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[2026 Guide] 7 Best Places to Stay In Iceland

By 14 January 2024 December 15th, 2025 No Comments

Iceland has emerged as a sought-after travel destination, captivating adventurers with its rugged charm and awe-inspiring beauty.

As you embark on your Icelandic journey, finding the perfect place to stay in Iceland is essential to enhance your overall experience.

While many of the best places to stay in Iceland can be found in the southwest, particularly around Reykjavík, there are hidden gems scattered along the famous Ring Road that shouldn’t be missed.

Whether you seek tranquillity amidst nature’s embrace or prefer the buzz of the city, our comprehensive guide will help you navigate through the range of options in Iceland to discover the absolute best accommodation in Iceland.

The hotels in Iceland have made remarkable strides towards sustainability, embracing eco-friendly practices and utilising green energy to power their operations.

It’s no secret that Iceland can be quite expensive, but rest assured that the high standards of Icelandic hotels ensure a memorable and comfortable stay.

Having explored Iceland in the summer of 2023, I understand the importance of finding the perfect accommodation that suits your needs and desires.

Now, as a seasoned adventurer who has traversed its magnificent terrain on multiple occasions, I’m thrilled to bring you my travel guide to where to stay in Iceland!

At A Glance

Types of Accommodation in Iceland

When it comes to finding the perfect accommodation in Iceland, there are several options available to suit different budgets and preferences.

From budget-friendly hostels to luxurious hotels, cosy guesthouses, and convenient apartments, there’s something for everyone to enjoy during your stay in Iceland.

Hostels

Let’s start with hostels in Iceland. These are a popular choice for budget-conscious travellers and offer a mix of dormitories and private rooms.

With prices starting at around EUR 35 per person per night, they provide an affordable option for those looking to explore Iceland without breaking the bank.

However, it’s worth noting that prices can rise quickly during the summer months when demand is high. Despite being budget-friendly, hostels in Iceland generally maintain good quality standards, ensuring a comfortable stay for their guests.

Hotels

Moving on to hotels, Iceland boasts a wide range of choices, including modern and trendy establishments.

While some hotels can be quite expensive, it’s still possible to find bargains if you search diligently. You may come across rooms that are smaller in size, but they often make up for it with their stylish design and amenities.

Most hotels also offer a continental breakfast, allowing you to start your day on a satisfying note.

So, whether you’re seeking a luxurious experience or simply a comfortable place to rest your head after a day of exploration, hotels in Iceland have got you covered.

Guest houses

If you’re looking for a more intimate and communal experience, guesthouses in Iceland are an excellent choice.

Run by friendly locals, these accommodations provide an opportunity to meet fellow travellers and immerse yourself in the local culture.

Many guesthouses offer meals prepared in-house and served at communal tables, creating a warm and welcoming atmosphere.

The price for a room for 2 people typically starts at around EUR 150, with dinner charged separately.

This allows guests to enjoy delicious homemade meals while connecting with other travellers and gaining insights from the hospitable hosts.

Apartments

For those who prefer a self-catering option or are travelling with a group, apartments in Iceland can be a great choice. These provide the convenience of a home away from home and often come equipped with a kitchen and other amenities.

Apartment prices vary depending on the location and size, but they can offer excellent value for money, especially for longer stays.

They provide the freedom to cook your own meals and enjoy a more independent experience during your time in Iceland.

In terms of budget-friendliness, hostels are generally the most economical option.

However, it’s important to consider the overall value and amenities offered by each type of accommodation.

For those seeking affordability and social interactions, hostels and guesthouses are excellent choices. If you prefer a higher level of comfort and privacy, hotels and apartments may be more suitable.

Insider tip

Regardless of the type of accommodation you choose, I highly recommend booking in advance, especially during the peak travel seasons.

Where To Stay In Iceland

1. Reykjavik – The Capital Charm

reykjavik iceland

Unquestionably, Reykjavik is the best place to stay in Iceland. Located downtown, near the Laugavegur shopping street, this vibrant city offers a plethora of attractions to explore.

Whether you’re planning a quick day trip or embarking on an extended adventure, Reykjavik is the perfect destination to satisfy your wanderlust.

From stunning natural landscapes to captivating cultural experiences, this vibrant city offers something for everyone.

Why Stay in Reykjavik, Iceland?

Convenient Location

Reykjavik serves as an excellent base for exploring Iceland’s wonders, with easy access to popular attractions like the Golden Circle, Blue Lagoon, and South Coast.

Cultural Hub

Immerse yourself in the city’s vibrant arts and music scene, explore museums, art galleries, and witness the unique Icelandic culture that thrives in Reykjavik.

Culinary Delights

Reykjavik is home to a diverse range of restaurants, cafes, and bars serving up delectable Icelandic cuisine, from fresh seafood to traditional delicacies like hákarl (fermented shark).

Nightlife Extravaganza

Experience Reykjavik’s famed nightlife, where the city comes alive with buzzing bars, clubs, and live music venues. Dance the night away with locals and fellow travellers.

Where to Stay in Reykjavik, Iceland?

Hotels

Experience luxury and comfort at Hotel Borg, located in the heart of Reykjavik. Enjoy stylish rooms, impeccable service, and stunning views of the cityscape.

Another excellent option is the Icelandair Hotel Reykjavik Marina, a trendy hotel with a nautical-inspired design and a prime waterfront location.

Hostels

For budget-conscious travellers, Kex Hostel offers a hip and lively atmosphere, complete with a cosy café, bar, and regular live music events.

Loft Hostel provides a more relaxed ambience, with comfortable rooms, a rooftop terrace, and breathtaking views of the city.

Guest Houses

Stay at the charming Guesthouse Aurora, where you’ll feel right at home in cosy rooms and enjoy a hearty breakfast to start your day.

The Old Charm Reykjavik Apartments provide a mix of traditional and contemporary accommodation options, perfect for families or groups.

Apartments

Enjoy the convenience of self-catering accommodations at Reykjavik Residence Hotel.

With its stylish apartments equipped with kitchenettes, you can make yourself at home while exploring the city.

Best Activities and Places to Visit in Reykjavik, Iceland

Immerse yourself in the captivating beauty of Reykjavik with a visit to the iconic Hallgrimskirkja church.

This architectural masterpiece not only impresses with its stunning design but also offers panoramic views of the city from its tower.

For the ultimate relaxation experience, take a short drive from the city and find yourself at the world-famous Blue Lagoon.

This natural geothermal spa is a haven of tranquillity amidst a stunning natural landscape.

Delve into the rich history and culture of Iceland at the National Museum. Step back in time as you explore the impressive collection of artefacts and engaging exhibitions that vividly tell the story of the nation’s heritage.

From ancient relics to interactive displays, this museum offers a fascinating insight into Iceland’s past.

From traditional Icelandic stews to tempting street food delicacies, there’s something to satisfy every craving.

Prepare for a feast that will delight your taste buds and introduce you to the diverse flavours of Icelandic cuisine.

Insider Tips

Make the most of your time in Reykjavik with the Reykjavik City Card.

The Reykjavik City Card offers free entry to many attractions, including museums and galleries, as well as discounts on tours and unlimited travel on public transportation.

It’s a cost-effective way to explore the city and make the most of your travel budget.

When packing for your trip to Iceland, remember to pack warm clothing, even in the summer months.

The weather in Iceland can be unpredictable, so it’s essential to be prepared for varying conditions. Layers, waterproof outerwear, and sturdy shoes are a must to ensure your comfort while exploring this beautiful country.

While the city centre of Reykjavik offers plenty to see and do, don’t miss the opportunity to explore beyond its boundaries.

Venture into the charming neighbourhood of Vesturbær, where you’ll find local cafes, unique boutiques, and a quieter atmosphere.

For a truly magical experience, plan your visit to Reykjavik during the winter months and witness the breathtaking Northern Lights.

2. Golden Circle – Nature’s Playground

Grand-Golden-Circle-Tour-Iceland

If you want to be close to Iceland’s most famous natural wonders, consider staying near the Golden Circle.

This region is home to breathtaking sights like the awe-inspiring Gullfoss waterfall, the geothermal wonders of Geysir, and the historical site of Thingvellir National Park.

Why Stay in the Golden Circle, Iceland?

Central Location

The Golden Circle is conveniently located near Reykjavik, making it easily accessible for day trips or longer stays.

Natural Beauty

Immerse yourself in Iceland’s stunning landscapes, including cascading waterfalls, geothermal areas, and picturesque national parks.

Rich History

Experience the historical significance of the Golden Circle, where you can witness the meeting point of two tectonic plates at Thingvellir National Park and explore ancient Viking heritage.

Where to Stay in Golden Circle, Iceland

Hotel

Enjoy a luxurious stay at the Ion Adventure Hotel, situated in Nesjavellir. This contemporary hotel offers stunning views of the surrounding landscapes, a spa, and a rooftop bar for relaxing after a day of exploration.

