Where to Stay in Iceland – Accommodations in Reykjavik and Around South Iceland

Where to Stay in Iceland - ION Adventure Hotel View

From luxury design hotels with hot tubs to hostels and guesthouses with shared bathrooms, we have stayed at different kinds of lodging in Iceland.  I am happy to say that most of these accommodations are highly recommended.  If you’re planning a trip to Iceland and haven’t booked your rooms yet, this list of accommodations could help you decide where to stay in Iceland.

First things first, I hope you’re reading this months before your trip.  Accommodations get easily sold out in Iceland especially on peak seasons.  Second, we booked a lot of our accommodations through Booking.com.  This is where we found most of the best accommodation deals.  They also price match!  Check every now and then for new room deals.  Many of the affordable accommodations (aka hostels and guesthouses) in Iceland are also directed to this site.

Start finding available accommodations here:



Booking.com

Heida’s Home

We booked 2 nights at Heida’s Home because of its high ratings and excellent reviews.  Based on our experience, we would stay here again the next chance we get.  Highly recommended for those who would like stay at Reykjavik.

Location
The best thing about Heida’s Home is its perfect location in Reykjavik.  It is a short walking distance to shops, restaurants, and a grocery store.

Room
Our twin room was spacious and tidy.  It was a great place to relax at because of its cozy ambiance and comfortable beds.
Tip: Request for a room that is not directly beside the kitchen or the bathroom.  Guests come in and out at different times.  It might be a problem for you if you are a light sleeper.

Click here to book a room at Heida’s Home

Where to Stay in Iceland - Heida's Home

Services/Utilities
The shared bathroom did not give us any inconvenience.  Bathrooms were kept clean at all times and if one was occupied, you could use the bathrooms from the other floors.
Every floor has a kitchen which makes it really convenient if you want to cook your own food.  Cooking is common among tourists because food is not cheap in Iceland.

Heida's Home Kitchen - from heidashome.is
Image Source: www.heidashome.is

Customer Service
The host, Heida, was very friendly and quick to answer our calls.  She even gave us a tour of her lovely home.

Parking
Street parking only (free for certain times only)

Nearby Attractions/Sites
Laugavegur Shopping Street
Hallgrímskirkja Church
Solfar Sun Voyager
Reykjavik Old Harbour
National Museum of Iceland

Must-Try Restaurant
We loved the fresh catch of the day and Iceland’s traditional Plokkfiskur at Salka Valka Fish & More.

Our last meal in Reykjavik before we flew back to Toronto 🍽 Of course, we had seafood! Iceland’s traditional Plokkfiskur and fresh Tusk ❤

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Price
We booked our room at $107/night.  It is a fair price considering the location and how expensive good accommodations are in Reykjavik.

Guesthouse Garun

We booked a room at Guesthouse Garun because of its excellent ratings.  Based on our experience, we saw why it is a common favorite among travelers.  It is highly recommended especially if you need a place to stay before/after your Golden Circle tour or South Iceland tour.

Location
It is located near the Ring Road at Selfoss.  The guesthouse is situated near a bakery, pizzeria, and grocery stores.

Room
Our twin room was very large, spotless and modern.  It has its own small bathroom and flat-screen TV.
The hot water in the bathroom has a strong scent of sulfur but it doesn’t stay on your skin after you shower.

Click here to book a room at Guesthouse Garun

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Services/Utilities
Guesthouse Garun has a communal kitchen, shared hot tub, terrace and BBQ facilities.

Where to Stay in Iceland - Guesthouse Garun Kitchen

Customer Service
The host was very friendly and accommodating.  We called on the day we were checking in to see if we can check in late in the evening.  He just made some arrangements then he quickly approved our request.  Early on our check out day, he offered to make us coffee.

Parking
Free parking

Nearby Attractions/Sites
Kerid Crater
Geysir
Gullfoss Waterfall

Price
Affordable rate at $94/night.

Welcome Guesthouse Edinborg

We booked a room for 1 night in Welcome Guesthouse Edinborg because we found a discounted rate and it has a great location.

