Where to stay in Iceland

Where to Stay in Iceland: Best Hotels in Reykjavik & Near Vatnajökull Glacier

Iceland is one of those places where where you stay truly shapes your experience. Whether you’re chasing waterfalls, driving the Ring Road, or hunting the Northern Lights — your accommodation becomes part of the adventure.

For my Iceland trip, I split my stay into two key areas:

Reykjavik – perfect base for city vibes + day trips
Vatnajökull Glacier area – for raw nature, glaciers & unforgettable landscapes

Make a Reservation

Where to Stay in Reykjavik

Reykjavik is small, stylish, and incredibly walkable — which means location matters, but not as much as vibe. I recommend staying close to the city centre so you can explore cafés, restaurants, and cute streets on foot.

Hotel Reykjavík Grand

If you’re looking for a comfortable, reliable stay, this is such a solid choice.

It’s a larger, 4-star hotel with everything you need — spacious rooms, a gym, restaurant, and super friendly staff. Perfect if you want something easy and stress-free after long days exploring Iceland.

Exeter Hotel Reykjavik

This one has a completely different vibe — think industrial, trendy, and slightly edgy.

Located right by the Old Harbour, it’s one of the best spots if you love being close to restaurants and the ocean. Plus, the on-site bakery is chef’s kiss.

Grandi by Center Hotels

A great mid-range boutique option in the Grandi district — a slightly quieter, creative area of Reykjavik.

It’s modern, minimal, and stylish without being overpriced — ideal if you want something cool but still relaxed.

Alda Hotel Reykjavik

Located directly on Laugavegur (main street), this hotel is all about location + cozy luxury.

You’re literally steps away from cafés, restaurants, and shops — but still get a peaceful, boutique feel.

Eyja Guldsmeden Hotel

One of my personal favourites — it’s eco-friendly, cozy, and beautifully designed.

Think Bali-inspired interiors, organic products, and the dreamiest four-poster beds. It’s just slightly outside the busiest centre, which makes it quieter but still walkable.

Where to Stay Near Vatnajökull Glacier

This area is where Iceland becomes wild. You’ll be surrounded by glaciers, black sand deserts, and some of the most surreal landscapes in the world.

Accommodation here is more remote — but that’s exactly the magic.

Hali Country Hotel

A hidden gem right near Jökulsárlón Glacier Lagoon.

It’s simple, peaceful, and feels very authentic — like staying in the middle of Icelandic nature. Perfect base if you want to explore glaciers and ice caves.

Hotel Smyrlabjorg

If you want something a bit more comfortable but still remote, this is a great option. Expect: cosy, traditional Icelandic feel, stunning mountain views, quiet surroundings (perfect for Northern Lights!).