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Iceland Hotels with private bathrooms

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I'm trying to arrange a trip for around a week in June. We'll drive around the ring road. On the way what are some (preferably inexpensive) hotels or apartments we can rent with private bathrooms? ( i noticed many in iceland are shared; which i've never heard of before) Also, it would be helpful if there was a fridge in the room. Can you help me find some hotels with these criteria? (for 3 people)
I've also noticed that most of the hotels on sites like expedia, hotels.com, and kayak, are booked. there are maybe one in each category--and it doesnt always say they have private bathrooms. Is there a shortage of hotel rooms?
How many days should we stay in each place?

thanks!

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