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Iceland Accommodation: Most Popular Cities to Stay

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Top Hotels Iceland

CityHub Reykjavik

3.0 star property
9.2 out of 10, Wonderful, (204)
"Great place to stay"
The price is £117
includes taxes & fees
1 Sept - 2 Sept
CityHub Reykjavik

Fosshotel Reykjavik

4.0 star property
9.2 out of 10, Wonderful, (1001)
"Wonderful location"
The price is £224
includes taxes & fees
2 Sept - 3 Sept
Fosshotel Reykjavik

Grandi by Center Hotels

4.0 star property
9.4 out of 10, Exceptional, (1252)
"Great location near all bus stops with very accomodating staff "
The price is £263
includes taxes & fees
28 Aug - 29 Aug
Grandi by Center Hotels

Fisherman's Village

2.5 star property
9.2 out of 10, Wonderful, (1005)
"The location was beautiful. The room was comfortable and clean. We highly recommend and hope to visit again sometime."
The price is £145
includes taxes & fees
3 Sept - 4 Sept
Fisherman's Village

Hotel Viking

3.5 star property
8.8 out of 10, Excellent, (1369)
"Great spot for families "
The price is £131
includes taxes & fees
2 Sept - 3 Sept
Hotel Viking

The Reykjavik EDITION

5.0 star property
9.4 out of 10, Exceptional, (481)
"Really nice hotel in an excellent location! "
The price is £459
includes taxes & fees
2 Sept - 3 Sept
The Reykjavik EDITION

Hotel Reykjavík Grand

4.0 star property
9.0 out of 10, Wonderful, (1007)
"Excellent pre cruise hotel "
The price is £300
includes taxes & fees
27 Aug - 28 Aug
Hotel Reykjavík Grand

Hostel B47

2.0 star property
8.6 out of 10, Excellent, (185)
"We took room for 4 with private bathroom .clean room with good comfortable beds. Walkable distance to all the food places and the famous food street, chruch harpa. Loved the stay "
The price is £85
includes taxes & fees
1 Sept - 2 Sept
Hostel B47

Miðgarður by Center Hotels

4.0 star property
9.6 out of 10, Exceptional, (1206)
"Excellent hotel in great location "
The price is £204
includes taxes & fees
1 Sept - 2 Sept
Miðgarður by Center Hotels

Reykjavik Residence Hotel

4.0 star property
9.6 out of 10, Exceptional, (2988)
"Wonderful hotel in amazing location!"
The price is £213
includes taxes & fees
4 Aug - 5 Aug
Reykjavik Residence Hotel

Fosshotel Barón

3.0 star property
8.6 out of 10, Excellent, (1005)
"Staff was superb… truly made us feel welcome. Hotel was immaculate and had a great breakfast. Location was convenient to buses and restaurants."
The price is £212
includes taxes & fees
2 Sept - 3 Sept
Fosshotel Barón

KEX Hostel and Hotel Reykjavik

2.0 star property
8.6 out of 10, Excellent, (643)
"Would stay again "
The price is £106
includes taxes & fees
15 Aug - 16 Aug
KEX Hostel and Hotel Reykjavik

Alda Hotel Reykjavik

4.0 star property
9.4 out of 10, Exceptional, (1005)
"Enjoyed our stay."
The price is £264
includes taxes & fees
2 Sept - 3 Sept
Alda Hotel Reykjavik

Hótel Jokulsarlon - Glacier Lagoon Hotel

4.0 star property
9.8 out of 10, Exceptional, (467)
"Food was exquisite, view was amazing, sauna/hot tub perfect. Best place we stayed in Iceland."
The price is £383
includes taxes & fees
30 Aug - 31 Aug
Hótel Jokulsarlon - Glacier Lagoon Hotel

Hotel Von

3.5 star property
9.4 out of 10, Exceptional, (1002)
"Good location and great staff"
The price is £196
includes taxes & fees
25 Aug - 26 Aug
Hotel Von

ODDSSON Midtown Hotel

3.5 star property
8.8 out of 10, Excellent, (1007)
"Great hotel, clean and comfy beds . Great fresh breakfast, nice people ."
ODDSSON Midtown Hotel

Reykjavik Lights by Keahotels

3.0 star property
9.2 out of 10, Wonderful, (1002)
"Great place to stay!"
The price is £153
includes taxes & fees
1 Sept - 2 Sept
Reykjavik Lights by Keahotels

Courtyard by Marriott Reykjavik Keflavik Airport

4.0 star property
9.2 out of 10, Wonderful, (1011)
"Thanks for a great stay!"
The price is £254
includes taxes & fees
1 Sept - 2 Sept
Courtyard by Marriott Reykjavik Keflavik Airport

201 Hotel

4.0 star property
8.6 out of 10, Excellent, (1005)
"Friendly staff, nice included breakfast. "
The price is £155
includes taxes & fees
5 Aug - 6 Aug
201 Hotel

Sand Hotel by Keahotels

4.0 star property
9.6 out of 10, Exceptional, (1008)
"This was our second stay here. We love the location and the breakfast!"
The price is £297
includes taxes & fees
2 Sept - 3 Sept
Sand Hotel by Keahotels
Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.