Hostel

For budget-conscious travellers, the Geysir Hestar hostel provides comfortable accommodations near the Geysir geothermal area.

Experience a cosy atmosphere, mingle with fellow adventurers, and enjoy horseback riding tours.

Guesthouse

Opt for the charming Guesthouse Bru in Laugarvatn, offering cosy rooms and a great location near the famous Fontana Geothermal Baths.

Relax in the hot springs and indulge in local delicacies at the nearby restaurants.

Apartment

Stay at the Golden Circle Apartments in Selfoss, offering fully equipped apartments with stunning views.

Enjoy the flexibility of self-catering while being close to the area’s attractions.

Best Activities and Places to Visit In Golden Circle, Iceland

Thingvellir National Park

Explore the historic significance of this UNESCO World Heritage Site, where you can walk between two continental plates and witness the Alþingi (Parliament) site.

Geysir Geothermal Area

Marvel at the erupting geysers, including the famous Strokkur, which shoots boiling water high into the air every few minutes.
Gullfoss Waterfall

Be captivated by the power and beauty of Iceland’s most famous waterfall, with its two-tiered cascades plunging into a dramatic canyon.

Secret Lagoon

Relax in the geothermal waters of the Secret Lagoon in Flúðir, surrounded by steam rising from hot springs and a charming natural setting.

Kerid Crater

Take a short detour to explore the stunning Kerid volcanic crater, filled with vibrant blue-green water and offering scenic views.

Insider Tips

To make the most of your visit to popular attractions in Iceland, plan to arrive early in the morning or later in the evening.

By avoiding the crowds, you can fully appreciate the beauty of these sites without feeling rushed or overwhelmed.

Whether it’s the famous geysers or the mesmerising waterfalls, having a more peaceful experience will allow you to connect with the natural wonders in a profound way.

Iceland’s weather is notorious for its unpredictability, so it’s crucial to come prepared.

Ensure your comfort throughout your journey by bringing layers of clothing. This way, you can easily adjust to the changing conditions and stay warm when needed.

Don’t forget to pack a waterproof outer layer as well, ensuring that you can continue your adventures even in light rain or drizzle.

While the Golden Circle is a well-known route, don’t overlook the opportunity to explore lesser-known spots along the way.

Take some time to visit Faxi Waterfall or the hidden gem, Bruarfoss Waterfall.

These spots offer a more intimate experience, away from the crowds, where you’ll have the chance to immerse yourself in the tranquillity of nature.

3. South Coast – Coastal Marvels

South coast, places to stay in iceland

For those seeking dramatic landscapes and stunning black sand beaches, the South Coast is the place to be.

From mesmerising waterfalls like Skógafoss and Seljalandsfoss to the otherworldly beauty of Reynisfjara beach, this region will leave you in awe.

Why Stay on the South Coast, Iceland?

Natural Wonders

Immerse yourself in the stunning beauty of Iceland’s iconic waterfalls, glaciers, black sand beaches, and rugged coastline that make the South Coast a photographer’s dream.

Accessibility

The South Coast is easily accessible from Reykjavik, making it a convenient base for exploring this captivating region.

Adventure Galore

From glacier hikes and ice cave explorations to breathtaking hiking trails and wildlife spotting, the South Coast offers a wide range of outdoor activities for adventure enthusiasts.

Where to Stay in South Coast, Iceland

Hotel

Experience luxury at Hotel Rangá in Hella, where you can enjoy cosy rooms with panoramic views, a gourmet restaurant, and even the possibility of viewing the Northern Lights from the hotel grounds.

Hostel

For budget-conscious travellers, the Midgard Base Camp in Hvolsvöllur offers comfortable dormitory-style accommodation, a communal kitchen, and a vibrant atmosphere perfect for meeting fellow adventurers.

Guesthouse

Stay at the charming Guesthouse Skálafell in Skálafell, which provides cosy rooms, stunning mountain views, and a peaceful rural setting.

Apartment

Discover your perfect home-away-from-home at Thoristun Apartments in Selfoss, Iceland. Immerse yourself in the cosy comfort of these fully equipped apartments, offering a spacious kitchen and comfortable living space.

Best Activities and Places to Visit In South Coast, Iceland

Seljalandsfoss Waterfall

Take a stroll behind the cascading waters of this iconic waterfall for a magical and unique experience.

Reynisfjara Black Sand Beach

Marvel at the striking black sand, dramatic basalt columns, and powerful Atlantic waves at one of Iceland’s most famous beaches.
Jökulsárlón Glacier Lagoon

Witness the mesmerising sight of floating icebergs in this breathtaking glacier lagoon, and consider taking a boat tour to get up close with the icebergs.

