171 Best Hotels in Iceland

Located right in the center of the buzziest street in downtown Reykjavík, this hotel comes with some serious value. Much less expensive than its competitors, it still boasts some of the same amenities like an on-site bar and restaurant, close attention to the interior design, and spacious community areas.

Located 90 minutes from Hólmavík, this family-run hotel has its own unique and fantastical charm that makes it the very definition of rural. There's a swimming pool with a swing rope inside a slightly dilapidated greenhouse as well as a natural hot spring across the river. The surrounding valley is home to over 40 species of birds and experienced hikers can make their way to a mountain-top trout fishing lake. The hotel is also a horse farm and offers guided tours of the surrounding area. The rooms have the necessary creature comforts and the restaurant is simple but excellent, although parts of the hotel are overdue for renovations.

They might have hostel prices, but the accommodation options here are far superior and full of local character. There are seven rooms in a lovely house named Gimli, three cottages, and a delightful historic farmhouse (Gamli Bærinn) decorated with vintage furnishing dating back to the early 1900s. The cottages and old farm house have access to a garden sauna and hot pot.

Ferðafélag Akureyrar, or the Touring Club of Akureyri, operates mountain cabins by the Drekagil canyon on the eastern side of the Dyngjufjöll mountains (accessed by mountain route F88 from the north and F910 from the east). Huts provide sleeping-bag accommodations in shared rooms for up to 55 people. Simple facilities include toilets, showers, and a kitchen and dining area with stoves, pots, pans, glasses, and other utensils.

A short walk off the main drag of Laugavegur will deliver you to this 65-room hotel with views over Esjan. It's close to everything while still being away from the noise of partygoers. The rooms are bright and modest, but comfortable.

One of the very few options for lodging in Hólmavík, the Finna Hotel has basic amenities; if you're not looking for luxury, you'll find it perfectly suitable. The hotel itself is pretty basic, but breakfast is included in room rates, which are already very reasonable. The walls are a bit thin, making it easy to hear other guests, but you can't argue with the value for the location.

Hotels can be far and few between in this region of Iceland and often follow an \"all-in-one\" mentality; this spot is no exception with its role as a restaurant, hotel, bar, and gathering space. The simple Fisherman Hotel allows you to grab a meal, sip a few drinks, and roll right into bed without going outside.

You have three options at Fossatún Country Hotel: booking a room in the main hotel, staying in the communal guesthouse, or renting a camping pod. The latter is a tiny home of sorts—a primitive (but solid) structure; it resembles camping but takes you a step out of the unpredictable Icelandic weather. The owner of this property is a writer, whose stories tell about trolls and the hotel's setting. A number of self-guided walks reveal the local inspiration behind his tales.

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.

This mammoth hotel in the business district of Reykjavík has spectacular views and huge common areas. Inside its austere exterior there are 320 large rooms (odd-numbered rooms have ocean views) and a few suites, all furnished with those dark muted tones of Scandinavian chic and enlivened by crisp whites and shiny surfaces. Guests can dine at Haust Restaurant, which serves a great weekend brunch or hang out at the steampunk-style Beer Garden. There is also a small souvenir store onsite, as well as a gym. There are great facilities to accommodate wheelchairs and plenty of rooms with walk-in showers.

Fosshotel is a regional chain known for friendly and dependable service, and the Stykkishólmur location is no exception. You won't get the same cozy vibe as at some of the guesthouses in the area, but you will get your own private room and bathroom. The hotel restaurant offers great views to go with your meal.

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. 

Despite its businesslike vibe, this outpost from the Fosshotel chain is a solid choice for your stay in Patreksfjörður, and you'll get the trusted service this brand is so well-known for. There are certainly trendier Fosshotel locations, like Fosshotel Glacier Lagoon, but you can't beat the proximity to Látrabjarg and Dynjandi.

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.

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.

This friendly lodge, which used to be a horse farm, offers homey accommodations in a beautiful location. Rooms are basic but comfortable, and you'll be greeted by stunning views of the countryside as you sip your morning coffee. 

This guesthouse is located on a horse farm within close driving distance to both Gullfoss and Geysir and provides both rooms and wooden cottages for rent. Strokkur erupting in the distance, the beautiful scenery, the friendly Icelandic horses, and the helpful owners all make this place a lovely country retreat.

From the bar to the rooms, guests are surrounded by moody cozy vibes at this hotel. A 24-hour concierge, room service, and wheelchair-accessible spaces will take your stay to the next level. Plus, they offer a northern lights wake-up call during the winter months and a spa all year-round.

This leafy locale feels distinctly upscale, with lots of plants, high-end design, cozy rooms, and a trendy clientele. The boutique spot prizes sustainability and eco-friendly choices above all else. In fact, many of their materials are recycled, upcycled, or used. Make sure to try out their popular food hall Mathöll Suðurlands and peruse their shops. 

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).

Set in an old renovated town house by the harbor, this no-frills guesthouse offers comfortable accommodation just a stone's throw from the best restaurant in town.

The “Golden Sun” guesthouse is conveniently located right next to the harbor with fresh, modest rooms and a shared guest kitchen. There’s a coffee shop downstairs and a gallery selling local handicrafts, hand-knitted sweaters, hats, mittens, and souvenirs.

This beyond-charming guesthouse has five rooms, two communal sitting areas, a library, and a big garden with views of the nearby fjord. This is the place to go if you want to feel like family far away from home.

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.  

Endowed with great views of the town and surrounding mountains, plus a lovely garden, this guesthouse has four modern and stylish rooms with shared facilities and a cozy garden cottage.

Open year-round and accessible via a paved road, Hrauneyjar offers hotel rooms and one of the only restaurants in the region. There are two hotel options: Hrauneyjar is more basic while nearby Hotel Highland is a little more upscale. Prices are significantly lower in the shoulder season between October and May. The restaurant caters to both hotel guests and visitors and offers local produce like lamb fillet and pan-fried arctic char. An attached grill offers a variety of cheaper burgers and grilled sandwiches with later opening hours. 

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.

Hilton's first hotel in Iceland is geared primarily toward business travelers, though families are given priority for larger standard rooms. The hotel offers a choice between guest rooms, suites, and Executive rooms; Hilton Guest Rooms Plus offer spectacular sea and mountain views. All rooms are bright and spacious, with modern furnishings and wooden floors, and guests have access to the gym, which is open 24/7. Guests on the Executive floor have complimentary access to the award-winning Hilton Reykjavík Spa as well as the Executive Lounge, which offers a panoramic view over the city. The VOX Brasserie and Bar is also popular.