Great weekend hotel deals in Iceland

Showing deals for:15 Aug - 17 Aug
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Top Iceland Hotel Reviews

Guide to exploring Iceland

Guide to exploring Iceland

Top reasons to visit Iceland

  • Breathtaking Landscapes: Iceland boasts stunning waterfalls, majestic mountains, and captivating natural beauty, perfect for outdoor enthusiasts.
  • Unique Cultural Experiences: Explore historic churches and immerse yourself in the rich Icelandic culture through local traditions and festivals.
  • Relaxing Spa Treatments: Enjoy soothing spa experiences amidst serene surroundings, ideal for a romantic getaway or retreat.
  • Adventure Activities: Engage in thrilling outdoor adventures, from hiking to exploring geothermal areas, catering to all adventure seekers.
  • Diverse Accommodations: Choose from charming guesthouses to luxurious hotels, ensuring a comfortable and memorable stay.

Find great hotels in Iceland

Iceland offers a diverse selection of accommodations, ranging from charming guesthouses to luxurious hotels, perfect for every type of traveller. Whether you're seeking family-friendly amenities, a business-friendly environment, or an adventure-filled getaway, you'll discover top hotels in Reykjavik and beyond that cater to your needs. Explore the best Iceland hotels that combine comfort with stunning natural beauty, ensuring a memorable stay in this unique destination.

  • Miðgarður by Center Hotels: This 4-star hotel embodies an eco-friendly and spa-themed retreat, perfect for environmentally conscious travellers. Nestled in the heart of Iceland, Miðgarður offers a serene escape with its comprehensive spa services, including a sauna, hot tub, and a full-service spa for ultimate relaxation. The property is especially accommodating for business travellers, featuring multiple meeting rooms and facilities that cater to corporate needs. Guests can unwind in a tranquil atmosphere, making it an ideal choice for those seeking relaxation and business amenities in one place.
  • Center Hotels Plaza: A 3.5-star establishment designed with the business traveller in mind, Center Hotels Plaza provides a convenient base in Iceland. With a range of business facilities, including a conference centre, business centre, and meeting rooms, it is tailored for professionals needing to stay connected. The hotel’s central location allows easy access to local attractions, making it suitable for both work and leisure. Guests appreciate the modern amenities and comfortable accommodations, ensuring a productive and enjoyable stay.
  • Center Hotels Arnarhvoll: This 4-star boutique hotel offers a unique blend of spa luxury and artistic flair. With its beautifully designed decor and bespoke artworks, Center Hotels Arnarhvoll creates a captivating atmosphere for its guests. The hotel boasts a full-service spa, featuring a steam room, sauna, and daily spa services, allowing for a rejuvenating experience. Located in a prime area, visitors can explore Iceland's vibrant culture while enjoying the comfort and elegance of this distinct accommodation.

Where to stay in Iceland

Embarking on a journey to Iceland promises an unforgettable experience, blending stunning scenery with the warmth of friendly locals. From the heart of Iceland, where adventure awaits, to secluded spots perfect for a romantic getaway, every corner offers an authentic taste of Icelandic culture. Whether exploring vibrant cities or indulging in family-friendly excursions, you're sure to create lasting memories during the enchanting Icelandic summer.

