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2024 Best Hotels in Iceland

Hotels ranked on industry awards, guest reviews and hotel class ratings

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The Reykjavik EDITION

Silica Hotel

The Retreat at Blue Lagoon Iceland

Fosshotel Glacier Lagoon

Hotel Borg by Keahotels

Sand Hotel by Keahotels

Exeter Hotel

Hotel Geysir

Hotel Grimsborgir

Grand Hotel Reykjavik

Siglo Hotel

Hilton Reykjavik Nordica

Fosshotel Reykjavik

Icelandair Hotel Reykjavik Marina

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The best hotels in Iceland 

It’s no secret by now that Iceland is one of the world’s greatest destinations. First-time visitors drive jaws agape around the ring road, marvelling at the primal landscapes being moulded in front of their eyes, ancient to us but younger than most other countries on Earth. Repeat visitors delve into the hidden corners of the country, immersing themselves in the small towns that cling to precarious coastlines, undertaking epic multi-day treks, and discovering that every fjord, valley, and mountain heath holds something wonderous.

What is universal for everyone visiting this far-flung island in the North Atlantic is the feeling of awe that journeys through the country bring about. With such drama and adventure on the outside, the hotels sprinkled across the country are suitably relaxed and luxurious, offering peaceful refuges from the elements. From cushy country lodges to sophisticated Scandinavian hideaways, these are the best hotels in Iceland.

How we choose the best hotels in Iceland

Every hotel on this list has been selected independently by our editors and written by a Condé Nast Traveller journalist who knows the destination and has stayed at that property. When choosing hotels, our editors consider both luxury properties and boutique and lesser-known boltholes that offer an authentic and insider experience of a destination. We’re always looking for beautiful design, a great location and warm service – as well as serious sustainability credentials. We update this list regularly as new hotels open and existing ones evolve.

Reykjavik Edition

Featured on our 2022 Hot List of the best new hotels in the world

The newest arrival to the hotel scene in downtown Reykjavik , the Reykjavik Edition is a breath of cool, fresh air in a city which lives and breathes style and creativity. As a part of the coveted Edition brand of hotels designed by Ian Schrager and Marriott, this establishment puts Reykjavik in the same league as destinations like Manhattan, Barcelona, Tokyo, and Shanghai.

Each hotel in the group is unique to its destination, and Reykjavik’s Edition is no different. The interiors feature splashes of Nordic creativity in the décor tempered by a clean and effortless design, with materials like basalt, lava, warm oak, and concrete capturing the youthful and vibrant feel of Reykjavik perfectly. This all gives way to the warm and inviting rooms, with Italian furnishings made from ash wood and floor-to-ceiling windows that either frame the fjord and Mt. Esja or views of downtown Reykjavik. Gracefully wedged between the Harpa Concert Hall and Reykjavik’s Old Harbour, the location couldn’t be better. Add in a rooftop terrace for viewing the northern lights, a restaurant run by Iceland’s first Michelin Star chef Gunnar Karl Gíslason, and a cushy speakeasy-style bar, and this is the hotel to beat.

Hotel Rangá

Upon entering Hotel Rangá in Iceland’s south, guests are greeted with Hrammur the polar bear, a towering 10-feet-tall taxidermy who had the unfortunate fate of washing up onto Iceland’s shores on a piece of ice that floated over from Greenland. It sets the tone for your stay at this south coast hotel, which straddles the line between luxury hunting lodge and adventurous country manor. This log-style cabin is a wonderful refuge in the middle of Iceland’s south coast; all you need do is turn your gaze inland to spy out the twin glaciers Eyjafjallajökull and Mýrdalsjökull and you’ll feel the pull of adventure coaxing you out the front door.

After a day of exploring – perhaps snowmobiling on the glacier, or a private super jeep tour into the secretive Thórsmörk Nature Reserve – Hotel Ranga is warm, inviting, and convivial. Evoking the feeling of an Icelandic summer house, there’s a real homey feel to the rooms here, while shared spaces are adorned with local artworks and Icelandic quilts. A highlight are the seven high-end suites, each paying homage to one of the world’s seven continents from America to Antarctica . There’s of course the prerequisite hot pot for an evening soak, and an outstanding observatory, complete with a local astronomer and northern lights photographer to guide you through the skies and how best to capture the dancing aurora borealis.

The Retreat at Blue Lagoon

The Blue Lagoon is one of Iceland’s most illustrious attractions, with a constant stream of visitors enjoying a dip in the steamy blue water bordered by black lava on Reykjanes Peninsula. Its popularity also splits Iceland travellers firmly into two camps: those who want to stay away from the well-trodden tourist attractions, and those who embrace them wholeheartedly. Should you visit the Blue Lagoon, or give it a miss? That is the question.

Perhaps an easier question to answer is whether to stay at the upscale new hotel attached to Iceland’s famed hot spring . Enigmatically named The Retreat, this hotel takes all the geothermal wonder of the Blue Lagoon and instils it into an uber-luxurious wellness establishment. The sleek and minimalist suites mirror the mossy-covered lava fields outside, while floor-to-ceiling windows welcome in the ethereal light of the Reykjanes Peninsula, inciting the stark grey and subdued black interiors into a heady and otherworldly Icelandic spectrum. Inside, all roads lead to the underground spa, a cavernous space offering the patented Blue Lagoon Ritual, a wellness cleanse using the silica, algae, and array of minerals all found in the geothermal waters. Access to a more exclusive section of the Blue Lagoon is also included, and there’s a world-class restaurant to boot.

ION Adventure Hotel

ION Adventure Hotel might have one of the most picturesque and otherworldly settings not just Iceland, but the entire Northern Hemisphere. Jutting out from a set of rugged cliffs above a field of jet-black lava, this hotel sits amid swirling sulphurous steam inside the UNESCO-listed Thingvellir National Park. If the setting is a tad dramatic, the interiors are by contrast an oasis of warmth and tranquillity. The elegant design incorporates driftwood and other natural materials from the surrounding landscapes, creating a blend of high-end luxury with low-key Icelandic sensibilities, an homage to the beauty of the scenery outside.

A highlight is the Northern Lights Bar, elevated over the lava field with huge windows for watching the shimmering aurora unfolding across the night skies. The onsite Silfra Restaurant serves up fantastic dishes, from fresh Arctic Char to glazed lamb shank, while a heated plunge pool is artfully exposed to the elements, letting you experience the drama of Iceland’s weather from the warmth of the steamy water. The hotel also acts as a great base for deeper explorations of the Golden Circle. Reception can organise everything from snorkelling between tectonic plates at the nearby Silfra fissure to super-jeep tours on the glaciers and expeditions into nearby lava caves.

Deplar Farm

Those travellers looking to escape the ring road into Iceland’s remote regions, the Tröllaskagi Peninsula is a splendid choice. One of the most mountainous places in the country, a single road traces the rugged coastline, taking in views of the dramatic Northern Atlantic Ocean and connecting several fishing towns dwarfed by the gargantuan surroundings. Inland, the fog-kissed mountains are cut with several valleys, one of which is home to Deplar Farm . Sitting in a grassy meadow surrounded by the imposing peaks, this turf-covered farmhouse is so quiet and unassuming that the odd traveller who does pass by wouldn’t have a clue that it is in fact one of Europe’s most isolated and luxurious mountain lodges.

Run by the high-end and exclusive Eleven Experience , Deplar Farm offers adventurous travellers the whole experience. From heli-skiing in the winter to mountain biking and salmon fishing in the summer, there’s a gamut of adventures to enjoy with the hotel’s team of expert guides. Waiting for you when you return is world-class food prepared by a team of star Icelandic chefs, a heated pool with a swim-up bar, and cosy, elegant rooms that overlook the peaceful meadow.

Hotel Egilsen

The town of Stykkishólmur on the Snæfellsnes Peninsula might just be one of Iceland’s most picturesque; a shimmering harbour surrounded by rocky cliffs, prim antique houses each painted a different colour, and mountains rising in the background dusted with snow. Strolling around town, it’s easy to imagine the trading ships of Denmark , Sweden , and Norway sailing into the harbour; this town was, after all, one of the country’s most important harbours during the richest era of trade in Scandinavia, from the 17 th until the 19 th century.

Hotel Egilsen is a relic of that time, located inside a historic home dating to 1867, the work of a wealthy Icelandic businessman and merchant. The cheery red exteriors are easy to spot, holding inside a beautiful and nostalgic boutique hotel loaded with homey Nordic comforts. Expect mismatched antique furnishings, welcoming rooms inspired by the sea and fishing industry, and a warm and fuzzy feeling to descend during your stay. The hotel is also big on literature, with an alluring library of old Nordic folk tales and Icelandic poetry. Guests are encouraged to jot down their own tales during their stay (published on the hotel’s website), most of which will be inspired by the mind-bogglingly beautiful Snæfellsnes Peninsula.

Reykjavik has creativity running through its soul, and for the artful travellers looking to experience the height of the country’s design scene, a stay at 101 Hotel in Reykjavik comes highly recommended. An exalted member of the Design Hotels group, 101 Hotel offers refined and sophisticated interiors that are unabashedly fashionable and self-assured. The striking black and white interiors play backdrop to a collection of contemporary Icelandic artwork, with tasteful furnishings selected to bring about that effortless  designer style .

Rooms are quite warm and personable, with rugs thrown across wooden floors, heavenly beds, and a picturesque view of Mt. Esja across the water. There’s a restaurant on-site with a devout local following, and a chic  bar  for cocktails after a day of wandering around Reykjavik, with chairs gathered around tree-trunk tables and a cosy fireplace. All this is nestled a short walk from Laugavegur, the city’s main thoroughfare.

Hotel Flatey

From Stykkishólmur, travellers can also jump onto the Westfjords ferry, plodding its way through the thousands of rocks, skerries, and islands in the fjord Breiðafjörður before calling into port on the southern edge of Iceland’s least-visited region. But along the way, the ferry makes a mysterious stop at Flatey, the only populated island in the fjord, a wistful place dotted with a handful of colourful houses. Time moves differently here; stay at the island hotel even for just an evening and you’ll feel yourself slipping into the off-kilter rhythm of an Icelandic summer. Hazy golden light falls across the rocky shores and surrounding seascapes, birds cry out as they wheel in the air, and long grass shimmers and waves in the wind as you stumble around in a daze, wondering as travellers so often do in Iceland: is this place real?

The humble Hotel Flatey opens only in the summer (in winter the population of the island is around five people), offering comfortable rooms across several 19th century homes. The interiors are poetically Scandinavian, with a clean and uncluttered design pulled straight from the pages of a magazine. The hotel restaurant serves as the island’s  pub  and lounge, where locals and summer blow-ins gather in the evening to swap stories and enjoy a warm meal. The entire experience feels like being welcomed into the home of a distant Icelandic relative.

Lauren Burvill , CN Traveller

Olivia Morelli

CNT Editors

CNT Editors , CN Traveller

Hotel Búðir

One of Iceland’s greatest draws is the isolation you can find, the feeling of being alone in the middle of an incredible landscape, intimidated, insignificant. The soul-stirring nature so often leaves us shaking in our hiking boots, in awe at the overwhelming beauty of it all. It’s the reason why Iceland is now one of the most popular destinations in the world; it makes us feel things we don’t often get to feel.

The best hotels in Iceland embrace that quality, elegant backdrops that let the location do all the talking. Hotel Búðir is one such place, marooned on a remote beach on the southern shores of the Snæfellsnes Peninsula. Originally a Danish trading outpost, on all sides the arresting Icelandic landscapes capture your gaze, from the views across the bay to the moody glacier at the centre of Snæfellsnes National Park. A dreamy place, the interiors match the mood of the outside perfectly, nothing overdone, everything cosy, soothing, and sophisticated. The vintage-style furnishings add a timeless appeal to the entire property, while the restaurant is famous with Icelanders around the country.

Kvosin Downtown Hotel

Located inside a historic building in the middle of downtown Reykjavik, Kvosin Hotel is a charismatic boutique property with fantastic apartment suites. It’s a hotel that hits all the boxes for an extended stay in Reykjavik: a blend of urban and Nordic style, helpful staff, and a fantastic central location. The typical Icelandic building is over 100 years old, a grand old place in keeping with its note-worthy neighbours such as the Icelandic Parliament, City Hall, and the old cathedral.

Inside, Kvosin is another story altogether, taking inspiration from a more modern-day Reykjavik . The renovated interiors are updated and modish, providing a comfortable home base from which to explore the capital. Ducking outside the hotel, within minutes you can be sipping on a local craft beer, catching a live gig, or enjoying a leisurely stroll around the city’s central pond, Tjörnin. Stumbling home after experiencing Reykjavik’s feisty nightlife, you’ll find the rooms welcoming and fashionable, with swanky leather chairs, sleek kitchenettes, and handsome desks for journaling.

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Top 12 hotels in iceland.

What are the best hotels in Iceland? Where are the best hotels in Reykjavík? Where to book accommodation in Iceland? What is accommodation in Iceland like? Read about best-value hotels and luxury hotels in Iceland here.

Have you booked your flight to Iceland but are now wondering where to stay? We at Guide to Iceland have made a list of our top 12 hotels in Iceland, which is not only based on luxury, comfort and style but also value for money. Find the perfect place to stay in Reykjavik, to see the full Top 12 list, simply press 'Read more'...

12. Hotel Katla

Hotel Katla is a traditional 3-star country hotel is great value for money and is in a fantastic location. It's also recently been renovated, offering a number of new and stylish accommodations mixed in with rooms in an older style.

Situated near the village Vik , you can easily access some of the country's most breathtaking locations, such as Dyrholaey cliffs , Seljalandsfoss waterfall and Skogafoss waterfall . A tour of the South Coast will allow you to discover all that this area has to offer.

Many people that are driving on the south coast of Iceland from Reykjavik towards  Jokulsarlon glacier lagoon  choose to spend the night at Vik, and then Hotel Katla is a great and affordable option. There are plenty of attractions by the Ring Road  in Iceland, so taking your time to enjoy this route is advisable.

All guests have access to their outdoor hot tubs, and the restaurant serves a buffet breakfast and a delicious and extremely varied dinner buffet with local specialties. There is also a cozy bar where you can have a drink before or after dinner.

