Iceland accommodation for that unforgettable stay

The best places to stay in Iceland and how to get great deals on them.

Also called the Land of Fire and Ice, Iceland is a country of natural contrasts. From the breathtaking northern lights to soothing hot springs and from hot lava fields to frozen lakes, Iceland offers enough reasons to find a place on every travel bucket list.

The country also features waterfalls in Skalholt, hiking opportunities in Borgarnes and the nightlife of Reykjavik.

To help you relax and recharge, we have hand-picked the best accommodation options to keep you comfortable while you explore all that Iceland has to offer.

Our top Iceland hotel picks

North Aurora Guesthouse, Laugar

North Aurora Guesthouse, Laugar from Hotels

With five comfortable and clean rooms, North Aurora Guesthouse offers breathtaking views of the surrounding mountains. Akureyri Airport is a 55-minute drive away from the guesthouse.

  • Star rating: 5-star
  • Location: Lautavegur 8, Laugar
  • Suitable for: Couples and business travellers

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The Herring Guesthouse, Siglufjordur

The Herring Guesthouse, Siglufjordur from Hotels

Situated near Siglufjordur Airport, the guesthouse offers an enjoyable stay near the Herring Era Museum. The place is renowned for its snow sports and fine dining experiences.

  • Star rating: 5-star
  • Location: Havegur 5, Siglufjordur
  • Suitable for: Couples, business travellers and families

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Volcano Hotel, Vik

Volcano Hotel, Vik from Hotels

Located in the picturesque Vik countryside, Volcano Hotel is known for its scenic walks. Featuring a traditional restaurant and bar, this hotel is easily accessible by car from Skógar and Eyvindarholar.

  • Star rating: 5-star
  • Location: Ketilsstaaskoli, Vik
  • Suitable for: Couples, families and business travellers

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CenterHotel Thingholt, Reykjavik

CenterHotel Thingholt, Reykjavik from Hotels

If you wish to stay at a prime location in the city, this is a contemporary hotel just a few minutes away from Reykjavik Cathedral, The Sun Voyager and Laugavegur. Head to the rooftop restaurant to enjoy authentic traditional dishes

  • Star rating: 4-star
  • Location: Thingholtsstraeti 3-5, Midborg, Reykjavik
  • Suitable for: Couples and business travellers

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Hilton Reykjavik Nordica, Reykjavik

Hilton Reykjavik Nordica, Reykjavik from Hotels

The Hilton is ideally located within a walking distance of the Iceland Academy of the Arts. Enjoy panoramic views of Reykjavik from your room and relax in the hotel’s excellent spa and jacuzzi.

  • Star rating: 4-star
  • Location: Sudurlandsbraut 2, Hlidar, Reykjavik
  • Suitable for: Couples, business travellers, families and groups

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Diamond Suites, Keflavík

Diamond Suites, Keflavík from Hotels

Just a short walk from the Reykjanes Art Museum, Grindavík and Hafnarfjӧrdur, Iceland’s only five-star hotel offers a luxurious stay. This hotel features a barbeque, picnic area, in-house restaurant and fitness centre.

  • Star rating: 5-star
  • Location: Vatnsesvegi 12-14, Keflavík
  • Suitable for: Couples, families and groups

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Grand Guesthouse Gardakot, Gardakot

Grand Guesthouse Gardakot, Gardakot from Hotels

Grand Guesthouse Gardakot is located near a beautiful beach in the countryside, and and is perfect for those planning a relaxing holiday. The guesthouse has four comfortable rooms and offers the environment you need for a romantic getaway.

  • Star rating: 5-star
  • Location: Gardakot, Vik
  • Suitable for: Couples

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Hotel Kríunes, Kópavogur

Hotel Kríunes, Kópavogur from Hotels

Overlooking lush grasslands, Hotel Kríunes is a 45-minute drive from Keflavik International Airport. You can rejuvenate in the hotel’s spa and sauna or enjoy boating and water activities at a nearby lake.

  • Star rating: 5-star
  • Location: Vatnsenda, Kópavogur
  • Suitable for: Couples and families

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Iceland hotel deals

Up to 25% off worldwide hotels

Valid for travel from 10 April - 6 May 2019. Destinations include Rome, Paris, London, Bangkok, Seoul, Shanghai, Kuala Lumpur and more. T&Cs apply.

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Agoda Agoda

Extra 5% off hotels worldwide

Valid for stays from 22 October 2018 - 31 December 2020, including over Christmas. Destinations include Bali, Tokyo, Hong Kong, Singapore, Paris, Amsterdam, Sydney, Gold Coast and more. T&Cs apply.

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Extra 8% off hotel bookings

Valid on hotel stays worldwide on all dates, including over holidays like Easter, Christmas and New Year's Eve.

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Up to 40% off hotels worldwide

Valid for travel from February - March 2019. Destinations include Auckland, Melbourne, Singapore, Bali, Tokyo, Hong Kong, New York, Las Vegas, Paris, Rome and more. T&Cs apply.

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Millennium & Copthorne Hotels Millennium & Copthorne Hotels

10% off stays + free breakfast

Valid for stays on select dates across all participating Millennium Hotels and Resorts in Asia, Europe, Middle East and United States. T&Cs apply.

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Millennium & Copthorne Hotels Millennium & Copthorne Hotels

Up to 20% off hotels + free breakfast

Valid for stays until 30 April 2018 on select Europe hotels. Minimum of 3 nights stay. T&Cs apply.

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Best Western Best Western

Save up to 30% on Europe stays

Valid on stays book a minimum of 21 days in advance. Choose the Early Web Special rate to save 15-30%, depending on the property.

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Hostelworld Hostelworld

Europe stay from $15 per night

Valid on select dates and hostels across Europe. Destinations include London, Amsterdam, Barcelona, Berlin, Paris and more. T&C's apply.

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Radisson Blu Radisson Blu

Up to 20% off stays

Valid on advance bookings at participating hotels in Europe, Middle East and Africa, Asia Pacific and the Americas only and is subject to availability. Most hotels define advanced bookings as one month in advance. Subject to change. See site for details.

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Feature image: Grand Guesthouse Gardakot

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Stephanie Yip

Stef is the Travel Editor at and has been writing about travel for over a decade. She's visited over 50 countries and has had some incredible experiences, including hot air ballooning over Cappadocia, hitchhiking across Romania and seeing the Northern Lights (twice!). And while she’d never say no to a luxury escape, she's far more likely to stretch her travel dollars as far as they can go by keeping her ear to the ground for unbeatable travel bargains. And she'll tell you all about them, too! Stef has had articles featured on Travel Weekly, Escape and Hostelworld.

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