When planning your trip to Iceland, finding the perfect place to stay is crucial for an unforgettable experience. Whether you’re looking to stay in Reykjavik, the bustling capital city of Iceland, or prefer the serene landscapes of the South Coast, this comprehensive guide to hotels and accommodations will help you choose the best lodging options. From luxury hotels with hot tubs to cozy family rooms, Iceland offers a wide range of accommodations to suit every traveler’s needs and budget.
Our Pick of the Best Hotels in Iceland: 🔝
- 💎 Luxury Hotel: Siglo Hotel by Keahotels
- ✨ 5-Star: Courtyard by Marriott Reykjavik
- 🏨 4-Star: Hotel Keflavik
- 🛏️ 3-Star: Hotel Berg
- 💸 Budget-friendly: ABC Hotel
- 🏢 Apartment: Sol Apartment
- 👨👩👧👦 For Families: Konvin Hotel by Reykjavik Keflavik Airport
- 🏩 For Couples: Park Inn by Radisson Reykjavik Keflavik Airport
Iceland is one of the best travel destinations, known for its stunning natural beauty, including the Jökulsárlón Glacier Lagoon and the rugged coast of Iceland. If you’re wondering where to stay to maximize your chances of seeing the northern lights, there are numerous excellent hotels located in prime viewing areas. For those looking to stay close to the airport, there are several convenient options near Keflavik Airport, ensuring a smooth start and end to your Icelandic adventure. Whether you want to stay in the heart of Reykjavik or in a remote countryside retreat, this guide will help you find the best places to stay in Iceland.
Quick Iceland City Guide 📋
- 🔥 For the First Time: Reykjavik
- 🌊 For South Coast: Vik
- 🍸 For Nightlife: Akureyri
- ⭕ For Golden Cirle: Hella
- 🧊 For Glacier Lagoons
- 🌄 For East Iceland: Egilsstaðir
- 🏔️ For Westfjords: Ísafjörður
- ⛵ For Nature: Stykkishólmur
- 💸 Budget-friendly: Selfoss
- 🎣 For Fiord Town: Siglufjörður
- 🌌 For Northern Lights: Reykjanesbaer
1. Reykjavik – Overall Best Place to Stay in Iceland 🏆
🏆 Overall Best Place: Reykjavik, the capital city of Iceland, is the perfect place to start your Icelandic adventure. This bustling city is located in the southwest of the island and offers a mix of modern amenities and rich cultural experiences. From the iconic Hallgrímskirkja church to the lively Laugavegur shopping street, there’s no shortage of things to do in Reykjavik.
🚶♂️ Walkable Downtown: One of the best ways to explore Reykjavik is by foot. The city’s compact downtown area, known as 101, is filled with colorful houses, cafés, and trendy boutiques. I recommend wandering along Laugavegur and exploring the side alleys to discover hidden gems.
🍽️ Culinary Delights: Reykjavik’s culinary scene is a delightful blend of traditional Icelandic fare and international influences. For a taste of modern Icelandic cuisine, head to Matur og Drykkur, which offers a seasonal menu featuring locally sourced ingredients. If you’re in the mood for a splurge, Grillmarkaðurinn is known for its exceptional steaks and seafood. And for a quick bite, Bæjarins Beztu Pylsur serves up some of the best hot dogs you’ll ever taste.
One of the biggest draws of Reykjavik is its lively cultural scene. Here are some top attractions and experiences not to miss:
- Hallgrímskirkja Church – This iconic landmark offers stunning city views from its tower
- National Museum of Iceland – Explore the country’s history through engaging exhibits
- Harpa Concert Hall – Marvel at this striking glass facade and catch a concert or show
- Laugavegur Street – Stroll down this main drag lined with shops, cafes, bars and street art
🚉 Easy Transportation: Getting around Reykjavik is easy, with a well-connected public transport system and plenty of taxis. The city is also a great base for day trips to nearby attractions like the Blue Lagoon and the Golden Circle.
Best hotels in Reykjavik
Reykjavik Residence Apartment Hotel
Hotel Borg by Keahotels
Canopy by Hilton Reykjavik City Centre
Heart House Guesthouse
Skuggi Hotel by Keahotels
Reykjavik Natura - Berjaya Iceland Hotels
Midgardur by Center Hotels
Hotel Frón
2. Vik – Best Place to Stay on Iceland’s South Coast 🌊
🌊 Coastal Charm: Vik, a picturesque village on the south coast, is an ideal base for exploring the region’s stunning natural attractions. Located just a short drive from the famous Reynisfjara black sand beach and the Skógafoss waterfall, Vik offers breathtaking landscapes and a cozy atmosphere.