Skógafoss Waterfall

Stand in awe as you witness the sheer power of this majestic waterfall, and climb the stairs to enjoy a spectacular view from above.

Sólheimasandur Plane Wreck

Embark on a unique adventure to the wreckage of a US Navy DC-3 plane that crashed on the black sand beach in 1973.

Insider Tips

For an unforgettable travel experience along Iceland’s South Coast, consider visiting during off-peak seasons.

By avoiding the crowds, you can immerse yourself in the awe-inspiring natural wonders without feeling overwhelmed.

When packing for your adventure along the South Coast, be sure to dress in layers and come prepared for changing weather conditions.

The area can be windy and unpredictable, so it’s essential to have warm clothing, waterproof outerwear, and sturdy footwear.

To truly make the most of your time along the South Coast, take advantage of the local tour guides and experts available.

They have in-depth knowledge about the area’s history, geology, and wildlife, and can provide fascinating insights.

Their expertise will enrich your experience and deepen your understanding of the unique features that make the South Coast so special.

While popular attractions along the South Coast are undoubtedly worth a visit, don’t overlook the opportunity to explore lesser-known spots.

Venture off the beaten path and discover hidden waterfalls, secret hiking trails, and tranquil spots that offer a more serene experience.

These hidden gems will allow you to connect with nature on a deeper level and create moments of tranquillity and reflection.

4. Akureyri – Northern Gem

akureyri, places to stay in iceland

Located in Northern Iceland, Akureyri offers a different perspective of the country.

Surrounded by beautiful fjords and tranquil nature reserves, this charming town is an excellent base for exploring attractions such as Lake Mývatn and the majestic Goðafoss waterfall.

Why Stay in Akureyri, Iceland?

Charming Town

Experience the perfect blend of small-town charm and vibrant cultural scene in Akureyri.

The town offers a cosy atmosphere with a wide range of entertainment, art, and cultural events.

Natural Beauty

Situated in a picturesque location near Eyjafjörður fjord, Akureyri provides easy access to breathtaking landscapes, including majestic waterfalls, geothermal areas, and stunning mountains.

Northern Lights

Akureyri is a fantastic base for witnessing the mesmerising Northern Lights.

With fewer crowds compared to other destinations, you have a better chance of experiencing this awe-inspiring natural phenomenon.

Where to Stay in Akureyri, Iceland

Hotel

Enjoy luxury at the Hotel Kea by Keahotels, located in the heart of Akureyri. This elegant hotel offers comfortable rooms, excellent service, and a central location close to shops, restaurants, and attractions.

Hostel

For budget-conscious travellers, Akureyri Backpackers is a popular choice. This trendy hostel provides affordable dormitory-style accommodations, a communal kitchen, and a lively atmosphere perfect for meeting fellow travellers.

Guesthouse

Stay at the charming Guesthouse AkurInn, offering cosy rooms and a warm and friendly ambiance.

Located within walking distance of the town centre, it provides a convenient base for exploring Akureyri.

Apartment

Enjoy the comforts of home at the Lava Apartments, featuring well-equipped apartments with modern amenities.

Located in a quiet area, these apartments offer a peaceful retreat after a day of exploration.

Best Activities and Places to Visit In Akureyri, Iceland

Goðafoss

Marvel at the magnificent Goðafoss waterfall, known as the “Waterfall of the Gods.” Witness its powerful cascades and capture breathtaking photos.

Akureyri Botanical Garden

Explore the northernmost botanical garden in the world, boasting a wide variety of plant species and beautiful landscapes. Take a leisurely stroll and appreciate the tranquillity of this hidden oasis.

Whale Watching

Embark on a thrilling whale watching tour from Akureyri’s harbour. Get up close and personal with majestic humpback whales as they swim through the waters of Eyjafjörður.

Lake Mývatn

Discover the stunning landscapes surrounding Lake Mývatn, home to unique geological formations, hot springs, and an abundance of birdlife. Don’t miss the mystical Dimmuborgir lava formations.

Húsavík

Take a day trip to the nearby town of Húsavík, known as the whale watching capital of Iceland. Join a tour to witness these magnificent creatures in their natural habitat.

Insider Tips

Visit during the summer months to enjoy long daylight hours and take advantage of the Midnight Sun, which creates a magical atmosphere.

Explore the local cuisine and try traditional Icelandic dishes, such as fresh seafood, lamb, and Skyr (Icelandic yoghurt).