Location

It is located near the Ring Road, making it a convenient place to stay after a day tour in South Iceland.  It also has an amazing backdrop of the mountains with glacier in between.

Where to Stay in Iceland - Welcome Guesthouse Edinborg View

It is only an 8-min drive to Skogafoss Waterfall and 17-min drive to Seljalandsfoss Waterfall.
Tip: Drive to the Seljalandsfoss Waterfall at night and view it under the stars.  It has a spotlight which allows you to view the waterfall at night.

Room
Given its cheap price, we were glad that our twin room had its own private bathroom.  The room was clean but it was evidently not being maintained.  The photos looked better than the actual room.  The room also had thin walls.  We can easily hear other people talking and walking around the guesthouse. There wasn’t much space and it had a stuffy atmosphere but it had the basic necessities for a 1-night stay.  It had fresh towels, comfortable bed and clean linen.

Click here to book a room at Welcome Guesthouse Edinborg

Where to Stay in Iceland - Welcome Guesthouse Edinborg Room

Services/Utilities
It has a cozy common room at the top floor with lounge chairs and a billiard table.  Unlike the other guesthouses we’ve stayed at, this doesn’t have any communal kitchen.

Where to Stay in Iceland - Welcome Guesthouse Edinborg Common Room

Customer Service
Unlike any other guesthouse we’ve stayed at, there wasn’t any interaction with the host/staff.  It’s a self-check in.  You must check your email a week before your check-in date to get the check-in information and a door code.  It was actually quick to check in as long as you have the details.
It is extremely difficult to contact someone from the guesthouse.  They provided a contact number at the front desk  but there is no response from the number.

Parking
Free parking

Nearby Attractions/Sites
Skogafoss waterfall
Seljalandsfoss waterfall
Public swimming pool in Seljavellir
Vik
Reynisfjara Black Sand Beach

Price
We got the room at a discounted rate of $72/night.

Fosshotel Glacier Lagoon

It is a beautiful modern boutique-style hotel in Hnappavellir.  It is one of the best accommodations to stay at if you plan to tour the glacier lagoons in South Iceland like Jokulsarlon Glacier Lagoon.  Because of its close proximity to the glacier lagoons and its unique style, this hotel gets fully booked fast.

Where to Stay in Iceland - Fosshotel Glacier Lagoon

Location
It is located near the Ring Road at Hnappavellir.  It doesn’t have any establishments in a walking distance but it has its own restaurant.  The nearest town is Hof which is only 9 km away.  If you’re lucky and the Northern Lights appear during your trip, you could easily see it from the hotel since it has an isolated location.

Where to Stay in Iceland - Fosshoted Glacier Lagoon breakfast restaurant

Room
Our standard double-bed room was spacious and had a simple but unique style.  The bathroom is large and has a modern design.  We loved its huge window which gave us an amazing ocean view and Iceland’s landscape.  All of the rooms have the same large window and views of either mountains or landscape.  
They also provided toiletries which smelled good!

Click here to book a room at Fosshotel Glacier Lagoon

Where to Stay in Iceland - Fosshoted Glacier Lagoon

Services/Utilities
The hotel has a bar and restaurant.

Where to Stay in Iceland - Fosshoted Glacier Lagoon

Customer Service
The staff was friendly and professional.  They offered to give us a wake-up call in case the Northern Lights showed up.

Parking
Free parking

Nearby Attractions/Sites
Jokulsarlon Glacier Lagoon
Skaftafelll National Park
Svinafellsjokull Glacier

Price
You can book a room in Fosshotel Glacier Lagoon for as low as $204/night.  Rates include breakfast.  They serve delicious food and they have a wide range of options.

Hofn Hostel

On our second trip to Iceland, Fosshotel Glacier Lagoon was already sold out on our dates.  Most of the other accommodations near that area were also already fully booked.  Since we had an ice cave tour the next day, we had to stay at any vacant accommodation near Jokulsarlon Glacier Lagoon (usually the meeting place for this kind of tour).  Because of this need, we found Hofn Hostel as our next option.

