22 Best Hotels in East Iceland and the Eastfjords, Iceland

Spread across four of the town’s historic buildings, Fosshotel Eastfjords is one of the best lodging options in the region. The beautiful, bright, and modern rooms and spaces maintain a classy look throughout.

What began as minimalist rooms with shared bathrooms and a kitchen inside a renovated fish factory now encompasses hotel-standard rooms with private balconies, plus well-appointed, family-size apartments. The spa here has saunas and hot tubs overlooking the sea, with the options of beer and seaweed baths, too. The on-site restaurant-bar Frystiklefinn serves a range of locally sourced dishes. The cherry on top of it all: an on-site craft brewery and distillery.

This historic lakeside farm saw the town grow up around it and began offering guesthouse services in 1884. It has since transformed into a modern 50-room hotel, with a mix of older and more modern rooms as well as a quality restaurant and spa.

This glossy hotel is perfect for Jökulsárlón visitors looking for a luxurious experience that matches their elevated mood after taking in all that icy beauty. The calm, elegantly dressed building is 11 km (7 miles) east of the glacier lagoon, with all the mountain and glacier panoramas you could hope for. Careful attention has been paid to creating an inviting outdoor area with hot pools, a cold plunge, and a sauna.

This spot is the perfect base for several excellent hiking trails, including the top-notch Waterfall Circle, plus there are two tempting stone pools filled with hot spring water. While the natural pools are the main attraction, the location offers an upgrade on its former hostel accommodation with twin, double, and family rooms, each dedicated to a local nature spot or attraction. There is a view-blessed lounge and dining area where breakfast, lunch, and dinner are served. You don't need to be a guest to access the pools: day visitors pay a fee of ISK 2,700 per person. Note that you don't require a 4WD vehicle to reach Laugarfell in summer (it's just 2 km [just over a mile) off the paved Route 910). 

Evidence that Icelanders will renovate almost any building to turn it into a guesthouse, the Milk Factory was once—you guessed it—a milk factory, and the stylish redesign has resulted in modern, minimalist rooms, including family rooms that sleep four (with beds on a mezzanine level). It's a friendly place with thoughtful touches, and it's open year-round.

The photogenic cluster of small red cottages by the shore on the east side of the fjord belongs to Mjóeyri—a local family-run travel service offering accommodations and activities. Apart from the cottage accommodations, you can also stay in the main guesthouse (cheaper rooms with shared bathroom). Views from the property are sensational, especially from the small boat that's been converted into a hot tub.

Located within the old village school, Sólbrekka Guesthouse offers basic accommodations (mainly bunk beds) for a limited period during the summer. Apart from the few rudimentary rooms, amenities include Wi-Fi and cooking and laundry facilities. If you're looking for something roomier, two cozy wooden cottages (each sleeping four people) are found further up the hill. The cottages are perfect for seclusion and spectacular views, especially from their private hot tubs. Want even more seclusion? Winter packages (with boat trip and cottage hire) are also possible. 

A gem of a guesthouse, Við Lónið has gorgeous rooms featuring either beautiful views over the fjord or the charming scene over Rainbow Road. The cozy tungsten lighting and oil paintings add warmth and a touch of vibrancy to the classy, minimalist Scandinavian design. Rooms facing toward the fjord have private balconies.

This 19th-century historically restored old farmstead offers the unique opportunity to "sleep in a museum" with the option of staying in the Landowner’s Suite, rooms in the old farmhouse, or in "bed closets" aka unique dorm-style beds with an authentic, yesteryear feel. There's also an additional building featuring rooms with private facilities, still decorated in keeping with the farm's vintage vibes. Stays at the Wilderness Center include free admission to their lovely bathhouse, with a hot spring spa built from stone. Home-cooked meals are available for an extra price. 

Set amid big, bucolic landscapes about 13 km (8 miles) south of Djúpivogur, Bragðavellir is a family-run farm with a collection of cozy timber cottages, with one or two bedrooms. Each has a small kitchen, though the farm has a Barn Restaurant open in the summer that showcases local ingredients. 

The stylish Fosshotel Glacier Lagoon stands out like a black fortress from its surroundings. Designer lighting installations hang down from lofty ceilings in the lobby, continuing in the restaurant where the interior is heavy on geometric forms created to replicate the shape of columnar basalt. Rooms are reasonably spacious and modern, and many have large windows offering mountain or ocean views.

Höfn is a popular overnight stop on any Ring Road adventure, and this branch of the Fosshotel chain is a modern, stylish place with epic glacier views. It's located 14 km (9 miles) north of Höfn town, with just quiet nature as your neighbor. There's an on-site restaurant serving up local specialties. 

This modern, Nordic-chic hotel has large portrait windows in the lounge that frame the cliffs outside. There's lots of comfort here but not a huge amount of personality, though the restaurant and lounge areas can get lively, especially during the 4 pm to 6 pm happy hour.  

Located in a functional block in the center of town, this modern hotel offers 15 very spacious, well-appointed apartments, all with private balconies overlooking the sea. More affordable hotel rooms, 29 in all, are available in a separate building in the summer. The heart of the apartment hotel is the ground floor, featuring the Kaupfélagsbarinn restaurant that pays homage to its old co-op roots, rocking a retro vibe with a collection of home furnishings dating from 1948 to the 1970s.

Spread across three properties, Hotel Aldan takes up much of the town: the reception and restaurant are located next to the famous Rainbow Road while the guest rooms are found in fjordside Snæfell (also known as the Old Post Office) and the renovated Bankinn, or Old Bank. Both locations have lots of vintage character; rooms in Bankinn are slightly larger and more luxurious while the Snæfell rooms are more boho chic and share a kitchen. The hotel also operates two apartments in the town that can each sleep up to six people.

Rooms under the bright blue roof of Hótel Breiðdalsvík are comfortable and bright. The appealing lounge has chesterfield sofas facing a fireplace, and there's a decent on-site restaurant with an emphasis on local lamb, beef, and fish. 

Located in the former town bank, quiet Hotel Eskifjörður has modern, bright rooms and all the facilities you would expect from a hotel. The old bank vault now lives a new life as a wine cellar. 

Located in a lovely wooded area about 3 km (2 miles) from the town center, Hótel Eyvindara has annex rooms with private bathrooms and terraces, in addition to rooms within the main building. They also rent out several small timber cottages. All rooms are clean, bright, and modern. With its out-of-town location away from light pollution, it’s a great place to see the northern lights during the winter, especially from the outdoor hot tubs.

The main building of Hótel Framtíð, which means "Hotel of the Future," was once a store and then a post office before it was converted into a hotel in 1987. Rooms are clean and comfortable, but lacking in character. The hotel manages a handful of buildings around town, including cheaper guesthouse and hostel lodgings, and some larger modern apartments.

Located in Iceland’s largest forest with views over Lagarfljót lake, Hótel Hallormsstaður offers spacious, comfortable rooms with modern Scandinavian design and furnishings in a palette of woodsy tones. Facilities include two good restaurants (buffet and à la carte), a spa, hot tub, gym, and sauna. Wandering reindeer are frequently spotted on the woodland trails surrounding the hotel.

Operated by the national park rangers who live on-site in summer, this mountain hut on the northwest side of Snæfell sleeps up to 45 people in a large dorm-style room, with just mattresses on the floor (no beds). There is a kitchen and gas-heated showers.