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Iceland accommodation that’ll really set the benchmark

Great deals on great places to stay in Iceland.

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Fact checked

From the breathtaking Northern Lights to soothing hot springs there are more than a few reasons to visit Iceland.

While Reykjavik is the obvious starting point, true adventure seekers will make their way around the country. Stop by KeflavĂ­k to stay close to the Blue Lagoon, Siglufjordur for coastal fjord views and Laugar to catch the northern lights.

To see it all, we've hand-picked the best accommodation options the Iceland has to offer.


Top Iceland hotels in South Iceland

Top hostel: Reykjavik Downtown HI Hostel, Reykjavik

Top hostel: Reykjavik Downtown HI Hostel, Reykjavik from Finder Hotels

With rave reviews, a central location and 24-hour access, Reykjavik Downtown HI Hostel is a budget-friendly option well-suited for backpackers.

  • Star rating: 1-star
  • Location: Vesturgata 17 , Vesturbaer, Reykjavik
  • Rooms from: $146 per night

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Top all-rounder: CenterHotel Thingholt, Reykjavik

Top all-rounder: CenterHotel Thingholt, Reykjavik from Finder 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
  • Rooms from: $580 per night

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Cheap hotel chain: Hilton Reykjavik Nordica, Reykjavik

Cheap hotel chain: Hilton Reykjavik Nordica, Reykjavik from Finder 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. It might be a chain but for a 4-star hotel it's very well priced for Iceland.

  • Star rating: 4-star
  • Location: Sudurlandsbraut 2, Hlidar, Reykjavik
  • Rooms from: $367 per night

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Top luxury boutique hotel: Diamond Suites, KeflavĂ­k

Top luxury boutique hotel: Diamond Suites, KeflavĂ­k from Finder Hotels

Just a short walk from the Reykjanes Art Museum, Grindavík and Hafnarfjӧrdur, Iceland’s only 5-star hotel offers a luxurious stay. This hotel features a barbeque, picnic area, in-house restaurant and fitness centre. It's also a short 20 minute drive to the famous Blue Lagoon.

  • Star rating: 5-star
  • Location: Vatnsesvegi 12-14, KeflavĂ­k
  • Rooms from: $1,237 per night

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Top country/farmstay: Grand Guesthouse Gardakot, Gardakot

Top country/farmstay: Grand Guesthouse Gardakot, Gardakot from Finder 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
  • Rooms from: Rates on request

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Top airport hotel: Bed and Breakfast Keflavik Airport Hotel

Top airport hotel: Bed and Breakfast Keflavik Airport Hotel from Finder Hotels

Just a 10 minute walk from Keflavik International Airport is this cosy bed and breakfast. It offers family friendly accommodation, outdoor activities and a tour desk to see the area easily.

  • Star rating: 3-star
  • Location: Valhallarbraut 761, Keflavik
  • Rooms from: $156 per night

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Top Iceland hotels in North Iceland

Top Northern Lights hotel: North Aurora Guesthouse, Laugar

Top Northern Lights hotel: North Aurora Guesthouse, Laugar from Finder Hotels

With five comfortable and clean rooms, North Aurora Guesthouse offers breathtaking views of the surrounding mountains. Being so far north in a small township, Laugar is regarded as one of the best locations to catch the Northern Lights - hence the name.

  • Star rating: 5-star
  • Location: Lautavegur 8, Laugar
  • Rooms from: $485 per night

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Top farmstay in the north: The Herring Guesthouse, Siglufjordur

Top farmstay in the north: The Herring Guesthouse, Siglufjordur from Finder 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
  • Rooms from: $238 per night

View details

Iceland hotel deals

Otel.com Otel.com

Extra 9% off hotel bookings

Valid on select hotel stays worldwide like Australia, New Zealand, Bali, Thailand, USA, Europe and more on all dates, including over holidays like Easter, Christmas and New Year's Eve. Some restrictions apply.

Last verified

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

Accor Hotels Accor Hotels

Up to 30% off Europe stays

Available on select stay dates when you stay a minimum of 3 nights. T&Cs apply.

Last verified

Deal ends

OneTravel OneTravel

Up to 25% off worldwide hotels

Available on select dates in Las Vegas, London, Paris, Australia, New Zealand and more.

Last verified

Deal ends

Millennium & Copthorne Hotels Millennium & Copthorne Hotels

Up to 20% off + extra 10% off members on Europe stays

Available on stays until 31 March 2021 in Paris, Rome, London, Manchester and more. Plus get up to 20% off F&B, 2,000 My Millennium points and kids stay free. T&Cs apply.

Last verified

Deal ends

Millennium & Copthorne Hotels Millennium & Copthorne Hotels

Up to 25% off + extra 10% off members on UK and Europe stays

Available on select stay dates from 1 August - 31 December 2020 with a minimum of 2 nights stay. T&Cs apply.

Last verified

Deal ends

Trip.com Trip.com

5% off hotel bookings

Available on your first Trip.com pre-paid hotel booking. Discount available worldwide including in Australia, New Zealand, Bali, Thailand, Fiji, US, UK and more.

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Dusit Hotels Dusit Hotels

Up to 20% off worldwide stays + flexible cancellation

Available on select stay dates Kenya, Maldives, Philippines, Thailand, UAE, USA and more when you book in advance. T&Cs apply.

Last verified

Deal ends

Best Western Best Western

Receive 500 bonus points on worldwide stays

Receive bonus points when you you opt out of housekeeping services. Minimum 2 nights stay required and must be a member of Best Western Rewards program. T&Cs apply.

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Hotels.com Hotels.com

Earn a free night’s stay

Stay for 10 nights at any hotel worldwide to get a free night. Must be a Hotels.com Rewards members. Membership is free. T&Cs apply.

Last verified

Popular Hotels coupon codes

Last checked Code description Code
30 Sep 2020 Up to 73% off getaways + Extra up to 20% off with code RED****
29 Sep 2020 Extra $50 off Sydney and NSW stays NSW****
5 Aug 2020 Extra 8% off on hotel bookings CLP****
22 May 2020 Extra 9% off hotel bookings AUT****
6 Mar 2020 Extra 8% off hotel bookings 8OF****

Feature image: Grand Guesthouse Gardakot

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