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★★★ Egilsstadir · Iceland ★ 4.2 · 138
Snæfell Hotel by Aldan
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Snæfell Hotel by Aldan

Austurvegur 3, Egilsstadir, Iceland

Snæfell Hotel by Aldan is a 3-star hotel in Egilsstadir, Iceland, a sensible choice for sightseeing around Geysir Geothermal Area without overspending.

Guests typically choose Egilsstadir for its balance of location and price; Snæfell Hotel by Aldan is a good fit if you want to be near the action in Iceland.

Key facts

Class
3-star
Area
Egilsstadir
Guest rating
4.2 (138)
Address
Austurvegur 3, Egilsstadir, Iceland

What’s included

Bars Bath Bathroom Bike rental service Cleaning Coffee Cot Family rooms Free Wifi Free car parking Golf course Hairdryer

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.

Best time to visit Iceland month by month

June, July and August are peak: 20+ hours of daylight, all F-roads to Landmannalaugar open by early July, and Reykjavik hotel rates 40-60% above winter. Puffins are on the cliffs at Latrabjarg and Dyrholaey from late May to mid-August, and this is the only reliable window for the highlands. September brings the first aurora nights and a noticeable price drop after the 1st, while October and November are the cheapest months of the year alongside January.

December has Reykjavik's Christmas markets and Yule Lads but rates climb again over New Year, when fireworks over Hallgrimskirkja push prices close to summer levels. February and March are strong for northern lights and ice caves in Vatnajokull, with mid-range hotels in Vik or Hofn around 20,000-28,000 ISK. April and May are shoulder season with unpredictable weather but the best value if you can accept that Myvatn roads may still be icy and Seydisfjordur's pass can close.

Questions, answered

Where is Snæfell Hotel by Aldan located?
Snæfell Hotel by Aldan is in Egilsstadir, Iceland (Austurvegur 3, Egilsstadir, Iceland), close to Geysir Geothermal Area.
How much does Snæfell Hotel by Aldan cost per night?
Prices are set live by the hotel — check the booking page for a real rate for your dates.
How many stars is Snæfell Hotel by Aldan?
Snæfell Hotel by Aldan is a 3-star hotel in Iceland.
Is Snæfell Hotel by Aldan a good hotel?
Guests rate it 4.2 across 138 reviews. It's a midscale choice for Iceland.
What's the typical nightly rate for a hotel in Iceland?
A mid-range three-star double in Reykjavik runs 25,000-38,000 ISK depending on season, and slightly less in Akureyri, Selfoss or Borgarnes at 20,000-30,000 ISK. Guesthouses with shared bathrooms in Hveragerdi or rural south coast start around 14,000 ISK. Top-end properties like Ion, Deplar Farm and the Retreat sit at 80,000-150,000 ISK. Rates in July are typically 40-60% higher than in October or February for the same room.
Is Reykjavik walkable?
Yes, central Reykjavik is very walkable: Laugavegur, the harbour, Harpa, Hallgrimskirkja and Tjornin are all within a 20-minute radius. The city has about 140,000 people and the 101 core is barely 2 km across. You'll want a bus or taxi for Perlan, the Kringlan mall in 108, or Laugardalur pool. Once you leave the capital, walkability drops fast; Vik, Hofn and Akureyri each have compact centres but everything else needs a car.
Is it safe to stay in Grindavik with the volcanic activity?
Grindavik town itself has been largely evacuated since late 2023 due to eruptions on the Reykjanes peninsula, and some hotels have closed while others have reopened depending on current activity. The Blue Lagoon and the Retreat have reopened and closed several times based on Icelandic Met Office assessments. Always check the status on the day before booking, and consider staying in Reykjanesbaer or Keflavik (15-20 km away) instead. Flights in and out of Keflavik airport, 20 km north of Grindavik, have not been affected.
What's the best area to stay in Reykjavik?
The 101 postcode, covering Laugavegur, Bankastraeti and the area around Hallgrimskirkja and Tjornin lake, is the best base for a first visit. Everything walkable, from Harpa concert hall to the harbour where whale watching boats leave, sits within 15 minutes on foot. 105 and 107 are quieter residential extensions still within walking distance, while 108 (near Kringlan mall) and Kopavogur need a bus. Expect 101 hotels to run 30,000-45,000 ISK in summer for a mid-range double.
What's the cheapest month to visit Iceland?
October, November and January are the cheapest, with Reykjavik mid-range rates dropping to around 18,000-25,000 ISK compared to 35,000+ in July. You get northern lights and often ice cave access from November onwards, but shorter days: 4-5 hours of daylight in December around Reykjavik. Avoid the New Year window from 27 December to 3 January, when prices jump back to summer levels. February is nearly as cheap and has more daylight than December.
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