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

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We've compiled the best of the best in Reykjanes Peninsula and the South Coast (with the Golden Circle) - browse our top choices for the top things to see or do during your stay.

Garður Apartments

$$ | Skagabraut 62a, Reykjanesbær, 250, Iceland

In addition to simple, spacious, and well-equipped apartments right by the sea in Garður, this guesthouse features satellite TV and a kitchen. It's a smart option for families or groups.

Pros

  • Only 100 meters (328 feet) from the coastline
  • Close to Keflavík airport
  • Good place for hunting northern lights in winter

Cons

  • Noise travels between apartments
  • No double rooms in the studio apartments
  • Few dining options in town
Skagabraut 62a, Reykjanesbær, 250, Iceland
779–0707
Hotel Details
6 apartments
No Meals

Quick Facts

  • $$

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Guesthouse Bitra

$$ | Bitruvegur, Selfoss, 801, Iceland

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).

Pros

  • Delicious breakfast buffet
  • Great location for activites like hiking, horseback riding, and fishing
  • Views of mountain Hekla

Cons

  • Basement rooms tend to run colder than others
  • Rooms are basic if spacious
  • Most rooms do not have private bathrooms
Bitruvegur, Selfoss, 801, Iceland
480–0700
Hotel Details
17 rooms
Free Breakfast

Quick Facts

  • $$

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Hótel Keflavík

$$ | Vatnnesvegur 12–14, Reykjanesbær, 230, Iceland

For over 30 years, Hótel Keflavík has been welcoming visitors beginning or finishing their trip to Iceland. Positioned in the heart of Reykjanesbær, the hotel offers a variety of standard and deluxe rooms and a gym, as well as tour reservation services.

Pros

  • Incredible spa on-site
  • Early breakfast buffet
  • Good location (close to the airport, shops, and restaurants)

Cons

  • Breakfast buffet is an additional cost
  • Noise pollution in some rooms
  • Decor can seem quite dated
Vatnnesvegur 12–14, Reykjanesbær, 230, Iceland
420–7000
Hotel Details
70 rooms
No Meals

Quick Facts

  • $$

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Hótel Vellir

$$ | Tjarnarvellir 3, Hafnarfjörður, 221, Iceland

While not in the most charming neighborhood, Hótel Vellir is convenient to both the Reykjavík city center and Keflavík Airport, close to the biggest indoor geothermal pool in Iceland, and only a 10-minute walk to restaurants and shops in downtown Hafnarfjörður.

Pros

  • Airport transfers and tour reservations at the front desk
  • New and modern rooms
  • Good gym on-site

Cons

  • The view and the surrounding area are not very exciting
  • Hard to reach if you don't have a car
  • Noise pollution if your room faces the highway
Tjarnarvellir 3, Hafnarfjörður, 221, Iceland
420–0080
Hotel Details
68 rooms
Free Breakfast

Quick Facts

  • $$

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Hotel Viking

$$ | Strandgata 55, Hafnarfjörður, 220, Iceland

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. 

Pros

  • Kitschy but fun design
  • Lively restaurant
  • Great for families (especially ones that like fantasy)

Cons

  • Theme can be a little too corny at times
  • Basic rooms are small
  • Lots of children
Strandgata 55, Hafnarfjörður, 220, Iceland
565–1213
Hotel Details
54 rooms
Free Breakfast

Quick Facts

  • $$

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Lighthouse Inn

$$ | Norðurljósavegur 2, Reykjanesbær, 250, Iceland

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.

Pros

  • Only a 10-minute drive from the airport
  • Great place for a morning or evening walk
  • Considered a prime spot for northern lights

Cons

  • Quiet town with few options for entertainment
  • Rooms are a bit dark
  • No bathtubs in rooms
Norðurljósavegur 2, Reykjanesbær, 250, Iceland
433–0000
Hotel Details
26 rooms
Free Breakfast

Quick Facts

  • $$

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Seaside Cottages

$$ | Eyrargata 37a, Eyrarbakki, 820, Iceland

These modest yet beautiful country-inspired cottages are located just a few steps from the North Atlantic Ocean. Expect a romantic and quiet stay that is very close to everything you need in this charming small town.

Pros

  • Quiet atmosphere
  • Scenic and romantic location
  • Clean and well equipped

Cons

  • Only one of the cottages has a washing machine
  • Steep stairs could be hazardous for some
  • Two-night minimum
Eyrargata 37a, Eyrarbakki, 820, Iceland
898–1197
Hotel Details
2 cottages
No Meals

Quick Facts

  • $$

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Stracta Hotel

$$ | Rangárflatir 4, Hella, 850, Iceland

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.

Pros

  • Restaurant has great views of surrounding volcanoes
  • Two wooden-barrel saunas outside are very charming and open for all guests
  • Wake-up calls for departures and northern lights

Cons

  • No toiletries in rooms
  • Rooms are quite small
  • Noise travels between rooms
Rangárflatir 4, Hella, 850, Iceland
531–8010
Hotel Details
166 rooms
Free Breakfast

Quick Facts

  • $$

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Volcano Huts

$$ | Þórsmerkurvegur Þórsmörk via road F249, Hvolsvöllur, 861, Iceland

Located in Þórsmörk and accessible via the Reykjavík Excursions Highlands bus—or the Fimmvörduháls or Laugavegur hikes—accommodations here include mountain huts, cabins, and luxury camping facilities with ready-to-use tents. There are also a few huts further into the valley.

Pros

  • Only lodging option in Þórsmörk
  • Hearty buffet dinner
  • Social atmosphere and friendly clientele

Cons

  • Remote location
  • Public showers
  • Far walk from many hiking trails
Þórsmerkurvegur Þórsmörk via road F249, Hvolsvöllur, 861, Iceland
419–4000
Hotel Details
Closed Nov.–May
26 rooms
No Meals

Quick Facts

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