Where to Stay in Iceland?

Best Areas to Stay in Iceland

Known as the "Land of Fire and Ice", Iceland is a great option for a traveler who loves to travel and explore. However, there can often be some confusion about accommodation. Before we share the best places to stay in Iceland, we have something to say. 

Although the accommodation options of this country are very extensive, they are scattered and sparse due to the construction and geographical location. Therefore, if you are planning to go to Iceland, you should plan your accommodation well.

• We're here to help, take a look at our suggestions for tips!

1- Reykjavik

The capital, Reykjavik, is the most populated region of the country. Therefore, it offers a wide variety of opportunities to tourists within the scope of accommodation options. You can easily find the hotels, hostels or airbnb preferences you are looking for in Reykjavik. Even a tip for you: At certain times of the year, you can book affordable rooms with harbor views.

2- Akureyri

Almost as big as a capital city, Akureyri is a fairytale place of brightly colored wooden houses. It is a small town in Iceland filled with brightly painted wooden houses and lots of cozy bars. 

We are sure that you will be fascinated by the traditional houses on Hafnarstræti Street, which you can explore on foot! 

One of the most obvious reasons why this region has been chosen as the best city to stay in Iceland is that it hosts extreme sports. With hour-long motorcycle tours around the snowy mountains and skiing in Hlidarfjall, Akureyri is a stunning destination.

3- Husavik

This almost crime-free area is mostly a family place to stay. Especially parents who go on holiday to Iceland with their children prefer to stay in Husavik, which is known as the whale watching capital of Europe.

4- Laugarvatn

Laugarvatn, which is preferred by couples for a romantic holiday, is a charming town with an average of 200 people. Laugarvatn, located in the southern part of Iceland, is a natural paradise for romantic walks and fishing activities with its vast hills, lava fields and forests. The affordable prices of the spa centers with geothermal waters in the town are also another reason for preference for accommodation.

5- Hvolsvollur

This tiny town, where 950 people live, is a frequent destination for tourists with its wonderful walking paths. However, the number of people who prefer to stay in the town of Hvolsvollur, with its proximity to Seljavallalaug, which is among the popular places of the country, and the magnificent waterfalls around it, is quite high.

6- Hofn

The southernmost town in the country is close to the majestic Vestrahorn Mountain and the stunning black sand dunes and popular Stokksnes beach. It is recommended to make early reservations to stay in Höfn, which is often preferred by foreign tourists.

7- Snæfellsnes

A few hours away from Iceland's capital, Snæfellsnes is in a position where you can watch the northern lights in the most comfortable way. However, Snæfellsnes is also very suitable for hotels in Iceland where you can watch the northern lights. Actually, there are lots of hotels in Iceland for northern lights.

8- Myvatn

Also close to Akureyri, Myvatn is an enormous place with long hiking trails and the volcanic Lake Mývatn. The Myvatn waters, which attract the attention of tourists who come to Iceland for the purpose of traveling, have miraculous thermal baths that heal, making it wonderful to stay in this region.

9- Egilsstaðir

Egilsstaðir, a large city in the east of the country, has great hostels very close to Hengifoss waterfall. As long as you stay in the city, which is considered the gateway to the fjords in the east of the country, you can witness the magnificence of the Vopnafjörður, Reyðarfjörður and Seyðisfjörður glaciers.

Best Place to Stay in Iceland For Families

You may be planning a vacation in Iceland with your family. So where will you stay? For example, do you want to stay in farm buildings? Or hotel rooms with unforgettable views? 

In fact, the location of the place you will stay is also extremely important. If you are looking for places that are both affordable and safe and have plenty of activities, we recommend you to read the suggestions we have given under this list.

1- Vakta House, Reykjavik

Vakta House, a wooden and tiny cottage, is a clean place to stay with the family with its interesting restoration and excellent location. In addition, you can have a comfortable sleep in Vakta House, which is close to the center. 

With an extensive kitchen, spacious bathroom, sofa bed, double bed and a great games room, the house is a delightful place to stay during your Iceland trip. 

We can also say that the host, Margret, will assist you throughout your stay and prepare your meals. However, this place is not suitable for children under 5 years old due to the steep stairs.

✔ Check: Vakta House

2- Kvosin Downtown, Reykjavik

Kvosin Downtown, a 24-room boutique hotel; is a modern accommodation with large rooms, refrigerators, sofa beds. However, for very large families, some rooms also have large balconies.

✔ Check: Kvosin Downtown

3- Fosshotel Glacier Lagoon

Boasting an aesthetically pleasing wooden architecture, the hotel is located halfway between the main South Beach attractions of Jökulsárlón and Skaftafell. Having high ceilings and spacious rooms is another detail that attracts the attention of crowded families. 

• In addition, 3 people can be accommodated comfortably in Deluxe Rooms with a baby cot. 

✔ Check: Fosshotel Glacier Lagoon

Cheap Hotels in Iceland 

However, there are of course affordable hotels for travelers with limited budgets. You can even benefit from the steam rooms and saunas in these hotels, and use the geothermal pools in front of your door.

Here are Iceland's popular cheap but comfortable hotels!

1- Center Hotel Arnarhvoll

Enjoying whale watching and close to Reykjavik's magnificent harbor, this hotel is a favorite with local and foreign tourists. You can have a pleasant and safe stay at the hotel, which is popular due to its central location and economy.

Average price for 1 night: 148 USD

2- Hotel Berg, Keflavik

If you want to spend money on your Iceland holiday, Hotel Berg is for you! To put it bluntly, when you see this hotel, you may be swept away by its splendor and find it expensive. But Hotel Berg is really a cheap hotel despite all the comfort it has. Featuring a heated rooftop pool, the place also has a restaurant overlooking the marina. You won't be able to stop yourself from taking crazy photos here!

