Where To Stay in Iceland

There are plenty of accommodations to choose from in Iceland, but which one is right for you? We decided to do a mixture of hotels, cottages and Airbnb on our 7-day road trip. Our Airbnb stays were by far our favorite places to stay at and we will probably book more Airbnb accommodations the next time we're in Iceland because they were so awesome!

Here are some of our favorite (and not so favorite) places we stayed at throughout our road trip in Iceland:

Reykjavik - Airbnb: Downtown, Designer Attic Apartment

Iceland Airbnb www.thetravelpockets.com

Wow, just wow. This place was the most gorgeous Airbnb place we've ever stayed at. The designer furniture, modern decor, stone bathroom and spacious rooms were absolutely beautiful and I wished we could have stayed here longer and enjoyed the apartment a bit more.

Iceland Airbnb www.thetravelpockets.com

One minor issue we had was that the apartment was up on the third floor with no elevators, so if you have huge luggage, you will struggle a bit. Other than that, this place is the perfect place to stay in Reykjavik because you're close to all the restaurants, bars and shops, but not too close to hear all the noise.

Iceland Airbnb www.thetravelpockets.com

COST: $163/night
PROS: Awesome decor, great location, helpful staff, great views and comfy bed.
CONS: On the third floor with no elevators and a bit pricey.

Get $40 off your first Airbnb stay HERE


Vik - Volcano Hotel

We read so many reviews that this was a wonderful place to stay at near Vik and they were right. It's a small, family-owned hotel and the staff go above and beyond to make you feel welcome. The room was nice, practical and spacious with a comfortable bed. They also offered free coffee, tea and cookies in the lounge 24 hours a day, which was really nice. Breakfast was great with fresh fried eggs and traditional Icelandic breakfast buffet with coffee, juices, cheese, ham, cereals, pastries and fruits. Really enjoyed our stay here.

Iceland Hotel www.thetravelpockets.com

COST: $159/night
PROS: Great location, friendly staff, free coffee & cookies and great breakfast.
CONS: None that I can think of.

Jokulsarlon - Hali Country Hotel

This was one of our least favorite hotels because the lounge was messy, the room smelled like mold and there was really nothing special about this place except for the scenery and location. We wanted to stay near the Jokulsarlon glacier lagoon and there really aren't many options nearby, so this was the best place we found. It's not that bad, it just wasn't as enjoyable as the others.

Iceland Hotel www.thetravelpockets.com

COST: $166/night
PROS: Great location and large rooms.
CONS: Messy lounge, mold-smelling room and a bit expensive.

Myvatn - Dimmuborgi Guesthouse

This location was wonderful, but the "cabin" we stayed in was the tiniest place I've ever stayed in. It was also very cold when we walked in and took forever to heat up the room. I let all that go when we saw the Northern Lights for the first time here! This is another small, family-owned place and the owner was very helpful in letting us know the best location to shoot the sunset. They have 2 friendly dogs that are absolutely adorable and follow you around sometimes when you're exploring outside around the cabin.

Iceland Cabin www.thetravelpockets.com

COST: $98/night
PROS: Excellent location (especially for Northern Lights), friendly staff, cute dogs and awesome shower pressure.
CONS: Thin walls and tiny space (get the cottage that fits more than 2 people).

Hvammstangi - Hvammstangi Cottages

Iceland Cabin www.thetravelpockets.com

This cabin was the cutest thing! It came with a little kitchen with portable electric stove, kettle, dishes, pots and pans. The bunk beds were comfortable and there were plenty of outlets. The bathroom area was really small, but great shower pressure and heat. There are 8 or so other cabins near you. We saw the Northern Lights around 11pm and it was a fantastic show!

NorthernLightsHV1 www.thetravelpockets.com.jpg

COST: $94/night
PROS: Great secluded location (especially for Northern Lights), well-equipped, and lots of outlets.
CONS: Small bathroom and no hair dryer (I know, I'm spoiled).

Stykkisholmur - Airbnb Cottage

Iceland Cabin Inside www.thetravelpockets.com

Another great stay from Airbnb. I loved this place so much that I didn't want to leave! We loved the cabin we stayed in the night before, but this one was even better.

Iceland BBQ www.thetravelpockets.com

The cabin is pretty spacious with a couch, dining table, kitchen, a modern bathroom and a separate bedroom with a bunk bed. Even came with a BBQ grill which we used to our advantage and grilled up some Icelandic seasoned pork. Highly recommend this place.

Iceland Cabin www.thetravelpockets.com

COST: $125/night
PROS: Awesome secluded location, well-equipped, modern bathroom and comes with a BBQ grill
CONS: Nothing. I want to live here!

Get $40 off your first Airbnb stay HERE


Reykjavik - Room with a View

Reykjavik Hotel www.thetravelpockets.com

We loved the modern decor in our room, but the view wasn't so great as there was a bunch of construction going on. The location is superb, right in the middle of downtown, but the noise from the drunk neighbors was unbearable. All rooms are different, but ours was across the street from the main hotel and we had to go through 3 gates with a set of keys to unlock them, which was kind of a pain; especially since the main gate was pretty hard to open. There are also no elevators, so we struggled to go up 3 flights of stairs with our huge suitcases. The shower was nice and the bed was comfy, but we got little sleep due to our rowdy neighbors.

Reykjavik Hotel www.thetravelpockets.com

COST: $133/night
PROS: Great location and beautifully designed room with a kitchenette
CONS: No elevators and noisy neighbors

None of the places we stayed at were terrible (except maybe for the last place because we barely got any sleep) and we were pretty happy with most of our accommodations. The Airbnb stays were clearly the winner and we'll definitely take note of that the next time we visit Iceland.