Traveling to Iceland is a remarkable experience. The combination of incredible scenic views, breathtaking waterfalls, cute Nordic towns, and welcoming locals makes it one of those special destinations you want to visit over and over again. Planning your dream trip to Iceland can be a bit tricky, given the country’s size and multiple unique regions. Once you’ve planned your perfect itinerary with the help of my 8-day and 12-day guides, it’s time to book your accommodations. That’s where this guide comes into play. This Iceland accommodations guide includes an overview of the best accommodation options, plus the main sights you can witness in each region.
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Know Before You Go
I’ve compiled some helpful insights in this Iceland accommodations guide to help ensure you book the best accommodations while visiting the land of fire and ice.
- While the largest cities like Reykjavík and Akureyri have an excellent selection of accommodation options available, the smaller towns throughout the country have a more limited selection. Booking in advance is highly recommended so you can secure a comfortable stay, especially if you visit during the peak season.
- Traditional hotels and hotel chains are less common outside the larger cities in Iceland. The main hotel chain you’ll find throughout Iceland is Fosshotel. Fosshotel offers sophisticated rooms with Icelandic touches, making them very popular among travelers.
- Iceland may not have many hotel options, but it’s home to some of the most charming bed and breakfasts. B&Bs are my favorite accommodation option in Iceland since they’re designed with personalized touches and traditionally include breakfast in the room rate. The hosts also have fantastic local recommendations about places to grab a bite to eat or any lesser-known sights to check out.
- Vacation rentals in Iceland have grown tremendously over the past decade due to the increased number of tourists visiting from all over the world. Airbnb and Vrbo have a variety of unique properties available throughout the country if you’re looking to book a larger space when traveling with a group.
- Iceland accommodations prices will vary based on the region and season you travel to Iceland and the type of accommodation option you book. If you travel to Iceland during their peak summer season, expect to see a markup compared to the baseline prices. On average, the accommodation prices are on par with what you would pay for a major metropolitan city in the US.
Reykjavík
Reykjavík is the most northern capital city in the entire world and one of the coolest if you ask me. The city is full of charming cafes that serve delicious baked treats, shops with unique Icelandic wool products, and cozy bars and microbreweries perfect for a nightcap. Since Reykjavík is close to the main international airport, most travelers spend at least one night here. However, I suggest planning for at least two to three days at the end of your trip to fully explore this gem of a city.
Main Sights in the Region
- Hallgrímskirkja: The tallest and most immense church in Iceland, with impressive architecture, is also home to an expansive pipe organ made up of over 5,000 pipes.
- Old Harbour: Originally used for trade, this area now boasts stunning views of the city, charming art galleries, wildlife tours, and an array of restaurants.
- Sky Lagoon: Just a short 11-minute drive from Reykjavík, and you’ll reach the beautiful oceanside lagoon. Sky Lagoon is particularly famous for its seven-step ritual that includes a glacier pool dip, a sauna session, a rejuvenating body scrub, and a gentle shower cleanse. After your visit, you will feel refreshed and renewed.
Reykjavík Accommodations
Discover the best places to stay in Reykjavik, Iceland, with my personal recommendations. Take a look at my top picks below and find the perfect Iceland accommodations, depending on your budget and preferences.
Hotels
- Sand Hotel – Boutique 4-star, $$
- Hotel Holt – The Art Hotel – Boutique 4-star, $$
- Eyja Guldsmeden Hotel – 4-star, $$
- Alda Hotel – 4-star, $$
- Vintage Hotel Apartments – Boutique 4-star, $$
- Storm Hotel – 3-star, $$
- City Center Hotel – 3-star, $$
B&Bs & Guesthouses
- Reykjavik Treasure B&B – 3-star, $$
- Reykjavik Residence Apartment Hotel – 3-star, $$
- Old Charm Reykjavik Apartments – 3-star, $$
- 46heima Boutique Apartments – 3-star, $$
- Castle House Luxury Apartments – 3-star, $
- Freyja Guesthouse & Suites – 2-star, $
If you need a comprehensive packing list for all your travel needs, I’ve got you covered! I created the ultimate packing list for your upcoming adventures, including carry-on essentials, toiletries, clothing, and location-specific items.