🏞️ Natural Wonders: One of the highlights of staying in Vik is the opportunity to explore the nearby natural wonders. The Reynisfjara black sand beach, with its striking basalt columns and powerful Atlantic waves, is a must-visit. Just be sure to stay a safe distance from the water, as the waves can be unpredictable.
🍽️ Local Flavors: Vik may be small, but it packs a punch when it comes to culinary delights. For a taste of traditional Icelandic cuisine, head to Halldorskaffi, a restaurant that serves up hearty dishes like lamb soup and fresh fish. If you’re in the mood for something more casual, Strondin Bistro & Bar offers tasty burgers and pizzas in a laid-back atmosphere.
Aside from the famous black sand beaches, Vik offers several other natural attractions worth visiting:
- Dyrhólaey Arch – This iconic rock formation juts out into the sea
- Reynisfjara Beach – In addition to the black sands, see the unique basalt column formations
- Skógafoss Waterfall – One of Iceland’s biggest waterfalls at 60 meters tall
- Sólheimasandur Plane Wreck – Hike to the remains of a 1970s US Navy plane crash
🌿 Outdoor Adventures: With its stunning natural surroundings, Vik is a paradise for outdoor enthusiasts. Take a hike up to the top of Reynisfjall mountain for panoramic views of the coastline, or join a guided tour to explore the nearby Mýrdalsjökull glacier. For a truly unique experience, don’t miss the chance to visit an ice cave or go snowmobiling on the glacier.
Best hotels in Vik
Hotel Katla by Keahotels
Black Beach Suites
Vík Apartments
Hotel Vík í Mýrdal
Hótel Kría
Hótel Dyrhólaey
The Vík Inn by Ourhotels
3. Akureyri – Coolest Place to Stay in North Iceland 😎
😎 Cool Vibes: Akureyri, often called the “Capital of the North,” is the perfect base for exploring the stunning northern region. With its laid-back atmosphere, vibrant culture, and proximity to natural wonders, Akureyri offers a unique experience that sets it apart from staying in Reykjavi
🌿 Natural Wonders: Akureyri’s location makes it the perfect gateway to some of the most breathtaking natural wonders. Take a day trip to the nearby Mývatn region, known for its otherworldly lava fields, geothermal baths, and abundant birdlife. Or head to the Tröllaskagi Peninsula to explore its rugged coastline, picturesque fishing villages, and the iconic Hofsós swimming pool, which offers panoramic views of the North Atlantic.
Akureyri’s surrounding area is a paradise for outdoor enthusiasts:
- Goðafoss Waterfall – Marvel at the “Waterfall of the Gods,” a stunning horseshoe-shaped cascade
- Dettifoss Waterfall – Feel the power of Europe’s most mighty waterfall
- Ásbyrgi Canyon – Hike through this horseshoe-shaped canyon, said to be the hoofprint of Odin’s horse
- Hlíðarfjall Ski Resort – Hit the slopes at this popular ski resort, just a short drive from the city center
🍽️ Culinary Delights: Akureyri’s dining scene is a testament to the local thriving culinary culture. For a taste of traditional Icelandic cuisine with a modern twist, head to Strikið, a stylish restaurant located on the top floor of a historic building. If you’re in the mood for something more casual, Akureyri Fish and Chips offers some of the freshest seafood you’ll find in Iceland.
🚗 Easy Access: Getting to Akureyri is a breeze, with regular flights from Reykjavik’s domestic airport and easy connections to the Ring Road. The city also serves as a great base for exploring the north, with many tour operators offering guided excursions to the region’s top attractions.
Best hotels in Akureyri
Akureyri - Berjaya Iceland Hotels
K16Apartments
Hotel Kjarnalundur
E18 Apartments
G10 Apartments
4. Hella – Best Area to Stay for the Golden Circle ⭕
⭕ Golden Circle Base: Hella, a quaint riverside town in South Iceland, is an excellent base for exploring the famous Golden Circle route. Located just a short drive from Þingvellir National Park, Gullfoss waterfall, and the Geysir geothermal area, Hella offers a peaceful retreat with easy access to major attractions.