Average price for 1 night:145 USD

3- Hotel Ísland

Famous for its spa, this budget hotel is located a little far from the city centre. It is close to Laugardalur; It has black mosaic jacuzzis. Especially popular is the mushroom risotto and ribeye steak with bourbon slices, and Hotel Island features a crimson brick New Nordic restaurant.

Average price for 1 night: 107 USD

4- Hotel Örk

With both comfortable and stylish rooms, this hotel is one of the budget accommodation centers in Iceland. Hveragerdi, also a quaint natural hot water town, is located near Reykjavik. With a fun curved water slide and huge pool, it is a great hotel for family travellers.

Average price for 1 night: 110 USD

Best Luxury Hotels in Iceland

It is not difficult to find expensive and luxury hotels in Iceland, one of the most expensive European countries. Here are some of the most luxurious Icelandic hotels with all the services such as rooms with bathtubs with huge jacuzzis, delicious drinks, meals prepared by the best chefs, and convenient locations for climbing and skiing:

1- Hotel Ranga

Staying at Hotel Ranga, one of Iceland's most famous and luxurious hotels, is very costly. Located 100 km from the capital, the hotel is located in the south of the ring road with its unusual design. With an epic and intriguing lobby, Ranga attracts customers with its stuffed polar bear and Native American headdresses.

With its helpful staff, delicious food, deluxe rooms, continental-themed suites, rooms with jacuzzi tubs and its famous hard drinks, Hotel Ranga costs an average of 775 USD per night.

The hotel has a unique beauty with views of Ranga river and Hekla volcano. This hotel, where you can watch the northern lights very comfortably; It also hosts fun activities such as horse riding and rafting. 

• Important advice: Do not forget to book in advance for such an expensive hotel.

✔ Check: Hotel Ranga

2- Hotel Vestmannaeyjar

With a total of 43 rooms, this Icelandic hotel has luxurious rooms and is in a great location. From the moment you leave the hotel, you can reach the port by taking a short walk. While exploring the surroundings, you can enjoy the bird watching spots and enter the Heimaey Black Stave Church. 

• Offering delicious and plentiful breakfasts, complimentary jacuzzi and spa centres, Hotel Vestmannaeyjar has modern rooms with luxurious furnishings.

✔ Check: Hotel Vestmannaeyjar

3- Hotel Kria

One of the expensive and luxurious Icelandic hotels located on the south coast of the country is Hotel Kria. This rather new place, opened in 2018, has excellent breakfasts included in the room rate. The hotel, which has a wonderful mountain view, has quickly become a popular resort in Iceland with its architecture and design. 

• It is located 12 miles from Reynisfjara Karakum Beach.

✔ Check: Hotel Kria

The Best Places to Camp in Iceland

Iceland has been a place where travelers enjoy camping because of its Northern Lights. Perhaps the easiest way to travel, especially in such an expensive country, is camping. However, camping is not legal in some parts of Iceland. Therefore, before putting this idea into practice, we recommend that you learn about the points where you can stay comfortably in the tent. 

Also, there are some spots in the country where you can pitch your own tent and camp but require payment. At these points, there are bathrooms with showers and well-developed communal kitchen areas. 

Great info: Iceland has the CampingCard for campers. With this card, you can camp for free for 28 nights between 15 May and 15 September. Here are the best campsites in Iceland:

1- Hellissandur Camping

On the Snaefellsnes Peninsula, 400 meters from the city centre. In the immediate vicinity of the area, there are several places to visit and explore such as Snaefellsjökull National Park & ​​Glacier (0.6 km), Dritvik and Djupalonssandur (0.5 km), and Saxholl Crater (6.9 km).

✔ Check: Hellissandur Camping

2- Hofn Camp

Located near Stokksnes in eastern Iceland, this campground is set in a stunning landscape. This campground has great areas for horseback riding and fishing, as well as shower facilities for visitors.

✔ Check: Hofn Camp

3- Ion Adventure Hotel, Selfoss

The hotel is located on the Golden Circle route. Ion Adventure Hotel, which is also a popular hotel frequently preferred by adventure lovers, is built on mountains and volcanic lands. Located about 50 minutes from Iceland's capital Reyjavik, the resort is also a luxury option for tourists who want to watch the Northern Lights. 

All rooms in the hotel have views of lava or areas where the power plant is located. Featuring floor-to-ceiling glass windows, the hotel is designed in a Scandinavian design. 

• Breakfast is not included in the rooms, which average 300-350 dollars per night.

✔ Check: Ion Adventure Hotel, Selfoss

Best Place to Stay in Iceland for Seeing the Northern Lights

You can't go to Iceland and not have a glass of mulled wine under the Northern lights. Especially those magnificent photographs that come out… So, where are the centers and hotels of Iceland where you can see the Northern Lights most clearly? Here we give you the best locations to watch the Northern lights!

1- Hotel Ranga

Hotel Rangá is the best hotel where you can see the Aurora clearly. The hotel is already designed for people who just want to watch the Northern lights.

✔ Check: Hotel Rangá

2- Hotel Husafell

One of the best hotels where you can watch the Northern Lights in terms of quality and location, the property is surrounded by waterfalls and snowy hills. Located in an almost completely dark location, the hotel is among the luxury accommodation options.

✔ Check: Hotel Husafell

3- Hotel Laxnes

The hotel, which is so dark that it is almost free from all the lights in the country, is among the best hotels where you can get a wonderful view of the Aurora. It will be good for you to have delicious breakfasts in the hotel, which is also the best rustic hotel in the country and has picturesque-style bars.

✔ Check: Hotel Laxnes