Where to Stay in Iceland: Best Places & Hotels

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Discover the best places and hotels to stay in Iceland for an unforgettable experience. From mesmerizing landscapes to cozy accommodations, this guide has everything you need to plan your dream Icelandic adventure.


Welcome to the land of fire and ice, Iceland, where stunning landscapes, natural wonders, and warm hospitality await you. Whether you’re seeking the enchanting Northern Lights, exploring majestic waterfalls, or simply immersing yourself in the unique Icelandic culture, choosing the right place to stay is crucial for a memorable trip. In this comprehensive guide, we will take you through the best places and hotels in Iceland to help you make the most of your visit to this captivating island.

Where to Stay in Iceland: Best Places & Hotels

Reykjavik – The Vibrant Capital City

Reykjavik, the capital city of Iceland, is a vibrant hub of culture and history. This cosmopolitan city offers a wide range of accommodations, from luxurious hotels to cozy guesthouses. Immerse yourself in the city’s thriving arts and music scene, explore the iconic Hallgrímskirkja Church, and indulge in delicious Icelandic cuisine at local restaurants. LSI Keyword: Reykjavik hotels, Reykjavik accommodations.

The Golden Circle – Nature’s Marvels

The Golden Circle is a must-visit destination in Iceland, featuring three incredible attractions: Thingvellir National Park, Geysir Geothermal Area, and Gullfoss Waterfall. Staying in this region allows you to be close to these natural wonders and experience the raw beauty of Iceland’s landscape. LSI Keyword: Golden Circle hotels, accommodations near Thingvellir.

Akureyri – North Iceland’s Gem

Nestled in North Iceland, Akureyri is a picturesque town known for its stunning fjords and charming streets. Enjoy a tranquil stay while exploring nearby attractions such as Lake Myvatn and Dettifoss, Europe’s most powerful waterfall. LSI Keyword: Akureyri accommodations, places to stay in North Iceland.

The Blue Lagoon – Unwind in Geothermal Bliss

The Blue Lagoon is a world-famous geothermal spa, a soothing oasis surrounded by volcanic landscapes. Stay at one of the nearby hotels for easy access to the lagoon and experience the ultimate relaxation amid Iceland’s surreal beauty. LSI Keyword: Blue Lagoon hotels, accommodations near geothermal spas.

Vik – Black Sand Beaches and Beyond

Vik is a charming coastal village known for its dramatic black sand beaches and stunning cliffs. It’s an ideal base for exploring the nearby Reynisfjara Beach and the otherworldly Dyrhólaey rock arch. LSI Keyword: Vik accommodations, best places to stay near Reynisfjara.

Westfjords – Secluded Serenity

For travelers seeking off-the-beaten-path adventures, the Westfjords offer rugged landscapes and a sense of tranquility. Stay in remote guesthouses and immerse yourself in Iceland’s untamed beauty. LSI Keyword: Westfjords accommodations, best hotels in Iceland’s remote regions.

Snaefellsnes Peninsula – A Miniature Iceland

Often referred to as “Iceland in Miniature,” Snaefellsnes Peninsula boasts diverse landscapes, including volcanoes, glaciers, and charming fishing villages. Experience the magic of this region by staying in comfortable lodges or cottages. LSI Keyword: Snaefellsnes Peninsula hotels, accommodations near Snæfellsjökull National Park.

Husavik – Whale Watching Paradise

Husavik is a paradise for whale-watching enthusiasts. Experience close encounters with gentle giants of the sea and stay in cozy lodges overlooking the scenic harbor. LSI Keyword: Husavik accommodations, best places to stay for whale watching.

The Westman Islands – Puffin Paradise

The Westman Islands are a haven for bird enthusiasts, especially those eager to see adorable puffins. Enjoy a unique stay on one of these islands, surrounded by stunning bird colonies and breathtaking coastal views. LSI Keyword: Westman Islands hotels, accommodations near puffin colonies.

East Fjords – Tranquility and Scenic Beauty

The East Fjords offer serene landscapes, charming fishing villages, and opportunities for outdoor adventures. Stay in local guesthouses to experience the region’s rich culture and breathtaking views. LSI Keyword: East Fjords accommodations, best places to stay for hiking in Iceland.

Landmannalaugar – Hikers’ Paradise

Landmannalaugar, a geothermal wonderland, attracts hikers from all over the world. Stay in rustic mountain huts or campsites to explore the vibrant rhyolite mountains and natural hot springs. LSI Keyword: Landmannalaugar accommodations, huts near hiking trails.

