Where to Stay in Iceland

For reference, budget = $100 or less; moderate = $100-$250; upscale = $250+

Disclaimer: some links lead to affiliate sites, in which I get a small percentage if you book through the link (at no cost to you!)

Reykjavik

The Capital City

Budget -

Moderate -

Upscale -

Budget -

Moderate -

Upscale -

Golden Circle

Budget -

Moderate -

Upscale - Hotel Husafell (Expedia $300-400/night), STUNNING if you want a remote place near Barnafoss and the Víðgelmir Cave. You'll be able to see the Northern Lights from here beautifully on a stunning day. This was one of my dream hotels to stay at for the amenities they had & price, but was already booked full for the itinerary we had (I looked 3 months before!)

Between Golden Circle and Snaefellsness

Western Iceland - Snæfellsnes Peninsula

Budget -

Moderate -

  • Northern Edge (near Kirkjufell) - Kirkjufell Guesthouse and Apartments (Expedia) - $160-200/night; this place overlooks Kirkjufell and has a small kitchen (so you can cook meals to save money!)

    • Old Post Office (Expedia) - $190/night, good place to stay if you want to catch sunrise or sunset at Kirkjufell, as it's a 10-minute drive

Upscale -

  • Entering Snaefells - Midhraun Lava Resort (Expedia $290/night, shared bathroom OR $450 for 2-br house); farmhouse grounds offers newly renovated interior with hot tub area. Only worth it if you're booking a whole house imo

  • Southern Edge - Hotel Budir (Expedia) - $250-350/night depending time of year. Breakfast is not included ($$ fee) and food is more expensive than Reykjavik, but this offers a more luxury hotel experience in a remote area.

  • Northern Edge (near Kirkjufell) - Kirkjufell Guesthouse and Apartments

waterfalls between rock formation at golden hour
waterfalls between rock formation at golden hour

Western Fjords

Major towns: Patreksfjörður (small fishing village ~700 inhabitants with 1 place to eat in town. Ideal for 1-night stay before Dynjandi waterfall), Ísafjörður (largest town in the Western Fjords, cruises dock here, perfect for your other night stay after Dynjandi waterfall)

Other options: Bíldudalur, Heydalur, Dolmavik

In the Western Fjords, there are really no budget nor upscale hotels. Everything I found that was reasonable quality were all in the moderate $125-250/night range. These were my personal picks in each area of the Western Fjords.

Patreksfjörður - Hotel West (Expedia) $130/night, perfect for a 1-night stay in between the bird cliffs and Dynjandi waterfalls

Bíldudalur - Harbour Inn Guesthouse (Expedia) $154/night, 12 bed bed/breakfast in a town even smaller than Patreksfjordur. Though more quiet, this place offers free breakfast and has phenomenal reviews. It is slightly closer to Dynjandi waterfall

Ísafjörður - Hotel Isafjordur (Expedia) $180-200/night, located in the center of town. Free breakfast

Heydular - Country Hotel Heydular (Expedia) $190/night, closer to the mainland area than Isafjordur - this rural hotel makes for a great stop with a unique pool located inside a greenhouse

Northern Iceland

Troll Peninsula, Akuyeri, and Lake Myvatn

Budget -

Moderate - Lake Myvatn (Expedia) $150-200/night

Upscale -

Eastern Iceland

Budget -

Moderate -

Upscale -

Southern Iceland

Vik

Budget -

Moderate -

Upscale -

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