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Where to stay

Hand-picked hotel shortlists for 22 places, by hotel class and guest rating, each linking to the hotels' own pages.

22 places29 guides

Choosing where to stay in Iceland comes down to how much of the country you want to see and whether you are driving. Reykjavik holds the largest concentration of hotels, from design properties in the city centre to spa hotels and apartments near the old harbour, and it works well as a base for short trips. Keflavik, next to the international airport, suits early flights and the first or last night of a ring road journey.

Beyond the capital area the island opens up into distinct stopping points. Akureyri anchors the north, Selfoss and Hveragerdi cover the south close to Reykjavik, and Borgarnes, Stykkisholmur and Olafsvik sit on the western routes. Egilsstadir and Laugar serve the east and north-east, Husavik and Saudarkrokur the north coast, while Isafjoerdur, Siglufjoerdur and Reydarfjoerdur fill in the fjord country. Hoefn and Vestmannaeyjar cover the south-east and islands, and Kopavogur, Hafnarfjoerdur, Mosfellsbaer and Reykjanesbaer give alternatives around the capital region.

Popular places

Egilsstadir

An east Iceland base with 15 hotels, all 3-star, 10 with parking for the drive along the east coast.

Laugar

A small northern settlement with 15 3-star hotels, 12 with parking, near the ring road.

3-star or 4- and 5-star: which to choose

Three-star hotels dominate almost everywhere in Iceland, and in places such as Egilsstadir, Laugar, Hveragerdi, Stykkisholmur, Hoefn and Vestmannaeyjar they are the only option. Choose them when you want straightforward comfort while moving between regions. Four-star hotels appear in Reykjavik, Keflavik, Akureyri, Selfoss, Husavik and Borgarnes, and they suit stays of several nights or a first trip where you want more facilities. Five-star hotels are rare: Reykjavik and Selfoss each have one. Pick those two towns if a 5-star stay matters to you.

Hotel guides by place

Akureyri

Borgarnes

Egilsstadir

Hafnarfjoerdur

Hoefn

Husavik

Hveragerdi

Iceland

Isafjoerdur

Keflavik

Kopavogur

Laugar

Mosfellsbaer

Olafsvik

Reydarfjoerdur

Reykjanesbaer

Reykjavik

Saudarkrokur

Selfoss

Siglufjoerdur

Stykkisholmur

Vestmannaeyjar

Questions, answered

Which area is best for first-time visitors to Iceland?

Reykjavik, with 30 hotels and one 5-star property, is the natural first base, while Keflavik, with 27 hotels near the airport, covers arrival and departure nights. Between them you can start and end a trip without long drives.

Where should families stay in Iceland?

Borgarnes has 13 family-friendly hotels, Keflavik 10, Selfoss 10 and Hoefn 10, all with parking widely available. Reykjavik has 5 and Akureyri 7. The smaller southern and western towns keep drives short for children.

Which places have parking at most hotels?

Parking is common outside the capital: Akureyri has 18 hotels with parking, Husavik 18, Keflavik 16, Borgarnes 16 and Selfoss 15. Reykjavik has only 6, so a car is easier to manage in the smaller towns.

Where can I stay in a 5-star hotel in Iceland?

Only Reykjavik and Selfoss have a 5-star hotel, one in each. Everywhere else the choice is 3- and 4-star, with 4-star hotels in Keflavik, Akureyri, Husavik and Borgarnes as the highest category.

Which towns in the east and north have the most hotels?

Akureyri leads the north with 30 hotels, followed by Husavik with 23. In the east, Egilsstadir and Laugar each have 15 3-star hotels, giving a choice of stops along that stretch of the ring road.

Is it better to stay in Reykjavik or in the smaller towns?

Reykjavik offers 30 hotels, including design and spa properties, and suits city-focused trips. Smaller places such as Selfoss, Borgarnes or Egilsstadir put you closer to the landscapes, and parking is far more widely available there.

Area guides and ideas