If you’re interested in skiing, visit Akureyri during the winter season when you can enjoy the slopes at the nearby Hlíðarfjall ski resort.

Don’t forget to pack warm clothing, even in the summer. The weather in Akureyri can be unpredictable, so be prepared for varying conditions.

5. Eastfjords – Serene Seascapes

Eastfjords, places to stay in iceland

For a more remote and off-the-beaten-path experience, head to the Eastfjords. This region boasts breathtaking coastal landscapes, charming fishing villages, and peaceful hiking trails.

Immerse yourself in the serenity of the sea and enjoy the slower pace of life in this hidden corner of Iceland.

Why Stay in the Eastfjords, Iceland?

Serene Seascapes

Immerse yourself in the tranquillity of the Eastfjords, where you’ll find breathtaking blue seascapes, dramatic coastlines, and black sand beaches. Experience a sense of peace and connection with nature in this remote corner of Iceland.

Charming Towns

Explore the array of charming towns scattered along the coastline of the Eastfjords. Each town has its own unique character and offers a glimpse into the local culture and way of life.

Outdoor Activities

The Eastfjords are a playground for outdoor enthusiasts, offering opportunities for hiking, birdwatching, fishing, and even reindeer spotting.

Discover the untouched beauty of this region through adventurous exploration.

Where to Stay in Eastfjords, Iceland

Hotel

Indulge in luxury at Fosshotel Eastfjords, located in Fáskrúðsfjörður.

This hotel offers comfortable rooms, stunning views of the surrounding fjord, and a renowned restaurant serving delicious local cuisine.

Hostel

Hafaldan HI Hostel, Seydisfjordur. This vibrant and energetic hostel will be your home away from home.

With its fully equipped kitchen and comfortable living space, it’s perfect for families and groups seeking an unforgettable getaway.

Guesthouse

Cozy Guesthouse in the East Fjords, situated in Faskrudsfjordur, this charming guesthouse features friendly staff, delicious breakfast, and comfortable beds that ensure a pleasant

Apartment

Studio Apartments in Seyðisfjörður, situated in Seyðisfjörður, these apartments provide a cosy stay with free WiFi and convenient access to nearby attractions.

Best Activities and Places to Visit In Eastfjords, Iceland

Seyðisfjörður

Explore the charming town of Seyðisfjörður, known for its colourful wooden houses, artistic atmosphere, and beautiful surroundings.

Visit the Skaftfell Center for Visual Art and immerse yourself in the local arts scene.

Borgarfjörður Eystri

Discover the secluded beauty of Borgarfjörður Eystri, a small fishing village surrounded by majestic mountains and home to a vibrant puffin colony.

Take a hike to Stórurð and marvel at the surreal rock formations.

Hengifoss Waterfall

Embark on a scenic hike to Hengifoss, one of Iceland’s tallest waterfalls. Admire the impressive red layers of volcanic rock surrounding the waterfall, creating a stunning contrast.

Vatnajökull National Park

Venture into Vatnajökull National Park, where you can explore Europe’s largest glacier, hike through breathtaking landscapes, and witness the power of glacial rivers and ice caves.

Stokksnes Peninsula

Capture postcard-worthy photographs at Stokksnes Peninsula, with its black sand dunes, jagged mountains, and the iconic Vestrahorn mountain.

Insider Tips

Prioritise flexible travel plans, as weather conditions in the Eastfjords can be unpredictable. Be prepared for changes and adjust your itinerary accordingly.

Take advantage of local knowledge and engage with the friendly residents, who can provide insight into the best-hidden spots and lesser-known attractions.

Pack appropriate clothing for varying weather conditions, including rain gear and warm layers. Don’t forget sturdy hiking boots for exploring the rugged landscapes.

Consider visiting during the summer months to experience the Midnight Sun, allowing for extended hours of exploration.

6. Selfoss and Hveragerði – Golden Circle Convenience

Selfoss and Hveragerði, places to stay in iceland

If you want to stay close to the Golden Circle to have more time at each location, consider Selfoss and Hveragerði.

These towns offer convenient access to the attractions of the Golden Circle, allowing you to explore at your own pace.

Why Stay in Selfoss and Hveragerði, Iceland?

Central Location

Both Selfoss and Hveragerði are conveniently located in South Iceland, making them ideal starting points for exploring nearby attractions such as the Golden Circle, Reykjanes Peninsula, and the South Coast.

Natural Beauty

Immerse yourself in the breathtaking landscapes of this region, which include majestic waterfalls, geothermal springs, volcanic landscapes, and picturesque riverside views.

