The Snaefellsnes peninsula is a wonderful region with waterfalls, glacier, fjord, lava formation and much more!
This Iceland in Miniature deserves at least a one night stay to discover all its treasures.
So, where to stay on the Snaefellsnes peninsula?
Below, I am sharing with you all my accommodation tips:
- Map and areas to stay
- Best hotels on Snaefellsnes: in Grundarfjordur, Arnarspati, Borgarnes…
- Alternative options
- …

Best hotels on Snaefellsnes Peninsula – quick answers
If you don’t want to read the entire article, with explanations of the various areas, here are my short answers.
This selection is completely independent, based on my experiences and research. I visited the region anonymously, making my own choices, and paying all my bills in full.
Best towns
- Grundarforjdur – to stay near the famous Kirkjufell – see best-rated accommodations
- Hellnar / Arnarstapi – on the South coast along the lava cliffs – see best-rated accommodations
- Stykkisholmur to be surrounded by water – 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
But it can also be great to stay in between surrounded only by the impressive nature of Iceland.

Best Snaefellsnes hotels
- 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 - Hotel Hamar (previously Icelandair)
In Borgarnes, modern and spacious rooms with stunning mountain views and great spa area.
I tested it in Winter and had a great time. The restaurant is beautiful.
– see photos and availability

Some of the best guesthouses and other accommodations on Snaefellsnes
- Akkeri Guesthouse
In Stykkisholmur, a colorful house, close to the fishing port with great breakfast
– see photos and availability - Helgugata Guesthouse
Right in Borgarnes, a nice house surrounded by greenery, quite rare in Iceland
– see photos and availability - Guesthouse 43
In Grundarfjordur, 3 chambres avec vues mer et montagne, salle de bain communes
– see photos and availability - The Old Post Office Guesthouse
In Grundarfjordur, great location, practical and clean. Some rooms have a private bathrooms.
I had a great stay here.
– see photos and availability
Need to rent a car in Iceland?
My tips:
- Compare prices on my favorite platform: Discovercars.com – one of the best rated comparison sites!
- Prefer a compact car for the narrow streets in villages
- Consider their full coverage option – it for peace of mind!
- Book early to have a large choice of vehicles!

Where to stay on Iceland South Coast – map + tips
Map of best areas to stay

There are 4 main options to stay along the South Coast of Iceland
- Town of Grundarfjordur
A fantastic location between mountains and sea with perfect views of Kirkjufell which is a few minute drive away.
A peaceful place that is great to explore the peninsula.
The more dreamy location. - Towns of Arnarstapi / Hellnar
Small settelments on the South coast of the peninula.
They are located along the lava cliffs, with crazy formations. Plus there are beautiful mountain views.
The best location for the power of nature; - Town of Stykkisholmur
Small town on the North Coast.
A little bit further from most of the attractions, but surrounded by water and islands.
Great boat tours with fishing depart from here. - Town of Borgarnes
not on the peninsula. But if you are road tripping and only have one day on the peninsula, it can be practical to stay here. It connects the peninsula, the Silver circle and the Ring Road.

Accommodations tips in South Iceland
- You should not have any parking problems
- Note that many guesthouses offer rooms with share bathrooms. Be careful if this is critical for you.
- If you are staying in a place between towns, make sure you have a way to find dinner (restaurant on site or in a hotel nearby). Pay attention to opening times!
- If traveling outside Summer, you could have the change to see the northern lights. For more chances, choose accommodations away from any light pollution (so, not in towns).

Best place to stay on Snaefellsnes Peninsula – planning your itinerary
I think the best way to travel around Iceland is by road trip.
I recommend you stay at least one night around Vik and one night around Jokulsarlon – Höfn.
For help defining your itinerary with the South Coast, check out my articles:
- best things to do on Snaefellsnes Peninsula in Summer
- best things to do on the Snaefellsnes Peninsula in Winter
- Iceland itinerary 5 days (4 options)
- Iceland itinerary 7 days (5 options)
- 10-day Iceland itineraries (4 option)
- 14-day Iceland itinerary

Option 1 – Grundarfjordur, stay near Kirkjufell
Where is Grundarfjordur?
Grundarfjordur is on the North coast of the peninsula
- Reykjavik to Grundarfjordur = 2h30
- Borgarnes to Grundarfjordur = 1h20
- Arnarstapi to Grundarfjordur = 45min

Why stay in Grundarfjordur
Grundarfjordur is the town next to Kirkjufell, one of the most iconic mountains in Iceland.
The unique shape of the peak and the waterfalls in the foreground create a stunning experience both in Summer and in Winter. By staying close, you can see it at sunset, sunrise and maybe under the northern lights (especially as it is facing North).
The town is surrounded by stunning natural scenery, including fjords, mountains, and glaciers.
The areas feels peaceful and quiet.
And it is a good location to explore the peninsula and all its attractions.
However…
Not much. I enjoyed my stayed ever time.

