of your own trip!

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