Where to Stay in Iceland - The Crazy Tourist

A Nordic island nation located in the North Atlantic Ocean, Iceland lays between Europe and North America but is considered a part of Europe. Characterized by dramatically wonderful landscape comprising glaciers, hot springs, volcanic mountains, and national parks, Iceland is not just a country, it is an adventure.

One of the best places to experience the Northern Lights (also known as Aurora Borealis), a phenomenon that is on every traveler’s “must-see” list, the tiny mountain island of Iceland is blessed with magical (and often unexplored) panorama. And, the people here are some of the friendliest in the world.

If not for the landscapes and Northern Lights, you must go to Iceland for its fascinating Viking history. Irrespective of your reason to visit, here are some of the popular places in the country that you should know about before you decide on where to stay in Iceland.

Reykjavík

Located on the coast of Iceland, Reykjavík is the capital and the largest city in the island country. The city’s shoreline is dominated by coves, peninsulas, straits, and several smaller islands, including Videy Island. A dynamic city, Reykjavík always has so much to do and see whether you visit here in the summer or winter. Loaded with rich culinary heritage, captivating art galleries and museums, lively bars, and even shopping malls, the city also has a number of public swimming pools – a perfect plan for a day out with your family. The metropolitan’s nightlife, especially during weekends, is one of the best in the country. When here, don’t miss out on the opportunity of visiting the Settlement Exhibition and the high-octane Saga Museum.

Good for: All kinds of travelers.
Other Highlights: Hallgrímskirkja, The Sun Voyager, Icelandic Phallological Museum, Reykjavík 871±2, and Vikin Maritime Museum.

Hotel Recommendations:

The Swan House – RÆTUR Apartment Hotel – A minutes’ walk from the famous Laugavegur shopping street, the property features stylish, self-catering apartment units with kitchen, wooden floors, and free Wi-Fi. Plenty of restaurants, cafes, and bars can be found nearby. Suitable for all kinds of travelers.
Eyja Guldsmeden Hotel – Adjacent to Hlemmur Square, the classy hotel features wonderfully-designed guestrooms in Balinese décor with four-poster beds, flat-screen TV, and a private bathroom with organic toiletries. Additional facilities include an on-site restaurant, a bar, a fully-equipped fitness center, and bicycle rentals. Selected rooms offer views of the Esja mountain. Perfect for all kinds of travelers.
Skuggi Hotel Reykjavík by Keahotels – A few hundred meters from Hallgrímskirkja Church, this upscale hotel property features well-appointed guestrooms with modern amenities. Guests are welcome to enjoy a refreshing drink at the on-site bar or visit one of the many eateries and bars around the property. Bikes and cars for exploring the area can be rented at the 24-hour front desk. Great for solo travelers and couples.

Keflavík

Situated along the coast of Reykjavík, Keflavík is home to the only international airport in Iceland, Keflavík International Airport. Comparatively smaller in size to the capital city, the neighborhood can be easily explored on foot. The fifth most populated town in the country, Keflavík was used as a NATO base throughout the cold war. Home to some of the best musicians in Iceland, the town houses one of the most interesting museums in the region, the Icelandic Museum of Rock ‘n’ Roll – a museum that is dedicated to the country’s music history as a whole. Often regarded as a base for exploring the nearby Blue Lagoon, the town’s harbor is frequented by whale watching boat tours, which is another popular activity in the area.

Good for: All kinds of travelers.
Other Highlights: Viking World Museum, The Icelandic Museum of Rock ‘n’ Roll, Viking World, Giantess Cave – Skessuhellir, and Reykjanes Art Museum.

Hotel Recommendations:

The Base by Keflavik Airport – One of the most sought-after hotels near Keflavik International Airport, The Base by Keflavik Airport offers spacious, air-conditioned rooms and suites with satellite TV, free Wi-Fi, and soundproofing. Guests can relax at the shared lounge, catch up on some reading at the library, or enjoy a game of Table tennis at the games room. Suitable for all kinds of travelers, including big groups of up to 6 members.
Bergás Guesthouse – A family-run cozy guesthouse located next to Keflavík Harbor, the property features well-furnished rooms and studios with a kitchenette, seating area, and private bathroom. Guests can make use of the free bicycle rentals to explore the area. Great for all kinds of travelers, including big groups of up to 6 members.
Hotel Berg – A short drive away from Keflavik Airport, Hotel Berg provides comfortable guestrooms with latest amenities and a view of the marina or the neighboring hills. An optional breakfast is available daily. Additionally, one-way airport shuttle is included in the room tariff. Perfect for solo travelers, couples, and small families.

East Fjords

East Fjords, or Eastern Iceland, although not so crowded by tourists, is an enigmatic part of Iceland and is home to the largest forest in the country and only 3% of the island nation’s population. Characterized by great hiking trails, enchanting lighthouses, jaw-dropping vistas, and rugged fjords, this part of the country is blessed with some of the best shorelines. Búðarárfoss Waterfall, a real hidden gem, stays tucked behind Reyðarfjörður town and can only be enjoyed if you hike up the waterfall. For something fun and exciting, drive to the small town of Seyðisfjörður and look for a not-so-big, blue church – if you have seen The Secret Life of Walter Mitty, you will know what we are talking about.

Good for: All kinds of travelers.
Other Highlights: Borgarfjordur Hiking, Selardalur swimming pool, Papey – the island of puffins, The Worm of Lagarfljot, Breiddalsvik black beach, and Stodvarfjordur.

Hotel Recommendations:

Við Lónið Guesthouse – Set within a beautiful wooden house, the guesthouse features comfortable guestrooms with Scandinavian minimalist design and wooden furnishings. Apart from the modern amenities, guests can enjoy unprecedented views of the surrounding fjord. Suitable for all kinds of travelers.
Hótel Aldan – Featuring an in-house restaurant, a café, free parking, and a super-friendly staff to arrange kayaking, angling, and other fun activities, Hótel Aldan is set within two historic buildings and is known for its remarkable 1920’s décor. Seydisfjordur Public Swimming Pool is within a 2 minutes’ walking distance from the property. Great for all kinds of travelers.
Nord Marina Guesthouse – A gentle stroll away from the beach, Nord Marina Guesthouse offers well-appointed guestrooms and self-catering apartment units with shared or private bathroom, free Wi-Fi, and an astonishing view of the Seydisfjördur Fjord. Perfect for all kinds of travelers, including big groups of up to 7 members.

Westfjords

Dynjandi waterfall — Dynjandi Waterfall, Westfjords

The most sparsely populated area in Iceland, Westfjords is geologically the oldest part of the country. Due to its distance from most of the “must-see” attractions in Iceland, this region is among the lesser traveled areas in Iceland. This, however, doesn’t change the fact that Westfjords is one of the most awe-inspiring locations in the island nation. Dynjandi Waterfalls, a hit among nature lovers and photographers, is the largest of its kind in the region and is rightfully coined as the “Jewel of the West Fjords”. And, there are the Látrabjarg birdwatching cliffs – a perfect location to spot and admire the adorable puffins. Accessible only during summer months due to the heavy snowfall and poor road conditions in winter, Westfjords is home to Hornstrandir Nature Reserve. The least populated area in the country outside the Highlands, the Nature Reserve offers residence to the Arctic Fox, a species which is near impossible to spot anywhere else in the country.

Good for: All kinds of travelers.
Other Highlights: Arnarfjörður fjord, The Nonsense Museum, The Sorcerer’s Cottage, and Drangajökull glacier.

Hotel Recommendations:

Country Hotel Heydalur – Boasting natural hot springs, an in-house restaurant, an indoor pool and hot tub, and a sauna, Country Hotel Heydalur offers well-designed guestrooms within the wild Westfjords of Iceland. Guests can enjoy fishing around the property any time of the year and also request to rent kayaks and horses. Great for couples and families.
Fisherman Hotel Westfjords – Located in the fishing village of Sudureyri in Westfjord Peninsula, this simple yet tasteful hotel features cozy guestrooms with free Wi-Fi, a kitchenette (in selected rooms), and a work desk. The on-site restaurant offers packed lunches and a daily fish menu throughout the year. Suitable for solo travelers, couples, and small families.
Guesthouse Bjarmaland – Featuring a well-manicured garden, a 24-hour front desk, a shared lounge, and a terrace, Guesthouse Bjarmaland offers well-furnished units with free Wi-Fi, TV, and private bathroom on the beachfront in Talknafjordur. Perfect for solo travelers and couples.

Húsavík

Revered as the “Whale Capital of Iceland,” the town of Húsavík, situated on the edge of Skjálfandi Bay, is a world-renowned location to watch whales. With more chances of spotting the gigantic marine animal here than anywhere else in the country, Húsavík has been a primary whale-watching town since the mid-90s. The areas thriving ecosystem with its nutrient-rich waters and boundless summer sun makes for a perfect ambiance for this massive creature to live and nourish. Once famished after experiencing the fascinating sea creatures, head over to one of the cute little cafes and restaurants overlooking the Bay to enjoy a re-energizing meal.