11. Hotel 1001 Nott

Hotel 1001 Nott is a fantastic getaway surrounded by woodland in East Iceland, with mountain or lake views from every modern room, outdoor hot tubs, and easy accessibility to the town of Egilsstadir.

The hotel is located on the banks of Lake Lagarfljot in East Iceland, surrounded by the largest forest in the country, Hallormstadaskogar .

Guests will find twin or double rooms that overlook mountains or Lake Lagarfjlot. As such, the establishment is great for romantic getaways, solo travelers, and pairs of friends.

All guests are welcome to enjoy the outdoor hot tubs during their stay, which boast incredible views. These pools are great for enjoying the midnight sun in summer and northern lights in winter.

The hotel has a restaurant and bar. You can enjoy a breakfast buffet each morning and receive a complimentary parking space with your booking. Furthermore, the 24-hour front desk staff can help you with queries and recommendations.

Anyone embarking on a Ring Road  tour or East Fjords exploration looking to stay somewhere surrounded by nature, with a hot tub to boot, should not hesitate to book a room at this hotel.

10. Umi Hotel

Umi Hotel is a superb choice of accommodation on Iceland’s South Coast, with spectacular views over mountains and the ocean. Travelers, particularly couples, will find it a modern, comfortable place to stay on their journey.

With a spectacular location right on the South Coast of Iceland, Umi Hotel is fantastically positioned for those who want to be surrounded by nature. It is also close to many significant sites. Most notably, it is almost directly between Skogafoss and Seljalandsfoss waterfalls, 15 minutes and 20 minutes away.

Umi Hotel has 28 beautifully decorated, soundproofed, and well-furnished rooms, all accommodating at least two people. Some have mountain views, some look over the ocean, and the superior rooms are slightly more spacious.

The hotel also boasts comfortable communal areas, a terrace, and a 24-hour tour desk. Breakfast is provided for free each morning, and you can enjoy lunch and dinner at the stunning restaurant on site.

Umi Hotel’s fantastic location, plentiful amenities, and welcoming rooms make it a brilliant base or pit stop for all travelers, particularly couples seeking a romantic getaway.

9. Skuggi Hotel

Skuggi Hotel is the ideal choice for those who are looking for a central hotel in Reykjavik. Skuggi Hotel gives you the chance to discover the most of what Reykjavik has to offer, combining outstanding service with a great location.

Located in the heart of Reykjavik, Skuggi Hotel sits by one of the oldest streets, Hverfisgata. Iceland’s main shopping street, Laugavegur , is only a 2-minute walk away from the hotel, which is well-known for its variety of restaurants, designer shops, cafés, and thrilling nightlife.

Skuggi Hotel’s rooms found their inspiration from photographs of Iceland’s nature by Ragnar Axelsson. There are 100 in total. All are elegantly decorated to create a cozy home-from-home atmosphere. Downstairs there's a bar that's open to guests and locals.

Skuggi Hotel gives you the chance to discover all that Reykjavik has to offer with its central location.

8. Hotel Laxa

Hotel Laxa  is a 3-star hotel by Lake Myvatn . It opened in 2014 and aims to be green and eco-friendly.

The hotel’s fun and funky décor are also stylish, and the hotel boasts a lounge, bar, and restaurant emphasizing local ingredients.

Lake Myvatn is one of Iceland’s gems. It’s famous for its spectacular nature, full of pseudo-craters, interesting flora and fauna, peculiar rock formations and hot springs. 

Nearby you’ll find Dimmuborgir (Dark Fortress), a great area to explore on foot with its hauntingly beautiful lava landscape. You can also head to  Myvatn Nature Baths  and soak in hot natural water or go fishing in the Laxa river , from which the hotel draws its name.

Hotel Laxa should be a top choice of accommodation for any summer travelers to north Iceland looking to stay in the countryside, central to the region’s many spectacular attractions.

7. Hotel Reykjavik Saga

Hotel Reykjavik Saga is a beautiful, central hotel in the capital of Iceland with a range of chic rooms for its guests. Travelers hoping for a stylish base in the heart of Reykjavik should book their accommodation while availability lasts by choosing a date.

Located on Laekjargata , Hotel Reykjavik Saga is central to many of the capital's most famous and fascinating sites. Downtown Reykjavik is around the corner, with Austurvollur square and the Althingi Parliament Building just a 3-minute walk away.

Hotel Reykjavik Saga's spacious and luxurious rooms have large satellite televisions and en suite bathrooms with showers and hair dryers.

The hotel boasts many amenities for those staying here. The restaurant serves a delicious breakfast and is open for dinner each evening, while the bar provides another place to relax. A fitness center allows you to keep active during your stay, and a breathtaking rooftop terrace will enable you to hunt for the northern lights in winter or enjoy the midnight sun in summer.

Hotel Reykjavik Saga is a modern, chic place to stay in downtown Reykjavik, particularly for couples and solo travelers.

6. Siglo Hotel

Siglo Hotel is located in picturesque Siglufjordur in North Iceland and is the only hotel in Iceland with a dock entrance! So if you arrive on a boat, you’ll have a private harbor.

Siglo Hotel is stylish but with a definite small fishing town charm, more due to its location than its decoration. It's highly modern, with a spacious lobby, big rooms, and a stylish outdoor hot tub right next to the marina. All rooms have ocean and mountain views, and all guests have access to their hot tubs and sauna.

You don’t need a boat to reach the gorgeous town of Siglufjordur. It is one of Iceland’s hidden gems, slightly off the beaten track but easily reachable by car. It is situated on Trollaskagi (Troll Peninsula) in the north of Iceland, not far off from Akureyri , Iceland's 'Capital of the North'.

The hotel is situated within the town's marina village, along with the neighboring restaurant Hannes Boy and the café Raudka. The hotel itself also boasts a lobby bar and café and a delicious restaurant called Sunna. You might even catch a glimpse of the chef picking out the freshest fish when the fishing trawlers sail in.

Siglufjordur used to be quite isolated as the mountain pass to reach it wasn’t opened until 1967. Before then, people had to sail in and out of the town. Take advantage of this mountain pass and go explore this beautiful town, its nearby hiking trails, planted forest, or its great skiing area.

Siglo Hotel's incredible location, modern rooms, and fantastic facilities make it a perfect choice of accommodation for North Iceland travelers.

5. Alda Hotel

The quality Alda Hotel  is ideal for those who want to enjoy all that the city has to offer while relishing the calm sanctuary away from the hustle and bustle of the city noise.

Alda Hotel is another boutique hotel in the heart of Reykjavik. With 88 rooms, this is a medium-sized hotel. The rooms boast a grayscale decor, which gives this hotel a chic but cozy feel. You will notice the Icelandic fair in the detail of the decor design.

Located at the top of Laugavegur, the main shopping street, this places you just 15 minutes walking distance from the main attractions. You are, however, ideally located for shops and amenities and far enough from the nightlife in the city to know you won’t be disturbed by Saturday night partygoers.

For those who have traveled from out with the EEA, you will benefit from the use of one of the hotel’s complimentary smartphones. Take this high-tech device out in the city and make the most of the free 4G and local phone calls.

Enjoy your breakfast, lunch, and dinner within the restaurant's cozy surroundings. Find yourself in need of a haircut? Alda Hotel has you covered on this, too, with an on-site barber. 

Every convenience you need, Alda has thought of, and more! It is also consistently highly rated by travelers to Reykjavik.

4. Hotel Myvatn

Hotel Myvatn is a stylish, modern hotel located in the geothermal wilderness of North Iceland. With 59 rooms, hot tubs on-site, and accessibility to many incredible attractions. Travelers on the Ring Road or guests visiting North Iceland will find no better place to stay.

Located on the shores of Lake Myvatn, in the hamlet of Reykjahlid , Hotel Myvatn boasts unmatched surroundings. This lake region is North Iceland’s most famous area, renowned for its serene bodies of water, abundant flora and fauna, fascinating geology, and seething geothermal activity.

For example, the dramatic Dimmuborgir lava fortress is just five minutes drive south, whereas the majestic pseudocraters of Skutustadagigar can be reached in fifteen minutes. Though the hotel has hot tubs, those seeking the full spa experience will find the luxurious Myvatn Nature Baths just a short drive away.

All rooms boast a beautiful, modern Icelandic decor with rich furnishings and all necessary amenities, such as Wifi, TVs, and en suite bathrooms. The hotel's largest rooms, the King Junior Suites, also boast a chic living area. Business travelers will also find a contemporary meeting room for up to 30 people.

The luxury of Hotel Myvatn extends into its communal areas. Its restaurant has a fantastic menu, providing a breakfast buffet for all guests and a great place to enjoy lunch and dinner. Its bar is a wonderful place to unwind in the evening, as are the hot tubs, particularly beneath the Northern Lights or Midnight Sun.

Hotel Myvatn’s stylish rooms, abundant facilities, and unmatched location in the Lake Myvatn area make it a perfect choice for travelers seeking a luxurious base from which to explore the geothermal north.

3. Hotel Geysir

Hotel Geysir is a spectacularly located hotel, sitting right by the Geysir Geothermal Area on Iceland’s Golden Circle . Travelers who want modern, chic accommodation right by one of the country's most iconic attractions should look no further than one of the hotel’s 77 rooms and suites.

Guests staying here will thus have very easy access to the other sites of the Golden Circle. The magnificent waterfall of Gullfoss is only ten minutes away, whereas Thingvellir National Park can be driven to in less than an hour.

Hotel Geysir has rooms and suites with a modern Icelandic design, all of which can accommodate two guests. Each one has an en suite bathroom with a shower and comfy bedding. Those seeking to spare no expense should book the Geysir Suite, which is a gargantuan 87 square meters and boasts plenty of space to spread out and have your home away from home in the Icelandic countryside.

Guests will find five restaurants on-site where they can enjoy a range of locally-sourced dishes. For fine dining, the Geysir Restaurant and Geysir Glima Restaurant come most highly recommended, whereas those looking for something simpler can get fast food from the canteen Kantina or soup from Supa. Soup in the Forest is as much an experience as it is a restaurant, allowing groups who have organized it to dine out in Iceland’s beautiful nature.

Travelers who want modern, comfortable accommodation right by one of the most impressive sites in Iceland, with easy access to many more attractions, should look no further than Hotel Geysir.

2. Sand Hotel

Sand Hotel is a superb choice if you’re looking for a boutique hotel in central Reykjavik. Its unbeatable location, superior comfort, cleanliness, and facilities make it the perfect option for the discerning traveler who values a touch of luxury.

There is plenty to keep you entertained in the area. A wide array of museums, restaurants, cafes and shops are within easy walking distance. For stylish modern design, sophistication, and excellent customer service, you can’t go past Sand Hotel.

The central location of Sand Hotel allows you to take in the vibrancy of city life and all that it has to offer. Reach shops and restaurants and several nearby cultural attractions by foot within a matter of minutes.

At only a six-minute walk from Sand Hotel, the iconic Hallgrimskirkja church  is practically on your doorstep. There are several other walking-distance attractions, including Reykjavik Art Museum Kjarvalsstadir , Icelandic Phallological Museum , and Hljomskalagardur park .

You don’t need to go far at all to sample delectable bakery treats. Sandholt Bakery is conveniently-located on the ground floor of Sand Hotel, where the hotel breakfast is served as well.

Sand Hotel is a superior choice for top-end accommodation in central Reykjavik. If you value a great night’s sleep in a comfortable bed and waking up to a delicious buffet breakfast, we highly recommend Sand Hotel. It’s perfect for anyone who values high-quality services and amenities with a dazzling array of city attractions within a short distance.

1. Fosshotel Glacier Lagoon

Fosshotel Glacier lagoon is the number one hotel in Iceland according to Guide to Iceland. A superior four-star hotel close to Iceland's famous glacier lagoon, Jokulsarlon . The hotel has plenty of options for travelers no matter the group size and offers a perfect rest stop after exploring Iceland's spectacular south coast.

Fosshotel Glacier Lagoon is in a perfect location for travelers who want to explore the Jokulsarlon glacier lagoon and the nearby Diamond Beach . It's also well-placed for glacier hikes in Vatnajokull National Park . Guests can enjoy glacier or countryside views from each room. The hotel is an hour away from Hofn , a town with everything you need to stock up on supplies before hitting the road once more - as well as a swimming pool and other activities.

The hotel has luxury rooms available for guests, ranging from suites and deluxe rooms to standard options. All rooms have private facilities with a walk-in shower, room service, laundry service, and a sauna are available for all guests.

The restaurant hits the same heights as the rest of the hotel, serving only the freshest local produce from a regularly changing menu that represents the best of Iceland's food. The bar is a trendy escape for guests and a perfect spot to unwind after the day's adventure.

The otherworldly location, the trendy design, the great service, and the luxurious restaurant make Fosshotel Glacier Lagoon the best hotel in Iceland.

Hotel chains in Iceland

There are a few hotel chains in Iceland. Foss hotels have 12 hotels around the country. The newest one,  Fosshotel Glacier Lagoon , is a 4-star hotel that opened in 2016 in a gorgeous location close to Jokulsarlon glacier lagoon . Another one of our favorites is  Fosshotel Vatnajokull , which has a great view of the stunning Vatnajokull glacier . 

Another chain is Berjaya Iceland hotels, with a total of 13 hotels dotted around the country. Our favorite is the hotel by the harbor in Reykjavik called Reykjavik Marina hotel , a stylish hotel in a beautiful setting. Note that breakfast is not included in the prices at Berjaya Iceland hotels but can be purchased when you book.

KEA hotels have a total of 8 hotels around the country, thereof 5 in Reykjavik, 2 in Akureyri , and one by Lake Myvatn. The KEA hotel in Akureyri has a perfect central location, right next to the iconic church and the ever-so-popular Akureyri swimming pool. However, our favorite has to be the historic Hotel Borg , opened in 1930 by Icelandic wrestler Johannes Josefsson, it has retained its beautiful art deco style with a great location by Austurvollur square. If you want to treat yourself to a great meal in Iceland, check out nearby Apotek restaurant as well.

