Reykjavík, the Golden Circle, the South Coast or the north? Here is where to stay in Iceland for every kind of trip, with the best bases by region, season and travel style.
Picture two travelers on their first trip to Iceland. One books five nights in a Reykjavík apartment and spends every morning on a tour bus. The other moves three times, waking up beside a glacier lagoon, then a waterfall, then a fjord. Both have a great trip, but they see very different countries. Where you sleep in Iceland shapes everything, from how much you drive to your chances of seeing the northern lights from your doorstep.
Where is the best place to stay in Iceland?
The best place to stay in Iceland for most first-time visitors is Reykjavík, which has the widest choice of hotels, restaurants and day tours. For a road trip, the best bases are the Golden Circle area, the South Coast around Vík and Höfn for Jökulsárlón, and Akureyri for North Iceland. If seeing the northern lights is your priority, a countryside hotel or cottage away from city lights gives you the best chance.
Here is a quick overview of the main bases:
Reykjavík, for first-timers, short trips and travelers without a car
The Golden Circle area, for quiet countryside stays close to the capital
The South Coast, for waterfalls, black sand beaches and glaciers
Höfn and the glacier lagoon area, for Jökulsárlón and Vatnajökull
Snæfellsnes, for a compact peninsula of mountains, lava and coastline
Akureyri and Mývatn, for North Iceland's waterfalls, whales and volcanic landscapes
East Iceland and the Westfjords, for remote fjords and few crowds
Should you stay in one place in Iceland?
It depends on how long you have and what you want to see. Staying in one place works well for short trips of four or five nights, especially in winter, when short days and changeable weather make long drives harder. Reykjavík makes the easiest single base, because the Golden Circle, the South Coast and Snæfellsnes are all reachable on day trips.
For trips of a week or more, moving between two or three bases saves a lot of driving. The South Coast, Jökulsárlón and North Iceland are too far from Reykjavík to see properly on day trips. A road trip around the Ring Road usually means a new bed every night or two.
As a rule of thumb:
With 3 to 5 nights, stay in Reykjavík or split your time between Reykjavík and the South Coast
With 6 to 7 nights, add one or two nights on the South Coast and one near the Golden Circle
With 8 to 14 nights, drive the full Ring Road and stay in four to seven places
Where to stay in Reykjavík
Reykjavík is home to about two-thirds of Iceland's population, counting the wider capital area, and it is the natural base for a short trip. Most day tours pick up from hotels or nearby bus stops, so you do not need a car. You will also find the best restaurants, bars and museums in the country.
The best areas to stay in Reykjavík are:
Downtown (101), around Laugavegur and Hallgrímskirkja, for walking access to everything
The Old Harbour, for waterfront hotels close to whale-watching boats and Harpa
Hlemmur and the east end of Laugavegur, for slightly lower prices and good bus links
Laugardalur, for quieter streets near the city's biggest pool and park
Staying downtown is the most convenient choice, especially if you plan to join tours, as many pickup points are in the center. Hotels further out can be cheaper, but check how far you will need to walk to the nearest pickup stop.
The downside of Reykjavík is light pollution. You can see the northern lights from the city on strong nights, but you will usually need to head out of town for a clear view. A northern lights trip from Reykjavík solves that problem by taking you to darker skies, with a guide who follows the forecasts.
Sample accommodation plans for first-timers
If you are unsure how to divide your nights, these simple plans work well for a first visit.
4 nights: one base
Stay all four nights in Reykjavík. Spend one day in the city, then take day trips to the Golden Circle, the South Coast and either Snæfellsnes or the Blue Lagoon and Reykjanes Peninsula. This plan works in any season and does not require a car.
7 nights: three bases
Spend two nights in Reykjavík, two nights near the Golden Circle and three nights on the South Coast, with one of them near Jökulsárlón. You see the most famous sights in the southwest without too much driving, and the countryside nights give you good chances of seeing the northern lights between September and April.
10 to 14 nights: the Ring Road
Drive the full Ring Road, staying one or two nights in each region: the Golden Circle, the South Coast, the glacier lagoon area, East Iceland, North Iceland and Snæfellsnes or the west. This is the classic road trip, and summer is the easiest time to do it.
Where to stay near Keflavík Airport and the Blue Lagoon
Keflavík Airport is about 45 minutes from Reykjavík, on the Reykjanes Peninsula. Staying near the airport makes sense for your first or last night if your flight arrives late or leaves very early, as it saves a long transfer at an awkward hour. The town of Keflavík and neighboring Njarðvík have a handful of hotels and guesthouses within a short drive of the terminal.