🏡 Charming Town: Explore the nearby natural wonders, Þingvellir National Park, a UNESCO World Heritage site, offers stunning landscapes and historical significance. Gullfoss waterfall, with its powerful cascades, is a must-see. And the Geysir geothermal area, with its erupting hot springs, is a fascinating sight.
As a base for the Golden Circle route, Hella provides easy access to top attractions like:
- Þingvellir National Park – A UNESCO site where the continental plates meet
- Gullfoss Waterfall – The iconic “Golden Falls” is a must-see natural wonder
- Geysir Hot Springs – Watch Strokkur geyser erupt every 5-10 minutes
- Kerid Crater – This striking crater lake is a geological gem
🍽️ Local Dining: Hella’s dining scene may be limited, but it still offers a taste of authentic Icelandic cuisine. For a classic diner experience with an Icelandic twist, head to Kanslarinn. If you’re in the mood for something more upscale, the restaurants at Hotel Rangá and Stracta Hotel are highly recommended.
Best hotels in Hella
Stracta Hotel
Hotel Rangá
Hellatún Guest House!
Landhotel
Aurora Igloo
Hestheimar
Riverfront Lodge Hella
Hótel Lækur
5. Höfn – Where to Stay for Jökulsárlón Glacier Lagoon 🧊
🧊 Glacial Beauty: Höfn, a charming fishing town in southeast Iceland, serves as the perfect base for exploring the stunning Jökulsárlón Glacier Lagoon and the nearby natural wonders. Located just 80km from the lagoon, Höfn offers a range of accommodations and amenities for travelers seeking to immerse themselves in the beauty of the region.
🏊♂️ Local Amenities: In addition to its stunning natural surroundings, Höfn offers a range of amenities for visitors, including a swimming pool, golf course, and several museums showcasing local art and maritime history
Höfn is perfectly situated to explore the incredible glacial landscapes nearby:
- Jökulsárlón Glacier Lagoon – Sail among floating icebergs at this famed lagoon
- Diamond Beach – Watch chunks of ice wash up on the black volcanic sands
- Vatnajökull National Park – Hike across Europe’s largest glacier or into ice caves
- Stokksnes Beach – This black sand beach offers dramatic mountain views
🍽️ Lobster Capital: Known as the “Lobster Capital of Iceland,” Höfn is renowned for its delicious langoustine dishes. Be sure to try the local specialty at one of the town’s many restaurants, such as Pakkhús or Humarhöfnin. The annual Lobster Festival, held in July, is a must-visit for seafood lovers.
Best hotels in Höfn
REY Stays - House
Milk Factory
Fosshotel Vatnajökull
Seljavellir Guesthouse
Hotel Jökull
6. Egilsstaðir – Top Place to Stay in East Iceland 🌄
🌄 Eastern Escape: Egilsstaðir, the largest town in East Iceland, is surrounded by stunning landscapes and offers a variety of outdoor activities. With its convenient location at the intersection of the Ring Road and Route 93, Egilsstaðir offers easy access to the wonders of the Eastfjords.
🏞️ Outdoor Adventures: Nature lovers will find endless opportunities for outdoor activities in and around Egilsstaðir. Hike through the stunning Fljótsdalshérað district, go birdwatching in Hallormsstaðaskógur Forest, or try your luck at fishing in the Lagarfljót River. In winter, hit the slopes at the nearby Stafdalur Ski Area.
As the largest town in East Iceland, Egilsstaðir makes a great base. Top attractions include:
- Hengifoss Waterfall – One of Iceland’s tallest waterfalls at 128 meters high
- Hallormsstaðaskógur Forest – The largest forest in Iceland is perfect for hiking
- East Iceland Heritage Museum – Learn about the region’s culture and history
- Lake Lögurinn – This beautiful lake offers hiking trails and bird watching
🍽️ Culinary Delights: Indulge in delicious seafood at Glóð Restaurant, savor a tasty burger at Salt Café & Bistro, or enjoy a meal at the popular Café Nielsen. Don’t miss the opportunity to try traditional Icelandic dishes like lamb and skyr.
Best hotels in Egilsstaðir
Hérað - Berjaya Iceland Hotels
Gistihúsið - Lake Hotel Egilsstadir
Vinland Cottage
Lagarfell Studios
7. Ísafjörður – Best Base for Exploring the Westfjords 🏔️
🏔️ Westfjords Wonder: Ísafjörður, the largest town in the Westfjords, is a picturesque fishing village with a rich history and stunning natural surroundings.