Center hotels have 6 different hotels, all in Reykjavík. For a stay in Reykjavík, any of the Center hotels are a good option as they are all centrally located, and stylish, but still good value for money. Check out the Ský Lounge Bar at Center Hotel Arnarhvoll for the best view of the Northern Lights from Reykjavik city, as it is situated high up above the streetlights.

Edda hotels are Iceland's oldest summer hotel chain, now with 11 hotels around Iceland. The hotels are only open during summertime, and most of them close in mid-August.

The chain hotels are mostly good value no matter which hotel you pick. The newer hotels are more stylish, are more likely to be 4-star hotels, and may have more amenities, such as spas or gyms. The older hotels are cheaper and have a certain quirky charm about them.

Luxury Hotels in Iceland

The general emphasis of luxury hotels in Iceland is on the surrounding nature. Even the most luxurious hotels in Iceland won’t offer much more than friendly service, a good restaurant, and bar, comfortable and clean rooms that are en-suite, continental or buffet breakfast, and possibly a pool, spa and/or sauna. Perhaps even a small gym.

So if you’re used to a 5-star hotel luxury, take note that your Icelandic luxury will be a bit more rustic, wild, and intimate. There won’t be multiple pools or restaurants anywhere or champagne breakfasts. Some hotels may not have the possibility to get breakfast in bed. Some may not even have room service. Others may only have shared bathrooms. They’re pretty much self-service. And you can forget about a pillow or a duvet menu!

On the other hand, many hotels are family-run, and they strive to provide you with good and friendly service. Many new restaurants are popping up that use fresh Icelandic and local ingredients, and most hotels in the countryside are ideally situated, surrounded by stunning nature. 

Iceland is rich in minerals and hot springs, and if the hotel doesn’t boast its own spa, it may be situated very near one. Whereas most hotels don’t have a gym, they may have a nearby mountain to climb or various hiking trails. Or horses on-site to go   horseback riding. And Reykjavik’s hotels compete with each other in good design, good restaurants, and cocktail bars.

On top of that, many hotels have their own cute and quirky charm that you can see in small details.

For a romantic getaway break, you might also want to look into booking your own personal countryside cabin. Icelandic summer cabins, or cottages, can be found all over the country, varying in amenities and luxury. Many of them have a hot tub and are situated amongst the spectacular nature, tranquil and secluded. There's no better way to enjoy the Northern Lights than from your own hot tub, far away from any light pollution - it really is the best seat for the show!

Frequently asked questions

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Explore an Ice Cave

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Visit the Blue Lagoon

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Do the Golden Circle

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Hotels in Iceland

Enter your dates and choose from 2,180 hotels and other places to stay, try searching for..., top destinations for iceland city trips, find hotels in some of the most popular cities in iceland, reykjavík, scenery, nature, sightseeing, keflavík, scenery, nature, tranquillity, scenery, nature, photography, scenery, nature, seafood, scenery, nature, city walks, grindavík, hot springs, scenery, nature, nature, scenery, tranquillity, nature, scenery, waterfalls, kirkjubæjarklaustur, scenery, nature, nature walks, hafnarfjördur, scenery, harbours, tranquillity, hotels in the most popular regions in iceland, discover iceland by exploring its top regions, west iceland, south iceland, snæfellsnes peninsula, lake myvatn, east iceland, north iceland, reykjavik greater region, hotels in iceland near popular landmarks, pick your point of interest and find a hotel nearby, reykjavik art museum: kjarvalsstadir, reykjavík, national museum of iceland, reykjavík, kringlan shopping mall, reykjavík, laugavegur shopping street, reykjavík, reykjavik old harbour, reykjavík, explore and find hotels in iceland.

Volcanoes, ice caves, hot springs, Northern Lights, waterfalls, glaciers, spouting geysers. It's hard to imagine all these natural wonders on one island with a population of around 300,000. Iceland's otherworldly landscape is a fitting setting for the Vikings who once inhabited the 'land of ice and fire'. Take a drive around Iceland's ring road in a 4x4 and you'll feel like you're on another planet. One minute you'll be cruising past the tumbling waters of Gullfoss and the next you'll be alongside the eerily beautiful black-sand beach of Vik. Don't leave without taking a dip in a hot spring. If you want to avoid the crowds of the Blue Lagoon, other options include Mývatn in the north and the hot streams of the Reykjadalur valley. The elusive Northern Lights feature on many a bucket list. There's no sure way to see them but it’s more likely during the winter months between September and April. Although it’s a lively city, you can see most of Reykjavik in a couple of days, and it’s secondary to the natural wonders the rest of the island has to offer. Main sights include the towering Hallgrímskirkja Church and the National Museum exhibiting the country's compelling history and culture. As the capital, Reykjavik offers the biggest choice of accommodation with a variety of hostels, hotels and apartments. A number of cosy guesthouses are dotted along the ring road but note that many are closed during the winter months.

Top picks for hotels in Iceland

Try one of these popular and highly-rated iceland hotels, blue hotel fagrilundur - on the golden circle.

Hotel in Reykholt

Situated in Reykholt, within 19 km of Geysir and 29 km of Gullfoss Waterfall, Blue Hotel Fagrilundur - On The Golden Circle features free WiFi. Super nice and cozy hotel in the middle of the golden circle. It has a big parking, very convenient when driving through iceland by car. Nice and clean, exceeding our expectations. Breakfast was amazing and the rooms very quiet. Hot tub was perfect after getting to the hotel in the middle of a snow storm. There are not many restaurants around the hotel, so make sure to make a reservation for dinner in some of the restaurants nearby beforehand because they can get pretty busy!

Hotel Kvika

Hotel in Ölfus

Situated in Ölfus, 48 km from The Pearl, Hotel Kvika features accommodation with a garden, free private parking, a terrace and a bar. Cosy hotel, friendly stuff, everything was great.

Hotel Selja

Hotel in Hvolsvöllur

Set in Hvolsvöllur, 7.7 km from Seljalandsfoss, Hotel Selja offers accommodation with a garden, free private parking and a restaurant. Amazing view and amazing location. Quiet peaceful countryside hotel with a view of a major waterfall. Exceptionally clean. Comfortable with multiple pillows each. Lots of plugs at convenient locations.

Hotel in Vík

Opened in July 2018, Hótel Kría is situated in Vík. Among the various facilities are a garden and a bar. There is a restaurant. The black sand beaches begin about 5 minutes' walk from the hotel. The location, the view and breakfast

Lighthouse-Inn

Hotel in Gardur

Situated in Gardur, Lighthouse-Inn offers accommodation with free WiFi and a garden with a sun terrace and sea views. All units feature air conditioning and a satellite flat-screen TV. We loved our stay!! Close to airport, for early flight they pack your breakfast to take with...

Eyja Guldsmeden Hotel

Hotel in Reykjavík 101, Reykjavík

Located next to Hlemmur Square, this hotel is just off Laugavegur, the main shopping street in Reykjavík. It offers a view over the city and Esja Mountain. Beautiful design, gives off a “hip” vibe, comfy bed, very good location and friendly staff!

Siglo Hotel by Keahotels

Hotel in Siglufjörður

Set in Siglufjörður, Siglo Hotel by Keahotels offers 4-star accommodation with a terrace and a bar. Offering a restaurant, the property also has a shared lounge, as well as a sauna and a hot tub. As we were travelling around the island in a campervan visiting all the attractions, we arrived at our hotel 7 minutes to 9 pm. The gentleman at the reception checked us in and informed us that there were not many places to dine and their dining room was closing in 7 minutes. As we informed him we hadn't had dinner yet, he proceeded to the dining room and made arrangements to keep the dining room open to serve us a most excellent meal. We requested a view of the harbor which to my surprise was provided without additional cost. The room was quite spacious and very clean with a king size bed that was the most comfortable we have ever slept in, not to mention the high quality down pillows and duvet that came with it. We would highly recommend a stay at this hotel as the staff were friendly and very accommodating to ensure an enjoyable hassle-free stay.

Hotel Geysir

Hotel in Geysir

Set in Geysir, 100 metres from Geysir, Hotel Geysir offers accommodation with a garden, free private parking, a restaurant and a bar. One of the best hotels we've ever been to. Modern, great design, friendly staff, spacious rooms.

Fosshótel Mývatn

Hotel in Myvatn

Fosshótel Mývatn is located next to Lake Mývatn, 6.8 km to the Mývatn Nature Baths. The hotels provides free WiFi and free private parking. hotel location is amazing. it was very clean and comfortable stay. staff was amazing. Food was super good and the view from hotel is great. i stayed at the property for 2 days and it was amazing.

Hotel 1001 Nott

Hotel in Egilsstadir

Opened in June 2018, Hotel 1001 Nott offers modern accommodation 5 km from Egilsstadir. The hotel features outdoor hot tubs overlooking Lake Lagarfljót. There is also an on-site bar. The owner was very friendly and helpful. All meals were delicious. The location on the lake is beautiful. Vök Baths are close by.

Most booked hotels in Iceland in the past month

Center hotels plaza 3 stars.

Hotel in Reykjavík

Popular with guests booking hotels in Iceland

Konvin Hotel by Reykjavik Keflavik Airport 4 stars

Hotel in Keflavík

Hótel Dyrhólaey 3 stars

Aurora hotel at reykjavik-keflavik airport terminal kef 3 stars.

Reykjavík, Reykjavík

Hótel Kría 3 stars

Vík, Vík

Hotel Vík í Mýrdal 3 stars

Courtyard by marriott reykjavik keflavik airport 4 stars, baron's hostel, research, refine and make plans for your whole trip.

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The Best Luxury Hotels in Iceland

The most luxurious accommodations for relaxation or adventure.

By Grace Taylor

Empty, winding roads set amidst moss-covered lava fields, framed by jagged cliffs that soar above jet-black sand beaches; when exploring Iceland one cannot help but be blown away by its Jurassic-like wilderness.

Don’t let images of sleepy historic towns and deserted countryside fool you – this country is very much wild and alive. Dramatic weather, rumbling volcanoes , exploding geysers and powerful waterfalls serve as a reminder of the true, rugged power of the elements. Almost entirely powered by hydro and geothermal power, there is an almost electric feel to Iceland’s awe-inspiring scenery.

This rich environment offers visitors a myriad of once-in-a-lifetime adventures, from snorkeling between tectonic plates, whale watching for blue whales to riding Iceland’s signature miniature furry horses. As you strip off mid-hike to take a dip in a remote geothermally-heated river, you cannot help but feel overcome by the uniqueness of this fascinating landscape.

[See also: Dive with Humpback Whales in Black Tomato’s New Iceland Itinerary ]

Most first-time visitors opt to explore the country via the Golden Circle, a 190-mile route that takes you to Iceland’s three most popular attractions: Thingvellir National Park, the Geysir geothermal area and Gullfoss waterfall. Providing endless scenery that feels as if it has been pulled straight out of a luxury car commercial, this route can be explored solo with a rental car, or with a group or private tour.

Between September and April, Iceland’s northern location and dark winter nights make it the perfect destination for chasing the northern lights . During the summer months, visitors can enjoy mesmerizing midnight sun and pastel-colored wildflower moors.

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Below, we have curated a list of Iceland’s best hotels, detailing the most luxurious accommodations for you to call home while exploring all this amazing country has to offer.

With something for everyone, these hotels range from a historic art-deco institution in the center of Reykjavik to a wellness retreat poised right on the edge of Iceland’s famous ‘Blue Lagoon.’

[See also: VistaJet Relaunches Exclusive Iceland Adventure as Borders Open ]

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Looking for a stay right in the heart of the capital? The first luxury hotel to be built in Iceland, Hotel Borg has been regarded as one of the best hotels in Iceland for nearly a century.

Originally built for famous Icelandic strongman and performer Johannes Josefson, the hotel first opened its doors in 1930. Several refurbishments later, it remains true to its history, with upscale art-deco interiors and custom-made Cygal furnishings.

Situated in one of the most beautiful squares in Reykjavik , the hotel’s neighbors include the Icelandic parliament building and the nation’s oldest church, Domkirkjan. Step outside and you are greeted by a flurry of trendy restaurants, bars and shops.

When booking a stay at Hotel Borg, opt for the Tower Suite. The largest accommodation in the hotel, this two-floor luxury suite boasts a separate living room and enjoys panoramic views over the city below.

keahotels.is

[See also: The 5 Best Restaurants in Iceland ]

Reykjavik Domes

Only 10 minutes down the road from Reykjavik, one of Iceland’s most unique accommodations awaits.

Reykjavik Domes features a series of individual igloo-shaped accommodations. While the outside of these domes is reminiscent of a hyper-modern luxury tent, this isn’t your ordinary glamping trip. The domes are home to sheepskin-topped king-size beds and fully functioning kitchens, all warmed by a roaring fire. Fur throws and private hot tubs offer a high-end cozy ambience that perfectly compliments the peaceful surroundings.

Reykjavik Domes also offer guests a variety of activities and private tours. With luxury and comfort at the forefront, they can arrange an English-speaking guide and private travel to the Golden Circle, or further afield towards the south coast.

reykjavikdomes.com

[See also: Luxury Solo Travel: The Best Itineraries Designed for One ]

The Retreat at the Blue Lagoon

Just outside of the city lies one of Iceland’s most illustrious attractions: the Blue Lagoon, a misty turquoise geothermal pool surrounded by black lava. The lagoons’ surreal opaque color and curative mineral-rich waters attract visitors from far and wide, eager to experience one of Iceland’s most photographed spots.

The Retreat , its sister establishment, opened in 2018 to offer visitors an overnight experience at this legendary Icelandic swimming spot.

Perched on a private inlet adjacent to the famous lagoon, 62 suites offer guests elegantly designed minimalist luxury. Featuring an immense spa, yoga studio, three restaurants and a VIP entrance to the public lagoon, this wellness resort exudes exclusivity and relaxation.

Located just twenty minutes from Keflavik Airport, visitors can use The Retreat as a starting point or finale to a trip exploring the further regions of Iceland, or alternatively as their base for visiting the sites surrounding nearby Reykjavik.

bluelagoon.com

[See also The Best Trend-setting Spas to Visit this Year ]

Torfhús Retreat

Next on the list of our best hotels in Iceland, the Torfhús Retreat is notable for tastefully blending authentic Icelandic style with relaxed luxury. Nestled right in the heart of the Golden Circle, the hotel offers both easy access to Iceland’s most famous landmarks, and epic views out towards snow-capped mountains and the Langjokull glacier.

