Book Hotels in Iceland – Compare Top-Rated, Affordable & Scenic Stays

Search for Hotels in Iceland

Use the interface from Expedia to find and book hotels in Iceland. Below are two tables: one listing the top-rated hotels in Iceland according to Expedia users, and the other a list of hotels in Iceland that are considered the best value for money according to Expedia users. The list of tables is the result of thousands of reviews, so I believe they are a good way for my readers to start their search for booking a hotel in Iceland.

The Best Value Hotels in Iceland According to Expedia User Reviews

These hotels get high marks from travelers for comfort, service, and location—without breaking the bank. A great place to start if you’re traveling on a budget or want to spend more on experiences.

Hotel Region Area Rating
Hotel Frón
📍
Capital Region Reykjavík City Center ⭐️⭐️⭐️⭐️
Fosshotel Nupar
📍
South-East Iceland Near Vatnajökull National Park ⭐️⭐️⭐️⭐️
Storm Hotel by Keahotels
📍
Capital Region Central Reykjavík ⭐️⭐️⭐️⭐️½
Hotel Vík í Mýrdal
📍
South Coast Vík ⭐️⭐️⭐️⭐️
Guesthouse Skálafell
📍
South-East Iceland Near Jökulsárlón ⭐️⭐️⭐️⭐️
Hotel Laxnes
📍
Capital Region Mosfellsbær ⭐️⭐️⭐️⭐️

The Highest Rated Hotels in Iceland According to Expedia User Reviews

Looking for a memorable stay with top-notch service, beautiful locations, and stunning design? These hotels are consistently rated 4.5 stars or higher and offer some of the best experiences in Iceland.

Hotel Region Area Rating

The Retreat at Blue Lagoon

📍
Reykjanes Peninsula Grindavík / Blue Lagoon ⭐️⭐️⭐️⭐️⭐️

Reykjavik Residence Hotel

📍
Capital Region Downtown Reykjavík ⭐️⭐️⭐️⭐️½

Reykjavik Konsulat Hotel (Curio Collection by Hilton)

📍
Capital Region Downtown Reykjavík ⭐️⭐️⭐️⭐️½

Hotel Geysir

📍
South Iceland (Golden Circle) Geysir / Haukadalur ⭐️⭐️⭐️⭐️½

Sigló Hotel by Keahotels

📍
North Iceland Siglufjörður ⭐️⭐️⭐️⭐️⭐️

Black Beach Suites

📍
South Coast Vík í Mýrdal ⭐️⭐️⭐️⭐️⭐️

Magma Hotel

📍
South Coast Kirkjubæjarklaustur ⭐️⭐️⭐️⭐️⭐️

Hotel Seljalandsfoss

📍
South Iceland Near Seljalandsfoss ⭐️⭐️⭐️⭐️½

Hótel Jökulsárlón – Glacier Lagoon Hotel

📍
South-East Iceland Reynivellir / near Jökulsárlón ⭐️⭐️⭐️⭐️⭐️

Best Hotel in Akureyri – A Personal Recommendation

Heading to North Iceland? I wholeheartedly recommend Hotel Kjarnalundur in Akureyri. It’s tucked into the beautiful Kjarnaskógur woodland just outside town—a lovely spot for walking, jogging, and even cross-country skiing in winter.

There’s a hot tub for soaking under the stars, and with any luck, you might catch the northern lights! Full disclosure: my sister runs this hotel—so if you stay there, tell her I sent you.

Where to Book Hotels in Iceland – By Region or Itinerary

Here are some quick suggestions for booking your hotel depending on your trip type:

Breathtaking view over Reykjavík from the top of Hallgrímskirkja, capturing the vibrant cityscape, harbor activity, and the distant Mount Esja under a bright Icelandic summer sky.
Breathtaking view over Reykjavík from the top of Hallgrímskirkja, capturing the vibrant cityscape, harbor activity, and the distant Mount Esja under a bright Icelandic summer sky.

For a Quick Trip

Join the south coast hiking tour
Having a blast on the south coast hiking tour.

South Coast Adventure

The stunning Gullfoss waterfall on the Golden Circle in Iceland.
The stunning Gullfoss waterfall on the Golden Circle in Iceland. It is definately one of the top ten activities and places in Iceland.

The Golden Circle

  • Make Geysir or Laugarvatn your base to explore the top sites.
  • Recommended: Hotel Geysir
Lucky people see a beautiful whale.
Lucky people see a beautiful whale.

North Iceland

Stay in Akureyri or Siglufjörður for great culture, whale watching, and scenery.

Recommended: Hotel Kjarnalundur in Akureyri, Sigló Hotel by Keahotels

Plan Your Iceland Road Trip & Book Along the Way

I’ve created free road trip itineraries to help you plan where to stay along popular routes. Pair them with the hotel tables above for easy booking:

Breathtaking view on Solheimajokull glacier in Katla Geopark on Icelandic Atlantic South Coast. Location: South glacial tongue of Myrdalsjokull ice cap, near Vik village, Iceland, Europe
Breathtaking view of the Solheimajokull glacier in the Katla Geopark on the Icelandic Atlantic South Coast. Location: South glacial tongue of Myrdalsjokull ice cap, near Vik village, Iceland, Europe

South Coast Road Trip

– From Reykjavík to Diamond Beach

Aldeyjarfoss waterfall in north east Iceland.
Aldeyjarfoss waterfall has the best basalt columns!

