171 Best Hotels in Iceland

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.

A small, family-run hotel located between the two greatest waterfalls of the South, this romantic, old-fashioned spot serves excellent meals made from local ingredients in their restaurant.

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 hotel manages a good balance of business amenities and cozy and comfortable rooms. Each room has a private bathroom and Wi-Fi. The on-site restaurant, Café Bifröst, serves up a range of coffee, entrées, and snacks. Guest rooms are bright, the mountains offer unbeatable scenery, and a ton of hiking and biking trails surround the property. Be warned: the hotel and restaurant are located on a college campus, so it can get busy and a bit loud.

This coastal hotel, originally built in 1900, oozes vintage charm with old maps, claw-foot bathtubs, and refurbished warm wood accents that'll make you feel like a time-traveler in an Iceland gone by. The rooms themselves are simple yet modern and the breakfast filling. Grab the suite, set in a renovated church, for a truly unique experience. 

The family-run Hotel Breiðafjördur, which was the first schoolhouse in the village in 1897 and later a bakery, offers both private rooms and hostel-style accommodations. There is private parking included with your room or bed rate, and each guest gets a complimentary hot beverage—ideally taken on the balcony while reflecting on your day's highlights.

This guesthouse, located one hour outside of Patreksfjörður, offers up rooms with private bathrooms, shared facilities, and campgrounds, making it an ideal spot to meet up with fellow travelers. The amenities may be basic, but its proximity to the picturesque puffin cliffs of Látrabjarg can't be beat.

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. 

For most of the year, this building provides dormitory housing for high-school kids, but during the summer months, it’s transformed into a modern hotel with beautiful accommodations. In the newer section, guest rooms have private bathrooms, microwaves, and TVs while the older—and cheaper—rooms are more austere. The hotel also has a great breakfast buffet, but it costs extra.

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. 

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.

In the 1930s, a group of Catholic nuns traveled to Stykkishólmur to start a community, building a chapel, monastery, and hospital; today, the chapel still serves as a place for travelers to rest as Hotel Fransiskus. It's connected to the hospital, so don't be alarmed when you drive up wondering if you've got the right place.

This classic American-style country hotel guarantees luxury on every account: it's secluded, peaceful, only a 15-minute drive from Selfoss, and 20 km (12 miles) from Þingvellir National Park.

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.

The striking views are the main attraction here, but the simply decorated guest rooms are a comfortable place to lay your head after a day of hiking the nearby mountain or fishing at the harbor. There are options for shared or private bathrooms, and the hotel staff can help set up activities for your stay.

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.

Located in the heart of the city, Hótel Ísafjörður is a great base for exploring the museums and restaurants in the area. Its central location means that noise can make its way into the hotel. The hotel chain includes four other hotels and guesthouses in the Ísafjörður area, so they may have other options available if Torg is booked.

A luxurious yet simple boutique hotel in central Stykkishólmur, Karólína shares owners with Hótel Egilsen and this is evident in the tasteful Nordic design. The bright wooden interiors combine vintage charm with modern touches and make for an excellent lodging choice in downtown Stykkishólmur.

Opened in 1944, the Hotel Kea has clean and comfortable guest rooms with leather furniture and businesslike decor. Múlaberg, the on-site restaurant, offers excellent continental and Scandinavian-inspired cuisine using Icelandic ingredients.

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.

At this luxurious hotel within walking distance of the famous black-sand beaches of Vík, rooms are sleek and modern, and Drangar, the in-hotel restaurant, serves gourmet Icelandic cuisine with breathtaking views of the mountains.

This lodging option retains the exterior of the 1970s school it used to be, but the inside has been completely remodeled, and no expense was spared in the design. Rooms are clean and bright with a natural theme, from the moss and mineral tones of the decor to the lush designer carpets inspired by the color palette of local natural wonder Borgarvirki. Conveniently located between North and South Iceland, it provides a great base to explore the region.

The geothermal swimming pool and adjacent natural hot spring are the biggest draws here at the remote Hotel Laugarhóll. The rooms at this former boarding school may be fairly basic, but there's a gymnasium (where they host occasional events), stick-to-your-ribs home cooking made with local ingredients, and stunning views from the pool. The hotel is 20 minutes away from Drangsnes and Hólmavík in each direction.

You've got options at Hotel Laxarbakki: there are single, double, twin, and family rooms as well as a charming cottage. With a children's playground, hot tub, and sauna on-site, there's something for everyone.

Across the street from the hilltop church of Hallgrímskirkja, this hotel is a short walk from most of Reykjavík's major attractions. Some guest rooms have balconies. Interiors are cozy, with hints of Scandinavian design here and there, and give off the vibe that you're staying with a good friend instead of at a nondescript hotel.

Located in the center of town, this hotel is close to restaurants, bars, cafés, and shops. Rooms are decorated with floral prints, modern furnishings, and TVs. The hotel also has free Wi–Fi.

The best accommodation option in the area, this hotel has clean, warm, and comfortable rooms, with a basic no-frills design; the lounge and dining area with a bar and sea-view terrace are a step up from the rooms, which have a dormitory feel to them, as the building was initially constructed to accommodate people working in the fishing industry. Breakfast is an additional cost.