  • Reykjavik: As the capital and largest city of Iceland, Reykjavik is a vibrant hub that perfectly blends urban life with stunning natural beauty. Located in the southwestern part of the country, it offers a unique travel experience with its outdoor activities, eco-friendly initiatives, and family-friendly attractions. Visitors can indulge in spa treatments, explore local shopping areas, and enjoy the nearby hot springs and parks. The city’s lively culture, combined with its historical landmarks and modern architecture, makes Reykjavik a must-visit destination for anyone exploring Iceland.
  • Vik I Myrdal: Situated on the southern coast of Iceland, Vik I Myrdal is a picturesque town known for its dramatic landscapes and outdoor adventures. This charming city is an ideal getaway for those seeking romance and excitement. With visitor numbers peaking in March, July, and September, it offers a range of activities, including visits to stunning beaches, breathtaking waterfalls, and serene parks. The local resorts and campgrounds provide excellent options for accommodation, making Vik I Myrdal a perfect base for exploring the surrounding natural wonders.
  • Downtown Reykjavik: The heart of Reykjavik, Downtown Reykjavik boasts a lively atmosphere filled with shops, restaurants, and cultural sites. This neighbourhood offers an eco-friendly and family-friendly experience, attracting visitors year-round. With peak travel times in July to September, guests can enjoy a variety of activities, from relaxing spa days to exploring the local parks. The area is also close to hot springs and vibrant streets, making it a fantastic spot for those wanting to immerse themselves in Icelandic culture while enjoying the great outdoors.

Things to do in Iceland

Iceland offers a variety of outdoor and adventure activities perfect for a romantic getaway or a city break. Visitors can indulge in soothing spa treatments and explore the breathtaking landscapes. Whether you're seeking an Icelandic adventure or a relaxing retreat, the country provides a unique blend of experiences, making it an ideal destination for tourists looking to unwind and explore its natural beauty.

Shopping

Experience shopping in Iceland at Kringlan Shopping Mall, offering a vibrant mix of businesses and entertainment. For a unique find, visit Ullarselid - The Wool Hut, specialising in Icelandic wool products. If you're up for a drive, Glerártorg, located over 6.2km away, provides a lovely family-friendly shopping atmosphere.

Recreation

Laugardalslaug Geothermal Pool is perfect for families, offering outdoor sports and relaxation amid Iceland's natural beauty. Geosea Geothermal Sea Baths provide a serene body treatment experience with breathtaking sea views, ideal for unwinding. Sundlaugin Versolum Swimming Pool combines outdoor fun with family-friendly vibes, making it a great recreational spot.

Adventure

Hlidarfjall ski field offers exhilarating skiing experiences with stunning mountain views, perfect for snow sports enthusiasts. For a refreshing adventure, the Seltjarnarnes Peninsula Jogging Path invites you to enjoy outdoor scenic trails. Thakgil campground provides a family-friendly outdoor escape, ideal for camping amidst Iceland’s breathtaking wilderness.

Nightlife

Experience the vibrant nightlife at the National Theatre of Iceland, where you can enjoy captivating performances in a cultural setting. This venue offers a romantic atmosphere, perfect for an entertaining evening with family or friends. Don't miss out on the unique blend of arts and entertainment!

Booking tips and Expedia advantages for Iceland

To save money on your trip to Iceland, consider visiting during the cheaper months of January, April, or November, while avoiding the peak summer season. Book your hotel about a month in advance for the best rates, and check Expedia for last-minute deals, especially on Tuesdays, which are typically the least expensive days. Look for package deals that combine flights, hotels, and activities for added savings. Additionally, utilise public transport where possible and seek out free activities to enhance your experience without overspending.

  • The most and least expensive months on average to stay in a hotel: The cheapest months to stay in Iceland are January, April and November, where the prices are slightly lower. This is in comparison to June to August, where prices are slightly higher.
  • The best time to book a hotel: The cheapest time to book a hotel in Iceland is usually 1 month out from when you are planning to stay. If you're a little more spontaneous, you could also peruse Expedia's last minute deals which could secure you a cheaper stay. Look out for the green banner below the price to spot the deals.
  • The most and least expensive days on average to stay in a hotel: The least expensive day to stay in Iceland is Tuesday. The most expensive day to stay in Iceland is Friday.
  • Find cheap hotels on Expedia: Expedia’s search tool enables you to specify your budget, desired location, and additional preferences. You can arrange your search results to display prices from lowest to highest, allowing you to find the most affordable hotels right away. Furthermore, you can refine your choices by hotel type; for instance, selecting the Eco-certified filter will showcase sustainable and environmentally friendly hotels available for booking.
  • Consider bundling your trip: You can save money by combining your hotel booking in Iceland with your flights and activities through an Expedia package.

Find the best attractions in Iceland

Iceland offers a captivating blend of outdoor adventures and romantic getaways, making it a perfect destination for various travellers. Explore stunning waterfalls, majestic mountains, and historic churches that showcase the country's unique culture. Whether you seek thrilling outdoor experiences or serene landscapes, Iceland's attractions promise an unforgettable experience amidst its breathtaking natural beauty.