Diamond Circle Road Trip

– Discover the gems of the north

Strokkur geyser on the south coast of Iceland erupts in winter
Strokkur geyser on the south coast of Iceland erupts in winter

Golden Circle Plan

– Perfect for short trips

The stunning ring-road in the south of Iceland. Photo by Rory Hennessey on Unsplash.
The stunning ring-road in the south of Iceland. Photo by Rory Hennessey on Unsplash.

Ring Road Itinerary

– The full Icelandic experience

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Since 2012, I’ve been helping people discover the real Iceland through honest travel guides, interviews, and personal recommendations. Every time you book a hotel, tour, or rental car through this site, you help keep the magazine running—so thank you!

Aerial view of Kerið, a vibrant volcanic crater lake in South Iceland's Golden Circle, featuring striking red slopes and vivid turquoise water surrounded by moss-covered rock formations
The Kerid crater is a top-destination in Iceland

Ready to Book a Hotel in Iceland?

Start by using the Expedia interface above to search and book your hotel in Iceland. Or, scroll through the top-rated and best-value picks to find your perfect stay.

Whether you’re here for the landscapes, the adventure, or the peace and quiet—Iceland has a hotel that’ll fit your journey.

PRO TIPS:

Frequently Asked Questions About Booking Hotels in Iceland

What is the best way to book a hotel in Iceland?

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The easiest way is to use a trusted booking platform like Expedia, which lets you compare prices, check verified reviews, and filter by location, amenities, and rating. You can start your search right here on this page using the integrated search tool—plus, booking through this site supports an independent travel magazine!

When should I book my hotel in Iceland?

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Book as early as possible, especially if you’re visiting in the high season (June to August) or during the Northern Lights season (October to March). Rural hotels and popular spots along the South Coast or Golden Circle often sell out months in advance.

For the best mix of availability and price, aim to book your hotel 3 to 6 months before your trip.

Are hotels in Iceland expensive?

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In general, yes—Iceland is a pricey destination. However, you can still find good value hotels that offer comfort and convenience without the luxury price tag. Check our Best Value Hotels list above for traveler-approved options that balance price and quality.

Tip: Consider guesthouses and countryside hotels—they often include free breakfast and parking, which adds value.

Can I book a hotel in Iceland with Northern Lights views?

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Yes! Some countryside hotels outside of the city offer great chances to see the aurora borealis on clear nights, especially between September and April.

Look for hotels that are:

  • Away from city lights
  • In North or South Iceland (where skies tend to be darker)
  • Advertised as “Northern Lights hotels”

Examples include Hotel Kjarnalundur in Akureyri and Hotel Seljalandsfoss on the South Coast.

Do hotels in Iceland include breakfast?

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Most hotels in Iceland offer complimentary breakfast, especially in the countryside and smaller towns. It’s a great way to fuel up before a day of exploring. In Reykjavík, some city hotels may offer breakfast for an additional charge.

Always check the hotel’s listing on Expedia to confirm what’s included.

Should I book hotels before or after renting a car in Iceland?

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If you’re planning a road trip, book your car first, then plan your hotel stays around your route. You can follow one of our free itineraries (like the South Coast or Ring Road) and book hotels along the way.

If you’re staying mostly in Reykjavík and doing guided day tours, you might not need a car at all—just book a hotel in the city center.

Can I find hotels in Iceland with hot tubs?

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Absolutely. Many hotels—especially those in rural areas—offer outdoor hot tubs or geothermal spas, which are perfect after a long day of sightseeing. Some even have private hot tubs or natural hot springs nearby.

Here are a few hotel types to look for:

  • Luxury hotels (e.g., The Retreat at Blue Lagoon)
  • Countryside hotels (e.g., Hotel Kjarnalundur)
  • Guesthouses with hot tubs

Are there family-friendly hotels in Iceland?

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Yes! Many hotels in Iceland cater to families with larger rooms, extra beds, and kid-friendly amenities. When booking, use the “family-friendly” filter or search for hotels with family rooms or apartment-style setups (like Reykjavík Residence Hotel).

What area is best to stay in when visiting Iceland?

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It depends on your trip goals:

  • Reykjavík: Best for city lovers, nightlife, and short trips
  • South Coast: Ideal for waterfalls, black sand beaches, and glaciers
  • Golden Circle: Great base for first-time visitors doing a quick loop
  • North Iceland: Less touristy, great for culture and wildlife
  • Blue Lagoon area: Perfect for pre-flight or post-flight relaxation

Use the hotel tables above to find the best places in each region.

Can I store luggage at hotels before check-in or after check-out?

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Most hotels in Iceland offer free luggage storage, especially in Reykjavík and other major tourist areas. If you’re arriving early or leaving late, just ask the front desk—they’re usually very accommodating.

What’s the best hotel near Keflavík International Airport?

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If you need a stay near the airport, check out:

  • Northern Light Inn – Cozy and close to Blue Lagoon
  • Hotel Berg – Modern, stylish, and 5 minutes from the airport
  • Courtyard by Marriott – Practical, clean, and very close to departures

These are great options for early flights or late-night arrivals.

Still have questions?

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Feel free to reach out or check out the latest guides and road trip plans. And don’t forget to sign up for the newsletter for exclusive hotel deals, discounts on tours, and travel tips from locals.