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🇮🇸 Iceland

Where to stay in Iceland

Iceland is a country-sized island where distance matters enormously. Reykjavik is the cosmopolitan hub with hot pools, restaurants, and day-trip access to the Golden Circle and South Coast. The Ring Road circles the entire country connecting glaciers, volcanoes, black-sand beaches, and geothermal valleys. The Westfjords and Highlands are remote and dramatic. Your choice of base shapes everything -- from which landscapes you can reach to whether you see the northern lights.

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Where to look

Northern Lights Chasers

Aurora hunters — Winter travellers — Photography enthusiasts — Bucket-list trippers The northern lights (aurora borealis) are visible in Iceland from late August to mid-April whenever skies are clear and solar activity is sufficient. The key is distance from light pollution. Reykjavik has dark sky beaches like Grótta lighthouse just minutes from the centre, but for the best conditions you need to drive 30-60 minutes out of the city. Hotel Ranga near Hella on the South Coast is Iceland's most famous aurora-watching hotel, with in-room wake-up calls when the aurora appears and a rooftop hot tub for viewing. Farm guesthouses and rural cottages along the South Coast and in West Iceland give genuine dark skies and memorable experiences. The aurora app Vedur.is (Iceland Met Office) predicts activity on a scale of 0-9 -- any reading of 3+ with clear skies gives a reasonable chance of seeing the lights. The Ring Road east of Hofn and the Westfjords have some of the darkest skies on the island. Avoid staying in towns if aurora is your primary goal.

Ring Road Road-Trippers

Self-drive travellers — Adventure seekers — Photographers — Couples on epic journeys The Ring Road (Route 1) is 1,332 km around Iceland's entire perimeter, typically driven in 7-14 days. The standard approach is to move bases each night, staying in guesthouses, farm hotels, and campsites along the route. The South Coast -- Vik, Skaftafell, Jokulsarlon Glacier Lagoon -- is the most scenic stretch and has the densest accommodation options. In the east, Hofn is the base for Vatnajokull glacier access. In the north, Akureyri is Iceland's second city and a comfortable overnight stop. For Ring Road planning, book accommodation 2-3 months ahead in summer (June to August) as guesthouses outside Reykjavik have limited rooms and fill quickly. In winter, some remote guesthouses close -- always confirm in advance. Driving the Ring Road clockwise (south coast first) is the popular direction but anti-clockwise works equally well. Leave buffer days for weather delays -- Iceland's weather changes rapidly and roads can close.

Glacier & Nature Hikers

Hikers — Mountaineers — Glacier walkers — Wildlife enthusiasts Iceland's South Coast is the gateway to the country's most dramatic landscapes. Staying in Vik (the most southerly village in Iceland) puts you at the base of Myrdalsjokull glacier and within reach of Reynisfjara black sand beach, the Fjadrargljufur canyon, and the DC-3 plane wreck on Solheimasandur. Skaftafell within Vatnajokull National Park -- the largest national park in Europe -- has some of Iceland's best day hikes including the Svartifoss waterfall trail and Kristinartindar summit. The Landmannalaugar highlands (accessible July-September only, requiring a 4WD for F-roads) offer multiday hiking on volcanic rhyolite mountains. The famous Laugavegur trail (55 km, 4-5 days) between Landmannalaugar and Thorsmork is one of the world's best hiking routes. Snaefellsnes Peninsula in the west has the glacier-capped Snaefellsjokull volcano (immortalised by Jules Verne) and excellent coastal hiking. Book mountain huts in highland areas well in advance -- they have limited space.

Hot Spring & Wellness Lovers

Wellness travellers — Spa lovers — Couples — Slow travel enthusiasts Iceland is a geothermal wonderland with natural hot springs, geothermal pools, and world-class spa facilities. The Blue Lagoon on the Reykjanes Peninsula is the most famous -- a milky turquoise geothermal pool surrounded by black lava. Staying at The Retreat at Blue Lagoon gives exclusive in-hotel access to the lagoon at off-peak hours and a private pool on your suite terrace. Sky Lagoon, opened in 2021 on the Reykjavik coast, combines infinity pool views with a cold-ocean plunge and sauna ritual. For a more authentic experience, the natural hot pot at Landmannalaugar, Reykjadalur hot river (a 3 km hike from Hveragerdi), and Seljavallalaug (Iceland's oldest swimming pool, built 1923, free, hiking access only) offer geothermal bathing without the tourist infrastructure. Myvatn Nature Baths in the north are a quieter alternative to the Blue Lagoon with extraordinary volcanic landscape. Almost every Icelandic town has a community geothermal swimming pool -- inexpensive and used by locals daily.

Reykjavik City Breakers

City lovers — Foodies — Culture seekers — Long weekend travellers Reykjavik is one of the world's most compact and walkable capitals. The 101 postal district (downtown) contains the main restaurants, bars, galleries, and shops within a 15-minute walking radius of Hallgrimskirkja church. Laugavegur Street is the city's main drag -- lined with independent boutiques, coffee shops, and restaurants that stay open late. The Harpa Concert Hall on the waterfront and the National Museum of Iceland are outstanding. The Old Harbour has whale-watching boats and excellent fish restaurants. For weekend city breaks from Europe, Reykjavik works perfectly as a 3-4 day trip combined with a Golden Circle day tour. Accommodation in the 101 district -- boutique hotels, guesthouses, and apartments -- is expensive but central. The 105 district (east of centre) has more affordable options with a 10-15 minute walk to downtown. Airbnb apartments in the Vesturbaejar (west) and Hlemmur areas offer home comforts at lower prices. Flying in Friday evening, departing Monday morning is a very achievable city break format.