  • Reykjavik Harbour: Enjoy the vibrant atmosphere of Reykjavik Harbour, where you can take in stunning views of the waterfront and surrounding mountains. The harbour is perfect for leisurely strolls, boat tours, and experiencing the local culture.
  • Blue Lagoon: Immerse yourself in the geothermal waters of the Blue Lagoon, renowned for its rejuvenating properties. This outdoor spa offers a unique wellness experience set against a dramatic lava landscape, making it a perfect spot for relaxation and tranquility.
  • Jokulsarlon Glacier Lagoon: Witness the breathtaking beauty of Jokulsarlon Glacier Lagoon, where massive icebergs drift serenely in the crystal-clear waters. The stunning scenery is complemented by the chance to spot seals and take boat tours among the ice formations.

Best time to go to Iceland

The best time to visit Iceland can depend on the weather and when visitor numbers rise and fall. The hottest average temperature in Iceland falls in July, when visitor numbers are slightly high and weather is mostly cloudy with light rain. The coolest average temperature in Iceland falls in January, visitor numbers are slightly high and weather is mostly cloudy with light rain.

calendarCalendar MonthtemperatureTemperaturerainPrecipitationmostlyCloudinessoccupationOccupancypricePricing
January25.5°F (-3.6°C)Light RainMostly CloudySlightly HighSlightly Low
February32.5°F (0.3°C)Light RainMostly CloudyAverageAverage
March33.4°F (0.8°C)Light RainMostly CloudyAverageAverage
April38.5°F (3.6°C)Light RainMostly CloudyAverageSlightly Low
May38.5°F (3.6°C)Light RainMostly CloudySlightly LowAverage
June49.8°F (9.9°C)Light RainMostly CloudySlightly HighSlightly High
July52.9°F (11.6°C)Light RainMostly CloudySlightly HighSlightly High
August51.8°F (11.0°C)Light RainMostly CloudyAverageSlightly High
September47.1°F (8.4°C)Light RainMostly CloudyAverageAverage
October34.9°F (1.6°C)Light RainMostly CloudySlightly LowAverage
November36.0°F (2.2°C)Light RainMostly CloudySlightly LowSlightly Low
December30.7°F (-0.7000000000000001°C)Light RainMostly CloudyAverageAverage

The nearest major airports for your trip to Iceland

Iceland boasts several major airports, with Reykjavik (KEF-Keflavik International) being the primary gateway, situated 78.3km from the capital. Nearby, you can find luxurious options such as Diamond Suites and The Retreat at Blue Lagoon, both offering easy access to the airport. For those flying into Reykjavik (RKV-Reykjavik Domestic), which is 64.6km away, The Reykjavik EDITION, Tower Suites Reykjavik, and Sand Hotel by Keahotels are excellent choices, all within 1.6km of the airport. Akureyri (AEY), located 34.2km away, is another option, with well-rated hotels like Hotel Kea and Lamb Inn Öngulsstaðir, ensuring convenient airport access.

Discover your dream Iceland hotel with Expedia

Varied Iceland hotels for every type of traveller 

From watching the sunrise on horseback atop a snow-covered mountain to soaking up the health benefits of thermal energy and witnessing the stunning natural light show of the Northern Lights, Iceland has plenty to offer adventurous travellers. Sixty per cent of the country's population lives in its sophisticated capital Reykjavik, where you will find many of Iceland's hotels. Iceland caters to adventurers and romantics alike and Expedia offers a superb selection of romantic hotels in Iceland including spa hotels in Iceland

Popular places to stay in Iceland 

From its language to its scenery and location just south of the Arctic Circle, Iceland is an intriguing and wonderful land. Much of the country's life is concentrated in its capital city Reykjavik, but nature is just a stone's throw away. Leave the city to lose yourself in a rugged landscape of ancient mountains, frozen waterfalls, and quaint villages. Icelandic hotels can be few and far between outside of Reykjavik so make sure to carefully plan your trip. Popular places to stay include: 

  • Reykjavik: the beating soul of Iceland and home to some of the best Iceland accommodation options. The city is a great base if you're planning to visit the famously romantic Blue Lagoon. Make the most of the bustling nightlife with plenty of bars and the world-class Harpa concert hall. Downtown Reykjavik is where you'll find the largest choice of cool Iceland hotels. 
  • Vik: this remote village on the south coast of Iceland is one of the best places to stay if you are planning to check out local natural wonders such as the Mýrdalsjökull Glacier and the Dyrhólaey cliffs. The area around Vik is home to some top-class accommodation and while it gets freezing during the winter, there are sadly no ice hotels in Iceland just yet. 
  • Akureyri: situated on the north side of the island, Akureyri is home to 20,000 inhabitants, a big town by Icelandic standards. The city is a good base to enjoy the north of Iceland and is popular with families who love the whale-watching tours that depart from the harbour and the nearby hiking trails.