Reykjanes Peninsula
Most travelers begin their Iceland journey in Reykjanes Peninsula by flying into Keflavík International Airport. As you drive away from the airport, you begin to witness the dramatic landscape this country is known for. The famous Blue Lagoon is the main attraction most people seek in this region of Iceland. What many people don’t know is that the Reykjanes Peninsula earned the title of a UNESCO Global Geopark due to its volcanic activity, mineral lakes, lava fields, and hot springs.
Largest Towns in the Region
- Reykjanesbær (Keflavík and Njarðvík)
- Grindavík
Main Sights in the Region
- Blue Lagoon: No trip to Iceland would be complete without a visit to the Blue Lagoon. This geothermal hotspot is one of the top tourist attractions in the country and definitely lives up to its reputation. Due to its popularity, making a reservation to enjoy the tranquil blue waters is highly recommended.
- Seltún Geothermal Area: A vibrant geothermal location that features several boardwalks spread throughout the groups of thermal pools.
- Gígvatnsvatn: A volcanic crater with striking teal water just north of the Seltún hot springs.
Reykjanes Peninsula Accommodations
Check out my top Iceland accommodations picks in the Reykjanes Peninsula below to find the perfect one for your budget and preferences.
Reykjanesbær
Hotels
- Hotel Berg – 3-star, $$
- Courtyard by Marriott Reykjavik Keflavik Airport – 4-star, $$
B&Bs & Guesthouses
- ÁLKA Seaside Apartment – 2-star, $$
- Guesthouse 1×6 – 2-star, $
- Guesthouse Keflavik – 2-star, $
Grindavík
Hotels
- The Retreat at Blue Lagoon Iceland – 5-star, $$$$
- Silica Hotel – Blue Lagoon – 4-star, $$$
- Northern Light Inn – 3-star, $$
- Hótel Grindavik – 2-star, $$
B&Bs & Guesthouses
- Harbour View Cottages – 3-star, $$
- Converted Water Tower Guesthouse – 2-star, $$$
- Guesthouse Grund – 2-star, $$
The South
Iceland’s Southwest and Southeast regions are highly sought-after and frequently visited by tourists. These areas are particularly popular due to their proximity to Reykjavík and the fact that they offer some of the most well-known and iconic sights travelers want to experience when visiting this land of fire and ice. As you travel along Highway 1, you will come across numerous waterfalls, glaciers, black-sand beaches, and if you come during the summer, you may even catch a glimpse of a puffin or two.
Largest Towns in the Region
Main Sights in the Region
- Skógafoss: Even with the crowds, this impressive waterfall never disappoints. It’s one of Iceland’s largest and most powerful waterfalls, and as a result, it produces an enormous amount of mist. Unless you want to get soaked, I recommend wearing a rain jacket.
- The Golden Circle: This 184-mile route captures three of Iceland’s top sights: Strokkur Geyser, Gullfoss Waterfall, and Kerið Crater Lake. In addition to the three main attractions, you’ll also want to explore Þingvellir National Park, a UNESCO World Heritage site. It’s home to the Silfra Fissure, where you can famously snorkel or scuba dive between the North American and Eurasian tectonic plates. Some other standout sights include Bruarfoss and Faxafoss if you need an additional waterfall fix for the day. If you want a more detailed overview of our experience in the Golden Circle, check out day 4 of our previous itinerary.
- Reynisfjara Black Sand Beach: This renowned black sand beach features a unique set of basalt columns resembling pipe organs and offers stunning views of the offshore Reynisdrangar sea stacks.
- Jökulsárlón: The stunning icebergs that gracefully float along the coast of the renowned glacier lagoon can easily captivate anyone with their beauty. As you reach the river’s base, you’ll be amazed by the Diamond Beach, where ice boulders wash up on shore. The striking contrast between the black sand and the blue ice is a sight that would leave any photographer in awe.
Southern Iceland Accommodations
Explore my personal recommendations for the best places to stay in Southern Iceland. Browse my top picks below to find the perfect accommodation to fit your budget and preferences.