The area around the Blue Lagoon is another option. The lagoon has its own hotels, set in the lava fields, and staying there lets you soak before the day visitors arrive or after they leave. It is a popular way to start or end a trip, though prices are high.
Keep in mind that the Reykjanes Peninsula has had a series of volcanic eruptions near Grindavík since 2021. Hotels in the area operate normally most of the time, but check current conditions before you travel.
Where to stay on the Golden Circle
The Golden Circle area, about an hour east of Reykjavík, is a good base for travelers who want countryside views and quiet nights without being far from the capital. Popular places to stay include Selfoss, Hveragerði, Laugarvatn, Flúðir and the area around Geysir.
Staying here lets you visit Þingvellir, Geysir and Gullfoss early in the morning or late in the evening, before and after the tour buses arrive. In winter, the dark countryside skies give you a much better chance of seeing the northern lights from your hotel.
The area has a wide range of options, from farm hotels and guesthouses to cottages with hot tubs and modern design hotels. Many farm stays serve dinner made with their own produce, such as lamb, dairy and greenhouse vegetables. If you would rather leave the car behind, a Golden Circle guided day from Reykjavík covers the main sights in one trip.
Selfoss, Hveragerði and Flúðir
Selfoss is the largest town in South Iceland and a practical base where the Golden Circle meets the South Coast. It has supermarkets, restaurants and a range of hotels, which makes it a good choice if you want services nearby. Hveragerði, a few minutes west, is known for its geothermal greenhouses and the trailhead for the Reykjadalur hot spring river.
Flúðir, on the eastern side of the Golden Circle, is home to the Secret Lagoon, one of the oldest swimming pools in Iceland. It is a quiet village surrounded by farmland and greenhouses, with easy access to Gullfoss and Geysir.
Where to stay on the South Coast
The South Coast is one of the most popular regions in Iceland, with waterfalls, black sand beaches and glaciers lining the Ring Road. It is too far to see properly in a single day trip beyond Vík, so most visitors spend at least one night here.
The main places to stay, from west to east, are:
Hella and Hvolsvöllur, close to Seljalandsfoss and the start of the South Coast
Skógar, beside Skógafoss and the start of the Fimmvörðuháls trail
Vík, the southernmost village in Iceland, near Reynisfjara beach
Kirkjubæjarklaustur, a small village between Vík and Skaftafell
Skaftafell and the area around the national park
Vík is the most popular base, because it sits roughly in the middle of the South Coast and has restaurants, a supermarket and a range of hotels. From Vík, you can reach Reynisfjara, Dyrhólaey and the Mýrdalsjökull glacier in minutes, and Jökulsárlón in about two and a half hours. Hella and Hvolsvöllur are good choices if you want to explore the western part of the coast and still be within easy reach of Reykjavík.
Accommodation on the South Coast books up fast in summer, so reserve as early as you can. In winter, a countryside hotel here is one of the best places in the country to watch for the northern lights.
Where to stay near Jökulsárlón
Jökulsárlón, the glacier lagoon where icebergs drift toward the sea, is around five hours' drive from Reykjavík. A day trip is possible but very long, so most visitors stay nearby for at least one night.
The best places to stay near Jökulsárlón are:
The Skaftafell area, about 45 minutes west of the lagoon
The countryside around Hof and Hnappavellir, between Skaftafell and the lagoon
Höfn, a fishing town about an hour east of the lagoon, known for its langoustine
Staying close lets you visit the lagoon and Diamond Beach at sunrise or sunset, when the light is softer and the crowds are thinner. In winter, it is also the base for natural ice cave tours under Vatnajökull. A South Coast and Jökulsárlón overnight tour handles the long drive and the overnight stop for you.
Where to stay on the Snæfellsnes peninsula
Snæfellsnes, about two hours north of Reykjavík, is often called "Iceland in miniature" because it packs mountains, lava fields, beaches and a glacier into one compact peninsula. You can see the highlights in a long day trip, but a night or two lets you explore at a slower pace.
The main bases are:
Stykkishólmur, a charming harbor town on the north coast of the peninsula
Grundarfjörður, beside Kirkjufell, the arrow-shaped mountain
Hellnar and Arnarstapi, small villages on the south coast near the cliffs
Búðir, a remote spot with a famous black church
Stykkishólmur has the most services, plus a ferry across Breiðafjörður to the Westfjords. Grundarfjörður is ideal for photographers who want to catch Kirkjufell at sunrise or under the northern lights. If you would prefer not to drive, a Snæfellsnes tour from Reykjavík covers the peninsula in a single day.