Icelandic-Viking-farm-inspired black and white Torfhús residences and Torfbær suites feature traditional turf roofs, with each accommodation individually crafted using local stone and reclaimed wood.

Decorated with archival pictures of ancient Torfhúses and artifacts such as leathered salmon skins and repurposed fishing boats, the decor’s focus on the countries’ history and use of repurposed materials births accommodation that is reminiscent of traditional Icelandic lodgings.

[See also: The Most Luxurious Eco-Friendly Hotels ]

The Retreat’s environmental focus doesn’t end at their interiors. Most of the restaurant’s ingredients are sourced from within a ten mile radius: fruits, vegetables and herbs are grown year-round in geothermal greenhouses, salmon and char are caught in nearby rivers and seafood is sourced from local fishermen, resulting in a fresh and innovative daily menu.

[See also: Earth Day: The Luxury Hotels and Resorts Going Green ]

Hotel Rangá

Our list of the best hotels in Iceland would not be complete without including Hotel Rangá. Identifying as a ‘northern lights hotel’, this hotel is located further towards the south of the island, within driving distance of both waterfalls and black sand beaches.

The seclusion of the property and resulting limited light pollution gives guests the opportunity to see an abundance of stars, planets and occasionally the wondrous northern lights. Impressively, the hotel has its own observatory and powerful telescopes and provides guests the opportunity to experience tours of the night sky with local expert astronomers. 

As the northern lights appearance can be unpredictable, the hotel offers an aurora wake-up service, so you are guaranteed not to miss the light show should it appear at an untimely hour. Geothermal hot tubs mean you can enjoy the aurora borealis in style, with a glass of champagne in hand.

hotelranga.is

[See also: Air Charter Service Reveals Remote Private Jet Itineraries ]

Deplar Farm, Troll Peninsula

If you are craving complete seclusion, Deplar Farm is the perfect base for exploring Iceland’s more remote regions. An 18th-century sheep farm turned ultra-luxury retreat, this hotel avoids some of Iceland’s more touristy offerings, and instead acts as a gateway to a collection of unusual activities such as snow shoeing, heli-skiing and sea kayaking.

Situated deep in Northern Iceland’s Troll Peninsula, this unassuming hideaway includes 13 luxury rooms. Floor-to-ceiling windows embrace the surrounding peaks and wide open skies, illuminating nordic chic interiors adorned with reindeer-skin rugs and hardwood furniture. 

Although the wilderness beckons, many guests choose to spend their days enjoying the luxury outdoor hot tubs and 10,000 sq ft spa. A geothermal swimming pool flows from the inside out, leading up to an outdoor swim-up bar. Innovative therapies such as Isopod flotation tanks introduce visitors to new forms of relaxation, in preparation for the fun-filled days ahead.

elevenexperience.com

[See also: VistaJet Unveils Secluded Alaskan Vacation Experience ]

Grace Taylor

Latest in luxury, the explorer.

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9 Iceland Hotels You Simply Must Experience

Are you set to travel to Iceland but not sure which hotel is best or what each one has to offer?

Iceland is a popular destination where you can experience nature’s breathtaking wonders. You’ll find thundering waterfalls, black sand beaches, magnificent glaciers, and thrilling cliffs.

But that’s not all.

Iceland offers a range of accommodation options to ensure you’ll have an enjoyable stay even when you’re not exploring. Whether you’re looking for luxury or value, we’ve got you covered.

We’ve put together a list of the best and most loved Iceland hotels. Based on top user reviews and industry awards , these are the top-rated hotels in Iceland.

No matter which hotel you choose, you’ll have access to a variety of modern amenities that are sure to provide comfort and luxury you’ll remember for the rest of your life.

And let’s not forget the whimsical charm you won’t find anywhere else!

Luxury Hotel Vs. Boutique Hotel

Just like our preferences, hotels come in all varieties. Is your heart set on luxury or on a boutique hotel?

• Luxury Hotel: Typically large, it provides luxurious stay, high-end services, and advanced facilities.
• Boutique Hotel: Usually small, it comprises 10 to 100 rooms that provide a cozy, intimate atmosphere and personalized services.

Best Luxury Hotels in Iceland

The retreat at the blue lagoon iceland.

The Retreat is one of the most unique luxury hotels in all of Iceland. It’s situated at the Blue Lagoon , the most sought-after and visited tourist attraction in Iceland.

The hotel features highly recommended restaurants, Spa, Moss, and Lava, which all provide fine dining of Iceland Haute cuisines and world-class wines.

Less than an hour’s drive southwest of downtown Reykjavik , we’ve no doubt you’ll love and never forget your stay here.

• 24-hr room service and in-room minibars
• World-class retreat spa
• Fitness center and lounge
• Skincare amenities

Check availability and prices 

Icelandair Hotel Reykjavik Marina

Boasting an Oyster Award as one of the most kid-friendly hotels in Iceland, Icelandair Hotel Reykjavik Marina is located in the harbor district, Reykjavik.

Its nautical-themed rooms and stunning views include a harbor and the city streets. Together, they create the perfect setup for guests to experience ultimate relaxation.

The hotel’s central location puts you in close proximity to the airport and allows you to explore the city’s attractions , including Iceland’s National Museum and Gallery.

For food, the hotel’s famous on-site restaurant, Kaffislippur, serves tasty cuisine.

• Bar and lounge
• Fitness center
• Free WiFi in rooms
• VIP room facilities
• Free parking

Reykjavik Marina is a good choice for travelers looking for a mix of luxury with available business and family-oriented services in the city center.

Hotel Húsafell

You’ll love Hotel Husafell’s breathtaking views and friendly, supportive staff.

Located in the village of Húsafell, the hotel neighbors unique wonders like the popular Langjokull glacier , Iceland nestled ice caves, mountains, and more. If you enjoy the wonders of nature, you can be sure your stay here will be unforgettable.

Hotel rooms range from standard to deluxe. They are modern and exquisite, providing you world-class comfort..

There is also a 24-hour front desk, garden, full-service bar, and restaurant offering both local and international dishes. The food can only be described in three words—mouth-watering, tasty, and delicious.

• Family-friendly with comfy beds
• TV, minibar, and cable channels
• Day trips/activities available for guests
• Golf-course, hiking, horse riding, and cycling

Hotel Husafell is perfect for both solo travelers and families who wish to experience West Iceland at its best.

Best Boutique Hotels in Iceland

Canopy by hilton reykjavik.

Rated as a traveler’s choice by Tripadvisor, Canopy by Hilton is famous because of its great location in downtown Reykjavík.

The hotel offers the best of comforts and amenities under one roof and is only a short walk to the main shopping strip and Hallgrímskirkja Church.

The rooms are designed to impress with whimsical combinations of traditional and modern interior decor. There’s free breakfast for all guests, with the restaurant serving fresh and delicious local and international meals.

• Near the main shopping street
• Hot springs
• 24-hours fitness center

Best for travelers who need highly personalized services and close proximity to the city center, downtown Reykjavik.

Room with a View Apartments

A home away from home, Room with a View Apartments is located in the center of Reykjavik, Iceland, and comes highly recommended.

There’s a wide variety of room options to choose from—economy studios to 4 bedroom apartments. Souvenir shops, restaurants, and bars are close by.

You can be sure you’ll enjoy your stay here.

• Rooftop terrace and hot tub makes it ideal for young guests
• Suitable for large families
• Offers a view of the Northern Lights
• Kitchenettes in all rooms
• Hot tub, steam room, and sauna
• Shared sun-roof with a Jacuzzi

Room with a View Apartments is a suitable choice for large families and young travelers.

One of the best value hotels in Iceland, Hotel Borg neighbors Iceland’s Austurvöllur park, parliament house, and the historical Hallgrímskirkja Church.

It offers beautiful rooms and modern amenities that make you feel at home.

It’s close to attractions like Tjornin Lake , the Harbor, Harpa, and is within walking distance of various shops, restaurants, and cafes.

• Meetings facilities
• Guided tours
• Mini-fridges and Nespresso Machine
• Walk-in shower and bathtub
• Flat-screen TV
• Spa, steam bath, and sauna

This is a great choice for solo and business travelers.

Situated only 22 kilometers from Lake Mývatn, Iceland’s geological wonderland, Hótel Laxá won’t disappoint.

You can relax in the trendy restaurant and bar, or enjoy the garden and terrace while surfing the web using the hotel’s free WiFi.

• Room service
• Flat-screen satellite TV
• Sitting areas and electric kettles
• Spa with sauna, hot tub, and steam room
• Free toiletries

An ideal choice if you’re looking to immerse yourself in the region while enjoying world-class comfort and modern amenities at moderate prices.

Center Hotels in Iceland

We can’t finish this list without talking about the exquisitely designed Center Hotels in Iceland for an authentic Icelandic experience.

A group of 8 family-run hotels, Center Hotels cover every part of Iceland’s capital if you need an urban vibe. Here are the best two:

Center Hotel Plaza

The Center Hotel Plaza is one of Iceland nestled hotels spread out of three separate adjoining buildings. The main building features large reflective windows and unique rooms.

Common areas include a lounge and a stylish lobby that hosts the hotel’s bar for winding down.

• Conferences and meeting rooms
• Well-stocked minibars
• Tea and coffee facilities
• Flat-screen TVs

Since it’s centrally located, the hotel is suitable for city tourists, business travelers, and families.

CenterHotel Thingholt

Featuring trendy and eye-catching interiors, CenterHotel Thingholt is popular among young couples and tourists.

Hotel rooms are modern and remarkably unique. The restaurants offer a mix of international cuisine and local Icelandic dishes. The staff is professional and cheerful, ready to provide you with customized services.

The famous Sun Voyager Sculpture, Hallgrimskirkja church, the Lagoon, Harpa Reykjavik Concert Hall, and the Airport are minutes away from the hotel.

• Near major shopping streets and restaurants
• Bar with a wine menu
• Free buffet breakfast

Best for tourists, business travelers, and young couples.

Don’t Wait to Snag a Deal in Iceland Top Rated Hotels

There are great hotels in Iceland for every type of traveler. We hope that this list of suggested Iceland hotels has added to your excitement and made your planning easier.

Whether you are planning a vacation, business trip, or romantic getaway, each of these hotels will offer incredible and unforgettable comfort and experience.

For exploring, check out exciting things you can do in Iceland . We recommend planning your travel with the best tour companies in Iceland for the best possible deals and offers.

Happy Icelandic trip planning!

Featured Image from: Flickr by Shaherald Chia

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Learn how to easily plan your dream trip to Iceland with helpful guides and tips!

Where To Stay In Iceland: Best Hotels By Area

July 30, 2021 //  by  Iceland Trippers //   Leave a Comment

You’ve booked your plane flights to the land of fire and ice and now you’re wondering where to stay in Iceland ? First of all, get excited because you’re in for the trip of a lifetime.

Second, we’re here to help. In Iceland, there are an abundance of activities to do and sights to see that will leave you hungry for more. The island is essentially one stunning natural wonder after the next.

Even the drive between locations will have your jaw-dropping. Every region of Iceland is worth a visit for different reasons.

We’ve dissected the country by area and picked out select hotels to help you decide where to stay in Iceland during your trip. In addition to a handful of hotel options, we’ve explained the tourist draws of each area and why that area of Iceland deserves a portion of your time.

Iceland in the summer can be a spectacular place to tent camp or rent a campervan, but sometimes staying in a hotel or hostel is the best option, and we hope our guide will be helpful to you as you plan your trip.

 Don’t forget that we have 3-Day Iceland Itinerary , 4-Day Iceland Itinerary , and 5-Day Iceland itinerary options to help you continue to plan your trip! 

Get a FREE printable “Hidden Gems In Iceland” E-book by joining our private  Iceland Facebook Group  and share your photos and ask for tips and tricks.

Table of Contents

Where To Stay In Iceland: Best Iceland Hotels By Area 

Reykjavik is where to stay in iceland for a taste of city life .

When planning where to stay in Iceland, Reykjavik will likely act as the start and endpoint to your trip. It is Iceland’s capital and the largest city and has plenty to offer in terms of culture, views, and delicious food.

Downtown Reykjavik, including the main street, Laugavegur, is the perfect place to go for shopping, bars and nightlife, restaurants, and museums. There are so many things to do in Reykjavik so you can keep busy for a while!

You can pick up a sturdy rain jacket at 66 degrees North, learn about the Cod Wars and the life of Icelandic fishermen at the Maritime Museum, and warm your belly with noodle soup at Krua Thai. In the winter, downtown Reykjavik also has its own outdoor skating rink complete with twinkle lights and skates for rent.

Two of the biggest points of interest in downtown Reykjavik include Hallgrimskirkja, Iceland’s largest church, and Harpa Concert Hall. Hallgrimskirkja is not only the largest church in the country but is also one of the tallest buildings in Iceland.

The architecture of the church was designed to resemble the basalt columns so often seen in nature all around the country, and an iconic statue of native son Leif Erikson stands guard out front.

For roughly $8 you can take an elevator to the top of the church and have a magnificent view over all of Reykjavik and beyond. Harpa Concert Hall is famous for its architecture, featuring glass panels in crystalline formations that light up in brilliant colors at night.

It’s a wonderful spectacle and a great place to enjoy music and the arts. You’ll no doubt enjoy your time in Reykjavik, and there’s no shortage of hotels in the area to spend the night.

The capital is also a great place to set up base as there are many wonderful day trips from Reykjavik that you can take!

Best Iceland Hotels In Reykjavik 

Affordable: hotel klettur.

Though there are a number of decent, affordable hostel options in Downtown Reykjavik (Reykjavik Downtown Hostel, Reykjavik Loft Hostel, and Kex Hostel Reykjavik to name a few), Hotel Klettur is a nicer hotel with an affordable option.

Though many of Hotel Klettur’s rooms are pricier, they offer a budget twin room option for those looking to save a little money. Hotel staff is available to help you book tours and plan activities, and a continental breakfast is included each day in your room price.

