My husband and I are traveling to Iceland in late July. I was looking for hotel recommendations in the western and southern areas. We wont be headed east since we only have 7 days. We are interested in hotels or guesthouses, no hostels. Thank you!

The Hotel From in Reykjavik is central, friendly and pretty cheap -- I've stayed there twice and recommend it.

The Hotel Ion in Thingsvellir (sp?) National Park is to die for -- in the middle of nowhere, outdoor geothermal hot tub, amazing hiking and a million (seemingly!) nearby waterfalls.

Iceland is becoming very popular, and July is really busy. Hotels and guesthouses get booked very early, so if you find anything that you like, book it. Hotel Budir was fully booked for our July 2016 dates in July 2015.

It's Hotel Frón, not From, in Reykyavik. We always stay there.

In Reykjavik, take a look at the 4th Floor Hotel or Centerhotel Midgardur.

thank you! Yes im realizing a lot is getting booked so I am grabbing things as I find them. this was super helpful, thank you so much everyone!

We used Homeaway and booked a wonderful apartment that was within walking distance of everything. It was cheaper than a hotel and much more spacious. We like to make our own breakfast in the morning and prefer to have the space to kick back at the end of a day of sightseeing. Our apartment was modern, clean and very well equipped: much better than any hotel room!

In Reykjavik, consider AirBnB. We barely looked at hotels after seeing how many awesome, well-located flats there are on AirBnB (we ended up booking one for our stay in May). Though for July, many of them may already be booked....