Good for: All kinds of travelers.
Other Highlights: Húsavík Whale Museum, The Exploration Museum, Húsavík Museum, Husavik Church, and Mánárbakka Museum.

Hotel Recommendations:

Fosshotel Husavik – Located in the heart of Húsavík, this sophisticated hotel property offers luxurious guestrooms with free Wi-Fi, satellite TV, and a seating area. The on-site tour desk can help arrange for different excursions around the area, including whale watching boat tours that depart from Husavik Harbor. Suitable for all kinds of travelers.
Húsavík Cape Hotel – A renovated 1950s building overlooking the Skjálfandi Bay, Húsavík Cape Hotel features comfortable guestrooms with TV, private bathroom, and free Wi-Fi within 5 minutes’ walking distance from the property. Whale watching and bird watching are popular activities around the area and so is hiking through the many trails that exist right outside the premises. Great for solo travelers and couples.
Saltvík Farm Guesthouse – Surrounded by the majestic mountains and the stunning Skjálfandi Bay, this charming guesthouse offers simple and comfortable rooms with cozy beds, free Wi-Fi, and private bathroom. The friendly staff can help you with information on the nearby attractions and activities including arranging horseback riding tours. Great for all kinds of travelers.

Selfoss

With less than 10,000 inhabitants, Selfoss, a town in South Iceland, is one of the most picturesque neighborhoods in the country. Nestled along the banks of River Olfusa, the town’s backdrop is dominated by the Ingolfsfjall mountain that lends a unique character to its landscape and offers great climbing opportunities. Together with the old bridge that stands over the river, Selfoss was of extreme significance to the British during World War II. If you are in the town in August, don’t miss out on Sumar a Selfossi Annual Festival – enjoy the nicely decorated local gardens and a carnival with magicians, musicians, bonfire, and fireworks.

Good for: All kinds of travelers.
Other Highlights: Kerid Crater Lake, Seljalandsfoss Waterfall, Paradisarhellir Caves, and Þjórsárdalur.

Hotel Recommendations:

Arctic Nature Hotel – Located on the lively streets of Selfoss, Arctic Nature Hotel offers self-catering apartment units which are fitted with a fully-equipped kitchen, free Wi-Fi, and satellite TV. Guests staying at the property can enjoy the picturesque surrounding and the soothing River Ölfus that flows next to the hotel. Suitable for all kinds of travelers.
Bella Apartments & Rooms – Featuring comfortable guestrooms and self-catering apartments, Bella Apartments & Rooms is located in the bustling Selfoss area, 500 meters from many restaurants and shops. Guests can enjoy several exciting activities in and around the neighborhood, including golfing and skiing. Perfect for all kinds of travelers, including big groups of up to 7 members.
Guesthouse Bitra B&B – 400 meters off of the scenic Ring road, or Route 1, this family-run guesthouse offers single, double, and family rooms with free Wi-Fi, cozy beds, and amazing views. Guests can spot the astounding Northern Lights here during the winter months. A superb complimentary breakfast comprising pastries, homemade bread, and jam is served daily. Great for all kinds of travelers.

Höfn

Located close to the biggest glaciers in Europe, Vatnajökull, the breathtaking town of Höfn has emerged as one of the most prominent tourist towns not only in Iceland but in Europe. Home to the largest national park in Europe, Vatnajökull National Park, Höfn is dotted with hotels, restaurants, shops, camping sites, swimming pools, and hiking trails. With its ever-growing fishing industry, Höfn is also famous for its Icelandic lobster catch and hosts an annual “Lobster Festival” every summer to celebrate its status in the country’s fishing business.

Good for: All kinds of travelers.
Other Highlights: Gamlabúð Folk Museum, Skeiðarársandur, Hornafjörður Art Museum, Öræfajökull, and Iceland Glacier Exhibition.

Hotel Recommendations:

Old Airline Guesthouse – Set in the picturesque village of Höfn and by the harbor, Old Airline Guesthouse features well-furnished guestrooms with a modern décor, a shared lounge, free parking facility, and a close proximity to Vatnajökull National Park. Guests can visit the visitor center located a short walk away from the property to seek more information about exploring the National park. Suitable for all kinds of travelers.
Milk Factory – Located within a former dairy, the aptly named Milk factory offers unparalleled views of the Vatnajökull glacier and is only a short drive from the town center. Rooms here sport simple décor and come equipped with a satellite TV, free Wi-Fi, and a private bathroom. Some of the guestrooms overlook the mountains while others offer a view of the gardens. Bicycles can be rented for free. Great for all kinds of travelers.
Hotel Höfn – Featuring an on-site restaurant that specializes in lobsters and local cuisine, a furnished terrace, free parking, and complimentary Wi-Fi, Hotel Höfn provides spacious, well-appointed guestrooms with flat-screen TV and ensuite bathroom. Most rooms come with a gorgeous view of the neighboring mountains or the sea. Perfect for all kinds of travelers.

