30 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 family-owned guesthouse may not feature every luxury amenity under the sun, but the serenity and breathtaking views have few comparisons in all of Iceland. The unbelievable natural vistas include eagles swooping overhead and frequent appearances by the northern lights. The minimalist design includes some quirky choices, with each room named after a specific cow from the on-site farm and decorated in color palates modeled after brands of tractors.

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.

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. 

It's the only accommodation on the entire island, but luckily Hotel Flatey is a beautiful property with a lot of charm. The hotel staff will offer to transport your luggage from the ferry to the house, but you can also handle it the local way: in a wheelbarrow. Your days here will be filled with birdsong from the arctic tern and scenes from the surrounding ocean. The hotel has teamed up with Seatours Iceland to offer a discounted room rate with the purchase of a round-trip ferry ticket.

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. 

On the outskirts of Borgarnes, you'll find this guesthouse, which manages to give you the convenience of being near town yet the quiet of being in the middle of nowhere at the same time. There are different-size rooms in the main house, but you can also rent a private house behind the farm if you're traveling with a larger group. Way back when, the rooms in this guesthouse served as stables, barns, and poultry houses. There is a private wing that includes a double room and two family rooms with shared bathrooms and a separate kitchen.

For a more authentic local experience, you can do a homestay at Blómasetrið, which also has a café and gift shop on-site; or, for a little more privacy, you can stay in one of the apartments. No matter where you're sleeping, though, you can count on incredible views of Mt. Hafnarfjall. At the family's home, you can choose between three rooms: Caring & Friendship (twin room), Love (double room), or Peace (the family room). There is one two-room apartment available to book as well as two studio apartments, Traustastofa and Freyjubrunnur.

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.

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 beyond-charming guesthouse has five rooms, two communal sitting areas, a library, and a big garden with views of the nearby fjord. This is the place to go if you want to feel like family far away from home.

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.

The family-run Hotel Breiðafjördur, which was the first schoolhouse in the village in 1897 and later a bakery, offers both private rooms and hostel-style accommodations. There is private parking included with your room or bed rate, and each guest gets a complimentary hot beverage—ideally taken on the balcony while reflecting on your day's highlights.

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.

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.

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.

You've got options at Hotel Laxarbakki: there are single, double, twin, and family rooms as well as a charming cottage. With a children's playground, hot tub, and sauna on-site, there's something for everyone.

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

Drive 10 minutes from the center of Borgarnes and you'll find yourself at the cozy Kria Cottages, three accommodations owned by a local family. The cabins are simple, and the location can't be beaten: you're close enough to town to take advantage of shops and bus stops, yet Iceland's renowned natural beauty is just a quick walk away.

This rustic Norwegian wood house has 11 bedrooms with a handful that share bathrooms. Built in 1894, it was renovated in 2004 and currently gives travelers a place to rest after spending the day exploring nearby sights like Hraunfossar, hiking, golfing at Hamarsvöllur, and horseback riding.

Located at the foot of Akrafjall Mountain, there are no bad views at this guesthouse. Moar offers up rooms or cabins for guests passing through the area. There's also a local swimming pool nearby as well as plenty of hiking trails.

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.

This cozy guesthouse is located right in the middle of Stykkishólmur, just minutes away from the harbor and local geothermal swimming pool. The downstairs café feels like stepping into the living room of an Icelandic grandmother, complete with hot chocolate and freshly baked rhubarb crumble. Both shared and private rooms are available and the basement area has a dining space and a kitchen facility that guests can use. Make sure to ask about the local sightseeing and fishing tours, as the friendly owners are always willing to lend a hand.

Located smack-dab in the center of town, Sýsló Guesthouse has great hilltop views of nearby Breiðafjörður Bay. With close access to the town's museums, restaurants, bars, and historic homes, you can't go wrong embarking on a stroll through the winding streets. Sýsló Guesthouse is owned by the same people who run the nearby Hótel Egilsen, which is where you have to go to check-in.

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.