Iceland hotels where to stay.
2 cities, ranked and mapped — from the capital to the coast.

About Iceland
Hotels in Iceland promise a front-row seat to a country shaped by volcanoes, glaciers and geothermal energy. Iceland is typically grouped into seven travel regions—South Iceland, East Iceland, North Iceland, the Westfjords, West Iceland, the Reykjanes Peninsula and the Reykjavík capital area—each delivering a distinct blend of dramatic landscapes and local culture. Reykjavík, as Iceland’s capital and largest city, is a natural first base for food, museums and easy access to the south-west highlights. For a northern itinerary, Akureyri is a strong alternative, acting as a hub for North Iceland adventures.
When choosing where to stay, focus on the regions that match your route. Most first-time visitors base themselves in Reykjavík (for the Golden Circle and the South Coast), while travellers planning to explore the northern part of the island often prioritise Akureyri to reduce daily travel time. Reykjavík and Akureyri also balance convenience with variety of accommodation styles, from apartments and city hotels to guesthouses. For example, Reykjavík Residence Hotel and Eyvindarholt Guesthouse are both well placed for exploring their respective areas, while Ásar Guesthouse offers a comfortable base in Akureyri.
Timing matters in Iceland. Summer (roughly June to August) brings the midnight sun and longer daylight for waterfall walks and road trips, while winter (typically November to March) increases your chances of seeing the northern lights and experiencing snow-covered scenery. Shoulder seasons (April–May and September–October) can be a sweet spot for fewer crowds and milder conditions, though weather remains changeable year-round.
Getting around is easiest by car for flexibility, especially for reaching remote waterfalls, viewpoints and viewpoints along the Ring Road. If you prefer not to drive, scheduled buses connect many towns and airport transfers run between Keflavík and Reykjavík, with other options such as ferries and domestic flights opening up additional routes.
Cities in Iceland
+38 more
Best 5-star hotels in Iceland
Dalvik Vegamót cottages
Northern Iceland · guest 9.2 (146)A cosy Dalvik base with self-catering kitchens, plus sauna and hot tub.
Best 4-star hotels in Iceland
Alda Hotel Reykjavik
Reykjavík · guest 9.2 (2,306)Central Reykjavik calm on Laugavegur, with an outdoor hot tub for wind-downs.
Miðgarður by Center Hotels
Reykjavik · guest 9.2 (3,849)Modern Laugavegur base with tour pickups outside and spa hot tubs after.
Best 3-star hotels in Iceland
Loa´s Nest Guesthouse
RANGáRþING YTRA · guest 9.7 (2,283)Relaxed rural guesthouse near Rangárþing ytra, with garden terraces and strong value.
Loa's Nest
Rangarthing ytra · guest 9.7 (2,283)Quiet rural guesthouse near Hella, with soundproof rooms and waffle breakfast.
Kirkjufell Guesthouse And Apartments
Grundarfjordur · guest 8.8 (2,489)A calm waterfront base in Grundarfjörður, with Kirkjufell views and kitchens.
Fosshotel Nupar
Kirkjubaejarklaustur · guest 8.5 (2,178)Remote South Coast stopover with lava-field views, aurora sightings, and on-site dining.
Best 2-star hotels in Iceland
Kex Hostel Reykjavík
Reykjavik · guest 8.1 (2,454)Social hostel in central Reykjavik, housed in a former biscuit factory.
B47 Hostel (Ice Hotel)
Reykjavik · guest 8.1 (3,272)Central Reykjavik hostel in a 1952 house, steps from Hallgrímskirkja.
B.B. Guesthouse
Reykjanesbaer · guest 7.5 (2,293)Simple Reykjanesbær guesthouse near museums, with ultra-early continental breakfast included.
FAQ
What are the best cities to stay in Iceland?
Reykjavík is ideal for exploring the south-west, while Akureyri is a practical base for North Iceland.
When is the best time to visit Iceland?
For midnight sun and longer days, aim for June–August; for northern lights and winter scenery, plan for November–March.
How do I get around Iceland?
A hire car offers maximum flexibility, while buses (plus airport transfers) work well for connecting key towns; ferries and domestic flights can help for specific routes.