Snæfellsnes Peninsula

Another compelling region in Western Iceland, Snæfellsnes peninsula is only a couple of hours drive from the capital city of Reykjavík and is home to the rare golden and pink beaches of Iceland (most beaches in the country are covered with black lava sand). The area’s landscape is dominated by miles and miles of lava fields, incredible gorges and waterfalls, and enchanting villages – each with its own special museum, including a Shark Museum where you can taste cured shark! The main attraction in the area, however, is 1,446-meter-high Snæfellsjökull, a 700,000-year-old dormant strata-volcano capped by a glacier. This glacier is what Jules Verne referred to in his 1864 science fiction, Journey to the Center of the Earth.

Good for: All kinds of travelers.
Other Highlights: Olkelda Mineral Spring, Budir Church, Rauðfeldsgjá cave, Djúpalón Beach, Öndverðarnes, and Kirkjufell.

Hotel Recommendations:

Við Hafið Guesthouse – Located along the marvelous coastline in Ólafsvík, this pleasant guesthouse offers beautifully-decorated guestrooms with a view of the sea or the surrounding mountains. Guests can use the complimentary Wi-Fi for their work-related needs and the on-site fitness center to stay in shape. Golfing and horseback riding are really popular in the area. Great for all kinds of travelers.
Fosshotel Hellnar – An award-winning, eco-friendly property on the spellbinding Snæfellsnes peninsula, Fosshotel Hellnar features opulent guestrooms equipped with state-of-the-art facilities. Guests here start their morning with a fabulous complimentary breakfast and spend the day hiking, horseback riding, and exploring the nearby Snæfellsjökull glacier and volcano. Evenings are well-spent at the library and with a nice dinner and a refreshing glass of organic wine at the on-site restaurant. Perfect for all kinds of travelers.
West Park Guesthouse – Boasting exceptional views of the surrounding mountains, lava fields, and the ocean, West Park Guesthouse is one of the most renowned properties to offer accommodation inside Snæfellsjökull National Park. Popular activities in the area include hiking, cycling, and fishing. Ice-climbing can also be arranged in the area. Suitable for all kinds of travelers, including big groups of up to 7 members.

Akureyri

The second largest metropolitan in Island, Reykjavík being the first, Akureyri is often recognized as the “Capital of North Iceland,” and has plenty to do for such a small place. The gateway town to Northern Iceland’s mesmerizing beauty, Akureyri is home to Laufás turf homes – built in 1865, these amazingly-preserved structures are the closest you will get to see how Icelanders lived in the ancient times. A short 15 minutes’ drive out of the town brings you to amazing farmlands and a stunning countryside which are best explored on the back of a horse. Eyjafjörður, a long and narrow fjord located next to Akureyri is home to humpback whales, dolphins, and seals. Due to the towns small population and less light pollution, it is among one of the spots to witness Northern Lights during winter months.

Good for: All kinds of travelers.
Other Highlights: Akureyrarkirkja, Akureyri Art Museum, Motorcycle Museum of Iceland, Icelandic Aviation Museum, Akureyri Botanical Garden, and Akureyri Museum.

Hotel Recommendations:

Hótel Sveinbjarnargerdi – Boasting a terrace space perfect to experience the Northern Lights and the Summer’s Midnight Sun, this splendid hotel enjoys a pristine location surrounded by Eyjafjordur region and the fjord. Guests can enjoy a delightful Icelandic dinner by the fireplace at the on-site restaurant. Great for all kinds of travelers.
Skjaldarvík Guesthouse – Set amidst a beautiful countryside in northern Iceland, Skjaldarvik Guest House is an elegant family-run accommodation property that provides well-appointed guestrooms, an outdoor hot tub with views of Eyja fjord, a library, and an on-site restaurant. The superb complimentary breakfast buffet served daily is a must-try. Suitable for all kinds of travelers.
Hotel Nordurland by Keahotels – A stylish property within a short drive from Akureyri Airport, Hotel Nordurland by Keahotels features wonderfully-decorated guestrooms fitted with up-to-date facilities such as flat-screen TV with satellite channels, seating area, and private bathroom. Suitable for all kinds of travelers.

Reykjavík

Keflavík

East Fjords

Westfjords

Húsavík

Selfoss

Höfn

Snæfellsnes Peninsula

Akureyri

Where to Stay in Iceland: