11 Best Hotels in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

Sitting proudly alongside the Varmá River, the Frost and Fire hotel offers proximity to nature while just a short walk from shops and restaurants. No need to go far for dinner though—the excellent Varmá restaurant is right next door.

At this unique and artistic guesthouse on a quiet street, each room is special and made out of driftwood and volcanic stone. The hosts go out of their way to make guests feel welcome and offer airport pickup with advance notice.

Located in the beautiful Flóahrepp countryside, right along Route 1 near Selfoss and Hveragerði, this guesthouse with views over the mountain Hekla was initially built as a women's prison (though those plans were never realized).

This modern hotel sits by a peaceful harbor at the northern end of Keflavík in close proximity to the airport. It offers comfortable and cool rooms, as well as a chic common area and a romantic outdoor pool to relax in after a long day.

This charming country hotel dedicated to the Icelandic horse is located right off the Ring Road, only a few minutes’ drive from Hveragerði. Each room is simple but bright, with a private bathroom and a door that leads directly outside. There's also a hot tub to relax in after a long day of riding. 

Family-run for more than 30 years, this hotel sits in a valley just five minutes from the magnificent Gullfoss. Visitors can take a beautiful walk up the old road to the waterfall in the morning or evening, dodging the crowds.

Sitting on the banks of the grand river Ölfusá with views of the nearby mountain, Hótel Selfoss offers tranquility just a few minutes' walk to the town center, with all its restaurants and shops. The hotel also has its own restaurant, bar, and spa.

This delightfully cheesy hotel—which along with the restaurant Fjörukráin makes up a building referred to as the Viking Village—is a paradise for anyone who wants a themed experience with modern amenities. They also have a hot tub (as all Vikings do) and sauna. 

In a modern yet cozy guesthouse in Stokkseyri are two bright apartments—one that sleeps up to five people and the other seven. Of course, beautiful mountain views and access to a hot tub are also included. 

Located mere steps from the beautiful coastline at Garður and only a 10-minute drive from the Keflavík airport is this log hotel. Guest rooms are very clean and spacious, and the kind family that runs it prepare a nice breakfast with American flair.

This hotel right off the Ring Road offers various types of accommodations, from self-catering apartments to deluxe suites—all in the same luxurious Nordic style. Outside the hotel are two hot tubs under the open sky, where you might be able to spot the northern lights if you're lucky.