48 Best Hotels in Iceland

This sleek, minimalist boutique hotel has put Blönduós on the map as a culinary destination, as its owners are also authors of the fabulous Icelandic cookbook Into the North. The hotel also hosts workshops on Iceland’s food history and intimate dinners by a supersize window that frames epic sunsets during the summer and regular displays of northern lights in the darker months. Each of the rooms has a distinctive character presenting a refreshing mix of both new and old.

The loudest noise you'll hear at this beautiful 1890 house is birdsong, and although luxury amenities are not the focus, there's no substitute for the coziness of staying at this family's home. You can reserve a double room or a larger room if traveling as a family.

For a little rural respite in a remote location—with sea views—head to this guesthouse, where you can combine the thrill of the great outdoors with a stylish, boutique design and all the creature comforts you need.

Perched on a hilltop above the town center, this collection of cabins is beautifully decorated, and has all the amenities you need for a self-catering holiday. The delightful couple running Hestasport Cottages go above and beyond to make guests staying in their little village of adorable timber cabins happy. There’s also a lovely large stone communal hot tub in the center. Note that the cottages are in a different location to the Hestasport reception, where you check in.

Perched on the hillside next to the gorgeous Kjarnaskógur forest (about 3 km [2 miles] from the town center), this fabulous hotel provides evergreen respite year-round to those who love nature, hiking, and beautiful views. Originally designed as a health spa and retreat in 1998, it has an emphasis on well-being, and guests can access hot tubs and infrared saunas free of charge. There’s also a conference center and a three-bedroom private cottage with a hot tub.

This spot is the perfect base for several excellent hiking trails, including the top-notch Waterfall Circle, plus there are two tempting stone pools filled with hot spring water. While the natural pools are the main attraction, the location offers an upgrade on its former hostel accommodation with twin, double, and family rooms, each dedicated to a local nature spot or attraction. There is a view-blessed lounge and dining area where breakfast, lunch, and dinner are served. You don't need to be a guest to access the pools: day visitors pay a fee of ISK 2,700 per person. Note that you don't require a 4WD vehicle to reach Laugarfell in summer (it's just 2 km [just over a mile) off the paved Route 910). 

Although there's hardly any lodging in Dragsnes, Malarhorn really hits a home run when it comes to variety, as guests have a choice between three houses: House 1, with 10 double rooms that have private patios and bathrooms; House 2, with four double rooms that share a living room and kitchen; and House 3, with a family-size room, a two-bedroom apartment, four double rooms, and a superior double room with private entrance. Breakfast will cost you extra.

Upstairs from a historic bookstore, you'll find this small, family-owned guesthouse that offers a unique insight into life in an Icelandic fishing village in the 1960s, with its carefully sourced period-appropriate furnishings and knickknacks. You can help yourself to breakfast in the fridge in the well-stocked kitchen. A variety of board games, books, and comics are available (although much of it is in Icelandic). 

This 19th-century historically restored old farmstead offers the unique opportunity to "sleep in a museum" with the option of staying in the Landowner’s Suite, rooms in the old farmhouse, or in "bed closets" aka unique dorm-style beds with an authentic, yesteryear feel. There's also an additional building featuring rooms with private facilities, still decorated in keeping with the farm's vintage vibes. Stays at the Wilderness Center include free admission to their lovely bathhouse, with a hot spring spa built from stone. Home-cooked meals are available for an extra price. 

This cozy bed-and-breakfast offers a tranquil retreat in the countryside. With just four guest rooms and two shared bathrooms, the atmosphere is intimate and welcoming. The homemade breakfast is a particular highlight.

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.

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.

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.

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. 

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).

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.

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 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. 

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 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.

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.