Where to Stay in Iceland (+Map)

The island nation of Iceland – situated in the cold northern seas of Europe near Greenland – may be small but it’s certainly packed with history, culture and a whole lot of nature.

This Nordic nation is often defined exactly by its stunning scenery, which includes dramatic mountains, huge glaciers (featuring the biggest in Europe), hot springs that boast healing properties, excitable geysers, and rugged, jagged fjord coastlines that feel like something right out of the pages of an ancient saga. It’s definitely a great country for anybody interested in skiing, hiking, or generally anyone who can appreciate nature: a paradise for all things rocky and snowy!

This country also offers up a slice of culture and history, of course; in fact, the history of Iceland begins exactly with Vikings, these being the first settlers of the island (along with their slaves from the British Isles and Norway) in the early 9th Century AD.

Iceland’s accommodation reflects its culture and cool credentials, with lots of boutique hotels and luxury, lodge-style getaways, plus some friendly hostels and guesthouses thrown in for good measure. So there is something to suit every travellers in this cold but warm-hearted land.

With its long and intriguing history, great music scene and natural splendor, Iceland retains a unique culture and landscape that will wow any visitor.

Reykjavik

Reykjavik is Iceland’s coastal capital and home to many of the island nation’s cultural sights. Museums – including the National and Saga – look particularly at Iceland’s Viking history, whilst the concrete mega-cathedral of Hallgrimskirka rises up as a beacon of architecture. Nearby, close to the village of Grindavik, is the world famous Blue Lagoon – a huge, natural geothermal hot spring, which is not only relaxing but (supposedly) good for skin conditions, too!

Staying in Iceland’s capital city is an obvious choice and the best place to stay if you want a good base from which to explore, or have only a few nights in the country. A bus terminal and good road connections mean getting around the island is easy; there’s also nearby Midborg Airport. Hotels are expensive, with a fair few hostel-hotel hybrids popping up recently – many of them very stylish.

Where to Stay in Reykjavik

CenterHotel Midgardur – A cool but unassuming hotel with unfussy, minimalist style rooms, this place is not too far from many sights that Reykjavik offers.
Fosshotel Reykjavík – This large, 16-floor hotel is located just 200 meters from Laugavegur shopping street. There is also a beer garden onsite.
22 Hill Hotel – Set in a central location but also near to the sea, this hotel is well positioned for exploring what Reykjavik has to offer.

Akureyri

The second-largest of Iceland’s cities – located at the base of Eyjafjörður Fjord – Akureyi is known for being more of a center for folk culture than the capital city itself. Several festivals spring up around the town during summer, not only music festivals but also a medieval festival at nearby Gastir, a centuries-old trading place.

But it’s not all about historic culture – Akureyi is home to the most northern 18 hole golf course in the world, which is great for keen golfers! There’s also the Akueryi Botanical Garden, the huge Akureyakirka with its equally huge 3200-pipe organ, and opportunities for skiing at the mountain of Hlíðarfjall.

Accommodation is surprisingly numerous but comes mostly in the form of mid-range and high-end hotels situated in the center of town, with a few options further out of the city.

Where to Stay in Akureyri

Hotel Kea by Keahotels – This hotel is situated on Akureyri’s pedestrian street, meaning there are plenty of places to eat and drink at just on the doorstep.
Hotel Akureyri – There’s a healthy continental breakfast on offer, which includes freshly homemade bread, skyr yogurt and muesli.

Selfoss

Located on the Icelandic Ring Road which runs through the town, Selfoss is easily accessible from anywhere by bus or car; in fact, just an hour’s drive away is the Gullfoss Waterfall, an impressive sight and one of the most popular attractions of iceland. Selfoss also became the home of chess grandmaster Bobby Fischer from 2005 until his death in 2008; his grave and a museum dedicated to him are also in town.

Staying in Selfoss means a quieter trip to Iceland. It’s less busy than neighboring Reykjavik and great for those looking for a calm stay. There are hotels concentrated in town – mostly budget to mid-range – but there are a number of guesthouses spread out in the surrounding area, particularly in the town of Hveragerði, just close by.

Where to Stay in Selfoss

Hotel Selfoss & Spa – The rooms at Hotel Selfoss & Spa may be a little simple, but they’re unfussy and clean and make for a comfortable stay.
Bella Apartments & Rooms – Featuring ultra-trendy accommodation – completely monochrome and very cutting edge – this is a good place to stay for groups of people or families looking for a bit of independence in Iceland.

Keflavik

Keflavik pulls no punches when it comes to showcasing Iceland’s Viking past, with the aptly named Viking World being one of the town’s main attractions; the piece de resistance in this museum is the replica of a 9th Century Viking ship, which visitors can climb aboard. Quirkier attractions include the Icelandic Museum of Rock ‘n’ Roll – charting music history – and Skessuhellir – a cave with the large statue of a troll inside.

