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 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
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
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
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
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
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
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
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
Iceland hotel deals
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.
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Wotif - Deals
Up to 30% off hotels worldwide
Valid for stays on select dates. Destinations include London, Melbourne, Tokyo, Brisbane, Auckland, Miami, Taipei, Beijing, Delhi, Santiago, Bangkok and more. T&Cs apply.
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Deal expires
Booking.com
Up to 20% off hotels worldwide
Valid for stays until 31 October 2018. Destinations include Bangkok, Kuala Lumpur, Dubai, Rio de Janeiro, Singapore, Hong Kong and more. T&Cs apply.
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Deal expires
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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Deal expires
Wotif - Deals
Up to 25% off luxury hotels worldwide
Valid for travel on select dates. Destinations include Auckland, Queenstown, London, Bangkok, Paris, Fiji and more. T&Cs apply.
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Deal expires
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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Deal expires
STA Travel
Up to 60% off hotels worldwide
Valid for stays until 31 March 2019. Destinations include London, Rome, New York, Phuket, Dubai and more. T&Cs apply.
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Deal expires
Lastminute.com.au
Up to 60% off hotels worldwide
Valid for stays on select dates. Destinations include Sydney, Bali, Gold Coast, Melbourne, Singapore, Tokyo, Phuket, New York, Los Angeles and more. T&C's apply.
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Deal expires
Book FHR
Up to 20% off airport hotels, parking and lounges
Valid on all dates at select Europe destinations. T&Cs apply.
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Coupon code expires
Dusit Hotels
Up to 20% off luxury hotels worldwide
Valid for stays until 31 December 2018, including over Christmas. Includes free WiFi and welcome drinks upon arrival. Destinations include China, Kenya, Maldives, Philippines, Thailand, UAE, USA and more. T&Cs apply.
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Deal expires
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
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
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