Authentic Experiences

These towns offer an opportunity to connect with the local culture and way of life, providing a more authentic experience compared to larger tourist hubs. Embrace the charm and warmth of these Icelandic communities.

Where to Stay in Selfoss and Hveragerði, Iceland

Hotel

Enjoy a comfortable stay at Hotel Selfoss, located in the heart of Selfoss. This modern hotel offers well-appointed rooms, a restaurant serving delicious Icelandic cuisine, and easy access to attractions in the area.

Hostel

Au44 Hostel, situated in Selfoss, this modern and stylish hostel provides comfortable beds, a communal kitchen, and a social atmosphere.

Guesthouse

Experience traditional Icelandic hospitality at Gesthus Selfoss, a guesthouse in Selfoss. With its cosy rooms, friendly atmosphere, and homemade breakfast, it offers a comfortable and welcoming stay.

Apartment

Indulge in luxury at Matkráin Apartments, where you will be treated to exceptional service and elegant accommodations.

Immerse yourself in the beauty of Hveragerði while enjoying the comfort of these top-notch apartments.

Best Activities and Places to Visit In Selfoss and Hveragerði, Iceland

Golden Circle

Embark on the iconic Golden Circle route, which includes must-see attractions such as Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall.

Selfoss Waterfall

Visit the picturesque Selfoss waterfall in North Iceland, known for its beauty and tranquillity. Take a moment to appreciate the serene surroundings and capture stunning photographs.

Reykjadalur Hot Springs

Hike to Reykjadalur and soak in its natural hot springs. This geothermal wonder offers a unique experience of bathing in warm waters surrounded by stunning landscapes.

Hveragerði Greenhouses

Explore the town of Hveragerði and visit its famous greenhouses, where you can learn about Iceland’s innovative geothermal heating methods and even taste locally grown produce.

Seljalandsfoss and Skógafoss Waterfalls

Venture further along the South Coast to witness the breathtaking beauty of Seljalandsfoss and Skógafoss waterfalls. Prepare to be mesmerised by the sheer power and beauty of these natural wonders.

Insider Tips

Embrace the local cuisine and try traditional Icelandic dishes like lamb soup, fresh seafood, and rye bread.

Don’t miss out on tasting Icelandic pastries such as kleinur and kleina.

Pack comfortable walking shoes and layers, as the weather in Iceland can change quickly. Be prepared for both sunny and rainy conditions.

Rent a car or join a guided tour to explore the surrounding areas, as public transportation options might be limited.

Take advantage of the geothermal baths in the region for a relaxing and rejuvenating experience.

7. Westfjords – Untouched Beauty

westfjords, places to stay in iceland

For an adventure off the beaten path, venture to the Westfjords.

This remote region is characterised by stunning fjords, rugged mountains, and untouched wilderness. It’s the perfect place for those seeking tranquillity and unspoiled nature.

Why Stay in Westfjords, Iceland?

Untouched Landscapes

Immerse yourself in the raw and untouched beauty of the Westfjords. With its labyrinthine fjords, towering mountains, and breathtaking cliffs, this region offers a glimpse into Iceland’s dramatic landscapes.

Wildlife Spectacles

Witness fascinating wildlife spectacles, including the puffin colonies that thrive in their natural habitat.

The Westfjords provide the perfect opportunity to see these charming birds up close.

Escape the Crowds

Unlike the more popular tourist destinations in Iceland, the Westfjords offer a sense of tranquillity and isolation. Here, you can truly disconnect and find solace in nature’s embrace.

Where to Stay in Westfjords, Iceland

Hotel

Enjoy a comfortable stay at Hotel Ísafjörður, located in the charming town of Ísafjörður. This hotel offers cosy rooms, stunning fjord views, and a restaurant serving delicious local cuisine.

Hostel

For budget-conscious travellers, stay at Litlabyli Guesthouse & Hostel in Patreksfjörður.

This cosy hostel provides affordable accommodations, a communal kitchen, and a welcoming atmosphere.

Guesthouse

Experience warm Icelandic hospitality at Fisherman Guesthouse in Suðureyri.

This guesthouse offers comfortable rooms, a shared lounge area, and easy access to hiking trails and fjords.

Apartment

Explore the wonders of the Westfjords while enjoying the comfort and convenience of Dúfan Apartments.

Nestled amidst breathtaking landscapes, these cosy apartments offer a home-away-from-home experience.

With fully equipped kitchens and comfortable living spaces, they are perfect for families or groups seeking a memorable stay.

