Accommodations and Where to Stay in Iceland

There’s no shortage of choices when it comes to accommodation in Iceland, from luxe hotels to cozy farmstays.


Photo © iStock/lovelypeace

Traveling in Iceland is easy and safe, and as the country becomes even more popular, there are an increasing number of options for accommodation and transport, from no-frills to ultra-luxe.

No matter what you choose, you’ll travel among some of the most stunning landscapes in the world – and many that look like another planet altogether.

Hostels and Guest Houses

These are plentiful in Reykjavik and along the Ring Road. A simple hostel dorm bed ranges from kr. 3,100-5,160 (US $30-$50) per night. Guesthouses and B&Bs are more homey, and include breakfast or a guest kitchen. Rates range widely, as can the level of service, but expect to spend at least kr. 10,320-15,490 (US $100-$150) per night.


Apartment rentals are gaining in popularity in Iceland, particularly in Reykjavik, where a stylish one bedroom rents for around kr. 15,490k (US $150) per night. In the countryside, a modest cabin or cottage costs kr. 10,320-20,650 (US $100-$200) per night.

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These are a great option for cozy accommodation in the countryside. Often located on working farms, they offer guests the chance to meet the animals, chat with farmers, and learn about life in rural Iceland. Rates start at around kr. 10,320 (US $100) per night.

Silfurberg, a farmstay in the East Fjords. Photo credit: Katie Hammel


Icelandic hotels run the gamut in style and cost. Characterless rooms start at around kr. 10,320 (US $100), with more plush options costing as much as kr. 41,250 (US $400) per night. The latter are most often found in Reykjavik, but you’ll find some surprisingly elegant options in the countryside.


Camping is the most economical way to see Iceland, but it’s only recommended during the short window from June to September. There are dozens of official campgrounds around Iceland. The average cost is around kr. 1,030 (US $10) per night, and most don’t require reservations.

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