Hótel Húsafell
Staying in Borgarnes? Hótel Húsafell offers dependable 4-star quality and puts Vatnajokull National Park and central Iceland within easy reach.
From here, Iceland's main attractions — including Vatnajokull National Park — are an easy walk or short ride away, so you spend less time in transit and more time exploring.
Key facts
What’s included
Around Borgarnes
What Iceland hotels actually cost per night
Budget in Iceland means 12,000-18,000 ISK for a guesthouse room with shared bathroom in Selfoss, Hveragerdi or Borgarnes, or a hostel private in Reykjavik's 101. Mid-range is 22,000-38,000 ISK for a three-star with private bathroom and breakfast, which covers most of Fosshotel, Icelandair Hotels and Kea Hotels in Akureyri, Myvatn, Vik and Hofn. Top-end runs 55,000-120,000 ISK: think Ion Adventure near Thingvellir, Deplar Farm, or the Retreat at Blue Lagoon in Grindavik.
Rates spike three times a year: mid-June to mid-August across the whole country, 27 December to 3 January in Reykjavik for New Year, and any Iceland Airwaves weekend in early November for 101 hotels. Rural areas like Vik, Hofn and Myvatn have limited inventory and often sell out for July by February, which is why the same room can be 25,000 ISK in May and 55,000 ISK in July.
The booking trap: Keflavik is not Reykjavik, and other Iceland-specific mistakes
Keflavik and Reykjanesbaer are 47 km from central Reykjavik, roughly 50 minutes by Flybus, and staying there to save money only works if you have a very early or very late flight. Every year people book a "Reykjavik" hotel that turns out to be in Kopavogur or Mosfellsbaer, which is fine but not walkable to Laugavegur, so check the postcode: 101, 105 and 107 are central, anything else is a bus ride. Grindavik has been affected by volcanic activity on the Reykjanes peninsula since 2023 and some hotels there have closed or relocated, so verify current status before booking.
The season nobody expects is late August to mid-September, which has aurora, open highland roads until early September, and rates already 20-30% below July. The area people wrongly skip is the east: Egilsstadir and Seydisfjordur are 650 km from Reykjavik but the Faroese ferry Norrona docks in Seydisfjordur, and the fjord itself is one of the quietest places on Route 1. Do not book a 2WD for a Ring Road trip between October and May; the Oxi pass and the road over Hellisheidi close without warning.
Where to stay in Iceland: picking between Reykjavik, the south coast and the north
Most first visits are based in Reykjavik, specifically the 101 postcode around Laugavegur and Hallgrimskirkja, because it puts you within 50 minutes of the Golden Circle and 45 minutes of Keflavik airport. Kopavogur, Gardabaer and Mosfellsbaer sit on the same bus routes into the capital and typically run 15-25% cheaper than central 101 for the same standard of room. Hafnarfjordur is the pick if you want harbour walks and easier parking, and Reykjanesbaer or Keflavik town make sense only for early flights or a Blue Lagoon stop in Grindavik.
Outside the capital, Selfoss and Hveragerdi are the natural first night east if you're driving the south coast, Vik is the base for Reynisfjara and Skogafoss, and Hofn is where you sleep after Jokulsarlon. Akureyri is the northern hub for Myvatn and Husavik whale watching, Egilsstadir and Seydisfjordur cover the east, and Isafjordur is the Westfjords base most people underestimate the drive to. Stykkisholmur, Borgarnes and Akranes handle Snaefellsnes, while Thingvellir and Landmannalaugar have very limited beds and book out months ahead in summer.