Are you planning a trip to Iceland and don’t know where to stay? We’ve got you covered! We collected and listed all the best hotels & places to stay in Iceland we personally like the most. They are all cozy, beautiful, close to the highlights and excellent rated. And the best part: all at an affordable price. If that’s what you’re searching for? Be sure to check them out!
Ps: we link to booking.com because of the good prices, they don’t charge a service fee and most importantly you can often cancel your reservation without any cost a few days before your check-in. Another option is to use this link to get a $45 discount on your first booking on Airbnb.
Read also: 10 most beautiful places in Iceland
A trip to Iceland usually starts and ends in Reykjavík, the capital and located only 40 minutes of Keflavík International Airport. It’s one of the smallest capital cities in the world where two-thirds of the Icelandic population lives. Despite it’s a relatively small city, there are plenty of things to do. Stroll around the idyllic streets, hop into one of the cozy coffee bars, visit the unique Hallgrimskirka church and end the day with a sunset at the waterfront. Take about one or two days to explore the whole city.
The Blue Lagoon
The Blue Lagoon is such a dreamy place you can’t skip when you’re in Iceland. It’s a man-made lagoon filled with geothermal waters located in a lava field one of National Geographic’s 25 wonders of the world. The temperature is around 38 degrees Celsius and it’s also known for its healing effects on skin aging and psoriasis. Since the lagoon is only a 20-minute drive away from Keflavik International Aiport or 40 minutes from Reykjavik, it’s the perfect spot to start or end of your road trip with.
The Golden Circle
The Golden Circle is the most popular route in Iceland and takes you to one of the most amazing places you need to see. It’s a circular route that starts from Reykjavik (only 40 minutes away), covering about three hundred kilometers into the central part of the country. Whether if you have one day or one week, The Golden Circle is a must-see for everyone. It’s open all year round and has three main stops: Geysir, Gullfoss waterfall and Thingvellir National Park.
Vík is Iceland’s southernmost village and is located on the Ring Road 1,5 hour from Selfoss. This small charming fishing village is a great place to stop and stay for one night, before heading further. The stunning Reynisfjara black sand beach is only 10 minutes from the village and a must-visit during sunrise. When you’re done with exploring, stop at Sudur Vik for dinner. Best restaurant you can find in Vík.
Höfn itself is a small fishing town located in the southeastern part of Iceland. Just outside the town about a 20-minute drive, you’ll find the Vestrahorn mountains and the extremely beautiful Stokksness beach. Also a must see!
Egilsstaðir is the biggest town in the East part of Iceland and a 3,5-hour drive from Höfn. With good services and supermarkets, this is a great place to stay before the next stop.
This small charming fishing village in the North-East side of Iceland is famous for the amazing whale watching tours and natural hot springs.
Bogarnes is a perfect place to stay if you want to visit Snæfellsjökull National Park. It’s located near Reykjavik and the Golden Circle.
Now you’ve seen all the best hotels & hostels in Iceland, you might be ready to go. Following websites can help you plan the perfect trip: