Where to stay in iceland?

HotbotBy HotBotUpdated: July 10, 2024

Where to Stay in Iceland

Introduction to Iceland's Accommodation Options

Iceland, a land of fire and ice, offers a stunning array of landscapes that attract travelers from around the globe. From the bustling capital of Reykjavik to the serene, remote highlands, Iceland's accommodation options are as diverse as its scenery. Whether you're seeking luxury, budget-friendly lodgings, or unique stays, Iceland has something for everyone. Below, we explore the various regions and types of accommodations available to suit every traveler's needs.

Reykjavik: The Capital City

Luxury Hotels

Reykjavik, Iceland's vibrant capital, is home to numerous luxury hotels that provide top-notch amenities and services. The elegant Hotel Borg, located in the heart of Reykjavik, offers a blend of historic charm and modern comfort. Another notable mention is the Reykjavik EDITION, which features sleek design and stunning views of the harbor. These hotels often include amenities such as spas, fine dining restaurants, and concierge services.

Mid-Range Options

For travelers seeking comfort without breaking the bank, Reykjavik has several mid-range hotels and guesthouses. The Alda Hotel is a popular choice, known for its stylish rooms and central location on Laugavegur, Reykjavik's main shopping street. The CenterHotel Plaza offers modern amenities and is just a stone's throw from the city's vibrant nightlife and cultural attractions.

Budget-Friendly Stays

Budget-conscious travelers will find a range of affordable options in Reykjavik. Hostels such as Kex Hostel and Loft HI Hostel provide dormitory-style accommodations and private rooms at reasonable rates. These hostels often feature communal areas, kitchens, and organized social events, making them perfect for solo travelers or those looking to meet new people.

South Coast: Natural Wonders

Vik and Surrounding Areas

The South Coast of Iceland is famous for its dramatic waterfalls, black sand beaches, and glaciers. In the charming village of Vik, you can find the Icelandair Hotel Vik, which offers comfortable rooms and an excellent restaurant with views of the Reynisdrangar sea stacks. For a more intimate experience, consider staying at the Volcano Hotel, a family-run guesthouse with cozy rooms and personalized service.

Hella and Hvolsvöllur

Located near the Golden Circle route, Hella and Hvolsvöllur offer convenient access to attractions like Seljalandsfoss and Skógafoss waterfalls. The Hotel Rangá is a luxury resort known for its log cabin-style architecture and prime location for viewing the Northern Lights. Midgard Base Camp in Hvolsvöllur provides a mix of dormitory and private rooms, along with a communal hot tub and sauna.

East Fjords: Remote and Picturesque


The East Fjords region is less frequented by tourists, offering a more tranquil experience. Seydisfjordur, a picturesque village surrounded by mountains, is home to the charming Hotel Aldan. This hotel occupies historic buildings and offers uniquely decorated rooms. The town itself is an artist's haven, with colorful houses and a thriving cultural scene.


Egilsstaðir is the largest town in the East Fjords and a central base for exploring the region. The Lake Hotel Egilsstaðir provides modern accommodations with a serene lakeside setting. For a more rustic experience, consider staying at one of the many farm guesthouses in the area, such as the Eyjólfsstaðir Guesthouse, which offers a glimpse into rural Icelandic life.

North Iceland: Adventure and Wildlife


Akureyri, often referred to as the "Capital of the North," is a lively town with a range of accommodation options. The Icelandair Hotel Akureyri features stylish rooms and an outdoor geothermal pool. For a boutique experience, try the Hotel Kea, which offers elegant rooms and stunning views of the fjord.

Lake Myvatn

The Lake Myvatn area is renowned for its unique volcanic landscapes and geothermal activity. The Fosshotel Myvatn offers modern accommodations with panoramic views of the lake. For a more immersive experience, stay at the Vogafjós Guesthouse, where you can enjoy home-cooked meals and even milk the cows at the farm.

Westfjords: Untamed Wilderness


The Westfjords are one of Iceland's most remote and rugged regions, ideal for those seeking solitude and adventure. Ísafjörður, the largest town in the Westfjords, offers several charming guesthouses and hotels. The Hotel Ísafjörður provides comfortable rooms and easy access to outdoor activities like hiking and kayaking. For a more unique stay, consider the Mánagisting Guesthouse, known for its friendly atmosphere and historic charm.


Patreksfjörður is a smaller village in the southern Westfjords, close to the stunning Látrabjarg cliffs and Rauðasandur beach. The Fosshotel Westfjords offers modern amenities and beautiful views of the fjord. Nearby, the Hótel Flókalundur provides a more rustic experience, with simple rooms and an on-site natural hot spring.

Highlands: Remote and Rugged


The Icelandic Highlands are an adventurer's paradise, with vast, untouched landscapes. Kerlingarfjöll, a geothermal area in the central highlands, offers basic accommodations at the Kerlingarfjöll Mountain Resort. Here, you can stay in simple cabins or dormitory-style lodges and enjoy hiking trails and hot springs surrounded by stunning scenery.


Landmannalaugar is another popular highland destination, known for its colorful rhyolite mountains and hot springs. The Landmannalaugar Hut provides basic dormitory accommodations and a communal kitchen. For a more comfortable stay, consider the Hrauneyjar Highland Center, which offers private rooms and a restaurant, serving as a gateway to the highlands.

Unique Stays: Embrace the Extraordinary

Glass Igloos and Bubble Hotels

For a truly unique experience, consider staying in a glass igloo or bubble hotel, allowing you to sleep under the stars and, if you're lucky, the Northern Lights. The Buubble Hotel, also known as the "5 Million Star Hotel," offers transparent bubble rooms set in remote locations, providing an unforgettable glamping experience.

Eco-Friendly Accommodations

Iceland is a leader in sustainability, and there are several eco-friendly accommodations to choose from. The Ion Adventure Hotel, located near Thingvellir National Park, combines luxury with sustainable practices, featuring geothermal energy and locally sourced materials. The Sólheimar Eco-Village offers guesthouse accommodations within a community dedicated to sustainable living and social entrepreneurship.

From the bustling streets of Reykjavik to the remote highlands, Iceland offers a plethora of accommodation options to suit every traveler's preferences and budget. Each region provides its own unique charm and experiences, allowing visitors to immerse themselves in Iceland's breathtaking landscapes and vibrant culture.

Related Questions

What language do they speak in iceland?

Icelandic, known as "Íslenska," is the official and most widely spoken language in Iceland. This North Germanic language has remained remarkably unchanged since medieval times, making it a linguistic gem for scholars of ancient Norse literature and history. The preservation of its archaic vocabulary and grammar allows modern Icelanders to read classic sagas, eddas, and other historical texts with relative ease.

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Iceland, a Nordic island nation, is renowned for its stunning landscapes, geothermal activity, and rich cultural heritage. But what language do the inhabitants of this unique country speak? The official and most widely spoken language in Iceland is Icelandic. This ancient language has a deep historical significance and is an integral part of Iceland's identity.

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How big is iceland?

Iceland, a Nordic island nation, is located in the North Atlantic Ocean. Its geographical dimensions provide a fascinating insight into its size and shape. Covering an area of approximately 103,000 square kilometers (39,769 square miles), Iceland is the second-largest island in Europe after Great Britain and the 18th largest in the world. The island's landmass is slightly larger than South Korea and just a bit smaller than the U.S. state of Kentucky.

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What continent is iceland in?

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