Find Hotels in Iceland

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.

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 spots in the country.

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.

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

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. Winter flights available from Akureyri Airport.

The most remote region of Iceland. The Westfjords see fewer than 5% of Iceland's visitors — but those who make the journey find jaw-dropping fjords, extraordinary quiet, and unforgettable aurora displays.

The East is Iceland's least-visited region and arguably its most underrated. Dramatic fjords, reindeer herds and historic fishing villages make for extraordinary aurora-watching territory.

Book at least 3 months ahead in summer

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

Winter = best aurora + lowest prices

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

Free cancellation is worth paying for

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

Breakfast is rarely included at budget rates

Check whether your rate includes breakfast — it often doesn't, and breakfast in Iceland can cost €18–€28 per person. Some guesthouses offer self-catering kitchens which can significantly reduce food costs.

Spread across regions, not based in Reykjavík

Staying in Reykjavík every night and day-tripping the Ring Road means 4–5 hours of daily driving. Instead, book 2–3 nights in each region. Hotels along the Ring Road are surprisingly comfortable.

Northern lights hotels charge a premium — but deliver

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