We had low expectations for Hofn Hostel because of its low/mediocre online rating.  However, based on our experience, the hostel was decent.  We didn’t encounter any situation that made us regret booking this accommodation.  If all you need is a place to stay, Hofn Hostel is a good option.

Location
It is located at Hofn, a fishing town in the southeast region of Iceland.  It is a 1-hour drive from Jokulsarlon Glacier Lagoon.  It has great views of the Hofn harbor and the Vatnajokull Glacier.
It is situated near a grocery store, gas station and some restaurants.

Room
The room was very basic – beds, cabinet, and a faucet.  We didn’t have much space in our twin room but it was clean and provided the standard necessities.  Our beds were comfy and the linens provided were clean.

Click here to book a room at Hofn Hostel

Hofn Hostel - from hofnaccommodation.is
Image Source: www.hofnaccommodation.is/hofn-hostel/

Services/Utilities
There were several shared bathrooms in the hostel.  We didn’t have any trouble using the bathroom and these were always kept clean.
The communal kitchen was large and fully equipped.  Several groups of guests could cook, do the dishes and prepare their food at the same time.  The dining hall could also accommodate many guests.

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Customer Service
The host was nice and helpful.  She showed us a map of the places we might be interested to visit and her favorite restaurants.  She was also very apologetic because a part of the hostel was being renovated during our stay.

Parking
Free parking

Nearby Attractions/Sites
Jokulsarlon Glacier Lagoon
Skaftafell National Park
Thermal spas

Must-Try Restaurant
Our host recommended a restaurant by the harbor, Pakkhus, which served the best lobster pizza!

What else to eat in a fishing village other than fresh seafood? Their Langoustine Pizza is extremely delicious!

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Price
We booked a room online on the same day for $97/night.  The rate is affordable but towels are not included.  You have to rent the towels upon checking in.

Grundarfjordur Hostel

This is a great accommodation for those who want to tour the western region of Iceland – Kirkjufell Mountain and the sites in Snaefellsness Peninsula.

Location
It is located in Grundarfjordur village on Snaefellsness Peninsula.  It is close to a grocery, restaurants and gas station.

Room
Our twin room was refreshing to look at.  It was clean, colorful and vibrant.  We also had a private bathroom.  Our window had a great view of the town and Kirkjufell Mountain.

Click here to book a room at Grundarfjordur Hostel

Where to Stay in Iceland - Grundarfjordur Hostel Room

Where to Stay in Iceland - Grundarfjordur Hostel Room View of Kirkjufell Mountain

Services/Utilities
The shared kitchen was spacious and fully equipped.  It was easy to cook and the dining area was also huge.

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Customer Service
The only interaction we had was during check-in.  We picked up the keys from a different building and they gave us a short orientation on the house rules.

Parking
Free parking

Nearby Attractions/Sites
Kirkjufell Mountain
Snaefellsness Peninsula
Gerduberg Cliffs

Price
We booked one night for $79/night (off-peak season).

101 Hotel

We wanted to try a couple of luxury hotels in Iceland.  101 Hotel is one of them.  It is a lovely boutique hotel and a member of Design Hotels.  It has a modern black and white design.  101 Hotel is a great option for those who want to relax in the luxurious comforts of a hotel where everything you need is in walking distance.

Location
It is located at the center of Reykjavik.  There are several stores, cafes and restaurants within the walking distance.

Room
Our Queen Room was very spacious.  It had a beautiful setup and it’s probably the best room we stayed at in Iceland.  The bed, linen, and pillows were top-quality.
The room had a walk-in shower and a stand-alone faucet.  The only downside is that we didn’t have any view.

Click here to book a room at 101 Hotel

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Services/Utilities
The hotel has a sauna, jacuzzi, fitness center, bar and restaurant.

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Customer Service
The staff was friendly and professional.

