4 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.

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.