The hotel is located right next to the main Laugavegur shopping street and gives you easy access to great restaurants and cafes as well.

Check rates: Booking.com

Mid-range: Fosshotel Reykjavik

Fosshotel Reykjavik is a modern-style hotel located just outside the center of the city, but still close enough to all the action. The hotel is roughly one mile from both the Harpa Concert Hall and Hallgrimskirkja church.

It’s also right next to the number 12 bus stop which is extremely convenient for getting picked up for tours. The hotel offers standard double rooms at a mid-range price, but if you’re looking for a tower view room or suite, family room, or deluxe double room, the prices are much higher.

With a stylish design, great views of the city, accommodating staff, and comfortable rooms, the Fosshotel Reykjavik is where to stay in Iceland when planning a trip to the capital.

Luxury: Hotel Borg

If you’re looking for luxury, you’ll find it in this beautiful art deco-style hotel in the heart of Reykjavik. Hotel Borg is right next to Althingi, the Icelandic parliament, and the Reykjavik Cathedral.

It is within walking distance from the Reykjavik Art Museum, The Settlement Exhibition and of course the famous, prominent Hallgrimskirkja church. The hotel is also surrounded by an endless selection of excellent restaurants and cafes.

The staff members of the hotel are incredibly friendly and are more than happy to suggest activities for you to do or answer any questions. From Hotel Borg you can experience the culture, shopping and food that Reykjavik has to offer while relaxing in luxury in between.

The Golden Circle Is Where To Stay In Iceland for Access To The Island’s Biggest Tourist Attractions

The Golden Circle is famous in Iceland and is home to many incredible tourist attractions including three of the most popular attractions in the country. It is one of the best places to see on your Iceland Itinerary!

These stops include Gullfoss , the two-tiered golden waterfall, Geysir, the geothermal hot spot, home to the erupting geyser Strokkur, and Thingvellir National Park, the UNESCO World Heritage Site which is the ancient birthplace of Iceland’s parliament. For many first-timers in Iceland, this route is their first adventure outside of the city, and for good reason.

This route provides a great introduction to Iceland’s unique and stunning natural wonders and all of them are easily accessible.

The Golden Circle can range anywhere from a half to full-day trip depending on how many steps you take along the way. If you’re looking to explore on your own timetable, the Golden Circle is easily driven by rental car, but if you’re looking for a guided tour, there’s no shortage of options.

If you decide to make a full-day trip out of the Golden Circle you might try expanding your adventures beyond the three major tourist attractions.

Some other worthwhile stops include Kerid Crater, a volcanic crater with a lake at the bottom, Reykjadalur Hot Springs where you can bathe in a hot river, and Laugarvatn Fontana which includes spas and geothermal baths along the lake.

This is one of the best stops along the Ring Road in Iceland and you really shouldn’t miss it! 

Best Iceland Hotels On The Golden Circle

Affordable: selfoss hostel.

If you’re deciding where to stay in Iceland along the Golden Circle , you should check out the Selfoss Hostel . This budget-friendly accommodation is conveniently located right off the side of the Ring Road.

The hostel is also located near one of the city’s swimming pools with easy access to grocery stores, restaurants, coffee shops, and more. Though it’s still a 45-minute drive to Thingvellir National Park and just under an hour to Geysir and Gullfoss, Selfoss is part of the Golden Circle loop and helps tie all three locations together for an easy day trip. 

Mid-Range: Icelandair Hotel Fludir

For a mid-range hotel near the Golden Circle, you’ll want to consider the Icelandair Hotel Fludir . With hot tubs for guest use and patios connected to each room, you’re sure to have a wonderful stay here.

Though Fludir is slightly off of the main Golden Circle Loop, it is only 20-30 minutes from Gullfoss and Geysir so you’ll have easy access to these major tourist attractions.

Luxury: Ion Adventure Hotel

The Ion Adventure Hotel might be for you if you’re looking to relax in style when exploring the Golden Circle. This hotel is located on Mount Hengill with an outdoor hot tub and stunning views.

Some of the rooms even look out onto Lake Thingvallavatn. Just 13.5 miles from Thingvellir National Park this luxury hotel is a perfect home base for your Golden Circle adventures.

Stay Along Iceland’s South Coast For Easy Access To Stunning Waterfalls and Black Sand Beaches

South Iceland is a treasure trove of natural wonders. The South Coast makes for the perfect road trip because you are spoiled for choice as to what to see along the way.

Your day can start with a soak in a hot river, and end with standing at the base of an abandoned DC-3 airplane wreck . The scenery along Iceland’s Route 1 (Ring Road) is ever-changing and is equally impressive at all stops along the way.  

From thundering waterfalls to beautiful, dramatic black sand beaches, you’re in for a special taste of all the beauty that Iceland’s nature has to offer.

Road tripping through South Iceland is doable at any time of year. Be sure to check the road conditions , but unlike more remote parts of Iceland, the roads along the South Coast tend to stay open almost all year long.

With a few exceptions, the big tourist draws in South Iceland are just off the side of the road, making them easily accessible. You’ll also stay on one road (Route 1) the whole way, so directions are fairly simple.  Get ready to hop from one landscape to the next, eyes wide open and awestruck all the while.

We have an entire article about Where To Stay In Vik Iceland so if you are searching, this is the place to check out even more detailed suggestions! 

Best Iceland Hotels Along The South Coast

Affordable: hotel ork.

Hotel Ork is a great affordable hotel option because of its location right next to the Reykjadalur Hot Springs . It’s a short 2.5 miles from the hotel to the start of the trailhead.

The hotel is also 28 miles from Reykjavik and 8 miles from Selfoss and is the perfect place to start a South Coast road trip. With an outdoor pool and slide, a bar, restaurant, and game room, you’re sure to enjoy your stay at Hotel Ork.

Mid-range: The Garage Apartments

You can’t go wrong staying at The Garage Apartments . The scenery doesn’t get much better than the beautiful mountains and waterfalls behind the apartments. It is perfectly located directly in between the stunning waterfalls Skogafoss and Seljalandsfoss and is just down the road from the famous Eyjafjallajokull volcano that erupted in 2010 affecting air traffic throughout Europe.

We absolutely loved our stay here at the cozy Garage Apartments, and very much appreciated the kindness and attentiveness of the host Anna. If you’re looking for a picturesque location in the middle of nature that is still conveniently close to the major tourist attractions, we cannot recommend The Garage Apartments enough.

Luxury: Hotel Kría  

Staying at Hotel Kría is a real treat. The hotel opened in Vík in the summer of 2018, and has been a real hit ever since with its outstanding breakfast (included in the room rate), stunning mountain views and modern design. The hotel is perfectly situated for seeing some of the most spectacular gems of the South Coast.

It’s located 7.5 miles from the Reynisfjara Black Sand Beach, 14 miles from the Solheimasandur Plane Wreck, and 21.5 miles from the Skogafoss waterfall. Vík is very centrally located on the South Coast and it’s easy to reach tourist attractions on either side. It is one of the best hotels in Vik so you can’t go wrong with this choice!

The East Coast Is Where To Stay In Iceland For Quiet Exploration

Iceland’s East Coast (Austurland) is perhaps the most underrated region of Iceland. Though not as heavily trafficked by tourists as the popular South Coast, it has its own stunning collection of natural wonders.

Though it’s farther from Reykjavik and therefore not always as easy for tourists to reach, the East Coast is definitely worth the stop. The beauty of its distance from the capital city is that you escape the crazy tourist hustle and bustle that comes with the major tourist attractions in other parts of the country.

If you’re looking for quieter but uniquely stunning views, this part of Iceland might just be the place for you.

The Jokulsarlon Glacier Lagoon and its glittering Diamond Beach across the street, are located on the easternmost side of Iceland’s South Coast and can easily be included in either a South Coast or East Coast road trip.

Also towards the east of Iceland’s South Coast is the Skaftafell wilderness area and the fascinating Svartifoss waterfall with its organ pipe-like basalt columns.

As you continue east, you’ll hit the majestic mountains of Vestrahorn, the Borgarfjördur region great for avid hikers, and Mjoifjordur, the fjord that might just bring you to tears with its stunning views.

The beauty of the East Coast is not just limited to its natural wonders but extends to the charm of the fishing towns in the area. One such town is Seydisfjordur, an art-rich town known for its beautiful and often-photographed rainbow street backed by a small but picturesque blue church.

You’re sure to be inspired when visiting this welcoming little town. So if you’re looking for where to stay in Iceland while searching for tranquility among the fjords of the east, we’ve laid out a few hotel options below to make your planning process easier.

We have an entire post on the Best Hotels And Hostels In Hofn as it is the most popular area to stay in the east!

Best Iceland Hotels On The East Coast

Affordable: blabjorg guesthouse.

Blabjorg Guesthouse is a great affordable option when exploring the East Coast, however, it also has mid-range and expensive options as well. The guesthouse offers both guestrooms with shared bathrooms, as well as apartments (the more expensive option).

The outdoor sauna, hot tub, and whirlpool are perfect for relaxing after a long day of adventure. Blabjorg Guesthouse is located in the fishing town called Borgafjordur Eystri which is known for its great hiking and for the ability to view puffins and many other bird species up close in the summer.

Mid-range Faskrudsfjordur: Fosshotel Eastfjords

If you’re looking for places to stay in Iceland with gorgeous fjord views, Fosshotel Eastfjords might just be the best choice. The hotel has an option for breakfast included in the room rate, and an option for a room with views of the fjord.

The landscape surrounding this waterfront hotel is stunning. Fosshotel Eastfjords is located in Faskrudsfjordur just 27 miles from Oddsskard, one of Iceland’s top ski areas. The ski area also has views of the fjords and offers ski and snowboard rentals.

Mid-range Hoffell: Glacier World

You guessed it! Glacier World-Hoffell Guesthouse has views of Vatnajökull Glacier. There are also hiking trails nearby with access to the glacier tongue. A delicious breakfast is offered in the room rate as well as access to five geothermal hot tubs.

Your hotel needs are sure to be met here at Glacier World. The guesthouse is conveniently located near the town of Höfn and is just 17 miles from the majestic Vestrahorn Mountain. If you drive west from the hotel for about 1-1.5 hours you’ll hit both the Jokulsarlon Glacier Lagoon and the Skaftafell Wilderness Area.

The North Is Where To Stay in Iceland To Experience A Little Bit Of Everything

There’s very little you can’t see or do in North Iceland. This region of the country offers some of everything, from the best whale watching tours and impressive waterfalls to bathing in perfectly warm hot springs and Game of Throne locations.

Akureyri, nicknamed the capital of the North, is located in North Iceland and is the largest city in Iceland outside of Reykjavik. The city offers many of the same things as Reykjavik including shopping, museums and a large selection of restaurants. It even has its own distinctive church, Akureyrarkirkja.

Another draw of North Iceland is the Blue Lagoon’s northern equivalent, The Myvatn Nature Baths. Though these nature baths are smaller than the Blue Lagoon Complex, they are equally as relaxing if not more so because the crowds are smaller.

The north also boasts the most powerful waterfall in Europe in Dettifoss, as well as the Waterfall of The Gods, Godafoss. You can walk on top of the basalt columns in Hofsos, bathe in the Grettislaug hot pot across the water from Hofsos, and go whale watching in Husavik.

This only touches the surface of all there is to do in the north. We’ll help you figure out where to stay in Iceland to experience the wonders of the northern region.  

Best Iceland Hotels In The North

Affordable: icelandair hotel akureyri.

Akureyri is a great place to stay while exploring North Iceland. There are many Hotels In Akureyri and we even have a whole post about finding the one that is best for you!

As the “Capital of the North”, it has everything you’ll need from grocery stores and cafes to whale watching and Christmas stores. Icelandair Hotel Akureyri is a great option for affordable and mid-range accommodations.

The Akureyri Swimming Pool is just a couple minutes walk from the hotel if you’re looking to relax in the hot tubs after a day of adventure. In addition to being conveniently located near the center of town, the hotel has beautiful mountain views, a great restaurant (breakfast is only included in some of the room rates), and is known for having a friendly staff.

Mid-range: Hotel Laxa

Hotel Laxa is located in Myvatn, an ideal spot for being able to see all that the north has to offer. Many of you will have heard of the Myvatn Nature Baths, which are sometimes referred to as the Blue Lagoon of the North.

The nature baths are beautiful and relaxing and only 13 miles from the hotel. Hotel Laxa is also 22 miles from Godafoss, 46.5 miles from Aldeyjarfoss, 53.5 miles from Dettifoss, and 38.5 miles from the town of Husavik.

This modern hotel offers both standard rooms and lake view rooms. With comfortable minimalistic rooms and delicious breakfast included, Hotel Laxa is sure to meet your needs for a satisfying stay in the Myvatn area.

Luxury: Siglo Hotel

Have you ever wanted to relax in a hotel hot tub while enjoying stunning views of the harbor, ships, and snow-capped mountains? We might have just found the luxury hotel for you.

Taking in the scenery surrounding this beautifully constructed hotel will have you feeling like you’re in a fairytale. An outstanding breakfast is also included in the room rate, and the staff is friendly and helpful. Siglo Hotel , located in Siglufjördur, is centrally located between Akureyri and Hofsos and is a great base location for exploring the north of Iceland.

Stay In The Westfjords For Beautiful Drives That Prove Just As Enjoyable As The Tourist Stops

The Westfjords is another region of Iceland that is less visited by tourists but is without a doubt deserving of your time and attention. When visiting the Westfjords, be prepared to drive a lot, be wowed by your surroundings, and see so many stunning waterfalls that you’ll start to ignore the smaller ones and become a waterfall snob.

The Westfjords are home to one of the most jaw-dropping multi-tiered waterfalls in all of Iceland, Dynjandi, as well as Raudasandur, a beautiful red sand beach. If you’re interested in seeing puffins up close, you should visit Latrabjarg, the westernmost point in Iceland.

You’ll see more seabirds than you can possibly count including puffins with their orange beaks announcing their presence.

Unfortunately, the Westfjords are only really accessible from May-October. Poor weather conditions tend to block the road the rest of the year. Since the Westfjords are sparsely populated compared to much of Iceland, the roads are not as well maintained as they would be in the areas closer to the capital.

