The BEST ICELAND STAYS

The BEST accommodation options for your trip around ICELAND -for ALL BUDGETS. Iceland is an incredible country, its dramatic landscapes and tourist infrastructure make it a must visit destination with appeal for all ages. I coordinated and lead an adventure tour here recently and it is honestly one of the most beautiful and magical destinations I have ever been to. In this guide I share my top recommendations for Icelandic accommodation, divided into budget categories. If you only have a few days and aren't planning to move around much further than the golden circle, or if you won't have access to your own car, my advice would be to stay in Reykjavik for most of your nights and do day trip tours with a stay somewhere special out in the countryside for 1 or 2 nights as a treat. Iceland doesn't have good public transport links outside of the capital so you really have two options, book onto a tour or it's one of the best places to do a self drive adventure. (If you're planning for Winter, don't let the ice worry you- opt for an SUV and contact the rental place in advance to ask for studs on your tyres)

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Just as with every country, there is a benchmark for what makes a budget, or a luxury stay. Iceland is an expensive country all round, so unless you are camping, budget accommodations including hostels will usually come in between £40-100 a night, luxury accommodations begin around £250+.

Towards the bottom of this page I've made recommendations for small groups and for camper van rental if you're an outdoorsy sort that likes to stay wild. Happy Holiday planning!

Budget:

Kex Hostel Reykjavik

@ThisWildSoul

Kex Hostel is a cool place to stay in the heart of Reykjavik, it's within walking distance of all the main areas so you can get around very easily. This is an ideal stop for anyone on a budget at the start or end of their time in Iceland or if you're spending a few days in the capital.

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Midgard Base Camp

@ThisWildSoul

Midguard Base Camp is an absolutely fantastic hostel and the perfect location for a half way stop between Reykjavik and further along the coast. Ideal if you are going to the golden circle or to investigate the natural hot springs nearby. The staff are fantastic, the beds are very comfortable and the restaurant and hot tub/sauna are amazing. The water is fresh geothermal spring water so no nasty chemicals and the hot tub is emptied every night- honestly so impressed. Cannot fault this hostel and highly, highly recommend.

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The Barn

@ThisWildSoul

The Barn hostel in Vik is the best stylish budget place to stay if you're visiting Katla Ice Caves or hiking on Solheimajokull Glacier (which I recommend). Situated just down the road from Skógafoss and right around the corner from the iconic Black Beach, Reynisfjara, this hostel is the perfect location to stop for any trip along the length of Icelands south coast to investigate these iconic landmarks.

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Lækjarhus Farm Holidays

@ThisWildSoul

Cheap and cheerful and surrounded by stunning nature, this is a great little base to explore the nearby attractions of Vatnajokull Glacier and Diamond Beach.

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Bakkakot Cabins 2

@ThisWildSoul

Sweet little cabins in a magical natural setting, complete with an out door hot tub. Perfect for a little romantic getaway away if you're on a budget and like being surrounded in nature.

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Akureyri Hostel

@ThisWildSoul

A comfortable hostel, it's location is very close to the centre and very clean and guests have use of a kitchen. Run/owned by HI hostels which also run a number of hostels in Iceland you can expect a friendly and organised service from staff, this is a great budget stay for the area.

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Mid-range - Luxe

Alda Hotel

@ThisWildSoul

Alda Hotel is a cool boutique hotel in the heart of Reykjavik with plenty of vibes and a stylish interior complete with a hot tub & sauna to help you relax after a long day.

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Reykjavik Konsulat Hotel, Curio Collection by Hilton

@ThisWildSoul

Reykjavik Konsulat Hotel, Curio Collection By Hilton is a beautifully presented hotel with very friendly staff and comfortable rooms and beds. It has an amazing spa/gym area and is the perfect sport for an extremely stylish and relaxing stay in one of the best locations in Reykjavik for getting to all the city's top sights.

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House of the Snowbird

@ThisWildSoul

House of the Snowbird comprises of 2 private apartments set in a traditional Icelandic building in an amazing location at the heart of Reykjavik. It's incredible location makes it the perfect place to explore the city by foot. The host is thorough, thoughtful and responsive and there are lots of little surprise touches which make your stay memorable. Both apartments feature private kitchen and dinning areas. -All in all a beautiful stylishly decorated apartment which will have you wishing you could stay longer.

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Aurora Igloo

@ThisWildSoul

Aurora Igloo offers a magical once in a lifetime experience to sleep below the stars and if you're lucky the Northern Lights. Cosy and romantic this is the perfect getaway for couples.

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Aurora Lodge Hotel

@ThisWildSoul

Aurora Lodge Hotel is an exquisite boutique hotel set in nature just outside Hvolsvöllur. It features an extremely cozy and stylish Icelandic interior design and two lovely outdoor hot tubs overlooking Icelandic countryside. The beds are very comfortable, the breakfast fantastic and the staff are amazing. This place makes an amazing stay to break up the journey from Reykjavik or the Golden Circle as you head further East along the coast.

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Hótel Klaustur

@ThisWildSoul

Hótel Klaustur offers a perfect stay for anyone venturing to Vatnajökull Glacier or the surrounding area, it's approximately 1 hour drive from the starting point of the glacier hikes and extremely comfortable and clean so you can get a great nights sleep before your adventure continues. Service at the hotel is excellent and the breakfast was the best I ate in Iceland- so much choice and absolutely delicious -without a doubt a 5 star breakfast. The restaurant food was exceptional all round. Wouldn't hesitate to stay again.

