Where to Sleep in Iceland
From mountain huts to boutique guesthouses — Iceland has options for every budget
Accommodation Types
Camping
Freedom to sleep where nature allows. Use approved campsites and designated areas — wild camping outside designated spots is regulated. Bring your own tent and be ready for wind.
Guesthouses
Family-run with personality. Most include a hearty Icelandic breakfast — skyr, rúgbrauð, smoked lamb — and the owners are your best source of local knowledge.
Hostels
Social, budget-friendly, and a great way to meet fellow travellers doing the Ring Road. Private rooms available at most hostels for a slight premium.
Hotels
Concentrated in Reykjavík and larger towns like Akureyri and Selfoss. Full amenities, restaurant, and bar. Prices spike sharply in summer peak season.
Farm Stays
Sleep on a working Icelandic farm among horses, sheep, and sweeping fjord views. Home-cooked meals, connection with rural life, and landscapes you won't see from the Ring Road.
Ring Road Accommodation Clusters
Driving the Ring Road clockwise from Reykjavík, accommodation density varies sharply. The East Fjords and far north have the fewest options — plan these nights carefully.
Reykjavík
Most choice
Selfoss
Good options
Vík
South Coast hub
Höfn
East gateway
Egilsstaðir
Sparse — book early
Akureyri
North hub
Blönduós
Very limited
Borgarnes
Good options
Reykjavík
Return
Booking Tips
Book summer 3–6 months ahead
June to August is peak season. Accommodation in Vík, Skaftafell, and the south coast books out months in advance. The east and north fill fast too. Do not wait.
Use Bónus for self-catering
Iceland's cheapest supermarket chain. Stock a cooler before leaving Reykjavík for the Ring Road — this cuts food costs dramatically and keeps you flexible in remote areas.
Always have a backup plan
Iceland weather can strand you. Road closures, volcanic ash, and storms happen. Know where the next accommodation option is and have their number saved offline.
Popular Base Locations
Reykjavík
The capital — most choice by far
Everything from budget hostels to five-star hotels. Base here for the Golden Circle and Reykjanes Peninsula.
Vík
South Coast base camp
Gateway to Reynisfjara black beach, Dyrhólaey arch, and Skógafoss. Small village with several guesthouses.
Akureyri
Capital of the North
Iceland's second city. Excellent base for Mývatn lake district, whale watching in Húsavík, and Goðafoss.
Höfn
East Iceland gateway
Closest town to Jökulsárlón glacier lagoon. Famous for its lobster (humarbúðin). Limited options — book early.