The Westfjords are well worth the drive in the summer though, and as you sit in a local pool staring out at the ocean beyond, you’ll wish you had escaped to this peaceful wonderland sooner. When planning where to stay in Iceland while visiting the Westfjords, you’ll want to look to two of the area’s major fjord towns as your home base.

Best Iceland Hotels In The Westfjords

Affordable: ra dagerdi guesthouse.

This modern Scandinavian-style guesthouse has everything you need to have a comfortable stay in the Westfjords. The breakfast included in the room rate is excellent, and the host and staff are friendly and helpful (though you might have to call to get ahold of them if they are next door).

The scenery around Radagerdi Guesthouse is idyllic with beautiful views of the fjord. The guesthouse is centrally located for all of the best Westfjord attractions. It’s 37 miles to the Latrabjorg puffin cliffs, 20.5 miles to the Raudisandur beach, and 60 miles to the Dynjandi waterfall.

Mid-range Patreskfjordur: Fosshotel Westfjords

Fosshotel Westfjords is also located in the small fishing town of Patreksfjordur. The hotel is just down the street from the public pool Iþrottamidstodin Brattahlid where you can relax while looking out onto the ocean and mountains beyond.

You’ll have similar views of the ocean and mountains from the hotel as well. Like the Radagerdi Guesthouse (which is half a mile down the road from Fosshotel Westfjords), the hotel is centrally located to give you a good base point for reaching the best tourist attractions in either direction. This clean and comfortable hotel is sure to meet your needs for a wonderful stay in the Patreskfjordur area.

Mid-range Isafjordur: Hotel Horn

If you’re looking for where to stay in Iceland while visiting Isafjordur, the largest town in the Westfjords, you’ll want to check out Hotel Horn . The comfortable rooms are brightly decorated with vibrant colors, and include breakfast in the room rate.

The hotel is conveniently located down the street from the Isafjordur swimming pool, and has easy access to grocery stores, restaurants and wonderful bakeries such as Gamla Bakariid. It is also 50 miles from the stunning Dynjandi waterfall. Isafjordur is a great little town to stop in and explore on your Westfjords road trip, and Hotel Horn is sure to make your stay all the more enjoyable.

Stay Along The Snaefellsness Peninsula To Experience A Vast Array Of Dramatic Landscapes

As you drive the Snaefellsness Peninsula , the landscape is constantly changing. One minute you’ll be looking at a volcanic crater, the next you’ll be gaping at a deep gorge with a hidden waterfall. The Snaefellsnes Peninsula is dotted with fishing villages.

By the Snaefellsjokill glacier lies Olafsvik, Iceland’s oldest trading town and home to a population of over a thousand. When searching for where to stay in Iceland while driving the peninsula, Olafsvik is sure to come through with a quality hotel or at least a good warm meal as a stop on your road trip.

There’s no shortage of unique landscapes to view along the Snaefellsness Peninsula, but perhaps most prominent among them all is Kirkjufell and Kirkjufellsfoss.

The mountain and its accompanying waterfalls are one of the most photographed locations in the country. You’re sure to see it on a postcard at one of your many tourist stops.

Kirkjufell (Church mountain) is an amazingly symmetrical mountain and a beauty to look at. Game of Thrones fans might recognize it as appearing in Season 7 as Arrowhead Mountain. Also along the Snaefellsness Peninsula is the small, black Budir Church, the Gerduberg Cliffs, the Londrangar Basalt Cliffs, and the rock bridge at Arnarstapi. Every stop is entirely unique and completely worthwhile.

Best Iceland Hotels On The Snaefellsness Peninsula

Affordable: harbour hostel.

When determining where to stay in Iceland, check out Harbour Hostel for a great cozy and affordable option when traveling along the Snaefellsness Peninsula. This hostel is in Stykkisholmur right by the harbor, and as far as hostels go, this one is top-notch.

Many of the rooms have views of the ocean and mountain, and the staff is particularly welcoming and helpful. The hostel is within walking distance from the Stykkishólmur Swimming Pool and the Bonús grocery store which will likely be the least expensive option for buying groceries while in town.

It is also located between 45 minutes to an hour from many of the major tourist attractions making it relatively easy to see everything while using Stykkisholmur as a home base.

Mid-Range: Hotel Fransiskus Stykkisholmi

If staying in a historic building is a factor you’d like to consider when choosing where to stay in Iceland, be sure to check out Hotel Fransiskus . Located by the harbor in Stykkisholmur, this hotel was built in the 1930s as a Catholic monastery.

Though the building has now been converted into a hotel, it still has a functioning chapel open to the public. The interior of Hotel Fransiskus is beautifully constructed with excellent views over the harbor, the town, and the fjord Breidafjordur.

Just a one-minute drive from Harbour Hostel, Hotel Fransiskus offers all the same conveniences of a nearby grocery store, public swimming pool, and painless drive to all the major attractions.

Luxury: Hotel Budir

Have you ever wanted to stay in a hotel right by Iceland’s famous Budir black church? Here’s your chance. This remote luxury hotel has stunning views of the glacier, ocean, lava fields, mountains, and of course the church.

It has an excellent restaurant that uses local ingredients and is a great location for viewing the northern lights in the winter because it is away from the bright city lights (the hotel will give you a wake-up call when the lights are visible).

Hotel Budir is just 21 miles from Kirkjufell mountain and Snaefellsjokull National Park, 15.5 miles from the Londrangar Basalt Cliffs, and 12 miles from Arnarstapi.

If you’re willing to dish out the extra money, it doesn’t get much better than this hotel and location.

Stay In Vestmannaeyjar (Westman Islands) For Puffin Viewing And A Look At Recent Volcanic Activity

Vestmannaeyjar (Westman Islands) is technically an archipelago off the coast of South Iceland, but of the 15 islands only Heimaey is inhabited. There’s a ferry that runs from the Landeyjahöfn harbor to Vestmannaeyjar.

It’s spectacular to stand on the outside deck of the ferry to watch the birds flying overhead and the mossy green cliffs of the island come into view. The beauty of the island is undeniable. The island also plays host to Iceland’s biggest music festival (Þjóðhátið) each year in August.

Vestmannaeyjar is known for its volcanic activity. Most recently, in 1973, the volcano Eldfell erupted, burying large parts of the island in lava and forcing many Icelanders to relocate to the mainland. Seawater was pumped onto the lava to cool it down and slow its spread.

This technique succeeded in saving the harbor and preserving the island’s economy. The effects of the eruption though are still very prominent today as you gaze upon fields of black volcanic rock. In addition to the volcanic rock (you can also hike the Eldfell volcano), the island is home to a huge puffin population.

The birds can be seen streaking through the sky on your way into the island on the ferry, and along the cliffs where they nest. Vestmannaeyjar is where to stay in Iceland for a little slice of nature heaven away from the main tourist crowds.

Best Iceland Hotels In Vestmannaeyjar

Affordable: glamping & camping.

Glamping and Camping is an excellent affordable option when staying in Vestmannaeyjar. It offers a number of accommodations including a bungalow, cottage with a mountain view, and deluxe cottage with a mountain view, all with 2 single beds.

This is the perfect option for those not wanting to tent camp, but who wish to experience the same feeling of being surrounded by nature. Everything is kept very clean, the campsite staff is friendly, and the cabins are surprisingly spacious and comfortable. The campsite is just a mile from the ferry and is right next to the Vestmannaeyjar golf course.

Mid-range: Guesthouse Arny

When choosing where to stay in Iceland, check out Guesthouse Arny for both affordable and mid-range accommodations in Vestmannaeyjar. The most affordable rooms are double or twin rooms, triple rooms, or quadruple rooms all with shared bathrooms.

The guesthouse also offers two-bedroom apartments at a higher cost. With a friendly host, great facilities, and nicely decorated rooms, Guesthouse Arny is sure to meet your needs for a pleasant stay on the island.

The guesthouse is also within walking distance from the Saeheimar Aquarium, the Museum of Natural History, and the Sundhöll Vestmannaeyjar public pool, and is a short few minute drive to the Vestmannaeyjar golf course.

Luxury: Hotel Vestmannaeyjar

This renovated 43-room hotel ranges from mid-range to luxury accommodations and offers single rooms, double rooms, and deluxe double rooms. This hotel is in a great location if you are looking to explore the island by foot.

It is within walking distance from the harbor, has great hiking and bird watching locations, and the Heimaey Black Stave church. Hotel Vestmannaeyjar has beautifully designed modern rooms, solid breakfast options, and helpful staff members. Guests also have access to a spa and Jacuzzi. You’re sure to have a relaxing stay at Hotel Vestmannaeyjar.

Every region of Iceland is unique and stunning in its own right. Though Iceland hotels have the tendency to be more expensive than what you might expect in the US, there are still options available in every price range. As you begin to contemplate where to stay in Iceland while exploring the beautiful country, we hope this guide will be of help.

We’d love to hear about your own experiences or answer any questions you might have.  We have no doubt you’ll have a wonderful time soaking in all the natural beauty that Iceland has to offer!

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Hilton Reykjavik Nordica

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Looking for a place to stay in Reykjavik? Then look no further than Hilton Reykjavik Nordica, a family-friendly hotel that brings the best of Reykjavik to your doorstep.

The rooms offer a flat screen TV and a refrigerator, and getting online is possible, as free wifi is available, allowing you to rest and refresh with ease.

Hilton Reykjavik features a 24 hour front desk, a concierge, and room service. In addition, as a valued Hilton Reykjavik Nordica guest, you can enjoy a hot tub and breakfast that are available on-site. Guests arriving by vehicle have access to free parking.

Close to some of Reykjavik's most popular landmarks, such as Solfar (Sun Voyager) Sculpture (0.7 mi) and Laugavegur (1.2 mi), Reykjavík Hilton is a great destination for tourists.

While in Reykjavik, you may want to check out some of the restaurants that are a short walk away from Hilton Reykjavik, including Cafe Loki (1.2 mi), Old Iceland Restaurant (1.0 mi), and Sandholt Reykjavik (1.2 mi).

If you are interested in exploring Reykjavik, check out one of the historic sites, such as Videy Island, The Settlement Exhibition, and Einar Jonsson Museum (Listasafn Einars Jonssonar).

We’re sure you’ll enjoy your stay at Hilton Reykjavik Nordica as you experience everything Reykjavik has to offer.

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" Consider booking a room down the corridor due to noise "

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" Do your homework when searching for hotels. "

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HILTON REYKJAVIK NORDICA $157 ($̶1̶7̶1̶) - Updated 2024 Prices & Hotel Reviews - Iceland

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Iceland has become one of the top adventure travel destinations in the world. Though, in many respects, it still feels like a well-guarded secret. Perhaps that's because of its bountiful natural resources, empty roads that wind through the vast volcanic landscape, or the swaths of open land with nothing but wild horses and waterfalls for miles.

Not surprisingly, most travelers come to seek out the stunning natural beauty —  from Skógafoss to Thingvellir National Park — and are ready for adventure. To that end, ecologists and environmentalists recommend not eating puffin or whale — sometimes presented to tourists — and following the leave no trace rule. That means taking all of your trash with you and sticking to marked paths to avoid harming the precious ecosystem.  

Besides unimaginable scenery, Iceland provides a wealth of local culture. It's known for having warm hospitality and a strong national pride in its history and mythology. Reykjavik, the capital and largest city brims with museums, churches, cozy restaurants, and bars. Icelanders are quite friendly and helpful. It’s the most peaceful country in the world, according to a recent Global Peace Index report, and the crime rate is extremely low. All this makes it an excellent destination for worry-free solo travel. 

Ready to plan an epic trip to the land of fire and Iceland? Scroll on for expert-approved picks for the best places to explore, eat, drink, and stay.

The Retreat at Blue Lagoon Iceland

Susmita Baral/Travel + Leisure

A spa lover's dream, The Retreat at Blue Lagoon Iceland ranks among the most upscale and relaxing stays in the country. On the pampering side of things, it has an award-winning subterranean spa for mind-body treatments and a private lagoon fed by healing, geothermal waters. Guests also get to enjoy morning yoga, Icelandic coffee time, Michelin-starred dining, and modern suites. "The property is a great choice for the end of an Iceland trip," said Susmita Baral, Travel + Leisure 's travel editor. "Not only is it a great way to relax and indulge in self-care before returning home, but it's also just 20 minutes from the airport."

The Reykjavik Edition

The Reykjavik Edition is a luxury hotel right in the heart of downtown. In addition to a prime location, the newly built property possesses contemporary rooms and a sleek spa with a hammam, steam room, and sauna. Ryan Connolly, owner and a guide for Hidden Iceland , suggests heading up to the rooftop bar in the winter months for cocktails, a lively atmosphere, and a chance to spot the northern lights on a clear night. 

Highland Base at Kerlingarfjöll

Surrounded by the remote, untouched wilderness of Iceland’s central highlands, the newly minted Highland Base at Kerlingarfjöll supplies the ideal home base for adrenaline-fueled adventures. There are special packages for northern lights chasers and snowmobile enthusiasts. After all the thrills, tuck into a cozy sanctuary with neutral decor, sweeping views, and protection from the elements. "Whether you want to explore the outdoors or stay in, this hotel is truly a cozy base," said Baral. "There's even an underground passageway so you can access the restaurant and other parts of the property without stepping foot outside."

Panorama Glass Lodge

If you’ve ever dreamt of glimpsing the northern lights from the comfort of bed, Panorama Glass Lodge in southern Iceland will turn those fantasies into reality. “The tiny cabins in the middle of nowhere are completely made of glass and come with both private hot tubs and saunas to warm up on cold days and nights,” says Kyana Sue Powers , Iceland expert and travel advisor.

Hotel Rangá

Courtesy of Hotel Rangá

Imagine staying at the base of a volcano! Hotel Rangá boasts such a unique location that it's almost always booked at the height of the season. Available tours emphasize the beauty of the stars and northern lights as well as the luxurious experience of geothermal baths. It’s also a great launchpad for outdoor activities such as hiking and kayaking.

Golden Circle

Christopher Larson/Travel + Leisure

The most popular tourist route in Iceland, the Golden Circle is an easy path between three stunning, famous natural spots: Thingvellir National Park , the Geysir geothermal area , and the Gullfoss waterfall. You can either drive or arrange a guided tour.