Parking
Street parking only (free for certain times only)

Nearby Attractions/Sites
Laugavegur Shopping Street
Hallgrímskirkja Church
Solfar Sun Voyager
Reykjavik Old Harbour
National Museum of Iceland

Must-Try Restaurant and Local Food

5-Day Itinerary For An Epic Iceland Self-Drive Messinn Reykjavik (5 of 1)
Pan-fried catfish with cream sauce, topped off with mushrooms and sweet grapes at Messinn

You should also try the famous Icelandic hotdog.  It is made of lamb.

Price
Rates at this luxurious hotel start at $396/night (depending on the dates and available deals).  Instead of using cash, we used our SPG points to book a room.

ION Adventure Hotel

Another one of the fancy Icelandic hotels we got to try was the ION Adventure Hotel.  Like the 101 Hotel, ION Adventure Hotel is a member of the Design Hotels.  The hotel has a beautiful modern architecture.  It is recommended for travelers who prefer an upscale hotel in an isolated location but still an hour drive away from Reykjavik.

Where to Stay in Iceland - ION Adventure Hotel View

Location
It is located at Mount Hengill in Nesjavellir.  It is close to the Golden Circle but it is still in a remote location which made our stay very peaceful and relaxing.
The drive to the hotel is scenic but once you get there, there is nothing much to see outside aside from the mountains.  Because it is in the middle of nowhere, it makes a good location to see the Northern Lights.
It is situated very close to a geothermal power station which results to a sulfur odor on the air and hot water.

Where to Stay in Iceland - ION Adventure Hotel Geothermal Plant

Room
Our room was upgraded to a King bed.  The windows were from floor to ceiling which gave us a view of the lava fields.
We loved the contemporary, elegant style of the room.  The toiletries provided in the bathroom were soothing.

Click here to book a room at ION Adventure Hotel

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Services/Utilities
The hotel has a spa, outdoor pool (heated), fitness center, bar and restaurant.  Both outdoor pool and bar have a fantastic view of the mountains.

ION Adventure Hotel outdoor pool
Image Source: www.starwoodhotels.com

Where to Stay in Iceland - ION Adventure Hotel Bar

Customer Service
The staff was friendly and professional.

Parking
Free parking

Nearby Attractions/Sites
Thingvellir National Park
Kerid Crater
Reykjavik

Price
Rates start at $363/night.  Instead of using cash, we used our SPG points to book a room.

Planning a trip to Iceland?  Check this list of “20 Untold Tips for Tourists Visiting Iceland” and “5-Day Itinerary for an Epic Iceland Self-Drive Tour.”



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11 Replies to “Where to Stay in Iceland – Accommodations in Reykjavik and Around South Iceland”

  1. Awesome post! I especially am intrigued by the ION adventure hotel 😀 It looks incredible. I will definitely keep these in mind if I go back

  2. Great tips about Iceland. When I was there, I thought the people were so friendly. I want to go back and will have to use some of your tips.

  3. I’ve heard great things about Iceland it’s never been a place to visit on my list. Maybe I should rethink this

  4. Iceland sounds like a cool and adventurous place! And the food looks divine.

  5. All these places look wonderful to stay! I hope to make it to Iceland one day. It’s so beautiful there.

  6. Wow so much choice. I like the ION one the best but yhrh all look great and so does the food.

  7. You have some amazing pictures here of all the places you stayed at. There was just something about the Fosshotel that I really liked. I am not sure whether it was the windows or the layout but it really appealed to me.

  8. You have found so many amazing places here, it’s going to be super hard to pick one! The Fosshotel in Glacier Lagoon is definitely tempting me to get into a plane and take an impromptu trip!

  9. Thank for sharing some tips. Looks like you had a good selection. Good thing there are also booking platforms already that we can choose from.

  10. Sushmita Thakare Jain says: Reply

    Wow, the places look amazing and oh my, the food images shared were so inviting and tempting looks delicious 😀
    Thanks for sharing dear 🙂

  11. elizabethbrico says: Reply

    Wow. These pictures are gorgeous. I actually have a creepy feeling like I’ve had a dream about the ION Hotel before…I don’t know what’s up with that, but I do hope I get to visit Iceland one of these days. Thanks for sharing!

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