Budget Travellers

Backpackers — Students — Long-term travellers — Solo adventurers Iceland is expensive but budget travel is possible with planning. Reykjavik hostels in the 101-107 districts offer dormitory beds from EUR 35-55 per night. KEX Hostel and Oddsson Hostel are well-regarded options with social atmosphere and on-site bars. Guesthouses in the Hlemmur area offer private rooms from EUR 80-100 per night. For Ring Road travel, camping is the most affordable option in summer -- official campsites charge EUR 12-18 per person per night and are well-maintained throughout Iceland. Self-catering saves significant money in Iceland where restaurant meals average EUR 25-40 per main course. Apartment rentals and guesthouses with kitchen access let you shop at Bonus or Kronan supermarkets (Iceland's budget chains) for lunches and breakfasts. The local swimming pools charge EUR 6-9 for entry and are far cheaper than hotel spas for the same geothermal water experience. Hitching rides and using long-distance buses (Streto) can reduce car rental costs for solo travellers willing to be flexible.

🏘 Reykjavik

Iceland's capital and cultural hub. Excellent restaurants, museums, geothermal pools, and day-trip connections to Golden Circle and South Coast. City breaks — Culture — Base for day trips

🌋 Reykjanes Peninsula

Home of the Blue Lagoon and Keflavik Airport. Easy first/last night stop. Volcanic landscapes, geothermal activity, and the famous spa resort. Blue Lagoon — Arrival stop — Geothermal

⛳ South Coast

The most dramatic Iceland scenery. Black sand beaches, Seljalandsfoss, Skogafoss, Vik village, Skaftafell. The Ring Road's most popular stretch. Waterfalls — Glaciers — Photography

🎼 Jokulsarlon & East Iceland

Glacier lagoon, diamond beach, isolated fjords of the east. Quieter and more remote than the south. Hofn is the base for glacier access. Glacier lagoon — Remote — Nature

🚫 Akureyri & North Iceland

Iceland's northern capital. Gateway to Myvatn volcanic region, Godafoss waterfall, and whale watching from Husavik. Warmer summers than the south. Whales — Volcanoes — Northern gateway

🏈 Snaefellsnes Peninsula

The glacier-capped Snaefellsjokull volcano, Arnarstapi sea cliffs, Djupalonssandur black beach. A Ring Road alternative destination two hours from Reykjavik. Volcano — Hiking — Day trip from Reykjavik

🏘 Westfjords

Iceland's most remote region. Dynjandi waterfall, sea cliffs at Latrabjarg, remote fjords. Accessible by road or ferry. Dramatically uncrowded. Remote — Dramatic fjords — Off the beaten track

🌕 Myvatn Region

Volcanic craters, lava fields, pseudo-craters, Myvatn Nature Baths. The north's most extraordinary landscape. Near Akureyri airport. Volcanic — Geothermal — Photography

Tips for booking

  • Book properties with aurora wake-up services in winter. Several guesthouses and hotels offer to wake guests when the aurora is visible -- worth paying extra for. A hot tub facing north under the stars is Iceland's most memorable accommodation experience. Check cloud forecasts on vedur.is before each night.
  • Book Ring Road accommodation as early as possible in summer. Guesthouses between Vik and Hofn -- the most popular stretch -- have limited beds and demand is enormous. The best farms and boutique lodges book out months ahead. A mix of farm guesthouses (authentic) and Fosshotal chain properties (reliable quality) works well for a full circuit.
  • For hiking, plan accommodation around trailheads, not towns. Landmannalaugar mountain huts must be booked through Ferdalag Islands months in advance. Thorsmork lodges book out just as fast. Consider the Fosshotel Glacier Lagoon near Jokulsarlon as a luxury base for glacier walks and ice cave tours (available October to March).
  • Book The Retreat at Blue Lagoon 4-6 months ahead. It regularly sells out. If staying at the hotel isn't possible, book Blue Lagoon entry tickets well in advance -- walk-ins are rarely available. For a more affordable Blue Lagoon alternative, stay at a guesthouse in Grindavik (5 min drive) and visit during off-peak hours at 08:00 or after 18:00.
  • Stay in the 101 district for the most walkable Reykjavik experience. Even in winter, the city centre is lively and most attractions are on foot. Buy the City Card for unlimited use of the city's geothermal swimming pools -- the Laugardalslaug complex is a highlight. Book restaurants ahead -- the best spots (Matur og Drykkur, Dill) book out days in advance.
  • Iceland's community swimming pools are budget travellers' best-kept secret. Every town has one -- admission EUR 6-9, geothermally heated, used by locals. Skip the Blue Lagoon at EUR 50+ and visit Laugardalslaug in Reykjavik, the Westman Islands pool, or Hofsos in the north instead for a genuine Icelandic experience at a fraction of the price.
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