Diamond Circle

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Located in northern Iceland, the Diamond Circle has four primary stops: Lake Mývatn, Dettifoss waterfall, Ásbyrgi glacial canyon, and the fishing town of Húsavík (home to the Húsavík Whale Museum). Such scenic and cultural wonders make it one of Iceland's most popular sightseeing routes.

South Coast

Tours of Iceland’s south coast typically begin in either Reykjavik or Vík and bring travelers to many striking natural sights — namely the famous Eyjafjallajökull glacier and Skógafoss, a towering waterfall that often produces a rainbow on sunny days. Other highlights include the Jökulsárlón glacier lagoon, Seljalandsfoss waterfall, Sólheimajökull glacier, and Reynisfjara black-sand beach.

Blue Lagoon

While Iceland brims with rugged adventures, it’s also a great place for relaxing. Situated in a lava field near Grindavík, the Blue Lagoon is a bucket-list geothermal spa that’s famed for its mineral-rich waters and mud. It’s the perfect spot to spend the day soothing sore muscles and unwinding. (Pro-tip: If you don't want your hair feeling like straw, be sure to lather it in conditioner when you're changing at the property.)

Ice Cave Tour

Ratnakorn Piyasirisorost/Getty Images

One of the most unique features of Iceland, the natural ice caves form in late fall, gleem blue all winter, and melt in the spring. “This makes each visit truly unlike any other,” says Connolly. Due to the rough terrain and the need for glacier safety training, it’s essential to go with a guide. “ KatlaTrack offers tours to the best and most accessible ice caves every year.”

OX Restaurant

One of the best and most unique dining experiences in Iceland, Michelin-starred OX Restaurant serves flavorful fine dining dishes in an intimate, 16-seat counter setting. “The chef doesn’t just prepare incredible food with local products but also shares the story of where the ingredients came from and the inspiration behind the dishes,” adds Connolly.

Hailed as the best new restaurant in Reykjavik by both critics and diners, Oto is a rather unique concept. “On paper, a culinary fusion of Japanese and Spanish influences made with Icelandic ingredients sounds quite unconventional. I’m this case, thinking outside the box results in some exceptional sharing dishes,” says Connolly. “Don’t forget to try the cocktails and mocktails.”

Fish Company

Tucked inside the old Zimsen building, a former store built in the 19th century, the Fish Company feels at once contemporary and cozy — a style also reflected in the seasonally influenced menu. Chef Lárus Gunnar Jónasson whips up gourmet fare with an emphasis on local seafood and other fresh Icelandic ingredients. 

You have to take a 45-minute ferry to the Westman Islands to reach Næs (pronounced like "nice"). “I make the trip time and time again because it’s such a lovely place with delicious food,” says Powers. “The sweet tomatoes and stracciatella alone are well worth the journey.

Moss Restaurant

The perfect place to celebrate a special occasion or savor a spectacular post-spa meal, the Michelin-starred Moss Restaurant occupies the top floor of the Blue Lagoon Icelandic ingredients shine in wildly creative ways through chef-prepared coursed menus — including a vegan option. "Every course was delicious," said Baral, "But I will say the cod crisps were addictive — light, crispy, and flavorful. It was created to use the entire fish and minimize food waste."

Powers advises to “ask for a tour of the wine cellar, where world-class vintages are held underground in an alcove between volcanic rocks.”

Iceland is a country of extremes in many ways. The best time to visit really depends on what you’re hoping to see and do. Peak viewing season for the northern lights stretches from September through March, but the country also gets quite cold then and daylight only lasts about five hours. Connolly also steers visitors away from attempting to navigate Route 1 between mid-October and mid-April. "Regardless of how good or skilled of a driver you are, it’s about changing weather and road closures.” 

The period between early June and late August brings temperate weather for visiting countless natural wonders. Travelers should be advised to bring a sleeping mask — at the height of summer, the sun stays up until the middle of the night. 

Icelandair and PLAY operate low-cost direct flights between many major U.S. airports and Reykjavik. You can usually score a deal, which makes a trip to Iceland — or a multi-day stopover on the way to another European destination — an economical (and exciting) option.

Reykjavik: Vibrant, welcoming, and gorgeous, Reykjavik is the capital and most popular tourist destination in Iceland. This makes sense given that it’s the largest city, close to the airport, and in the middle of some of the most famous landmarks. 

Kridtin Wongpoovarak/Getty Images

Akureyri: Sometimes referred to as the “capital of the North,” Akureyri is a port city at the base of Eyjafjörður Fjord that’s home to Akureyri Church, the Akureyri Botanical Garden, and some of the best whale watching in the world, plus

Húsavík: Most people visit Húsavík to see Húsavíkurkirkja, the iconic wooden church built in 1907. Travelers will also enjoy the geothermal baths and Húsavík Whale Museum. 

Höfn: Primarily known for scenic views of the Vatnajökull glacier, the largest ice cap in Europe, the fishing town of Höfn in southeast Iceland also supplies shoals and beaches that make it a popular film location. 

Vík í Mýrdal: A village of just 300 people, Vík í Mýrdal (or just Vík) ranks among the most popular stops on the Ring Road for those taking the south coast sightseeing route. Two of Iceland's most iconic waterfalls — Skógafoss and Seljalandsfoss — sit between Reykjavik and Vík, making the two-and-a-half-hour drive more than worth it. On clear days, the Eyjafjallajökull and Mýrdalsjökull glaciers are visible, too. However, the biggest draw is without question the black-sand beach of Reynisfjara.

Ísafjörður: Surrounded by sweeping vistas, Ísafjörður hosts Iceland's popular musical festivals — the Ísafjörður Rock Festival and Við Djúpið Music Festival. "If you make it here, definitely visit Tjöruhúsið for a meal," said Baral. "The restaurant serves the daily fresh catch in a family-style buffet in the warmer months."

Vestmannaeyjar: A volcanic archipelago off Iceland’s south coast Vestmannaeyjar (or the Westman Islands) is accessible by ferry. It’s a must-visit to see some diverse wildlife — including puffins and Beluga whales.

Iceland has one main highway, called Ring Road or Route 1. As you might expect based on the name, it goes all the way around the island country. Many of the most famous and beautiful natural wonders sit along or near this route. Most travelers start in Reykjavik, the city closest to Keflavík International Airport (KEF), and either rent a car and do a self-drive itinerary or arrange a multi-day tour through one of the many local operators. Within the capital, it’s possible to utilize the public bus service or take a shuttle to attractions such as the Blue Lagoon.

Best Hotels in Iceland, Europe

Iceland Hotels

Property types, distance from, traveller rating, hotel class, popular hotels in iceland right now.

• Best Value Properties ranked using exclusive Tripadvisor data, including traveller ratings, confirmed availability from our partners, prices, booking popularity and location, as well as personal user preferences and recently viewed hotels.
• Traveller Ranked Highest rated hotels on Tripadvisor, based on traveller reviews.
• Distance to city centre See properties located closest to the centre first with confirmed availability for your dates from our partners

1. Reykjavik Lights by Keahotels

2. Midgardur by Center Hotels

3. Reykjavik Residence Hotel

4. Hotel Holt - The Art Hotel

5. Exeter Hotel

6. Center Hotels Laugavegur

7. Hotel Vik I Myrdal

8. Skuggi Hotel by Keahotels

9. Aurora Hotel

10. Apotek Hotel by Keahotels

11. Storm Hotel by Keahotels

12. Fosshotel Glacier Lagoon

13. Hotel Borg by Keahotels

14. The Reykjavik EDITION

15. Hilton Reykjavik Nordica

16. Reykjavik Marina

17. Center Hotels Plaza

18. Hotel Reykjavik Centrum

19. Alda Hotel Reykjavik

20. Hotel Kria

21. Canopy by Hilton Reykjavik City Centre

22. Northern Light Inn

23. Fosshotel Reykjavik

24. Brim Hotel

25. Hotel Selfoss

26. Hotel Fron

27. Skyrhusid Guest House

28. Oddsson Hotel

29. Reykjavik Natura - Berjaya Iceland Hotels

30. Konvin Hotel By Reykjavik Keflavik Airport

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Vacations in Iceland

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• There are loads of types of vacations in Iceland and the cost will depend on what type of trip you’re taking and for how long you’d like to stay. Here are the latest prices for a 3 night trip for 2 travelers: Top vacation $468; Family vacation $459; Romantic vacation $522; Luxury vacation $485; Budget vacation $397.

Why should you book a vacation package to Iceland?

Many of Iceland's hotels are located in the capital city of Reykjavík while the rest of the country is an open expanse of volcanic peaks, glaciers, and impressive waterfalls. Renting a car is the best way to move around the island and take advantage of all Iceland's stunning vistas.

When should you book a vacation package to Iceland?

Consider booking your vacation package to Iceland when the famous Northern Lights cast dreamy colors in the sky between September and October. The shoulder season is also a popular time for indulging in some of the world's most rugged hikes.

Where should you stay in Iceland during your vacation?

For any vacation type in iceland:.

Hotel Holt puts its emphasis on their guests experience with professional and friendly multilingual staff, an art gallery in the lobby, and a world-class restaurant on-site. Hotel Holt's airport shuttles can be prearranged according to your travel needs.

Grand Hotel Reykjavik earns its name with sweeping rooftop views of the capital city down below. The friendly staff are happy to assist you with booking your taxi to and from Reykjavik International Airport.

For family vacations in Iceland:

Hotel Odinsve is a boutique hotel in Reykjavik city center that also offers spacious 3-bedroom country homes an hour outside of the city in Grimsnes. Flybus is the easiest way to reach the downtown Reykjavik location, but a rental car is needed for other Odinsve properties.

The Reykjavik Icelandair Hotel Natura offers an indoor geothermal pool and sauna for a truly unforgettable family vacation. Book your rental car before you fly for the added flexibility of travelling with young children on your next Icelandic getaway.

For romantic vacations in Iceland:

Centerhotel Thinghold in Reykjavik is located in a small side street in one of the capital city's most popular shopping streets. It boasts a spa, gym, and business meeting rooms. Located right in the heart of downtown, Centerhotel is easily accessible via Flybus from Reykjavik International Airport.

Apotek Hotels by Keahotels maintains a classic architectural design with over 100 years of history in Reykjavik's central shopping district. There are several options that will transport you from Reykjavik International Airport to the Apotek Hotel including hotel shuttle bus, Flybus, and taxi.

For luxury vacations in Iceland:

Hotel Borg by Keahotels is consistently rated the most luxurious hotel in Iceland with art deco themed rooms overlooking the beautiful square of Austurvöllur. This top-of-the-line hotel also offers shuttle transfers to Reykjavik International Airport to start off your vacation stress-free once you land.

Kvosin Downtown Hotel is located in the historic Kirkjuvoll building and features kitchenettes, tasteful décor, and 24-hour staff services. Start your Icelandic adventure off in luxury with a taxi ride from Reykjavik International Airport.

For budget vacations in Iceland:

Hotel Leifur Eiriksson just ouside of the center of Reykjavik is an affordable way to get a sense for how the locals live in Iceland. Due to it's location, it's recommended that you book a rental car to allow you the freedom to travel freely around Reykjavik's sprawling attractions.

Hotel Keflavik gets you off the well-beaten tourist trail to the eastern town of Keflavik where Iceland's natural beauty can be truly admired. A rental car from Reykjavik International Airport is the best way to make the most of your savings while staying at the affordable Hotel Keflavik.

Where to stay in Iceland

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About Iceland

Visa information, geography of iceland, general information, the northern lights, volcanic eruptions, sustainable travel, iceland academy, plan your trip, how to get there, accommodation, things to do, map your journey, getting around, visitor numbers, carbon footprint, destinations, the regions, scenic routes, national parks, trip suggestions, towns & villages, inspiration, food and beverages, lbgt+ travel, escape the ordinary.

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VOLCANIC ACTIVITY ON THE REYKJANES PENINSULA

Since 2021, the Reykjanes Peninsula has witnessed a surge in seismic activity, including several volcanic eruptions. Despite this, Iceland has remained a safe and open destination for travelers. For a detailed look into the recent volcanic activities and their safety implications, the Icelandic Meteorological Office offers insights through this informative video.

Embark on the journey of a lifetime in Iceland!

With our new interactive map feature, you can easily plan every step of your adventure. From cozy accommodations to unforgettable activities, the possibilities are endless. Dream big, plan smart, and chart your path with our personalized itinerary feature. Make the most of every moment in Iceland!

Take the Icelandic Pledge

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Regions of Iceland

Iceland is typically divided into 7 different geographical regions. Each region differs slightly in respect to culture and landscapes, but are uniquely Icelandic. Find your favorite part of Iceland.

Iceland is a popular travel destination. Sometimes, certain places can be busier than others. Skip the hectic tourist traffic at the most popular destinations and plan your trip to make the most of your time in Iceland. Use our tourist counter to see peak visitor times and plan accordingly. 

Appreciate our towns & villages

Did you know that there are over 100 towns and villages to explore throughout Iceland? We encourage you to stop and look into these charming, beautiful, and often quirky places. History, art, nature, local cuisine, and year-round swimming pools abound. You might be surprised at what you find!

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Unique Iceland Bucket List: Beyond the Tourist Trail

Table of contents, reykjavík’s must-see attractions, icelandic wool - a warm tradition, bæjarins beztu - the best hotdogs in iceland, hotel húsafell - gateway to western iceland, hraunfossar and barnafoss waterfalls, exploring the vidgelmir lava cave, langjökull glacier and ice cave tour, natural hot springs of the west, tips for an unforgettable snorkeling adventure, icelandic cuisine with a twist, best time for iceland-finding your perfect season, what you need to know before you visit iceland, your unique iceland bucket list awaits.

Looking for unique Iceland bucket list experiences? Iceland has become a bucket-list destination for many travelers, and it’s easy to see why. With its otherworldly landscapes, vibrant culture, and geothermal wonders, it’s a place unlike anywhere else.

But with rising tourist numbers, many visitors find themselves sticking to the popular Golden Circle route. If you’re looking for a more unique and off-the-beaten-path Icelandic adventure, consider venturing west to the spectacular Snæfellsnes Peninsula.

