9 Best Hotels in Iceland

Located within the old village school, Sólbrekka Guesthouse offers basic accommodations (mainly bunk beds) for a limited period during the summer. Apart from the few rudimentary rooms, amenities include Wi-Fi and cooking and laundry facilities. If you're looking for something roomier, two cozy wooden cottages (each sleeping four people) are found further up the hill. The cottages are perfect for seclusion and spectacular views, especially from their private hot tubs. Want even more seclusion? Winter packages (with boat trip and cottage hire) are also possible. 

An excellent place to stay by the Svartá river, this mountain hut operated by Íslandshestar has beds for 30 people and stable facilities for those traveling by horse. There is also a cozy café called Kaffi Kjölur selling food, beer, and wine. If you're staying the night, you'll need to bring a sleeping bag or you can rent one here.

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 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.

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.

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.

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.

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.

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.