Askja Caldera – Remote Wilderness

For a truly remote and otherworldly experience, the Askja Caldera is the place to be. Stay in basic mountain huts and hike to the stunning Viti Crater and the serene Lake Askja. LSI Keyword: Askja Caldera accommodations, staying near Víti.

Thorsmork – Majestic Valleys

Thorsmork, surrounded by glacial valleys, is a hidden gem for nature lovers. Stay in cozy cabins and explore the breathtaking hiking trails in the area. LSI Keyword: Thorsmork accommodations, best places to stay near Fimmvörðuháls.

Husafell – Glacier Adventures

Husafell is the gateway to some of Iceland’s most impressive glaciers, including Langjökull and Eiríksjökull. Stay in comfortable lodges and embark on thrilling glacier tours. LSI Keyword: Husafell hotels, accommodations near Langjökull Glacier.

The Highlands – Untamed Wilderness

The Icelandic Highlands offer an untouched wilderness where you can connect with nature like never before. Stay in remote huts or campsites and explore the rugged beauty of this unique region. LSI Keyword: Highlands accommodations, staying in Iceland’s remote wilderness.

Akranes – Charming Seaside Town

Akranes is a charming seaside town with historical sites and beautiful coastal views. Enjoy a peaceful stay and visit nearby attractions like the Akranes Lighthouse and the Akranes Folk Museum. LSI Keyword: Akranes accommodations, places to stay near the lighthouse.

Borgarnes – History and Hot Springs

Borgarnes is rich in history and offers easy access to the Deildartunguhver hot spring, Europe’s most powerful hot spring. Stay in comfortable hotels and explore the nearby Borgarfjörður region. LSI Keyword: Borgarnes hotels, accommodations near Deildartunguhver.

Hveragerdi – The Hot Spring Capital

Hveragerdi is known as the hot spring capital of Iceland, and staying here means easy access to geothermal baths and hot springs. LSI Keyword: Hveragerdi accommodations, best places to stay for hot springs.

Stykkisholmur – Charming Fishing Village

Stykkisholmur is a picturesque fishing village offering stunning views of Breidafjordur Bay. Stay in quaint guesthouses and experience the authentic charm of Iceland’s coastal life. With colorful houses dotting the landscape and a bustling harbor, Stykkisholmur is a haven for photographers and nature enthusiasts alike. LSI Keyword: Stykkisholmur accommodations, best places to stay in a fishing village.

The Snæfellsnes National Park – Nature’s Masterpiece

Staying near the Snæfellsjökull National Park allows you to immerse yourself in one of Iceland’s most iconic landscapes. From majestic mountains to lava fields and stunning coastline, this national park has it all. LSI Keyword: Snæfellsnes National Park accommodations, best hotels near Snæfellsjökull volcano.

Hella – Southern Gem

Hella is a charming town located in southern Iceland, offering easy access to many popular attractions. Stay in cozy cottages or country hotels and explore the wonders of the South, including the mighty Seljalandsfoss waterfall. LSI Keyword: Hella accommodations, best places to stay in Southern Iceland.

Grundarfjörður – Kirkjufell’s Home

Grundarfjörður is a quaint town famous for its iconic mountain, Kirkjufell. This picturesque location is a dream for landscape photographers and hikers alike. Stay in comfortable lodges or guesthouses and witness the beauty of the Kirkjufell area. LSI Keyword: Grundarfjörður accommodations, best hotels near Kirkjufell.

Egilsstaðir – Gateway to the East

Egilsstaðir is the largest town in East Iceland, surrounded by stunning nature and tranquil lakes. Stay in charming guesthouses and explore the hidden gems of the eastern part of the country. LSI Keyword: Egilsstaðir accommodations, places to stay in East Iceland.

Laugarvatn – Geothermal Wonder

Laugarvatn is a geothermal wonderland, home to hot springs and the beautiful Lake Laugarvatn. Stay in cozy cabins or resorts and experience the soothing effects of the natural geothermal baths. LSI Keyword: Laugarvatn accommodations, best places to stay near Lake Laugarvatn.

Skogar – Waterfall Paradise

Skogar is a paradise for waterfall enthusiasts, with the iconic Skogafoss waterfall stealing the show. Stay in charming farmhouses or hotels and explore the nearby waterfalls and hiking trails. LSI Keyword: Skogar accommodations, places to stay near Skogafoss.

