171 Best Hotels in Iceland

Five buildings in a calm corner of an older part of town make up this hotel with cheery and efficient guest rooms, some with nice views over Reykjavík's colorful rooftops. Its many regular guests choose it for its intimacy and location in the charming Þingholt neighborhood. The hotel's restaurant, Snaps, serves fish and steak from a bistro-type menu, while Bodega bar across the square is a popular spot for a happy-hour drink or to languidly sip spritzes in the sun.

This rustic four-star hotel with uniquely decorated theme rooms and outdoor Jacuzzis is located in the countryside just east of Hella. One of the best rivers in the country for salmon fishing is right next door.

Situated downtown, this hotel has rooms decorated in calm neutral tones and common areas with lots of natural light thanks to the glass ceiling over the lobby. In the basement, there is a museum built around the remains of a Viking longhouse from the 9th century that was found during the construction of the hotel.

Located right next to Lake Tjörnin on one of the city's main streets, this hotel features intimate, handsomely appointed rooms and numerous communal spaces. The hotel's gym and spa are available for guests, as well as two roof terraces, an outdoor patio, and a glass atrium.

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.

Located in an old 1934 building that once housed the town’s first hotel, this guesthouse has a number of well-appointed rooms with wall art and vintage furnishings. Apart from the famous hospitality, this place is also known for its restaurant run by award-winning Moroccan chef Jaouad Hbib.

This no-frills hotel offers everything you need: comfortable beds, modern amenities, and a great location. Plus, it's only steps away from Selfoss's vibrant downtown, which is filled with shops, restaurants, and a number of quirky museums to explore. 

Occupying a lovely old Norwegian timber house from 1884 with exposed beams and low ceilings, Hotel Tindastóll (named after the town's mountain) generates a cozy, yesteryear atmosphere, warmed throughout with a palette of mustard, peach, cherry, and apple green. Breakfast is served in an elegant dining room, with a romantic open fire while feel-good music by old-time Icelandic musicians plays in the background. Rooms feature beautiful Icelandic blankets and towels folded into swans and elephants.

Conveniently located just off the main road in the town center, this family-run hotel is an excellent base for exploring the region. Rooms are clean and bright, with modern soft furnishings and fabrics adding a splash of color to the slightly more dated standard hotel furniture. The hotel has an excellent restaurant and is a three-minute walk from the local swimming pool.

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.

This hotel right in the heart of Vestmannaeyjar offers every luxury one needs for a great night's stay, namely an excellent restaurant, a romantic lounge where cocktails can be enjoyed, a spa to relax in after a long day of exploring, and scenic views from rooms.

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. 

Sleek and cozy, the rooms at Hótel VON feel like a boutique hotel experience while still maintaining a touch of hominess. On-site restaurant BON is open for breakfast, and then returns in the late afternoon with a menu of French fare and an exhaustive wine list.

A practical base for those planning a self-catering winter skiing trip, these modern and stylish cottages just off the mountain road to Hliðarfjall ski resort offer sensational views over the town and fjord. Each cabin sleeps up to eight people and has a Jacuzzi.

This homey hotel features a large library in the dining room and a quirky theme, which journeys between astronauts and the Eurovision Song Contest—two of Húsavík's claims to fame, though breakfast costs extra. The guest rooms are warm and comfortable; the ground-floor rooms with parquet flooring are more stylish than the carpeted rooms upstairs. While the design won’t be leaving any lasting impressions, their special Eurovision Song Contest exhibition will. 

A convenient stop on the Kjölur route, Hveravellir sees lots of traffic, not just for its impressive geothermal features and bathing pool, but also for its refreshments and accommodation options, which include camping and mountain cabins: one with sleeping-bag spaces for up to 30 people and a newer building with private rooms, made-up beds, and breakfast. For day visitors wishing for access to toilets, showers, and the geothermal pool, there’s a small fee of ISK 500.

This sleek, design-forward hotel is located right on Austurvöllur Square, overlooking Alþingishús, Iceland's parliament building. Each room features modern amenities, including TVs, espresso machines, and mini-refrigerators. Guests can dine at Hjá Jóni restaurant, which offers a fusion of local and international flavors or relax at Telebar, known for its cocktails and live jazz.

This popular hostel in an old biscuit factory ("kex" is Icelandic for biscuit) offers a range of accommodation options, from private and family rooms to shared dorms with bunk beds. The popular venue spaces have recently been nixed to make way for more beds, dampening the social aspect of the hostel.

This practical hotel has basic amenities but offers fantastic views of the fjord.

The best part about Korpudalur may be how far removed you are from civilization and how close you are to Iceland's biggest attraction: nature. There are both shared and private rooms available at Korpudalur, some with shared bathrooms. It's one of the only places to book a room in the area.

Drive 10 minutes from the center of Borgarnes and you'll find yourself at the cozy Kria Cottages, three accommodations owned by a local family. The cabins are simple, and the location can't be beaten: you're close enough to town to take advantage of shops and bus stops, yet Iceland's renowned natural beauty is just a quick walk away.

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. 

This boutique hotel is located in the historic Kirkjuhvoll building, which was built in 1900; its warmly decorated rooms echo the historic ambience of the location, without skimping on comfort or modern amenities—including kitchen facilities in most rooms. A concierge is on-site to assist with tours and travel arrangements, and breakfast is served daily.

This rustic Norwegian wood house has 11 bedrooms with a handful that share bathrooms. Built in 1894, it was renovated in 2004 and currently gives travelers a place to rest after spending the day exploring nearby sights like Hraunfossar, hiking, golfing at Hamarsvöllur, and horseback riding.

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.

A hostel with private rooms and dorms available, Loft is located right off Reykjavík's main shopping streets. The top-floor bar and lounge space hosts a busy rotation of events and activities, while the rooftop patio provides a sun-drenched perch from which you can people-watch from on high. This accommodation is not ideal for families, but it's great for solo travelers.

The rooms at Miðgarður are minimalist and basic, but the service is truly excellent. There's also a spa and a restaurant on-site, but the best part is an outdoor hot tub in the garden, which is free for guests to use. The once traffic-heavy intersection on which the hotel sits is in the midst of being revitalized into a bright and open pedestrian space that is sure to add to the hotel's tranquillity.

Located at the foot of Akrafjall Mountain, there are no bad views at this guesthouse. Moar offers up rooms or cabins for guests passing through the area. There's also a local swimming pool nearby as well as plenty of hiking trails.

Ferðafélag Íslands (also known as the Iceland Touring Association) maintains this campsite and two mountain huts in the Nýidalur Valley. There are dorm-style sleeping-bag accommodations for up to 79 people and shared kitchen facilities. Book well in advance: Nýidalur is the most popular travel stop on the Sprengisandur route.