The Best Places to Stay in Iceland: From Hostels to Luxury Hotels


Iceland, with its breathtaking landscapes, dramatic volcanoes, and natural wonders, is a dream destination for many travelers. Whether you're on a budget or looking to indulge in luxury, the country's diverse range of accommodations ensures that every traveler finds the perfect place to rest their head after a day of exploring. In this guide, we'll delve into the best places to stay in Iceland, from budget-friendly hostels to opulent luxury hotels, and help you make the most of your Icelandic adventure.

Affordable Hostels and Guesthouses

For travelers looking to explore Iceland on a budget, hostels and guesthouses offer an economical and comfortable option. These accommodations are scattered across the country, providing easy access to popular tourist spots and hidden gems alike.

Reykjavík Hostels: The capital city, Reykjavík, is home to several top-rated hostels. Kex Hostel is a popular choice, known for its vibrant atmosphere and stylish interiors. It’s centrally located, making it easy to explore Reykjavík’s attractions on foot. Another great option is Loft Hostel, which offers both dormitory-style and private rooms, along with stunning views of the city from its rooftop terrace.

Icelandic Guesthouses: Guesthouses provide a more intimate experience compared to hostels. Guesthouse Sunna in Reykjavík offers cozy rooms and a warm atmosphere, perfect for unwinding after a day of sightseeing. If you're exploring the countryside, Guesthouse Hamar in Borgarnes provides a charming stay with views of the surrounding landscape.

Mid-Range Hotels with Local Charm

If you're looking for a bit more comfort without breaking the bank, mid-range hotels offer a balance of affordability and quality. These hotels often feature unique designs and local charm, enhancing your overall experience.

Icelandair Hotels: With locations throughout the country, Icelandair Hotels offer modern amenities and comfort. Icelandair Hotel Reykjavik Natura is a fantastic choice for those exploring Reykjavík, while Icelandair Hotel Akureyri in the North offers easy access to the city and surrounding attractions.

Fosshotel Series: The Fosshotel chain is known for its blend of comfort and style. Fosshotel Reykjavik offers contemporary rooms and a central location, making it easy to explore the city. In the South, Fosshotel Glacier Lagoon provides stunning views of Vatnajökull Glacier and is ideally located for exploring the nearby natural wonders.

Luxury Retreats for an Indulgent Stay

For those seeking a touch of luxury, Iceland boasts several high-end hotels and resorts that provide an indulgent experience amidst the country’s stunning landscapes.

The Retreat at Blue Lagoon: One of Iceland's most luxurious options, The Retreat at Blue Lagoon offers an unparalleled experience. Located at the famous Blue Lagoon, this hotel provides access to exclusive geothermal baths, a world-class spa, and exquisite dining options. The sleek and modern design of the hotel complements the natural beauty of the surrounding lava fields.

Hotel Borg by Keahotels: Situated in the heart of Reykjavík, Hotel Borg combines classic elegance with modern amenities. The Art Deco style and luxurious rooms make it a top choice for those seeking comfort and sophistication. Guests can also enjoy the on-site spa and fine dining restaurant.

Ion Adventure Hotel: Located in the Golden Circle area, Ion Adventure Hotel is perfect for travelers looking to explore Iceland’s iconic landmarks. The hotel’s striking design and emphasis on sustainability make it a standout choice. Its proximity to Thingvellir National Park and the Golden Circle route offers easy access to some of Iceland’s most famous attractions.

Touring Iceland in 7 Days: Accommodation Tips

For those planning to tour Iceland in 7 days, choosing the right accommodations is crucial to maximize your experience. A well-planned itinerary that combines different types of accommodations can offer a comprehensive taste of what Iceland has to offer.

Day 1-2: Reykjavík - Start your journey in Reykjavík, where you can stay in a centrally located hostel or mid-range hotel. This will give you a chance to explore the city’s cultural sites, museums, and nightlife.

Day 3-4: Golden Circle - After Reykjavík, head out to the Golden Circle route. Consider staying at a mid-range hotel or luxury retreat like Ion Adventure Hotel. This will position you conveniently for exploring Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall.

Day 5: South Coast - Spend the day exploring Iceland’s stunning South Coast. Accommodations like Fosshotel Glacier Lagoon offer a perfect base for visiting Jökulsárlón glacier lagoon and Diamond Beach.

Day 6-7: Snæfellsnes Peninsula - Wrap up your tour by heading to the Snæfellsnes Peninsula. Here, you can stay in a cozy guesthouse or a boutique hotel. This area is known for its dramatic landscapes, including lava fields, volcanic craters, and charming fishing villages.

Unique Stays for an Unforgettable Experience

In addition to conventional accommodations, Iceland offers some unique lodging options for an unforgettable experience.

Icelandic Farm Stays: For a truly unique experience, consider staying at a working Icelandic farm. These stays provide an opportunity to immerse yourself in local culture and enjoy authentic farm life. Many farm stays also offer breathtaking views of the Northern Lights during the winter months.

Glass Igloos: For a magical experience, try staying in a glass igloo. These transparent domes offer incredible views of the night sky, making them perfect for viewing the Northern Lights or stargazing.

Treehouses and Cabins: If you’re looking to get closer to nature, consider staying in a treehouse or cabin. Many of these options are located in scenic areas, providing a peaceful retreat and easy access to hiking trails and natural wonders.

Conclusion

From budget-friendly hostels to luxurious retreats, Iceland offers a diverse range of accommodations to suit every traveler's needs. Whether you're exploring the bustling capital of Reykjavík, venturing through the Golden Circle, or soaking in the natural beauty of the countryside, there's a perfect place for you to stay. By carefully selecting your accommodations, you can enhance your Icelandic adventure and ensure a memorable experience as you explore this stunning island nation. 

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