Hotels in Grundarfjordur
The area is mostly rich in Guesthouses rather than hotels.
- Kirkjufell Hotel
Great location, beautiful building, but hotel rooms were tired the last time I stayed there.
– see photos and availability

Other accommodations in Grundarfjordur
- Guesthouse 43
3 bedrooms with sea and mountain views, shared bathroom
– see photos and availability - The Old Post Office Guesthouse
Great location, practical and clean. Some rooms have a private bathrooms.
I had a great stay here.
– see photos and availability - Hellnafell
Apartment with large windows and the most perfect view of Kirkjufell!
– see photos and availability - Kirkjufell Guesthouse and Apartments
A good choice of different accommodations, a little outside the town center
– see photos and availability
–> Otherwise check out the best rated accommodations in Gundarfjordur

Option 2 – Arnarstapi / Hellnar
Where are Arnarstapi and Hellnar?
Arnarstapi and Hellnar are the main settlements on the south coast of the peninsula.
- Reykjavik to Arnarstapi = 2h40
- Borgarnes to Arnarstapi = 1h30
- Grundarfjordur to Arnarstapi = 45min

Why stay in Arnarstapi / Hellnar
Arnarstapi is one of the most scenic places to stay in Iceland, especially in Winter: beautiful coastal landscape that includes dramatic lava cliffs, rugged coastline, and picturesque fjords.
The areas feels peaceful and quiet.
And it is a good location to explore the peninsula and all its attractions.
I think I prefer Gundarfjordur when there is no snow and Arnarstapi in Winter.
However…
Not much. I enjoyed my time here always.
Note, that it is very small.

Hotels in Arnarstapi
Here again, you can find better options in rentals but there a couple of hotels:
- Arnarstapi Hotel
Modern decor and large windows
– see photos and availability - Fosshotel Hellnar
Facing the sea
– see photos and availability

Other accommodations in Arnarstapi
- Hellnar Ocean View Villa
A very large villa, with a magical view and large windows to enjoy it!
– see photos and availability - Glass House
Another large house with framed views
– see photos and availability - and many other houses
–> Otherwise check out the best rated accommodations in Hellnar and Arnarstapi
Option 3 – Stykkisholmur
Where is Stykkisholmur?
Stykkisholmur is also on the North coast, to the east compare to Gundarfjordur.
- Reykjavik to Stykkisholmur = 2h20
- Borgarnes to Stykkisholmur = 1h10
- Grundarfjordur to Stykkisholmur = 30min

Why stay in Stykkisholmur
Stykkisholmur has a completely different vibe.
It is a headland surrounded by water and island.
It is famous for its boat tour where you fish fresh seafood and taste it on board.
However…
It requires a bot more driving to the various attractions of the peninsula.
The landscape is less impressive in my opinion.
Hotels in Stykkisholmur
- Hotel Egilsen
Inside the stunning red house. A cosy place to stay
– see photos and availability - Hotel Fransiskus Stykkisholmi
Spacious rooms, right next to the port.
– see photos and availability - Fosshotel Stykkisholmur
Romms with lots of light and nice views.
– see photos and availability

Accommodations in Stykkisholmur
- Akkeri Guesthouse
A colorful house, close to the fishing port with great breakfast
– see photos and availability - Gardur Restored house
Large house to rent
– see photos and availability - Syslo Guesthouse
Charming white and red house with lots of natural light
– see photos and availability
–> Otherwise check out the best rated accommodations in Stykkisholmur
Option 4 – Borgarnes
Where is Borgarnes?
Along the Ring Road, at the intersection with the road towards the peninsula
- Reykjavik to Borgarnes = 1h10
- Grundarfjordur to Borgarnes = 1h15
- Arnarstapi to Borgarnes = 1h30

Why stay in Borgarnes
Borgarnes is a very convenient town to stop when road-tripping in Iceland.
It is where the Ring Road, the road to the Snaefellnes peninsula and the Silver Circle converge.
It is only and hour drive away from Reykjavik.
The hot springs of the Silver circle are not far, which is great to relax after a long day exploring.
However…
It still requires an hour of driving to explore the attractions of the pensinula.

Hotels in Borgarnes
- Hotel Hamar (previously Icelandair)
Modern and spacious rooms with stunning mountain views and great spa area.
I tested it in Winter and had a great time. The restaurant is beautiful.
– see photos and availability - B59 Hotel
Modern building and modern rooms, in the town center
– see photos and availability - Hotel Hafnarfjall
Variety of accommodations with Rooms and Bungalows (some with sea views), a little outside town
– see photos and availability

Other accommodations in Borgarnes
- Helgugata Guesthouse
Right in town, a nice house surrounded by greenery, quite rare in Iceland
– see photos and availability - Blomasetrid Homestay
A cosy place to stay to feel at home
– see photos and availability - Black Timber House
House for rent (2 bedrooms), outside of town. Stunning!
– see photos and availability
–> Otherwise check out the best rated accommodations in Borgarnes
Where to stay in Iceland?
My favorites:
- Reykjavik, capital city: see best rated accommodations – or my article on where to stay
- Selfoss, between Golden Circle and South Coast: 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, on the Snaefellsnes Peninsula: see best rated accommodations

Staying in Reykjavik

It is not possible to visit the entire South Coast of Iceland within a day trip from Reykjavik.Krikjufell is 2h30 away from Reykjavik.
However you can easily explore the first half of the coast on a day trip from Reykiavik.
There is a wide range of places to stay in the capital city – Choose among the best rated accommodations in Reykjavik
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But I also like other drinks and sweets!
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FAQs
Camping on Snaefellsnes
Since 2013, the law has changed and conditions to wild camp are complicated. You must understand ownership of lands.
Iceland has many campsites around the country offering you cheaper accommodation (over 200) – if you stay quite a while, consider the Camping Card giving you access to a network of campsites.
For example on Snaefellsnes:
- Campsite Olafsvik
- Snorrastadir Farm Holidays
- …
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:
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