Where to stay in Iceland? There are so many Iceland accommodations available for the traveler, depending on budget and type of trip.
Budget travel in Iceland? Consider camping, hiring a camper van, or hosteling. Luxury travel in Iceland? Check out any of Iceland’s fancy resorts. Looking to stay with locals in Iceland? Research AirBNB options, Bed & Breakfasts, or any of Iceland’s unique farmstays.
We sought an Iceland accommodation somewhere in the middle. Getting married is expensive, so we were conscious of our wallets, but as it was our honeymoon, we wanted to find more than a tent or budget hotel. Lucky for us, everything was cheaper since we visited in low season.
PRO TIP: Book in advance, especially during peak or shoulder season. Some of the towns we stayed in only had a few hotel options and booking a week in advance really limited our choices. Another important note — accommodation prices are significantly cheaper in the low season! Low season begins September 1.
Determining where to stop and stay was the biggest struggle of planning our Iceland road trip. During our 9-day road trip around Ring Road, we stayed at 7 different accommodations in Iceland. They were all unique and different from each other. Here’s a quick snapshot of the places we stayed:
Stop 1: Reykjavik Treasure B&B, Reykjavik
Tucked between buildings and hidden atop a narrow stone road is Reykjavik Treasure B&B, a simple and inviting bed and breakfast situated near the city center. It’s easy access to walk to any of Reykjavik’s sights, restaurants, shops, or landmarks. The rooms are adorably snug, working with unique angles, but may pose a challenge for the tall individual. The breakfast is a standard Icelandic buffet with hard-boiled eggs, toast, cereal, homemade jam, skyr, etc. Hourly parking is available for the road trippers.
The owner is humble, friendly, and accommodating. The wifi is reliable. Reykjavik Treasure B&B is not luxury, but feels like you’re staying at a friend’s home (which is the true Icelandic experience, in my opinion).
We paid about $180 USD per night which included all taxes and fees.
Information & booking here.*
I didn’t get a photo of Hotel Edda in Vik. But here’s a gorgeous mountain-top view of Vik. Small town livin’ right?
Stop 2: Hotel Edda, Vik
If I’m being honest, this was my least favorite Iceland hotel. I would have preferred staying at Icelandair Hotel Vik, which has a higher price point (for higher quality), but we were a bit too late in booking reservations. Icelandair and Hotel Edda are actually connected and use the same reception, but there’s a noticeable difference in extravagance between the two. Hotel Edda is small, but clean — overall, a solid average hotel stay. If you’re looking for a good location with no frills, Hotel Edda Vik should be considered.
We paid about $140 USD per night which included all taxes and fees.
Information & booking here.*
That view though!
Stop 3: Hotel Edda, Hofn
Here’s an interesting fact about Hotel Edda — if you think it looks a bit school dorm-esque, that would be an accurate observation. Hotel Edda also functions as student housing during the harsh Icelandic winters. Even though I wasn’t a fan of Hotel Edda in Vik, the one in Hofn is an improvement. It’s still a very basic accommodation, but the fantastic view can’t be beat. You’ll notice no TV in the room. You won’t need one when you’re looking out the window. There’s no elevator – expect a workout if you’re towing heavy bags. The breakfast in the morning is an additional cost consisting of the standard Icelandic fare.
We paid about $157 USD per night which included all taxes and fees.
Information & booking here.*
Stop 4: Skipalaekur Guesthouses, Egilsstadir
What a darling find, this place was! These A-frame guesthouses are planted on the lake, distanced enough from any neighbor to feel like a private sanctuary. Rustic and cozy, Skipalaekur Guesthouse‘s interior is lined with wood to give it that natural, cabin vibe. Though modest in size, the spaciousness is surprising — the first floor holds a bathroom, a bedroom, a small kitchen and living room while the second floor has two more beds. The TV barely works and the wifi is down the road at the reception hall, but trust me, you’d rather spend your time on the veranda looking over the lake than withering away in front of your phone or the TV. This is the most unique and memorable place we stayed at.
Have you heard of the Iceland Worm Monster? This is the lake it calls home. No monsters were spotted during our stay (besides a spider).