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REY Stays

@ThisWildSoul

REY Stays is surrounded by nature and with a gorgeous mountain view these self contained modern units offer peace and tranquility at an affordable price for those doing a self drive around the island.

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Fosshotel Glacier Lagoon

@ThisWildSoul

Gorgeous hotel set below a waterfall. Featuring a hot tub and sauna for deep relaxation after a long day of adventures.

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Blabjorg Guesthouse

@ThisWildSoul

Set in a tiny fishing village in the North East of Iceland, Blabjorg Resort overlooks the sea and features a spa with outdoor sauna and thermal pool, service is amazing and the breakfasts are incredible. This is an idyllic spot and the perfect stop on route to the north of the island from the south coast.

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Hótel Snaefellsnes

@ThisWildSoul

Snaefellsnes Peninsular is home to the magical Kirkjufell Mountain and other Icelandic treasures and is one of the best places to see the Northern Lights in Iceland. Hotel Snaefellsnes offers a lovely space to relax after a day exploring the area. It has comfortable beds, delicious food and great staff.

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Very Luxe:

The Reykjavik EDITION

@ThisWildSoul

The Reykjavik Edition Hotel is one of Reykjaviks most exquisite hotels and situated right on the bay. Close to all the central locations and attractions it's pricey but it's perfect. The food here is to die for and the ambiance is amazing. If you can afford it, do it.

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Eyja Guldsmeden Hotel

@ThisWildSoul

Eyja Guldsmeden Hotel is a beautiful boutique hotel in Reykjavik with comfortable lounges and areas to chat and relax. The bedding is high quality and very comfortable and the bathrooms/showers are great. Staff are friendly and helpful and the food is delicious.

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Sigló Hótel

@ThisWildSoul

Set in a picturesque fishing village surrounded by mountains and overlooking the sea, Siglo Hotel by Keahotels is a top rated hotel in the North of Iceland. It has a delightful sauna and outdoor geothermal pool which overlooks the bay so if you're heading to this area this is the best place to stay in this budget range.

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Best for Groups:

SJF VILLA

@ThisWildSoul

Hidden behind what seems like a normal looking suburban house is a beautiful fully styled interior complete with it's very own sauna and outdoor hot tub for gazing at the stars or Northern Lights. This is an ideal private retreat for family or friend groups for an extra special stay in greater Reykjavik.

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Reykjavik Residence Apartment Hotel

@ThisWildSoul

Super central and perfect for exploring Reykjavik, this is an ideal stay for a group of family or friends, all apartments have comfortable bedding with good showers and little extras provided on arrival and a delicious breakfast can be arranged for ease.

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Old Cottages

@ThisWildSoul

A short drive from Diamond Beach and Glacier Lagoon, with a waterfall in the background these cottages are beautiful and the perfect spot for a small group of friends or family.

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Villa Mafini

@ThisWildSoul

Featuring comfortable and chic decor, a fully equipped kitchen, and surrounded by beautiful nature, this is a great house to rent for a group of friends or family, whether for a special occasion or a group getaway!

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Camper Van Hire:

CampEasy Iceland

@ThisWildSoul

Get back to nature with CampEasy vans. These vans allow you to combine the cost of accommodation and car hire and gives you the freedom to roam Icelands greatest natural backdrops VanLife Style and without a set schedule.

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Check out my Iceland activity and excursion guide:

This Wild Soul - Alice

Available for hire

The BEST ICELAND ACTIVITIES

In this guide I share the very best activities and operators in Iceland so you can have the most memorable experiences possible and make memories to last a lifetime! What are my qualifications for this destination guide? - I organised and led an adventure tour for a global travel company here last year & got 10/10 reviews ✨

Car-free • Backpacker • Couples • Groups • Family • Digital Nomads • Female Solo • 50+ • Adventure • Outdoors • Overlanding • Photography • Road Trip • Relaxation • Romantic

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ABOUT THE AUTHOR

This Wild Soul - Alice

Available for hire

Hi, I'm Alice! I have a fondness for seeking out unique, once in a lifetime, once in a destination experiences. I've personally explored 32 countries to date. My favourite destinations so far have been Flores in Indonesia, Varanasi in India, Nyungwe in Rwanda and Chiapas State in Mexico -because they were all a little off the beaten path and totally magical! I'm an experienced solo traveller and a small group travel leader! I love trying new things, connecting with locals, hiking through nature & seeing different cultures unique and quirky traditions! I work as a freelance Travel Coordinator for the global adventure travel company WeRoad ( https://www.weroad.co.uk/ ) leading small group adventure tours to worldwide destinations several times a year. If small group travel with fab vibes is your jam, you're welcome to use my discount code: INCOORLEAKEALI for 10% OFF ANY of their tours. If you prefer doing your own thing and customising your own bespoke trip, read on... because you're in safe hands with these guides! I'm a thorough researcher and planning trips is my forte. I've taken great care over these resources, they also, where possible, empower locals I highly recommend and have personally worked with. This is invaluable because when you get on the ground the most useful thing in many of these destinations is contacts you can trust and are dependable! When I'm not planning my next trip, I spend my days as a rowing coach and freelance artist/designer. You might also find me attempting to touch my toes at yoga, or learning to dance with fire poi! One of my favourite places on earth is actually Burning Man Festival and as you can imagine I have a joie de vivre nature and that's just what your trip will have if you choose my services! So, if you want the best travel experience poss, search up my destination guides with confidence, purchase a custom itinerary or hop on a destination consultation with me, and I will thoroughly prep you for your best time ever! x

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Iceland

Reykjavík, Iceland