15 Best Hotels in West Iceland and Snæfellsnes Peninsula, Iceland

A one-of-a-kind hotel at the edge of the world, Hótel Búðir comes with a rich history and is surrounded by lava fields and the Snæfellsjökull glacier on one side and untamed beaches on the other. You would be forgiven for thinking you stepped into an alternate reality as you lounge in the leather-bound chairs, nursing a coffee and watching the sun set on friendly seals. The excellent on-site restaurant focuses on seasonal and local ingredients—which is fortunate, considering that the nearest alternative is miles away.

This design-forward hotel's one goal is to make you feel as cozy as humanly possible. Set in an 1865 building with a distinctive red facade, each room boasts decor inspired by the surrounding ocean. It serves possibly the best breakfast in all of West Iceland, with a selection that caters to a range of diets, including gluten-free and vegan options. 

There are few hotel options here, but Hotel Húsafell has everything you need for a solid home base while exploring the region. Each room is decorated with local art by the town's world-renowned artist Páll Guðmundsson. Two on-site restaurants—one a full-service option and the other a café—offer myriad options for all diets. The best part of staying here may be the two geothermal baths: the private Canyon Baths and the area's municipal pool (with possibly the hottest steam bath in the country). The Canyon Baths are a luxurious opportunity to relax in a natural hot spring with a glass of wine and take in the stars or northern lights with a private guide.

The largest hotel in town, Hótel Vesturland offers an elevated level of service. It comes fully equipped with a relaxing basement spa area and gym to meet all basic fitness needs. Rooms are generally spacious and deluxe rooms offer corner views over the fog banks inching from the North Atlantic up the Borgarvogur inlet. There is full dinner service that includes three courses of Icelandic cuisine, as well as a designated lounge and bar area.

As the name implies, this hotel caters mostly to adventure tourists and outdoorsy types, and tours---both private and large groups---can be booked through them. They serve breakfast and dinner and offer rudimentary but good quality rooms as a pit stop to your next adventure. 

Fosshotel is a regional chain known for friendly and dependable service, and the Stykkishólmur location is no exception. You won't get the same cozy vibe as at some of the guesthouses in the area, but you will get your own private room and bathroom. The hotel restaurant offers great views to go with your meal.

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.

In the 1930s, a group of Catholic nuns traveled to Stykkishólmur to start a community, building a chapel, monastery, and hospital; today, the chapel still serves as a place for travelers to rest as Hotel Fransiskus. It's connected to the hospital, so don't be alarmed when you drive up wondering if you've got the right place.

A luxurious yet simple boutique hotel in central Stykkishólmur, Karólína shares owners with Hótel Egilsen and this is evident in the tasteful Nordic design. The bright wooden interiors combine vintage charm with modern touches and make for an excellent lodging choice in downtown Stykkishólmur.

This practical hotel has basic amenities but offers fantastic views of the fjord.

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.

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.