Where to stay in North Iceland
North Iceland is around five hours' drive from Reykjavík, or about 45 minutes by domestic flight to Akureyri. It is worth at least two or three nights, with two main bases.
Akureyri, the largest town in the north, has the widest choice of hotels, restaurants and services. It is a good base for whale watching on Eyjafjörður, Goðafoss and day trips to Lake Mývatn. Mývatn itself, about an hour east, is ideal if you want to be close to the area's volcanic sights, the Mývatn Nature Baths and Dettifoss.
Húsavík, on the north coast, is another option for whale-watching fans, with a whale museum and boats leaving from the harbor. The north generally has fewer visitors than the south, and its long winter nights make it a strong choice for the northern lights.
Where to stay in East Iceland and the Westfjords
East Iceland and the Westfjords are the most remote regions in the country, with steep fjords, small fishing villages and few crowds. They suit travelers with more time who want to get away from the busiest routes.
In East Iceland, Egilsstaðir is the main hub, with an airport and a range of hotels. Seyðisfjörður, a colorful village at the end of a fjord, is a popular overnight stop, and the coastal villages of the Eastfjords offer guesthouses with sea views.
In the Westfjords, Ísafjörður is the largest town and the best base, with flights from Reykjavík and boat trips to the Hornstrandir nature reserve. Smaller villages such as Patreksfjörður and Þingeyri make good stops for Dynjandi and the Látrabjarg bird cliffs. Accommodation is limited, so book ahead in summer, or join a Westfjords Explorer trip that plans the route for you.
Where to stay in the Icelandic Highlands
The Highlands, the uninhabited interior of Iceland, are only open in summer, usually from late June to early September, when the mountain roads are passable. There are no towns or hotels in the interior, but there are mountain huts and campsites in popular areas such as Landmannalaugar, Þórsmörk and Kerlingarfjöll.
Mountain huts, run by Iceland's touring and hiking associations, offer simple dormitory beds and shared kitchens. They fill up fast during hiking season, especially along the Laugavegur trail, so book months ahead. Kerlingarfjöll also has a newer lodge with more comfortable rooms. For most travelers, the easiest way to see the Highlands is on a guided day trip or a multi-day tour, with nights spent in huts or back in the lowlands.
Where to stay by travel style
Different travelers need different things from a base. A few suggestions:
Couples and honeymooners often love remote countryside hotels, glass igloos and cottages with private hot tubs
Families do best with apartments, cottages and farm stays that have kitchens and space to spread out
Budget travelers can save with hostels, guesthouses with shared bathrooms and campsites in summer
Photographers should look at Grundarfjörður for Kirkjufell, Vík for the sea stacks and the area around Jökulsárlón for icebergs at sunrise
Travelers without a car will find Reykjavík the most practical base, with tours and buses leaving from the center
Where to stay in Iceland for the northern lights
To see the northern lights, you need darkness, clear skies and solar activity. You cannot control the last two, but you can choose where you sleep. The best places to stay for the northern lights are away from towns and city lights.
Good options include:
Countryside hotels on the Golden Circle and South Coast, many of which offer aurora wake-up calls
Cottages and farm stays with hot tubs, where you can watch the sky from the water
Glass igloos and bubble rooms, designed for watching the sky from bed
Remote lodges in North Iceland, where winter nights are long
The northern lights season runs from about September to April. Plan at least three or four nights outside Reykjavík in that period to give yourself a good chance of clear skies.
Where to stay in Iceland in winter
Winter changes the logic of where to stay. Days are short, with only four or five hours of daylight in December, and storms can close roads at short notice. Long drives between bases become harder and less enjoyable.
For a winter trip, consider:
Staying in one or two bases, rather than moving every night
Choosing Reykjavík or the Golden Circle as your main base for easy access to tours
Adding a night or two on the South Coast for ice caves, Jökulsárlón and dark skies
Flying to Akureyri if you want to visit the north, instead of driving
Always check the Icelandic road conditions map and weather forecasts before driving between bases in winter. Many travelers prefer guided tours in this season, which take the stress out of icy roads and short days.