In this guide, I will share with you the lesser-explored side of Iceland, sharing hidden gems, insider tips, and the authentic experiences you’ll find as you journey away from the crowds. We’ll base our exploration out of the charming Hotel Húsafell, a haven of sustainability nestled near the iconic Snæfellsjökull glacier.

Reykjavík - Iceland’s Cultural Gateway

Before heading into the wilds of Western Iceland, let’s start in Reykjavík, the vibrant capital city. It’s a compact city, easily explored on foot, and it’s steeped in fascinating history and culture.

• UNESCO City of Literature: Iceland boasts a rich storytelling tradition dating back to Viking sagas, and Reykjavík was the first non-English speaking city to receive this prestigious designation.
• Trolls and Hidden People: While exploring, you’ll quickly notice that belief in trolls and “hidden people” isn’t just for children here. It’s a deeply ingrained part of Icelandic folklore that even influences construction projects!

Sun Voyager:  This striking steel sculpture on the waterfront resembles a Viking ship and is a popular spot for photos.

Hallgrimskirkja Church:  Ascend to the tower of this iconic church for panoramic city views and a glimpse of the distant Snæfellsjökull glacier.

Leifur Eiríksson Statue:  Pay homage to the legendary Viking explorer who discovered North America centuries before Columbus.

Icelandic sheep have kept the inhabitants of this chilly island warm for centuries. Their unique wool, called Lopi, is used to create the iconic Lopapeysa sweaters.

• The Handknitting Association of Iceland:  Visit one of their Reykjavik shops to purchase authentic, handmade sweaters directly from the knitters themselves. You can even discover who made your sweater through its unique code! Learn more about this association on their website: Handknitting Association of Iceland

You can’t visit Reykjavík without trying a hotdog from Bæjarins Beztu. This tiny stand has been a beloved institution since 1937, serving up hotdogs made with a unique blend of lamb, pork, and beef.

Order yours “with everything” to get the classic Icelandic toppings. Even celebrities like Bill Clinton and Kim Kardashian have been known to stop by!

For a taste of the unexpected, delve into our under-the-radar guided activities in Reykjavik, Iceland .

Exploring West Iceland

Now, let’s leave the urban charms of Reykjavík behind and head west towards the wild beauty of the Snæfellsnes Peninsula. Our base for this adventure will be the environmentally conscious Hotel Húsafell.

Its prime location within the Snæfellsnes National Park makes it the perfect spot for exploration and offers a good chance of catching those elusive, Northern Lights .

• Commitment to Sustainability: Hotel Húsafell deeply understands the delicate balance of Iceland’s ecosystem. They use renewable energy and support local conservation efforts, showing you can experience luxury and still be a responsible traveler.
• Ideal for Aurora Borealis Viewing: The hotel’s remote location minimizes light pollution, creating ideal conditions for witnessing the dazzling Northern Lights. They even offer a free wake-up call service specifically for this awe-inspiring natural phenomenon!

Our first stop in West Iceland showcases the stunning natural beauty of the region: Hraunfossar and Barnafoss waterfalls. These are a bit different than the towering falls you’ll find on the Golden Circle.

• Unique Cascading Waterfalls: Hraunfossar is a series of waterfalls spilling over a wide stretch of lava rock, creating an ethereal scene. Barnafoss, known as the “children’s waterfall,” has a tragic legend attached to it.
• Bring Your Crampons: The paths here can get icy, especially in winter. Be sure to pack crampons (shoe spikes) for better grip and safety. Speaking of ice, this area’s water has a distinct blue hue thanks to “glacial”flour”-finely ground rock particles that reflect the sunlight.

For a truly unforgettable experience, venture deep into the Vidgelmir Lava Cave. This natural wonder was formed around 900 AD by an eruption from Langjökull glacier, located about 22 miles away.

• What to Expect: Don a helmet and headlamp and descend into this subterranean world. Your guide will explain the captivating geology and point out unique formations. There’s even a section where you’ll experience what true total darkness is like!
• Safety First: While bats are a common cave dweller in many places, don’t worry – you won’t find any in Iceland! Also, be aware that there’s only one way in and out, so if you’re prone to claustrophobia, it might be best to admire the cave’s beauty from the outside.

Discover more places to see in west Iceland in this article, best things to do in West Iceland away from the crowd.

If there’s a must-do activity in Iceland, it’s exploring a glacier – and not just any glacier. Langjökull is the second-largest glacier in Iceland, and it’s the only one with an accessible ice cave.

• Otherworldly Experience: Picture yourself riding a massive vehicle specifically designed to conquer snowy terrain. You’ll journey up the glacier, enjoying breathtaking mountain views bathed in the soft, diffused light of an Icelandic winter.
• Inside the Glacier: Descend into the heart of the glacier through a man-made tunnel. Marvel at the vibrant blues and learn about the science of glaciers and the effects of climate change, which are sadly very evident on Langjökull. You might even stumble upon an ethereal ice chapel!
• A Moment for Reflection: This tour offers a unique perspective on the fragile beauty of our planet. Take the time to appreciate the raw power of nature and the need to protect these precious environments.

Iceland is famous for its geothermal activity, and the area near Hotel Húsafell is no exception. After a day of adventure, there’s nothing quite like soaking in a steaming hot spring surrounded by stunning landscapes.

• Canyon Baths: A Hidden Gem: Hotel Húsafell offers access to an exclusive experience, the Canyon Baths. It takes a bit of a hike to reach them, but it’s worth it for the serenity and stunning mountain backdrop.
• Intimate and Eco-Conscious: These geothermal pools are fueled by a 2.5 million-year-old volcano! The focus here is on enjoying the peacefulness of nature with minimal environmental impact.

Snorkeling at Thingvellir National Park

For a truly unforgettable experience, consider braving the chilly waters and snorkeling in Silfra at Thingvellir National Park. Yes, snorkeling in Iceland! While a popular spot on the Golden Circle, the unique experience makes it worth venturing out for.

• UNESCO World Heritage Site: Thingvellir holds deep historical significance. It was the site of Iceland’s first parliament, Althingi, established in 930 AD, making it one of the oldest parliamentary sites in the world.
• Where Continents Collide: The real draw of Silfra, however, lies beneath the surface. This underwater rift is where the North American and Eurasian tectonic plates meet and are slowly pulling apart.
• Crystal Clear Glacial Water: The water in Silfra comes from the Langjökull glacier, filtered through lava rocks for decades, resulting in unparalleled visibility. You’ll feel like you’re flying as you glide through this pristine underwater world.

Discover the seven must-experience destinations in South Iceland for an in-depth guide to the region’s highlights and hidden gems.

• Specialized Gear: Reputable tour companies will provide you with insulated wetsuits and gear for your comfort and safety. The water is cold, but your body will surprisingly adjust quickly.
• Embrace the Challenge: If the idea of cold water makes you nervous, remember that the experience itself is far more enjoyable than the initial anticipation!
• A Place of History and Geology: After you get out of the water, take a walk to the site of the ancient Parliament for a powerful sense of Icelandic history and the ever-changing forces shaping this extraordinary land.

Back at Hotel Húsafell, a culinary adventure awaits. Head Chef Ingolfur Piffl puts a modern twist on traditional Icelandic fare, emphasizing fresh, local ingredients and an impressive knowledge of foraging.

• Sustainable and Seasonal: The hotel strives to minimize its carbon footprint by sourcing from Icelandic farmers and even growing their own edible flowers and mushrooms.
• A Chef’s Passion: Chef Ingolfur’s background (he has degrees from Harvard, no less!) shines through in his creative dishes and commitment to culinary innovation rooted in Icelandic traditions.

Explore more foods to try in Iceland in this article, Icelandic Cuisine: 12 Must-Try Foods for your Epic Trip .

Iceland transforms with the seasons, each offering its own distinct magic.

Summer brings the midnight sun, inviting endless exploration under the glow of nearly 24-hour daylight, while winter cloaks the land in a mystical atmosphere and offers a chance to witness the spectacular Northern Lights .

Choosing the right time for your Iceland trip is key to the ultimate experience, as it greatly affects which activities are at their best and whether you want to mingle with crowds or enjoy some solitude.

Find out more in our article “ Best Time for Iceland: Top Places by Season ,” where we’ll help you tailor your itinerary based on your dream activities, weather preferences, budget considerations, and the type of ambiance you seek.

• Plan for the Crowds: Iceland is a popular destination, so if you want to avoid peak crowds, try visiting during the shoulder seasons (spring or fall). For up-to-date visitor data, check out the Visit Iceland website .
• Aurora Forecasts: The Northern Lights are most visible during the winter (late August to April), but clear skies are essential. Get real-time forecasts from the Icelandic Meteorological Office or websites like Spaceweather .
• Stay at Hotel Húsafell: If you’re looking for a base to explore West Iceland’s hidden gems, Hotel Húsafell offers luxury, sustainability, and access to unique experiences.
• Travel with the Experts: For insider knowledge and a more personalized experience, consider a private tour company like Oak Travel , a family-owned business specializing in authentic Icelandic adventures.
• Iceland Can Be Expensive: As an island nation, Iceland imports many goods, so prices can be higher than expected. Factor this into your budget and consider the value of the unique experiences and memories you’ll make.
• Pack Layers: Iceland’s weather can change quickly. Be prepared for sunshine, wind, and rain – sometimes all in one day! Bring layers you can easily add or remove.
• Don’t Forget Your Crampons: These shoe spikes are invaluable for safely navigating icy trails and are worth the small investment.

Iceland’s raw beauty and ever-changing landscapes leave a lasting impression. The resilience of Icelanders, who thrive amidst the elements, counterbalances the sometimes extreme weather.

As a visitor, do your part to protect their fragile environment by supporting sustainable tourism practices. Iceland’s dramatic landscapes, unique experiences, and warm hospitality make it a truly special destination. Venturing off the beaten path will reveal a side of Iceland that most visitors never see.

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Iceland Is the Latest Destination to Add a Tourist Tax—But How Effective Will It Be?

By Rachel Chang

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Iceland has become a victim of its own popularity. As travelers continue to be drawn to the island nation ’s dramatic—and Instagram-friendly—natural landscapes, the impact on its environment is growing. In an attempt to curb that mounting pressure, the country’s Prime Minister Katrín Jakobsdóttir announced late last month that a new tourist tax—with specifics still being discussed—will be implemented in 2024. “Tourism has really grown exponentially in Iceland in the last decade, and that obviously is not just creating effects on the climate,” she told Bloomberg. “It’s also because most of our guests who are coming to us are visiting unspoiled nature, and obviously it creates a pressure.”

For a country set on becoming carbon neutral by 2040 , constant evaluation of its sustainability has become key. “It is intended to expand taxation to cover passengers on cruise ships alongside hotels, recognizing the impact on our seas as well as land," a spokesperson for its Ministry of Finance and Economic Affairs told USA Today .

Iceland has long been working on ways to handle the increasing pressure from visitors. Besides a possible fee on visitation that has been talked about for years, some years ago, a nature pass to visit its most famous sites was discussed—but didn't pass. Eventually, an accommodation tax did get put into place, which was suspended during the pandemic. So it was simply a matter of time before a tax was resumed.

The Nordic nation isn’t the only trending destination imposing a visitors' charge. Indonesia has been discussing imposing a tourist tax on hotspot Bali since before the pandemic. Overtourism has had considerable impact on the destination since its reopening—but its latest issues have been with international travelers behaving badly , including defacing property and misbehaving with authorities.

Last week, it announced that starting February 14, 2024 , a tax of 150,000 Indonesian rupiah (about $10 USD) will apply to all visitors, including children. “We will use it for the environment, culture, and to build quality infrastructure, so traveling to Bali will be more comfortable and safe,” provincial governor Wayan Koster told Agence France-Presse .

Many destinations build their tourism taxes into hotel stays, with Barcelona, Amsterdam , and Paris all set to increase those fees—the French capital has received approval to triple its fee . On a smaller scale, on October 1, Japan's popular Itsukushima Shrine began implementing a tourist tax on visitors visit the Miyajima island, where the UNESCO World Heritage Site is located, in order to “create a sustainable tourist area that is good to live in and good to visit,” the city of Miyajima's site said, according to USA Today . But at just 100 yen (about $0.67 USD), the tax will likely have minimal effect.

Much like Iceland, Venice is a victim of its own popularity—and has been attempting to curb the impact of overcrowding.

Meanwhile, Venice—the longtime hub for overtourism —has been discussing its daytripper tax for years, and the 5-Euro fee, which will apply to everyone over 14 years old, is now set to be implemented in the spring of 2024 .

“We have to show the world that for the first time, something is being done for Venice,” the city’s Mayor Luigi Brugnaro said, according to The New York Times . “There’s always someone who will say it’s not enough, but then nothing is done concretely.”

And that’s precisely the issue with these fees. While they make headlines and call attention to the issues, their true impact is less tangible: the taxes are usually too low to make a dent on travelers' decisions to visit. However, according to as New York University School of Professional Studies Professor Christopher Gaffney , who spearheads an overtourism project , “The taxes can be effective in raising funds that can be applied to infrastructure projects that either create more tourism carrying capacity—such as trash collection and disposal, new transport systems, etc.—or that help to reduce the burden on city services that tourism brings.”

Randy Durband, CEO of the Global Sustainable Tourism Council , agrees about the tax usage as mitigation, and says the taxes could be an effective tool to spread out visitation. “If the tax facilitates dispersion of visitors from peak times of day and times of the year to off-peak or shoulder times, they'll work,” he tells CNT . “[But] it's too soon to understand the impacts of these relatively new taxes.”

While overtourism isn’t exactly an issue that can be solved—as Gaffney explains, it's “an ensemble of activities and processes that have no specific origin or end"—he does believes that imposing fees to offset travelers' impacts are likely to increase.

At the very least, the fees will help fuel the economies of these destinations, which is what tourism should do in the first place. “The risks to communities from tourism and tourists are quite high and travelers should be eager to contribute more money to the communities, peoples, and places who open their homes to them,” he says. “Tourism taxes will likely become the norm as policy makers search for ways to mitigate the noxious effects of rampant tourism growth.”

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