Best Activities and Places to Visit In Westfjords, Iceland

Dynjandi Waterfall

Marvel at the majestic Dynjandi waterfall, a true gem of the Westfjords. With its cascading tiers and powerful flow, it is a sight to behold.

Látrabjarg Cliffs

Visit the Látrabjarg cliffs, home to one of Europe’s largest bird cliffs. Witness thousands of puffins, guillemots, and other seabirds nesting on the steep cliffs.

Rauðasandur Beach

Take a leisurely stroll along the mesmerising Rauðasandur Beach, known for its red-hued sand and captivating coastal scenery.

Hornstrandir Nature Reserve

Embark on a multi-day hiking adventure in the remote and uninhabited Hornstrandir Nature Reserve. Experience the true wilderness of Iceland.

Ísafjörður

Explore the charming town of Ísafjörður, the largest settlement in the Westfjords. Discover its historic buildings, local museums, and enjoy fresh seafood delicacies.

Insider Tips

Westfjords is a remote and lesser-explored region of Iceland, making it perfect for adventurous souls seeking off-the-beaten-path experiences.

Be prepared for rugged landscapes, winding roads, and breathtaking vistas that will leave you in awe.

To make the most of your trip to Westfjords, plan your visit during the summer months when the weather is milder, and the days are longer.

The extended daylight hours give you more time to explore the stunning fjords, hike scenic trails, or simply soak in the tranquillity of nature.

Explore Dynjandi Waterfall: Don’t miss the opportunity to witness the magnificence of Dynjandi, one of Iceland’s most iconic waterfalls.

This cascading wonder is a sight to behold, with its multi-tiered structure and thundering flow. Be prepared for a short hike to reach the waterfall, but trust us, it’s worth every step!

Westfjords also offers several hidden gems in the form of natural hot springs.

Relax and rejuvenate your body and soul in these geothermal wonders, surrounded by stunning landscapes.

Just remember to respect the environment and follow any guidelines in place to preserve these precious natural resources.

Insider Tips For Booking Your Accommodation And More

Ah, the thrill of planning a trip and the excitement of finding the perfect accommodation!

Here’s a list of insider tips to help you book your dream stay in this mesmerising Nordic paradise. From budget-friendly options to luxurious retreats, we’ve got you covered.

From budget-friendly options to luxurious retreats, we’ve got you covered. So, let’s dive in and uncover the secrets to booking the best accommodation in Iceland!

Start with Booking.com

When it comes to finding a wide range of accommodation options in Iceland, Booking.com is a go-to resource. With an extensive selection of hotels, guest houses, and more, you’ll have no trouble finding the perfect place to stay that suits your preferences and budget.

Consider Apartments and Family Rooms

If you’re travelling with a group or seeking more space, apartments and family rooms are worth considering. These options often provide extra amenities like kitchens, allowing you to prepare your meals and save some money during your stay.

Book Early

With the increasing popularity of Iceland as a tourist destination, it’s crucial to book your accommodation well in advance. By securing your stay early, you’ll have a better chance of finding availability and getting the best rates.

Pack the Right Adapters

Before heading to Iceland, make sure to pack the right adapters for your electronics. Icelandic outlets typically use the Europlug (Type C) or Schuko (Type F), so having the correct adapters will ensure you can charge your devices hassle-free.

Research Locations

Iceland offers diverse landscapes and attractions, so it’s essential to research the locations where you plan to stay. Whether you want to be close to the bustling city streets of Reykjavik or prefer a quieter spot surrounded by nature, knowing the best areas will help you make an informed decision.

Check for Kitchen Access

Opting for accommodations with kitchen access can be a game-changer, especially if you’re looking to save money on dining out. Having the option to cook your meals or prepare snacks will not only save you some cash but also give you a chance to experience local grocery stores and try Icelandic ingredients.

If you prefer to avoid the hustle and bustle, steer clear of the peak summer season from June to August. Instead, consider visiting during the shoulder seasons of spring (April to May) or autumn (September to October) when the weather is still pleasant, and the crowds have thinned out.

Read Reviews and Recommendations

Before finalising your booking, take the time to read reviews and recommendations from previous guests. This will give you valuable insights into the quality of the accommodation, amenities offered, and the overall experience. Websites like TripAdvisor can be a great resource for gathering authentic feedback.

Whether you’re chasing Northern Lights, exploring stunning landscapes, or embracing local culture, finding the perfect accommodation will be a breeze.

Visas and Iceland Entry

If you’re gearing up for an Icelandic adventure, one of the first things to consider is whether you need a visa to enter this Nordic wonderland.

