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Hotel categories

Popular Hotel Categories

Iceland has accommodation for every budget and travel style. From remote aurora cabins to world-class spa resorts.

Luxury Hotels
From €350/night

Luxury Hotels

Five-star properties with spa, gourmet dining and breathtaking views. Perfect for honeymoons and special occasions.

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Northern Lights Hotels
⭐ Most popular

Northern Lights Hotels

Remote hotels with aurora wake-up calls, dark sky guarantees and floor-to-ceiling glass rooms facing north.

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Budget & Hostels
From €35/night

Budget & Hostels

Clean, social, central — guesthouses and hostel dorms for solo travellers and budget-conscious adventurers.

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Family Hotels
Family-friendly

Family Hotels

Spacious family rooms, kids' facilities and flexible check-in for families exploring the Ring Road together.

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Spa & Wellness
Geothermal experience

Spa & Wellness

Hot tubs, geothermal pools and full spa treatments — the perfect way to warm up after an arctic adventure.

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Cabins & Cottages
🌌 Best for aurora

Cabins & Cottages

Private wooden cabins in volcanic landscapes. Total seclusion, panoramic skies, and often the best aurora views.

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Airport Hotels
Near KEF airport

Airport Hotels

Close to Keflavík Airport for early departures or late arrivals. Many offer free parking and shuttle service.

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Guesthouses
Local experience

Guesthouses

Traditional Icelandic guesthouses — personal service, home-cooked breakfast and authentic rural atmosphere.

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Green aurora borealis over Iceland hotel

Wake up under the aurora

Iceland's best northern lights hotels offer aurora wake-up calls and glass-ceiling rooms.

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Editor's picks

Iceland's Most Iconic Hotels

Six properties that define what Iceland accommodation can be — from glaciers to fjords to volcanic lava fields.

🌌 Aurora icon

Ion Adventure Hotel

Near Þingvellir

Iconic eco-design hotel in a lava field. Floor-to-ceiling windows face the aurora oval directly.

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💎 Ultra luxury

The Retreat at Blue Lagoon

Reykjanes Peninsula

Iceland's most luxurious hotel, built directly into the lava field beside the Blue Lagoon.

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🔭 Best for aurora

Hotel Rangá

South Iceland

Dedicated aurora hotel with a professional astronomer on staff, 8 themed suites and guided viewings.

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🚁 Remote luxury

Deplar Farm

Troll Peninsula, North

A converted sheep farm in a remote fjord. Fly-in only. Heliskiing, horse riding and aurora watching.

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🧊 Glacier views

Fosshotel Glacier Lagoon

Jökulsárlón, East Iceland

Positioned between Europe's largest glacier and the famous iceberg lagoon. Glacier views from every room.

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♨️ Geothermal spa

Hotel Husafell

West Iceland

Geothermal spa hotel in a birch forest. The last stop before the Langjökull glacier and highland interior.

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Where to stay

Best Areas to Stay in Iceland

Each region offers a completely different experience. Here is what to expect from each area — including aurora viewing quality.

Reykjavík

800+ hotels
★★☆☆☆
Aurora

Iceland's capital has the widest range of accommodation — from international chains to boutique design hotels. Best transport links and most restaurants. Light pollution makes in-city aurora viewing difficult.

Best for · First-time visitors · City life · Airport access
Aurora · Light pollution — drive 20 min outside
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South Coast

200+ hotels
★★★★☆
Aurora

From Vík to Höfn, the south coast is Iceland's most scenic route. Hotels here combine dramatic landscapes with some of the best aurora viewing in the country.

Best for · Glaciers · Waterfalls · Black beaches · Aurora
Aurora · Excellent dark skies the entire coast
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Golden Circle

80+ hotels
★★★☆☆
Aurora

Hotels near Þingvellir and Geysir let you beat the tour groups. Wake up early, explore in peace, and watch aurora over the rift valley at night.

Best for · Day trips · Þingvellir · Geysir · Gullfoss
Aurora · Good — open horizons and low light pollution
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Snæfellsnes

60+ hotels
★★★★★
Aurora

The Snæfellsnes peninsula is one of Iceland's best-kept secrets. The glacier at the tip creates a stunning backdrop for northern lights photography.

Best for · Glacier · Lava fields · Whale watching
Aurora · Outstanding — 360° ocean horizon
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Akureyri & North Iceland

100+ hotels
★★★★☆
Aurora

Iceland's second city is the hub of north Iceland. Closer to the Arctic Circle than Reykjavík, it sits at the heart of Iceland's most dramatic aurora zone.

Best for · Whale watching · Mývatn · Goðafoss
Aurora · Excellent — high latitude and low light pollution
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Westfjords

30+ hotels
★★★★★
Aurora

The most remote region of Iceland. The Westfjords see fewer than 5% of visitors — but those who go find extraordinary quiet and unforgettable aurora displays.

Best for · Total seclusion · Dramatic fjords · Arctic foxes
Aurora · Some of the darkest skies in Iceland
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East Iceland

50+ hotels
★★★☆☆
Aurora

The least-visited and most underrated region. Dramatic fjords, reindeer herds and historic fishing villages make for extraordinary aurora-watching territory.

Best for · Fjords · Reindeer · Ring Road · Ferry to Faroe
Aurora · Good — long clear nights in the fjords
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Compare thousands of properties across Iceland. Free cancellation on most bookings.

Expert tips

Hotel Booking Tips for Iceland

How to book smarter, spend less, and get the best aurora-viewing locations.

📅01

Book 3–6 months ahead in summer

June, July and August are fully booked across most of Iceland. The most popular hotels sell out 4–6 months in advance. For summer, January is not too early to book.

❄️02

Winter = best aurora + lowest prices

October to April sees aurora season at its peak while hotel prices drop 30–50% vs summer. January and February are the cheapest months. You'll also have landmarks to yourself.

🔄03

Always choose free cancellation

Iceland's weather is unpredictable. Book refundable rates whenever possible — they typically cost only 10–15% more. A road closure can change your entire itinerary overnight.

🍳04

Check if breakfast is included

Breakfast in Iceland costs €18–€28 per person. Check your rate carefully — it often isn't included. Some guesthouses offer self-catering kitchens which significantly reduce food costs.

🗺️05

Spread across regions, not based in Reykjavík

Staying in Reykjavík every night and day-tripping means 4–5 hours of daily driving. Book 2–3 nights in each region instead. Ring Road hotels are surprisingly comfortable.

🌌06

Northern lights hotels charge a premium — but deliver

Hotels that market themselves for aurora often charge 20–40% more — but provide wake-up calls, viewing areas, dedicated guides, and glass-ceiling rooms. Worth it if aurora is your primary goal.

FAQ

Frequently Asked Questions

Everything you need to know about where to stay, when to book, and how to save money in Iceland.

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