Selfoss
Hotels
- 360 Hotel & Spa – Boutique 4-star, $$$
- Hotel South Coast – 4-star, $$
- Hotel Selfoss – 4-star, $$
B&Bs & Guesthouses
- Lambastadir Guesthouse – 3-star, $$
- Bella Apartments & Rooms – 3-star, $
- Guesthouse Bitra B&B – 2-star, $
Höfn
Hotels
- Fosshótel Vatnajökull – 3 star, $$
- Árnanes Country Hotel – 3-star, $
- Hotel Höfn – 2 star, $
B&Bs & Guesthouses
- Seljavellir Guesthouse – 3 star, $
- Milk Factory Guesthouse – 3 star, $
- Hrafnavellir Guesthouse – 3 star, $$
Hveragerði
Hotels
- Frost and Fire Hotel – Boutique 3 star, $$
- The Greenhouse Hotel – 3 star, $$
- Hótel Eldhestar – 3 star, $
B&Bs & Guesthouses
- INNI – Boutique Apartments – 3 star, $$
- Varmi Guesthouse Apartments & Rooms – 3 star, $
Flúðir
Hotels
- Hotel Fludir – 3 star, $
B&Bs & Guesthouses
- Garður Stay Inn – 2 star, $$
- Skyggnir Bed and Breakfast – 2 star, $
- The White House – 2 star, $$$
- Guesthouse Fludir – 2 star, $
Traveling to Iceland? Check out my 8-Day South & West Itinerary and 12-Day Ring Road & Westfjords Itinerary posts to plan your ultimate fire and ice adventure.
The East
Iceland’s East region boasts breathtaking scenery at every turn, from the grand mountains to the stunning waterfalls and fjords. Despite being overlooked by many when planning their trip, the Eastfjords is a must-see destination, in my opinion. The drive along the fjords alone is worth the visit.
Largest Towns in the Region
Main Sights in the Region
- Stuðlagil Canyon: This basalt canyon is a well-known spot that draws visitors thanks to its distinct basalt structures and striking blue water. You’ll need to walk about 3 miles (5 km) from the second parking lot down an uneven road to reach the canyon. But once you catch a glimpse of the canyon, you’ll be blown away by the unusual beauty of the dark basalt formations and turquoise glacial waters – it’s almost surreal.
- Hengifoss & Litlanesfoss: Hengifoss has quite a reputation on Instagram. The falls’ distinct and moody appearance is the main attraction that draws a large crowd. This narrow waterfall showcases a stunning layered backdrop consisting of alternating basalt and thin layers of red clay. The trail to the viewpoint is 2.9 miles long and provides an option to trek even closer to the foot of the falls. During your journey to Hengifoss, you will also come across Litlanesfoss Waterfall, which may be smaller but equally impressive.
- Seyðisfjörður: This charming town is famous for its unique rainbow walkway that leads to the stunning bright blue Seyðisfjarðarkirkja Church. The drive down the winding roads to reach this coastal town is truly an experience, as you’ll want to stop and admire the mountains that surround the fjord.
Eastfjords Iceland Accommodations
Explore my personal recommendations for the best places to stay in Eastern Iceland. Find your perfect Iceland accommodations based on your budget and preferences below.
Egilsstaðir
Hotels
- Hotel 1001 Nott – 3 star, $$
- Hótel Eyvindará – 3 star, $
- Gistihusid – Lake Hotel Egilsstadir – 2 star, $$
B&Bs & Guesthouses
- Ormurinn Cottages – 2 star, $$
- Skipalaekur Guesthouse – 3 star, $
- Eyjólfsstadir Guesthouse – 2 star, $$
Neskaupstaður
Hotels
- Hildibrand Apartment Hotel – 4 star, $$
B&Bs & Guesthouses
- The Bank Sleeping B&B – 2 star, $
Eskifjörður
Hotels
- Hotel Eskifjörður – 2 star, $
B&Bs & Guesthouses
- Mjoeyri Travel Holiday Homes – 2 star, $
Seyðisfjörður
Hotels
- Hotel Aldan – 3 star, $$
B&Bs & Guesthouses
- Lónsleira Apartments – 3 star, $$
- Við Lónið Guesthouse – 2 star, $$
- Seyðisfjörður Guesthouse – 2 star, $
The North
The Northern region of Iceland is full of diverse landscapes and is home to the second-largest city in the country. The terrain is a breathtaking combination of grand waterfalls, rugged peninsulas, vast mountains, and geothermal mud pots. Quaint towns with charm and lovely coastal views are scattered along the Ring Road. You may even spot a whale if you spend time in Húsavík, also known as the whale-watching capital of Iceland.
Largest Towns in the Region
Main Sights in the Region
- Goðafoss: Also known as the Waterfall of the Gods. This impressive curved waterfall is easily one of the most beautiful in all of Iceland. You can witness the unique cascading falls by visiting one of the two accessible viewpoints on either side of the U-shaped valley.
- Aldeyjarfoss: Located in the Highlands, this stunning waterfall is a hidden gem that is definitely worth the extra drive time. The falls are a beautiful light blue color and cascade into a canyon surrounded by stunning multicolored basalt columns. Due to its remote location, you might find that you have the falls all to yourself.
- Mývatn: The other-worldly terrain in Mývatn is a unique sight to see. There’s a lot to take in when visiting this northern gem, from expansive lakes to volcanic craters to strange lava formations.
- Dettifoss: Dettifoss is one of the most powerful waterfalls in Europe and is located in the northern Jökulsárgljúfur region of Vatnajökull National Park. Dettifoss is an exceptional waterfall that produces roughly 400 cubic meters (105669 gallons) of water flow per second, creating a massive mist cloud that floats towards the west.
Northern Iceland Accommodations
Explore my personal Northern Iceland accommodations recommendations below. Choose the perfect place to stay based on your budget and preferences.
Akureyri
Hotels
- Akureyri – Berjaya Iceland Hotels – 3 star, $$
- Hafdals Hotel – 3 star, $$
- Hotel Natur Akureyri – 3 star, $$
- Hotel Kea by Keahotels – 4 star, $
- Hotel Halond – 2 star, $
B&Bs & Guesthouses
- K16 Apartments – 2 star, $
- Engimyri Lodge – 2 star, $
- Apartment in the Country – 2 star, $
Siglufjörður
Hotels
- Siglo Hotel By Keahotels – 4 star, $$
- Hotel Siglunes – 2 star, $
B&Bs & Guesthouses
- The Herring House – 2 star, $
- Salt Guesthouse – 2 star, $
Húsavík
Hotels
- Fosshotel Húsavík – 3 star, $
- Húsavík Cape Hotel – 3 star, $
B&Bs & Guesthouses
- Árból Guesthouse – 2 star, $
- Skjálfandi Apartments – 2 star, $
- Gamli Skólinn Húsavík – 3 star, $
- Bjarnabúð Apartments – 2 star, $$
Blönduós
Hotels
- Hótel Blönduós – 3 star, $$
B&Bs & Guesthouses
- Brimslóð Atelier Guesthouse – 3 star, $$
- Guesthouse Tilraun – 2 star, $
- Gladheimar Guest House – 2 star, $
Mývatn
Hotels
- Fosshótel Mývatn – 4 star, $
- Berjaya Iceland Hotels – 4 star, $$
- Hótel Laxá – 3 star, $$
B&Bs & Guesthouses
- Vogafjós Farm Resort – 2 star, $$
- Aska, Modern Cabin – 2 star, $$
- Skútustadir Guesthouse – 2 star, $
- Guesthouse Stöng and Cottages – 2 star, $
The Westfjords
If you’re included in the 10% of travelers who visit The Westfjords during your stay in Iceland, you’re in for a treat. This region has untamed beauty without the crowds, creating a magical experience. There are dramatic coastal fjords that you’ll witness as you drive along the bumpy, unpaved roads. Don’t fret; once you get the hang of driving on uneven roads, you will be amazed at the spectacular sights you’ll see.
Largest Towns in the Region
Main Sights in the Region
- Dynjandi: This breathtaking waterfall is the crown jewel of The Westfjords and one of the largest in Iceland. You’ll witness the six smaller waterfalls below as you approach the base of the bridal veil-shaped falls.
- Látrabjarg Cliffs: These breathtaking seaside cliffs are home to millions of birds nest here yearly. It’s also home to one of the largest puffin colonies in Iceland, which you can witness if you visit during the summer months.
- Litlibær Cafe: This adorable turf-roofed cafe is home to delicious heart-shaped waffles and homemade jams. Don’t miss out on a fantastic cup of coffee or hot chocolate before you hit the road and continue to explore the fjords.
The Westfjords Accommodations
Find the perfect accommodation in Iceland’s Westfjords with my personal recommendations. Explore my top picks and select based on your budget and preferences.
Ísafjörður
Hotels
- Hótel Ísafjörður – 3 star, $$
- The Ísafjörður Inn – 2 star, $
B&Bs & Guesthouses
- GentleSpace Guesthouse – 2 star, $
- Comfortable Bungalow – 2 star, $$
- Sólheimar Studio Apartment – 2 star, $
- Sigurhæð Apartment – 2 star, $
Bolungarvík
B&Bs & Guesthouses
- Einarshúsid Guesthouse – 2 star, $$
- The Little House – 2 star, $
- Westfjords Guesthouse – 2 star, $
Patreksfjörður
Hotels
- Fosshotel Westfjords – 3 star, $$
- Hotel West – 3 star, $
B&Bs & Guesthouses
- Guesthouse Stekkaból – 2 star, $$
- Pálshús Guesthouse – 2 star, $
The West
Although the West is close in distance to Reykjavík, this region is like stepping into another planet. West Iceland is one of the most geologically diverse parts of the country. It’s home to Snæfellsnes Peninsula, which is made up of rugged seaside cliffs, impressive hiking trails, Snæfellsjökull glacier, and beaches with cheeky seals. Inland in the West, you’ll find unique lava tubes and a variety of remarkable waterfalls.
Largest Towns in the Region
Main Sights in the Region
- Kirkjufell Mountain: Kirkjufell is one of Iceland’s most photographed spots, thanks to being featured in Game of Thrones. It’s easy to see why it’s so popular. The iconic mountain is set behind Kirkjufellsfoss, complementing one another perfectly.
- Ytri Tunga: This well-known beach is one of the most reliable spots to see seals in Iceland, regardless of the season you visit. A quick walk from the car park, and you can witness some cheeky seals bobbing their heads out of the water.
- Glymur: This moderate to difficult trail is a can’t-miss if you want to enjoy an incredible hike to the second-highest waterfall in the country. You have two river crossings to get past before taking in the summit’s spectacular views.
Western Iceland Accommodations
Explore the Western region of Iceland and find the ideal accommodations based on your budget and preferences with my personal recommendations below.
Akranes
Hotels
- Hotel Glymur – 4 star, $$
B&Bs & Guesthouses
- Rustic Farmhouse – Narfasel – 2-star, $$
- Teigur Guesthouse – 2 star, $
- Akra Guesthouse – 2 star, $
- Móar Cottage – 2 star, $
Borgarnes
Hotels
- Hotel Hamar – 3 star, $$
- B59 Hotel – 3 star, $$
B&Bs & Guesthouses
- The Apartment – Öbbuhús – 2 star, $$
- Kría Cottages – 2 star, $
Stykkishólmur
Hotels
- Hótel Egilsen – 2 star, $$
- Hótel Fransiskus – 3 star, $
B&Bs & Guesthouses
- Sýsló Guesthouse – 2 star, $
- Akkeri Guesthouse – 3 star, $$
- Hotel Stundarfridur – 2 star, $$
Final Thoughts
Iceland is easily one of my favorite places I have ever visited. I have also found that the accommodations in the land of fire and ice are some of my favorites as well. There are lovely boutique hotels, charming B&Bs, and unique apartments and guesthouses available all around the Ring Road. Did this Iceland accommodations blog post help you secure your dream stay? Tell me in the comments!
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