Seydisfjordur – Fjord Beauty

Seydisfjordur is a picturesque town nestled within a stunning fjord. With colorful houses, a vibrant arts scene, and breathtaking scenery, staying here is a treat for the senses. LSI Keyword: Seydisfjordur accommodations, best places to stay in Eastfjords.

Isafjordur – Westfjords’ Gem

Isafjordur is the largest town in the Westfjords region, offering an authentic taste of Icelandic life. Stay in cozy guesthouses and explore the stunning landscapes and rich history of the area. LSI Keyword: Isafjordur accommodations, best hotels in the Westfjords.

Selfoss – Adventure Central

Selfoss is the perfect base for adventure seekers, with numerous activities available in the surrounding area. Stay in comfortable lodges or hotels and embark on thrilling excursions, such as glacier hiking or horseback riding. LSI Keyword: Selfoss accommodations, places to stay near adventure activities.

Vestmannaeyjar – Island Adventure

Vestmannaeyjar, also known as the Westman Islands, is an archipelago off the south coast of Iceland. Stay in cozy guesthouses and explore the volcanic islands, rich in history and abundant in wildlife. LSI Keyword: Vestmannaeyjar accommodations, best places to stay in the Westman Islands.

Fludir – Greenhouse Village

Fludir is a unique village known for its geothermal greenhouses and hot springs. Stay in charming guesthouses and enjoy the local produce and warm baths. LSI Keyword: Fludir accommodations, best places to stay in a greenhouse village.

Reykjahlid – Lake Myvatn’s Gateway

Reykjahlid is a quaint village located near the stunning Lake Myvatn. Stay in comfortable hotels and explore the diverse geothermal wonders and birdlife of the area. LSI Keyword: Reykjahlid accommodations, places to stay near Lake Myvatn.

Hvolsvöllur – Nature’s Wonderland

Hvolsvöllur is a nature lover’s paradise, offering easy access to some of Iceland’s most famous attractions, including Thorsmork and the Eyjafjallajökull volcano. Stay in charming cottages or hotels and explore the wonders of the South Coast. LSI Keyword: Hvolsvöllur accommodations, best places to stay near Thorsmork.

Faq’s (Frequently Asked Questions)

Q: When is the best time to visit Iceland? A: The best time to visit Iceland is during the summer months, from June to August, when the weather is milder and the days are longer. However, if you want to witness the Northern Lights, visiting between September and March is ideal.

Q: What is the currency used in Iceland? A: The currency used in Iceland is the Icelandic Krona (ISK). While credit cards are widely accepted, it’s a good idea to carry some cash for smaller purchases.

Q: Is English widely spoken in Iceland? A: Yes, English is widely spoken and understood throughout Iceland. You’ll have no trouble communicating with locals and fellow travelers.

Q: Are the roads in Iceland safe for driving? A: The roads in Iceland are generally safe for driving, but it’s essential to check the weather conditions and road closures before embarking on a journey. Driving in winter requires extra caution, especially in more remote areas.

Q: Is tipping customary in Iceland? A: Tipping is not a common practice in Iceland. The service charge is usually included in the bill, and tipping is not expected.

Q: What are some traditional Icelandic dishes to try? A: Some traditional Icelandic dishes to try include “plokkfiskur” (fish stew), “lambakjöt” (lamb), “hangikjöt” (smoked lamb), and “skyr” (a dairy product similar to yogurt).


Iceland is a land of extraordinary beauty, and where you choose to stay can greatly enhance your experience. Whether you prefer the bustling city life in Reykjavik, the tranquility of the remote highlands, or the charm of fishing villages, Iceland has something to offer every traveler. Plan your trip wisely, and you’re bound to create unforgettable memories in this enchanting country.

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Upendra Yadav is a seasoned Data Analyst with a passion for exploring new places and immersing himself in different cultures. With a curious mind and an eye for detail, Upendra delves deep into the history, people, and cuisine of the places he visits, and brings his experiences to life through his writing.. His work has been featured in various travel blogs, where he shares his insights and recommendations for fellow explorers. Through his writing, Upendra aims to inspire others to venture beyond their comfort zones and discover the hidden gems of the world. When he's not analyzing data or traveling to new destinations, Upendra can be found indulging in his other hobbies, such as photography and trying out new recipes. He is currently working on his next travelogue, where he hopes to take his readers on a journey to even more exciting and lesser-known destinations.