171 Best Hotels in Iceland

As the name suggests, this guesthouse was once a mail hub, shuttling correspondence to the locals of this remote town. Today, it serves as a pit stop for those traveling to see the nearby Kirkjufell or the area's many waterfalls and fields of lava rocks. The rooms are basic—don't expect luxury here—and there's a shared kitchen for guests to use.

Located in the pretty Herðubreiðarlindir oasis off the main Askja route (F88), this lovely little cabin operated by the Ferðafélag Akureyrar (Touring Club of Akureyri) is around 60 km (37 miles) south of Hrossaborg. Book in advance for a night under the cozy pitched roof, which sleeps up to 25 people with sleeping bags. Basic facilities include toilets, a kitchen, showers, and a dining area.

Right next to the Hvítserkur sea stacks, this spot on Route 711 is an old converted farmhouse surrounded by lovely countryside views. It’s an excellent base for not only nature enthusiasts, but also literature lovers: a famous local story was researched here by Australian author Hannah Kent for her debut novel, Burial Rites. Shared and private rooms are available, with sleeping-bag options and made-up beds on offer. The enchanting misty mornings and soundtrack of chattering ravens come free.

Located downtown in one of Reykjavík's oldest and most famous buildings, this hotel's exterior is reminiscent of 1919 (the year the building was constructed) but the sleek interiors, accented with touches of Nordic design, are undeniably modern. Rooms are calm, with warm wood floors, comfortable bedding, and televisions. The in-house restaurant Brút is excellent, while the on-site coffeehouse, Kaffi Ó-le, is a popular spot to sit with a warm drink and a pastry.

Occupying a refurbished 1900s department store once owned by Consul Ditlev Thomsen, the Konsulat offers modern luxury with a nod to Reykjavík's past. The hotel features stylish rooms, a bathhouse with a 19th-century stone wall, a 24-hour fitness center, and the Konsulat Wine Room serving Icelandic-European cuisine.

With a number of self-catering apartments in the center of town, this place is for those who prefer to cook their own meals and would like some extra space. All apartments have access to a Jacuzzi, and there's a sauna available, too. The very friendly staff can assist you in planning the rest of your trip. There are also individual rooms you can book.

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.

It might not be winning any accolades for design, but this is a great base for exploring the Mývatn area, and it's got comfortable rooms; it’s located right next to the extraordinary Skútustaðagígar pseudocraters, one of the region’s main attractions. All rooms have private bathrooms, some with bathtubs and heated flooring.

A large mountain cabin, Sigurðarskáli provides basic sleeping-bag accommodations for up to 75 people, as well as toilets, showers, cooking facilities, and a campsite.

Set directly into Reykjanes's famed moss-covered lava fields, the Silica Hotel offers a tranquil retreat just minutes away from the Blue Lagoon. Expect high-end, Scandinavian-style furnishings paired with spectacular views of the countryside.

This cozy guesthouse is located right in the middle of Stykkishólmur, just minutes away from the harbor and local geothermal swimming pool. The downstairs café feels like stepping into the living room of an Icelandic grandmother, complete with hot chocolate and freshly baked rhubarb crumble. Both shared and private rooms are available and the basement area has a dining space and a kitchen facility that guests can use. Make sure to ask about the local sightseeing and fishing tours, as the friendly owners are always willing to lend a hand.

Operated by the national park rangers who live on-site in summer, this mountain hut on the northwest side of Snæfell sleeps up to 45 people in a large dorm-style room, with just mattresses on the floor (no beds). There is a kitchen and gas-heated showers.

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.

Located smack-dab in the center of town, Sýsló Guesthouse has great hilltop views of nearby Breiðafjörður Bay. With close access to the town's museums, restaurants, bars, and historic homes, you can't go wrong embarking on a stroll through the winding streets. Sýsló Guesthouse is owned by the same people who run the nearby Hótel Egilsen, which is where you have to go to check-in.

Not to be confused with the mountain hut of the same name in the north by Jökulsá í Fjöllum, this two-story crofter cottage was built in 1930 and is the oldest lodging operated by Ferðafélag Íslands (Iceland Touring Association); it's listed on their website under "Hvítárnes." The second floor is said to be occupied by the ghost of a woman who prefers to haunt young men. The dormitory rooms sleep 30 people (sleeping bags required) with bunk beds downstairs and mattresses in the loft.

If you're after the best views in the city, Tower Suites and its eight accommodations will deliver. These luxury stays are more like homes, allowing you to really sink into life as the luckiest local.

Its location right near the bay makes a room at this hotel worth three times the typical rate. Breakfast is included, too, making it an even better deal. Just don't expect too much in way of interior design; the main attractions here are the views and the natural setting.

The attractive country-style log cabin look here is super-cozy, but not the most soundproof; thankfully most of the clientele at this rural resort are nature-loving tourists, who, after a long day of hiking and exploring, tend to be good at sleeping.

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.

This modern hotel has eight single rooms and 29 double rooms as well as a delightful dining area with large windows providing stunning, panoramic views of the lake and surrounding landscape. The restaurant holds up to 250 guests and has an à la carte menu.

This popular hotel has pastel-color rooms, and staff members who provide helpful general information about surrounding attractions. Myllan (The Mill) restaurant ($$) serves entrées such as local Arctic char, and rhubarb pie for dessert. Another on-site though separate eatery, Gamli Bærinn, changes from a friendly daytime café to a congenial pub at night.