Types of accommodation in Iceland
Iceland has a wide range of places to stay, from luxury lodges to campsites. The main types are:
Hotels, from simple country hotels to design-led luxury properties
Guesthouses, often family-run, with shared or private bathrooms
Farm stays, where you sleep on a working farm and often eat local produce
Apartments and cottages, which offer kitchens and more space for families
Hostels, the most affordable option for solo travelers and backpackers
Unique stays, such as glass igloos, bubble rooms and turf-roofed cottages
Campsites, for tents, campervans and motorhomes in summer
The Visit Iceland guide to unique accommodation in Iceland is a good place to look for something memorable, from domes to remote lodges.
Camping and campervans
Camping is popular in summer, and many travelers rent a campervan to combine transport and accommodation. Campsites are found across the country, usually with toilets, showers and cooking areas, and most open from around May or June to September.
Campervans and motorhomes must stay overnight at designated campsites, not by the roadside, and wild camping in tents is restricted in many areas. Follow local signs and respect private land.
How much does accommodation in Iceland cost?
Accommodation is one of the biggest costs of a trip to Iceland, and prices rise sharply in summer. Hotels in Reykjavík and on the South Coast are usually the most expensive, while guesthouses, hostels and campsites are cheaper. Expect the highest prices from June to August and over Christmas and New Year, and the lowest in the shoulder months and from January to March, outside school holidays.
To save money:
Book as early as possible, especially for summer and popular areas such as Vík
Choose accommodation with a kitchen and cook some of your own meals
Travel in the shoulder seasons of spring and fall, when prices are lower
Consider guesthouses and farm stays with shared bathrooms
Stay a little outside the most popular towns, where prices can drop
Where to stay on a Ring Road trip
The Ring Road loops around the whole country for about 1,320 km. Most travelers take 7 to 14 days, staying in a different place every night or two. A typical 10-day route might include overnight stops in:
Reykjavík, at the start and end of the trip
The Golden Circle area or Selfoss
Vík or the South Coast
Höfn or the Jökulsárlón area
East Iceland, around Egilsstaðir or the Eastfjords
Mývatn or Akureyri
Snæfellsnes or the west, on the way back to Reykjavík
Plan your daily drives carefully, especially in the shoulder seasons and winter, when daylight is limited. Our 7, 10 and 14 day Ring Road itineraries show where to stop each night.
If you would rather not organize every night yourself, a multi-day Ring Road tour takes care of the route and the driving.
Tips for booking accommodation in Iceland
A few practical tips:
Book summer stays several months ahead, especially in small villages with few options
Check whether breakfast is included, as it can be expensive to add
Look for free cancellation in winter, when storms can change your plans
Read the location carefully, as some countryside hotels are far from shops and restaurants
Check what time reception closes, since some rural guesthouses expect you to arrive by early evening
Confirm parking, especially in downtown Reykjavík, where street parking is limited and paid
Ask about aurora wake-up calls if you are traveling between September and April
The Safetravel website is also worth bookmarking before you set off, as it posts weather and road alerts that may affect your route between bases.
Frequently asked questions
Where should first-timers stay in Iceland?
Most first-time visitors should stay in Reykjavík, which has the widest choice of hotels and tours. If you have a week or more, add a few nights on the South Coast or near the Golden Circle.
Should you stay in one place in Iceland?
For short trips of up to five nights, staying in Reykjavík works well. For longer trips, moving between two or three bases saves a lot of driving and lets you see more of the country.
Where should you stay in Iceland for the northern lights?
Stay in the countryside, away from city lights. The Golden Circle, the South Coast and North Iceland all have hotels and cottages with dark skies, and many offer aurora wake-up calls.
Where should you stay near Jökulsárlón?
The best bases are the Skaftafell area, the countryside around Hof and Hnappavellir, and the town of Höfn. All are within about an hour of the glacier lagoon.
Where should you stay in Iceland in winter?
In winter, choose one or two bases, such as Reykjavík and a countryside hotel on the Golden Circle or South Coast. Short days and storms make long drives between bases harder.
What is the best area to stay in Reykjavík?
Downtown Reykjavík, around Laugavegur, Hallgrímskirkja and the Old Harbour, is the best area for most visitors. You can walk to restaurants, shops and museums, and many tour pickup points are nearby.
Do you need to book accommodation in Iceland in advance?
Yes, especially in summer. Accommodation in popular areas such as Vík, the Golden Circle and the glacier lagoon area can sell out months ahead, and small villages have very few options.
Is it better to stay in Keflavík or Reykjavík?
Reykjavík is better for most trips, because it has more hotels, restaurants and tours. Keflavík is a good choice only for your first or last night if you have a very early or very late flight.