🍽️ Local Cuisine: Despite its small size, Ísafjörður offers a surprisingly good selection of restaurants and bars. Tjöruhúsið, often hailed as one of the best restaurants in Iceland, serves a generous buffet of fresh, locally caught fish in a historic setting.
The remote and rugged Westfjords offer incredible scenery. Don’t miss these highlights:
- Dynjandi Waterfall – This iconic waterfall features several tiers and a dramatic setting
- Hornstrandir Nature Reserve – Go hiking and wildlife watching in this uninhabited reserve
- Ísafjörður Maritime Museum – Learn about the region’s fishing heritage
- Súðavík/Arctic Fox Center – See these cute creatures at this conservation center
🎨 Cultural Experiences: Ísafjörður is a cultural hub in the Westfjords, with several museums, galleries, and regular cultural events. Visit the Westfjords Heritage Museum to learn about the region’s maritime history, or explore the unique exhibits at the Museum of Everyday Life. The town also hosts several festivals throughout the year, including the popular “Aldrei fór ég suður” music festival.
🚗 Easy Access: Ísafjörður is well-connected by road, air, and sea, making it easy to reach from other parts of Iceland. Domestic flights from Reykjavík take less than an hour, and the town is also accessible by car or bus, though the drive can be challenging in winter. Cruise ships frequently dock in Ísafjörður, offering another convenient way to visit.
Best hotels in Ísafjörður
Hotel Isafjördur - Torg
Comfortable Bungalow
8. Stykkishólmur – Charming Fishing Town on Snæfellsnes Peninsula ⛵
⛵ Coastal Charm: Stykkishólmur, a picturesque fishing town on the northern shore of the Snæfellsnes Peninsula, is a must-visit destination for anyone exploring West Iceland. Known for its colorful houses, rich history, and stunning natural surroundings, Stykkishólmur offers a unique blend of culture and adventure.
🚗 Easy Access: Stykkishólmur is easily accessible by car, located just off Route 54 on the Snæfellsnes Peninsula. The town also serves as a hub for ferry services to the Westfjords and Flatey Island, making it a convenient base for further exploration.
Stykkishólmur provides the perfect home base for exploring Snæfellsnes Peninsula, including:
- Snæfellsjökull National Park – Hike to the famous glacier-capped volcano
- Kirkjufell Mountain – This iconic peaked mountain is a photographer’s dream
- Djúpalónssandur Beach – With black sands and unique rock formations
- Lóndrangar Basalt Cliffs – These striking cliffs jut straight out of the sea
🎨 Cultural Experiences: Stykkishólmur is rich in cultural heritage, with several museums and historical sites to explore. Visit the Volcano Museum to learn about Iceland’s volcanic activity, or the Norwegian House to delve into the town’s history. The town’s vibrant cultural scene is complemented by regular musical events at the local church, renowned for its acoustics.
Best hotels in Stykkishólmur
Fosshotel Stykkisholmur
Stundarfriður cottages
9. Selfoss – Convenient Stop Between Reykjavik and South Iceland 🌿
🌿 Central Hub: Selfoss, a bustling town in South Iceland, stands as a pivotal stop for travelers journeying between Reykjavik and the South Coast’s myriad attractions. Its strategic location makes it an ideal starting point for those looking to explore the Golden Circle and the South Coast without straying too far from the capital.
🍽️ Culinary Delights: The town’s culinary scene ranges from traditional Icelandic cuisine at local favorites like Tryggvaskáli to international flavors at the diverse eateries within The Old Dairy food hall. Whether you’re craving fresh seafood, authentic Italian pasta, or a quick bite at a café, Selfoss has something to satisfy every palate.
As a stopover location, Selfoss offers some interesting attractions of its own:
- Kerid Crater – This striking crater lake is a must-see geological wonder
- Ölfusá River – Go fishing, kayaking or hiking along this picturesque river
- Reykjadalur Hot Spring Trail – Hike through a geothermal valley to natural hot springs
- Selfoss Geothermal Pool – Take a relaxing dip in these naturally heated pools
🏞️ Outdoor Adventures: Beyond its role as a travel hub, Selfoss itself is surrounded by natural beauty and offers a variety of outdoor activities. From relaxing in geothermal pools to hiking in the nearby Reykjadalur Steam Valley, there’s no shortage of ways to immerse yourself in the local stunning landscapes.