We paid about $143 USD per night (for the BIG guesthouse!) which included taxes and fees.
Information & booking here*, seriously do it.
PRO TIP: In retrospect, I would have booked another stop between Egilsstadir and Akureyri instead of spending two nights in Akureyri. There is too much to see and do in Myvatn and it warrants a solid day (or more) to see and do everything. Plan a night to stay in Myvatn.
I never said I was good at making hotel beds…
Stop 5: Saeluhus, Akureyri
Clean, modern, and comfortable are three words to describe Saeluhus. This accommodation is set up like a studio apartment — one large room with a bed, dressers, full kitchen, and dining table. The bathroom is immaculate and roomy. There’s a lovely balcony view looking over the lake and it’s worth the extra money to splurge on the private hot tub. The most convenient feature of Saeluhus was the easy key deposit and pickup. We retrieved our key from a secure box close to midnight. The biggest downside to these apartments is the location. Not walking distance to downtown could prove problematic if you plan to have too much fun enjoying the second largest city’s nightlife.
This was our splurge accommodation.
We paid about $195 USD per night for an apartment with a view & private hot tub.
Information & booking here.*
Stop 6: Langaholt, Snaefelsnes Peninsula
If Langaholt were a person, it’d be your zany and charismatic great-aunt who looks a bit tired, over embellishes with costume jewelry, but tells the best stories and compels you to listen for a while. It’s a delightful family-run guesthouse that could probably use some updating, but the kitschy decor adds a lovable charm that builds upon the Langaholt personality. The staff were the friendliest Icelanders we’d encountered. It’s quite obvious that they care to go out of their way to enhance their guests’ experiences.
We stayed in one of their nicer rooms. It’s your simple, basic room with a bed, side tables and mini desk. The bathroom is tiny — the lack of segregation between the shower & toilet/sink makes a wet mess and that is probably my biggest complaint. We spent a lot of time in the eclectic community room when the rain canceled our plans. The locals were watching an Icelandic film while we drank local beer and assembled a puffin puzzle (#romance).
Farm-to-table is the cat’s meow these days. The Langaholt restaurant lives it. Everything is sourced on the peninsula and made in the kitchen. I ate blueberries that were picked outside in the garden that morning. The cheese was made from the Langaholt farm. The fish… oh the fish. Our dinner was one of the best meals we had in Iceland. Good news: breakfast is included in your stay.
THIS is what I imagined for accommodation in Iceland and wish I had more experiences like this one. It’s a place that I actually hope never changes. To me, Langaholt felt like the Hotel California of Iceland. Did I gush too much about Langaholt?
We paid about $167 USD which included all taxes and fees.
Information & booking here.*
PRO TIP: Request room 120. It’s the only room with a view of both the ocean and the mountains.
Stop 7: Rey Apartments, Reykjavik
Rey Apartments wins for best amenities. I mean, come on, our bathroom had a towel warmer. A towel warmer. A huge space, I could do pirouettes like a ballerina doing floor work (and you bet I actually did). As we settled in, it felt like we had just moved into our new, chic, modern apartment in the heart of downtown. One quick turn from Rey and you’re walking along Reykjavik’s main road. The bells of Hallgrímskirkja can be heard clanging (it’s lovely). The apartment has a bedroom with two beds, large bathroom, enormous living space with couches, an extra bed, a full kitchen, dining table, and foyer.
I really can’t think of any reason to complain about this place. The noise on the streets wasn’t too disruptive, but I could see how a light sleeper may suffer on the first floor with traffic and pedestrians adjacent to the bedroom window. Parking is not included, but there’s a nearby lot where you can pay.
The hospitality we received was unexpected and kind (you can read about it in my cursed rocks story).
We paid about $153 USD per night including all taxes and fees.
Booking & information here.
Here’s a nice Google map of all the places we stayed!
Don’t forget to pin it!
*affiliate disclosure: The links in this post will take you to booking.com, which is the site we used to secure our Iceland accommodations (you’ll learn that many of these places only book through booking.com anyway!). It’s an affiliate link, which means if you book any of the places I mention here, I get a small commission! Don’t worry though, it’s the same price whether you go through my blog or direct; I promise!
