10 Best Places to Stay in Iceland

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With so many options, you might be wondering where to stay in Iceland. If you have travelled before, you know that taking care of the little things before you arrive at your destination saves a lot of time and stress. There's nothing worse than getting off your flight in a foreign country and not knowing where to go from there. Here are the 10 best places to stay in Iceland for your next visit, listed in no particular order. 

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1. Icelandair Hotel Reykjavik Marina

Icelandair Hotel Reykjavik Marina lies near the harbour and is only a short walk away from a popular concert hall. Get set up in your room by day, and catch a fun band by night. This hotel in Iceland is architecturally beautiful, being entirely stone-built. It is also within walking distance of the Revolving Dome, a popular tourist attraction in Iceland. Enjoy free Wi-Fi in diverse rooms with lavish wooden floors. Oh yes, and there are flat screen TV’s for you to enjoy the morning news while brewing a cup of coffee. Most rooms include exotic balconies, from where the sea can be seen. In case you are traveling for business or are expecting guests, there is plenty of additional seating in each room. On the premises is a restaurant, a small gym and a mini-bar.

  • Address: Mýrargata 2, 101 Reykjavík, Iceland
  • Sightseeing: Revolving Dome, View Of Ocean
  • Wifi / facilities: Wifi included, gym and mini bar in rooms
  • Price range  

2. Icelandair Hotel Hamar

Located on a beautiful golf course, the Icelandair Hotel Hamar is a lovely hotel that offers excellent views. Staying here is a great option if you are looking to get a more historical understanding of Iceland, as the Settlement Center Museum is just a short distance away. Quiet rooms with gorgeous views of the mountains can be enjoyed while making use of the free Wifi. You can keep warm during the coldest winter months with the help of heated floors. After delighting in an exquisite meal at the restaurant, you can relax in the outside hot tubs.

  • Address: Golf course - 310 Borgarnes, 310 Borgarnes, Iceland
  • Sightseeing: Settlement Center Museum
  • Wifi / facilities: Wifi included, heated floors, hotel restaurant, hot tubs
  • Prince range:  

3. Hotel Geysir

The Hotel Geysir is another great place to stay, perfect for checking out some Icelandic attractions. Take a short trip to the Geysir Center and view the hot springs nearby, before enjoying a round of golf at the Geysir Golf Course. The hotel is also only a few kilometres away from the Faxi Waterfall, a national attraction. If you are more of a homebody, you can enjoy a view of the hot springs from the comfort of your room. There are even separate cottage rooms available for rent. These lovely rooms offer an old-fashioned, rustic vibe. You can choose from a variety of nearby restaurants that offer modern menus, with the option to dine on a patio. Don't forget to check out the gift shop and bring a few cultural gifts home with you. At night, you can relax by the thermal pool before getting a pleasant night's rest. 

  • Address: Iceland's Golden Circle, Iceland
  • Sightseeing: Geysir Center hot springs, Faxi waterfall, Geysir golf course
  • Wifi / facilities: Wifi included, patio, gift shop, thermal pool nearby
  • Price range: 

4. Reykjavík Loft HI Hostel

If you are a traveler, looking for accommodation that is commonly used by fellow travelers then Reykjavík Loft HI Hostel is a great place to stay in Iceland, especially for backpackers. There is both a cafe and bar within the hostel where you can grab a cup of freshly brewed coffee in the morning and a beer in the afternoon. There is also a spacious and beautiful balcony, where one can sip a beer while admiring the Northern Lights.

  • Address: Bankastræti 7a, 101 Reykjavík, Iceland
  • Sightseeing: 5 min away from the National Gallery of Iceland. Located in the center of Reykjavik, so it's a great place to see the Northern Lights.
  • Wifi / facilities: Fast Wifi connection, daily maid services 
  • Price range:  
Reykjavik Loft HI Hostel is one of the best places to stay in Iceland
Chill with a drink of your choice after a day of sightseeing at their bar
Iceland Reykjavik Loft HI Hostel is the best places to stay in Iceland
Relax in the warm rays of the sun on their balcony
Reykjavik Loft HI hostel is one of the best places to stay in Iceland
Eight bedded dorm space is spacious and cozy enough for a large group
Reykjavik Loft HI Hostel is one of the best places to stay in Iceland
The double deluxe room is perfect for the comfort of a hotel but at a reasonable price 

5. Hotel Ranga

For a more upscale living quarters experience, Hotel Ranga is a great accomodation in South Iceland. Enjoy an astonishing view of the Ytri-Ranga, a widely sought out salmon fishing river. You can also check out a piece of Icelandic history by paying a visit to the Saga Center Museum of History. All the rooms and suites in the Hotel Ranga include free Wi-Fi. In the special themed suites (one for each of the seven continents), you can enjoy a Jacuzzi, utilize a mini fridge, and make use of the 24-hour room service. On the premises, there is a game room and hot tubs. Connoisseurs of food are sure to enjoy a meal at the on-site restaurant.