Best hotels in Selfoss
Hotel South Coast
Bella Apartments & Rooms
10. Siglufjörður – Picturesque Fjord Town in North Iceland 🎣
🎣 Fjord Beauty: Siglufjörður, a historic fishing town nestled in a scenic fjord in North Iceland, is known for its stunning natural beauty and rich cultural heritage. It’s a hidden gem worth discovering.
🍽️ Culinary Delights: Siglufjörður boasts some of the best restaurants in North Iceland. Sunna Restaurant at the Siglo Hotel provides a refined menu with fresh seafood and meat options, perfect for a comfortable stay. For a more casual dining experience, try the highly-rated Fish & Chips Siglufjörður, known for its fresh and delicious seafood dishes. Don’t miss the chance to sample local craft beers at Segull 67 Brewery, a popular spot for both locals and visitors.
This charming fishing town offers a glimpse into the maritime heritage:
- Herring Era Museum – Learn about the town’s historic herring fishing industry
- Folk Music Center – Catch a performance of traditional Icelandic music
- Hiking Trails – Explore the scenic landscapes around the picturesque fjord
- Boat Tours – Take a cruise around the fjord to spot whales and puffins
🚗 Easy Access: Siglufjörður is easily accessible by car, located about 80 km from Akureyri. The scenic drive along the Trollaskagi Peninsula offers breathtaking views and is a highlight of any trip to Iceland. Public buses also connect Siglufjörður to Akureyri and Reykjavik, making it a convenient stop on your Icelandic adventure.
Best hotels in Siglufjörður
Siglo Hotel by Keahotels
The Herring House
11. Reykjanesbaer – Best Place to See in Iceland for the Northern Lights 🌌
🌌 Northern Lights Haven: Reykjanesbær, a vibrant town on the Reykjanes Peninsula, is one of the best places in Iceland to witness the mesmerizing northern lights. Its proximity to Keflavik International Airport and minimal light pollution make it an ideal spot for aurora hunting, offering a convenient and unforgettable experience for travelers.
🍽️ Culinary Delights: Reykjanesbær boasts some of the best restaurants in the region, offering a mix of traditional Icelandic cuisine and international flavors. Enjoy fresh seafood at Kaffi Duus, a popular spot with locals and visitors alike Also, try the highly-rated Olsen Olsen, known for its delicious burgers and friendly atmosphere.
Reykjanesbær’s location makes it an ideal starting point for exploring the Reykjanes Peninsula’s top attractions:
- Reykjanes Lighthouse: Visit this iconic lighthouse for breathtaking views and a chance to see the northern lights dancing over the Atlantic Ocean.
- Bridge Between Continents: Stand between two tectonic plates and experience the unique geological features of the region.
- Gunnuhver Geothermal Area: Explore the bubbling mud pools and steam vents in this otherworldly landscape.
- Blue Lagoon: Relax in the warm, mineral-rich waters of this famous geothermal spa, and you might even catch a glimpse of the aurora while soaking.
🌿 Outdoor Adventures: Beyond its role as a prime northern lights viewing spot, Reykjanesbær offers a variety of outdoor activities. Go hiking in the Reykjanes UNESCO Global Geopark, explore the rugged coastline, or take a dip in one of the local geothermal pools.
🎨 Cultural Experiences: Reykjanesbær is rich in cultural heritage, with several museums and historical sites to explore. Visit the Icelandic Museum of Rock ‘n’ Roll to learn about the country’s musical history, or explore Viking World to delve into the Viking Age.
Best hotels in Keflavík
Konvin Hotel by Reykjavik
Park Inn by Radisson Reykjavik
Sol apartment
FAQs about Visiting Iceland ❔
What part of Iceland should I stay in?
The best part of Iceland to stay in is Reykjavik, especially the downtown area known as Miðborg or Reykjavik
Where should I go for the first time in Iceland?
For the first time in Iceland, you should go to Reykjavik, the capital city, which offers a vibrant mix of culture, history, and nightlife.
How far is Reykjavik from the Blue Lagoon?
Reykjavik is approximately 50 kilometers (31 miles) from the Blue Lagoon, which is about a 45-minute drive
What is the number one place to visit in Iceland?
The number one place to visit in Iceland is often considered to be the Blue Lagoon, due to its iconic status and unique geothermal spa experience.