This town, around 50km south of Reykjavik, is home to the country’s largest airport, Reykjavik-Keflavik International Airport, which makes Keflavik a good choice to stay if you want to be close to the place where you’ll be catching your flight. The town itself is quite small, with hotel options from mid- to high-end spread throughout, mostly in the municipality of Reykjanesbær.

Where to Stay in Keflavik

Hotel Berg – With a cozy, stylish lounge, the rooms at this family-run hotel may be simple but they’re still design-led and trendy feeling.
Hotel Jazz – With complimentary parking and breakfast, Hotel Jazz is a good option for anybody on a budget looking to travel to Iceland.

Egilsstaðir

Established only in 1947, the town of Egilsstaðir is small and the perfect place to come for a quiet Icelandic getaway. Most of all, this tiny town is famous for the many natural sights dotted in the surrounding region – the East. There’s the picturesque medieval manor estate of Skriðuklaustur; the opportunity to tour the dramatic highland farms of the area; hiking options, with many marked trails dotted all over; and Hengifoss, Iceland’s third-highest waterfall at 128 meters tall. This is one of the most popular hiking routes of East Iceland.

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There are several options in town for accommodation, mostly in the form of budget and mid-range hotels. It’s also quite convenient to get in and out of, being located near to the Lagarfljót bridge, where the main roads of the area converge and meet the Ring Road.

Where to Stay in Egilsstaðir

Icelandair Hotel Herad – This recently renovated hotel features a sense of cool design in its public spaces.
Hótel Valaskjálf – Nestled on a tree-lined street, with views that take in green hills in the distance, it’s a beautiful place to stay.

Hofn

The small fishing town of Hofn is a picturesque place to stay in Iceland. It is located on the tip of a promontory on the island nation’s southeastern coast, near the mouth of the Hornafjörður fjord. With its status as a small fishing town, Hofn has a lot of history to offer, including the Gamlabúð – or ‘Old Shop’ – which was formerly a trade center, then a warehouse, but now offers visitors the chance to learn about the town’s history. Views of Vatnajökull, the largest glacier in Europe, are especially scenic from Hofn; it can even be visited in a tour during the summer season.

The town is very well connected, being situated on the Ring Road, meaning this postcard-perfect town can be easily reached. There are a few options in town for accommodation – mostly mid-range in price – and all of them are guesthouses or hostels.

Where to Stay in Hofn

Milk Factory – The name of this guesthouse is deceptively simple: it is indeed set in an old dairy factory. In classic Icelandic style, it has been lovingly renovated into a very trendy accommodation option./li>

Hafnarfjordur

Shadowgate / Flickr

Situated on the southwest coast of Iceland, the port town of Hafnarfjörður is well known for its natural sights and activities. Heiðmörk is a particularly famous place, a vast area of bushy wilderness that has numerous trails running through it – a great opportunity to get out and into Iceland’s natural world. To the south is the third-largest lake in southern Iceland – Kleifarvatn. The area around here also offers up some great hiking opportunities. To the north, lies the geothermal beach of Nautholsvik, where you can sunbathe in midnight sun!

Since this town is located immediately south of Reykjavik, it serves as a good option to base yourself if the capital feels out of your price range or you don’t want to stay in the middle of all the action. It boasts several budget hotels and guesthouses.

Where to Stay in Hafnarfjordur

Hotel Viking – For a quirky stay, the fittingly Viking themed Hotel Viking is a good option.
Nordurey Hotel Reykjavik Road – There’s a lot of style going on at this 3-star offering; the rooms are a classy concoction of monochrome color scheme, clean straight lines and minimalist aesthetic for a trendy stay.

Husavik

This little town is one of Iceland’s most charming – it’s situated on the north coast of the island nation and is set around Skjálfandi bay. It’s a picturesque town full of rows of typically Scandinavian houses, meaning it’s a nice place to simply wander around. One of its most famous attractions is a red-and-green wooden church built in 1907 – Húsavíkurkirkja; however, it’s also very famous for humpback whale watching in the bay aboard fishing boats.

There’s even a whale museum, too; one of several museums – including one on Exploration and another delving into the history of Husavik itself. The hot springs in town are well known for their (alleged) healing properties. Staying in Husavik means basing yourself in one of only several, mainly mid-range hotels – though some are quite high-end in terms of price, too.

Where to Stay in Husavik

Fosshotel Húsavík – This contemporary hotel features rooms that are minimalist in style, or with touches of marine-themed decor which reflects the seaside town vibe of the surrounding area.
Húsavík Cape Hotel – A simple and unfussy hotel with clean and modern rooms, this 3-star offering is set in a renovated 1950s building.