10 Best Hotels in The Highlands, Iceland

At 469 meters (1,539 feet), Fjalladýrð is the highest farmstead accommodation in Iceland, and a night here gets you a little closer to the stars and offers even better views of the northern lights in winter. Located at the expansive Möðrudalur farm, it's an ideal place to explore the Highlands, especially the Askja and Kverkfjöll routes. Accommodations are a cool mix of upscale private hotel-style rooms (that include breakfast), cheaper guesthouse rooms with shared bathrooms, sleeping-bag dormitories, family cottages, and a campsite. 

This remote mountain complex is now a year-round resort featuring an upscale hotel with lodges, a restaurant, and the Highland Baths that tap local geothermal waters. In the summer, when the Kjölur route is open to regular traffic, there’s also a campsite and simple private huts. It's located in an area with several shapely peaks, steaming valleys, and canyons riddled with hiking trails. The resort can arrange activities for guests, from summer mountain e-biking to winter stargazing. Winter access is arranged via the hotel and requires a Super-Jeep transfer due to the snowbound terrain. The complex is 10 km (6 miles) off Route 35, along Route F347.

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.

Open year-round and accessible via a paved road, Hrauneyjar offers hotel rooms and one of the only restaurants in the region. There are two hotel options: Hrauneyjar is more basic while nearby Hotel Highland is a little more upscale. Prices are significantly lower in the shoulder season between October and May. The restaurant caters to both hotel guests and visitors and offers local produce like lamb fillet and pan-fried arctic char. An attached grill offers a variety of cheaper burgers and grilled sandwiches with later opening hours. 

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.

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.

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.