The good news? Iceland is part of the Schengen Area, making it a visa-free destination for citizens of many countries.

However, rules can vary, so it’s essential to check if you need a visa before packing your bags.

Tips On How to Travel Iceland On A Budget

Reykjavik, Iceland

Reykjavik tends to be more expensive compared to other regions in Iceland. But look out for affordable local eateries to save on dining expenses.

Take advantage of free or low-cost attractions like exploring the colourful streets and visiting the iconic Hallgrímskirkja church.

The Golden Circle and South Coast, Iceland

Waterfalls, geothermal sites, and black sand beaches await you.

Accommodation options outside of Reykjavik tend to be more affordable, allowing you to experience Iceland’s awe-inspiring landscapes without straining your wallet.

Consider staying in guesthouses or camping to minimise costs and enhance your connection with nature.

Akureyri, Iceland

Find a balance between affordability and luxury in Akureyri. Accommodation prices in Akureyri are generally lower than in Reykjavik.

Explore charming botanical gardens, indulge in local cuisine, and take advantage of reasonably priced activities like whale watching tours.

The Eastfjords, Iceland

Experience tranquillity and breathtaking landscapes in the Eastfjords. Accommodation options may be limited, but there are affordable guesthouses available.

Enjoy picturesque fishing villages, scenic hikes, and the chance to spot puffins.

Embrace the serenity of this lesser-known part of Iceland while exploring on a budget.

Selfoss and Hveragerði, Iceland

These towns in the south offer a mix of affordability and luxury. Easy access to popular attractions like the Golden Circle and the Secret Lagoon.

Find accommodation options that suit your budget, whether you’re looking for a more affordable stay or a touch of luxury.

When it comes to daily spending, it’s important to plan ahead.

Consider self-catering options for meals, explore affordable or free attractions, and choose activities that offer the best value for money.

No matter which region you choose to explore in Iceland, careful planning and budgeting can help you make the most of your trip without breaking the bank.

FAQs About Best Places to Stay In Iceland

Is it better to stay in Keflavik vs Reykjavik?

Keflavik is ideal if you need easy access to the international airport, and it's a great base for exploring the nearby Blue Lagoon.
However, if you want vibrant city life and cultural experiences, Reykjavik is the place to be.
It offers a range of attractions, restaurants, and a thriving nightlife. Choose according to your preferences and itinerary.

What part of Iceland is best to stay?

The best place to stay in Iceland depends on what you're looking for.
If you want city life and convenience, Reykjavik's downtown area near Laugavegur shopping street is unbeatable. It's packed with attractions and energy.
If you prefer tranquillity and natural wonders, consider regions like Vík for hiking tours and caving activities on Mýrdalsjökull Glacier.
Each region offers its own unique charm and experiences.

Where can I base myself in Iceland?

Choosing a base in Iceland depends on the regions you wish to explore. Reykjavik is a popular choice due to its central location and abundance of accommodations.
Other options include Akureyri in the North, which provides access to the Lake Mývatn area, and towns like Selfoss, Hveragerði, and Ísafjörður.
Each location offers unique experiences and easy access to surrounding attractions.

How many days is best to stay in Iceland?

To truly experience Iceland's beauty, we recommend spending at least 7 to 10 days.
This allows you to explore the famous Golden Circle, South Coast waterfalls and beaches, immerse yourself in the Blue Lagoon, venture into the Highlands, and even head north to places like Lake Mývatn.
Of course, if you have more time, explore lesser-known regions like the Eastfjords and Westfjords. It all depends on your schedule and the experiences you want.


When staying in Iceland, explore diverse accommodations across Reykjavik, offering a vibrant urban experience.

Discover the iconic Golden Circle and the scenic South Coast, each providing unique stays. Akureyri in the North and the tranquil Eastfjords offer contrasting yet captivating lodging options.

Don’t forget to delve into the rugged beauty of The Westfjords, completing your Icelandic stay with an array of distinctive experiences.

So what are you waiting for?

This guide has equipped you with all the knowledge to gear up and get ready to embark on a journey like no other in Iceland.

Isabel Leong

Isabel Leong

Full-time travel blogger at Bel Around The World and SEO coach roaming the world at a whim, Isabel helps aspiring content creators and brands get the most out of their online presence by attracting organic leads/traffic and achieving financial freedom with her Skyrocket With SEO course. She's closely involved in and has been featured as a speaker in other travel & digital nomad networks & podcasts such as Traverse, Travel Massive, The Nomadic Network and Location Indie.