Find some of the best Iceland hotel deals 

Finding deals for some of the best Iceland hotels with Expedia can be as easy as being flexible with your travel dates. The summer months in Iceland mean warmer temperatures and a sun that never truly sets. July and August are peak tourist seasons. It's when prices tend to be at their highest. Winter in Iceland can be harsh with very low temperatures and snow but it's also when you may be able to find deals for some of the best hotels in Iceland. Truth be told, there's a special magic to enjoying the warm thermal waters of the Blue Lagoon while gazing at snow-covered mountain peaks on the horizon.

Keep an eye out for the green tabs that sit just above the price tags of accommodation. These tabs indicate particularly good discounts on Expedia's Icelandic hotels. 

Iceland accommodation picks 

Expedia has one of the largest selection of accommodation in Iceland at some of the best prices available. From spa and boutique hotels to romantic hotels in Iceland, enjoy exploring a great selection of hotels as you plan the trip of a lifetime. 

The Retreat at Blue Lagoon is a 5-star hotel within walking distance of the iconic Blue Lagoon landmark. Boasting a spa and complimentary breakfast, it is one of the best Iceland hotels for hot springs. Hotel Cabin is a neat and comfortable hotel close to the harbour of Reykjavik. It is one of the cheaper options for accommodation in the capital. Some rooms feature sea views. Hotel Fron in downtown Reykjavik is a smart 3-star hotel that offers free breakfast. Situated just a 4-minute drive from Reykjavik's domestic airport, it is a great option if you are planning to take a flight within Iceland and would like to stay close to the airport. 

Hotel Rangá is halfway between Reykjavik and Vik. Attractions within driving distance include the waterfalls of Seljalandsfoss and Urridafoss. Rooms include a complimentary breakfast and the hotel features a 24-hour business centre. With its 2 hot tubs and onsite golf course, 4-star Hotel Örk is one of the top luxury hotels in Iceland. It is situated near the Reykjadalur Valley, famous for its easy hiking trails and natural hot springs. In Hotel Island, Iceland's wellness hotel located in Reykjavik's Háaleiti district, a 4-star spa experience awaits you with multiple hot tubs, a sauna, steam rooms, and swimming pools. Hotel Viking on the outskirts of Reykjavik is a boutique hotel in Iceland themed around Vikings, the original settlers of the country. Enjoy traditional dishes in its charming wooden restaurant before hitting the hotel hot tubs. 

Frequently asked questions

How much do hotels in Iceland cost?
Prices for Iceland hotels differ depending on the season and other factors, like school holidays and Easter. You can find cheap options from £85 in a few different ways. Select your destination and trip dates and then set your budget using the "Price per night" filter. You can then narrow your search by choosing your preferred property type and amenities and more.
When is the best time to go to Iceland?
Temperatures differ across Iceland, so the best time to travel really depends on where you're heading. If you're after a summer holiday in Reykjavik, organise your trip between June and August. At this time of year you can expect temperatures ranging from 9ºC to 13ºC. Keep in mind that Reykjavik has an oceanic climate, so pack appropriately.
What is the best area to stay in Iceland?
Check out the experiences and attractions on offer in Reykjavik and Selfoss. These thrilling cities are just two of the many popular places to look for a hotel in Iceland.
How can I find cheap hotels in Iceland?
Discover affordable accommodation with minimal effort by making use of our handy filter tool. Choose the "Price per night" box to browse low-cost options in Iceland. Another way is to take a look at our cheap hotels in Iceland page. The lowest available price starts at £85 per night.
What are the best hotels in Iceland for families?
The first step to a great family retreat in Iceland is scoring the right place to stay. Go to the "Traveller experience" section of our filter tool and click on "Family friendly." This will show you all the Iceland options that welcome children and offer family conveniences like childcare and recreational activities. Book the one that matches your budget and style, then get ready to relax while the little ones have a blast.
Why should I book my Iceland hotel with Expedia?
We make booking a stay in Iceland as simple as swiping right for your perfect holiday. First, there's the extensive choice and incredible prices. Then, there's our online Help Centre, which operates around-the-clock. Plus, when you become a member of our free One Key™ rewards programme, you can earn OneKeyCash™* and use it on eligible flights, activities, hotels and more. *OneKeyCash disclaimer - OneKeyCash is not redeemable for cash and can only be used on Expedia.