I am often asked if I can recommend hotels or accommodations in Iceland. The answer is yes!
So here are my favorite hotels in Iceland…
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Hotels by Region in Iceland
In the following, I describe a few regions of Iceland and the hotels I have visited and/or would like to recommend.
Hotels in Reykjavik
When staying in the capital, I always prefer a somewhat central location so that I can explore the city on foot and enjoy a glass of wine in the evening. Both the Alda Hotel and the ION City Hotel are located on Laugavegur, the city’s main shopping street.
Room at the Alda Hotel
Room at the ION City Hotel in Reykjavík
A bit further west, near the city’s old harbor, is the Marina Hotel. I love the location because it is slightly away from the downtown area but within a few minutes’ walk to both the old harbor and Harpa, from where you can easily reach the city center. The hotel also has a fantastic in-house bar!
The lounge at the Marina Hotel
Reykjavik has dozens of great hotels and good Airbnbs, but the ones above are my favorites!
Hotels along Iceland’s South Coast
At the beginning of the South Coast, the Greenhouse Hotel is a great choice as it is located right by the hot river. You can perfectly combine your hike with a wonderful hotel stay.
Reception of the Greenhouse Hotel
A bit further east and slightly off the Ring Road, you will find the Landhotel. I find it noteworthy because you can observe the Northern Lights and starry skies without having to leave the hotel. It is also a great place to stay if you plan to visit Landmannalaugar.
The Landhotel under Northern Lights
Even further east, the Fosshotel Glacier Lagoon is a great place to stay before or after visiting Jökulsárlón. It is consistently well-rated and recommended as one of the best Foss hotels. Not only is the location fantastic, but the ambiance is also exceptional!
The Foss Hotel at the Glacier Lagoon
Hotels in Eastern Iceland
In Egilsstaðir, in addition to visiting the Vök Baths, I recommend staying at the Fosshotel Eastfjords.
The Foss Hotel in the Eastfjords
If you plan to spend more time in the east and are drawn to the highlands, I highly recommend the Wilderness Center!
Hotpot at the Wilderness Center in the eastern highlands
In the northeast, the Blabjorg Guesthouse is a gem of the East Fjords. This guesthouse is better equipped than some luxury hotels and is very cozy. A trip to the small town of Bakkagerði is worthwhile not only for puffin watching but also for beautiful coastal hikes.
Blabjorg Guesthouse from above Siglo Hotel at night
Between the East and Akureyri lies the Storu Laugar Guesthouse. This place is a bit off the Ring Road, making it a perfect spot to enjoy the hot tub at night while stargazing or watching the Northern Lights. Not a hotel, but a fantastic accommodation!
Room at Fosshotel Reykholt
The Old Bookstore was, as the name suggests, once a bookstore and is now a very cozy small hotel. The Ísafjörður Inn is part of the small hotel chain “Our Hotels” and is among a group of simple yet charmingly run hotels around the island.
The Old Bookstore Hotel
Alternatively, the Fosshotel Hellnar, located further north, is a great option.
Fosshotel Hellnar in Snæfellsnes
I particularly liked the Fosshotel in Reykholt because it is centrally located, making it easy to visit the Vidgelmir lava cave, the “Into the Glacier” experience, and the Krauma Spa.
Hilton Consulate is relatively new, having opened in 2018. A Hilton is set to open in Akureyri in 2025 and another in Reykjavik in 2026.
HeyIceland
HeyIceland
HeyIceland is not a hotel chain, but I find it worth mentioning because its accommodations are carefully curated and selected. The company originated from a farmer exchange program, leading to the rise of so-called farm stays. Today, HeyIceland essentially handles marketing for them—a fantastic initiative, in my opinion!
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