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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 finder.com.au 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 finder.com.au 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

View details
Volcano Hotel, Vik

Volcano Hotel, Vik from finder.com.au 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

View details
CenterHotel Thingholt, Reykjavik

CenterHotel Thingholt, Reykjavik from finder.com.au 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 finder.com.au 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 finder.com.au 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 finder.com.au 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

View details
Hotel Kríunes, Kópavogur

Hotel Kríunes, Kópavogur from finder.com.au 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

View details

Iceland hotel deals

Otel.com Otel.com

Extra 8% off hotel bookings

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

Last verified

Dusit Hotels Dusit Hotels

Up to 20% off luxury hotels worldwide

Valid for stays until 31 December 2018. Includes free WiFi and welcome drinks upon arrival. Destinations include China, Kenya, Maldives, Philippines, Thailand, UAE, USA and more. T&Cs apply.

Last verified

Get deal

Deal expires

Trip.com Trip.com

Up to 30% off worldwide hotels

Valid for stays until 31 August 2018. Destinations include Tokyo, Osaka, Singapore, Bali, London, Shanghai and more. T&Cs apply.

Last verified

Get deal

Deal expires

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.

Last verified

Travelzoo UK Travelzoo UK

Up to 66% off Europe hotels

Valid for stays on select dates. Destinations include London, England, Yorkshire, Spain, Berlin and more. T&Cs apply.

Last verified

Get deal

Deal expires

Hotels.com Hotels.com

Up to 75% off resorts worldwide

Valid for stays on select dates until October 2018. Sample savings is for Inn Place Serviced Residence, Pattaya. Destinations include Boracay, Koh Samui, Phuket, Kota Kinabalu, Langkawi and more. T&Cs apply.

Last verified

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.

Last verified

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.

Last verified

Feature image: Grand Guesthouse Gardakot


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Stephanie Yip

Stephanie is the travel editor at finder.com.au. On top of being an avid traveller, she's an all-round bargain hunter. If there's a deal on hotels or a sale on flights, she'll know about it. And she'll let you know about it, too. Though probably not before she buys her own ticket.

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