  • Address: Suðurlandsvegur, 851 Hella, Iceland
  • Sightseeing: Ytri-Ranga River, Saga Center Museum of History
  • Wifi / facilities: Wifi access, upscale rooms, jacuzzi, mini fridge, room service
  • Price range:  
Hotel Ranga is one of the best places to stay in Iceland
The Africa suite represents the vibrancy of the African continent
Hotel Ranga is one of the best places to stay in Iceland
Due to its secluded location, Hotel Ranga is perfect for a quick getaway from the chaos
Hotel Ranga is one of the best places to stay in Iceland
Taste delicious meals from their acclaimed gourmet restaurant
Hotel Ranga is one of the best places to stay in Iceland
Spend some leisurely time in their games room

6. Icelandair Hotel Vic

The Icelandair Hotel Vic provides stunning mountain views from a modern, low-style hotel. It is just a short walk away from the Dyrholaey Peninsula Lighthouse, which is a great attraction for first-time visitors to Iceland. Or stay in and enjoy television from the flat screens and make use of the free Wifi. For an additional fee, you can purchase a higher-end suite that offers pull-out sofas for extra sleeping room. Many of the rooms offer views of both the cliffs and the Atlantic Ocean. When morning arrives, grab a plate at the breakfast buffet. Guests can also enjoy drinks at the bar, which features a fireplace to keep warm.

  • Address: Klettsvegi 1, 870 Vík, Iceland
  • Sightseeing: Dyrholaey Peninsula Lighthouse, View of Atlantic Ocean and Cliffs
  • Wifi / Facilities: Wifi included, TV’s, pull-out sofas
  • Price range:  

7. Reykjavik Residence Hotel

The Reykjavik Residence Hotel, as you can probably guess by the name, is located right in the middle of Reykjavik. It is only a short distance away from both a concert hall and the famous Hallgrimskirkja Cathedral. During your stay, you can also check out the National Gallery of Iceland, which is a must for all first-time visitors. Enjoy flat screens, Wifi, and even small kitchens in each room. Seeing as this hotel consists largely of renewed apartments, more expensive rooms offer dishwashers and laundry units. Make use of the complimentary parking and the continental breakfast as well.

  • Address: Hverfisgata 45, 101 Reykjavík, Iceland
  • Sightseeing: National Gallery of Iceland, Hallgrimskirkja Cathedral
  • Wifi / facilities: Wifi included, dishwashers and washing facilities, kitchens
  • Price range: 

8. Hotel Laxnes

Get back in touch with simplicity by booking a room at the Hotel Laxnes. This hotel lies in an area that is known for offering some of the best views of the Northern Lights. Enjoy a gorgeous view of Mount Esja from the comfort of your room, or take a short walk to the beloved Alafoss Waterfall. Rest in ease in your private, comfortable studio where mountain views can be seen from an exclusive balcony. Many of the suites offer kitchens, and all studios contain heated floors. By morning you can take advantage of the free breakfast buffet. At the pub, you can shoot a game of pool with your friends and family. Mountain biking is offered, and also more extensive tours can be booked.

  • Address: Haholt 7 270 Mosfelsbaer, Markholt, 270 Reykjavík, Iceland
  • Sightseeing: Alafoss Waterfall, Mout Esja, great location for mountain biking
  • Wifi / facilities: Wifi included, heated floors, kitchenettes
  • Price range:  

9. Hotel Odinsve

The Hotel Odinsve is a private and isolated hotel in Iceland, located in a quiet area and within close proximity to the National Gallery of Iceland. The location itself is known to be a rich, historical, classical opera music scene. Rooms are simplistically lavish with beautiful hardwood floors. Enjoy satellite TV and Wi-Fi from the comfort of your room. Included with each room is a mini-fridge as well as a coffee maker to get your day started. Enjoy a view of the city from an upper floor suite, with a couple bedrooms if needed. Of course, there is a complimentary breakfast offered. From the bistro restaurant, you can eat from the diverse menu.

  • Address: Týsgata, 101 Reykjavík, Iceland
  • Sightseeing: National Gallery Of Iceland, View of City
  • Wifi / facilities: Wifi included, satellite TV, mini fridges
  • Price range:  

10. Hotel Grimsborgir

You can check out the Sogio River as well as Kerid Lake from this lovely hotel. The color schemes in the rooms are bright and beautiful, and Wi-Fi and flat screen TV’s are offered for your comfort. Get some fresh air from the balcony, accessible from your room. There is also an outdoor seating area where you can enjoy the wonderful views. Many of the rooms include kitchens, and some of them also include hot tubs. A continental breakfast buffet is offered every morning, and the restaurant can also be enjoyed anytime.

  • Address: Ásborgir 30, Iceland
  • Sightseeing: Sogio River, Kerio Lake
  • Wifi / facilities: Wifi included, hot tubs, balcony, kitchenette 
  • Price range:  

Arranging your accommodation before travelling is key but not always the easiest. Doing so ahead of time will make things a whole lot easier for you. Once in Iceland, be sure you know the top things to do in Reykjavik for some of the most amazing experiences! Furthermore, if you're not happy with the above recommendations, do check out AllTheRooms, who have plenty of rooms and accommodations in Iceland. 

Published by Erik Jensen, updated on June 4, 2023

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