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Iceland Hotel Guide: From Cheap to Luxury for Your Ring Road Trip

Embark on a journey through Iceland’s mesmerizing landscapes, where every twist and turn of the iconic Ring Road reveals breathtaking vistas and hidden wonders. As you travel this breathtaking route, the question of where to sleep may rise. Fear not, as we’ve crafted the ultimate Iceland Hotel Guide tailored specifically for your Ring Road adventure.

From budget-friendly accommodations that embrace affordability without compromising comfort, to luxurious retreats that elevate your Icelandic experience, we’re here to unveil our handpicked selection of the best hotels.

We stayed at every Iceland Hotel in this list!

Just so we will give you our honest opinions about all the hotels and cabins in this list, we want to confirm that we actually stayed in all of them. Of course you can always check booking sites for something more up your alley. But we can definitely vouch for all the ones mentioned on our website.

The order of the hotels follows our 10-day itinerary for an epic ring road adventure. Check our full itinerary as well to get to know all the details. We didn’t take pictures of all the places we slept in (shame on us), but we did film it. So if you want to see all the accommodations we advice you, after reading this article, to watch our full Iceland Hotel Guide Video.

Hotels in and near Reykjavik, Iceland

When we just arrived in Iceland we booked the Viking Village Hotel as our first night. This was perfect, because we would visit Reyjavik at the end of our road trip. So we didn’t want to book anything in town for the first night. And the Viking Village ended up being a fun way to get into the folklore of Iceland.

Viking Village in Hafnarfjörður

We booked the tiny cabin for our stay, which was really cool. All wooden interior with nice details. We even had a nice breakfast buffet included in the price.

Our Thoughts:
  • Cool restaurant with local dishes
  • Low prices
  • Fun Viking ambiance
Iceland Hotel Guide

Kvosin Downtown Hotel Reykjavik

We loved this hotel. It was more of an apartment, that’s how big it was. You step outside the hotel and are right where you want to be: in the center of town. All attractions are within walking distance.

Our Thoughts:
  • Perfect location
  • Mid-range pricess
  • Very modern and new
Iceland Hotel Guide
Booking.com

We splurged one night on an amazing Glass Cabin in Iceland

We had seen images of these amazing glass cabins and we decided we would splurge for one night and one night only. And we were happy we did. It was absolutely amazing. The views…. stunning! The jacuzzi on the terrace overlooking the sunset…. perfection. And the cabin itself was also really modern. We will add a few more pictures below.

Panorama Glass Lodge

This was an absolute dream experience, bucketlist material. Located in between the Golden Circle and the Waterfall route of the South. Absolute heavenly day and night that we spent here.

Our Thoughts:
Iceland Hotel Guide

Our Hotel next to Reynisfjara, the Black Sand Beach in Vik, Iceland

We wanted to stay near the Black Sand Beach, this was the most logical spot to end the day chasing all the waterfalls in the south. It was a good choice, since it was very close to the cute town of Vik, where we had some nice food. And the hotel was so close to the beach that it was just what we wanted.

Black Beach Suites

The view from the room was absolutely awesome. Overlooking the emptiness of the meadows stretching out to the black sand beach. Icelandic horses running over the fields. Really great.

Our Thoughts:
  • Great location
  • Mid-range prices
  • Very modern and new
  • Restaurant on site
Iceland Travel Guide

Hotel Skaftafel – Glacier Walking

If you want to go on an amazing glacier hike, which we can definitely recommend, there are not a lot of hotel options close to Skaftafell visitor center. So we found hotel Skaftafell which was perfect for this. Close to the glacier, great restaurant and amazing breakfast buffet, but simple rooms. Prices were low, so nice for our budget.

Our Thoughts:
  • Great location at foot of a glacier
  • Low prices
  • Simple rooms (but clean)
  • Great Restaurant on site
  • Super close to glacier walk visitor center
Iceland Travel Guide

Viking Café in Hofn

The hotel room was very simple, but with a view over the Stokksnes beach area. The café itself was cute and had a perfect breakfast for us. For dinner we went into Hofn for some great food. The hotel served its purpose: be close to Stokksness and see the Viking Village.

Our Thoughts:
  • Great location at Stokksnes beach
  • Low prices
  • Small simple rooms
  • Restaurant on site
  • Ticket for Stokksnes beac and Viking Village included in the price
Iceland Hotel Guide

Ormurinn Cottages in Egilstadir

We found these cottages and loved them. Even though the interior was simple and not super modern, it had all we needed. And the serenity and view was amazing. Egilstadir is a town with some great restaurants, so a perfect spot for the East of Iceland.

Our Thoughts:
  • Great location with stunning view
  • Low prices
  • Cottage was simple
  • All facilities that we needed were there
Iceland Hotel Guide

HLID Myvatn Accomodations

These very simple rooms are perfect is you are on a budget. Super close to lake Myvatn and the geothermal area. Don’t expect anything fancy, just a simple small room but all was clean. The breakfast bar is a help yourself buffet. Also simple but all we needed. Very nice view over the empty lavafields stretching out for days.

Our Thoughts:
  • View over lavafields
  • Very Low prices
  • Cottage was very simple but clean
  • Help yourself breakfast bar
Iceland Hotel Guide

Hotel Akureyri

We wanted to stay in Akureyri for a night so we could explore the biggest city in the North of Iceland. Hotel Akureyri is really perfect. Perfect location, not too expensive and super close to the harbor and center. You’re right there!

Our Thoughts:
  • Very nice modern rooms
  • View over the harbor
  • Mid-range prices
  • Right in the center of the city
  • Trendy breakfast bar downstairs
Iceland Travel Guide

Cabin Helgafell

We found this amazing cabin near a lake in the north part of the Snæfellsnes peninsula. This was so secluded and private, we loved it! Amazing views and great location to start our exploring. We can highly recommend this accomodation.

Our Thoughts:
  • Awesome cottage
  • Amazing View over the lake
  • Mid-range prices
  • All facilities you need
  • Perfect start for your Snæfellsnes adventure
Iceland Hotel Guide

Watch our Full Iceland Hotel Guide on Youtube:

Iceland Hotel Guide

The links to the Iceland hotels in this article are Booking.com affiliate links. If you use these links we will get a small commission, while you still pay the normal price (no added costs or anything). We thank you for using our links.

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