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WhereToStayEurope

Where to Stay in Iceland

Currency: ISKTimezone: Atlantic/ReykjavikSchengen area

Iceland trips usually use Reykjavík as the launch point for everything else, so the right city stay is one within walking distance of the bus stops and rental-car returns. The picks below center on 101 Reykjavík, the one neighborhood that earns the price tag.

What Iceland is known for

Iceland is known for the Blue Lagoon, the Northern Lights, Björk, and as the country that bankrupted itself spectacularly in 2008 then rebuilt around tourism. The under-marketed draws: the food scene in Reykjavík (Dill restaurant; the new-Nordic adoption); the geothermal pool culture (every village has one, and locals use them daily); and the road-trip infrastructure (Ring Road = 1,332km).

Top attractions in Iceland

Blue Lagoon
experience

Geothermal spa near the airport. Pre-book; arriving without a ticket is impossible. Sky Lagoon (closer to Reykjavík) is a quieter alternative.

Golden Circle (Þingvellir, Geysir, Gullfoss)
natural

Iceland's classic day-trip from Reykjavík. Þingvellir is where the European and North American plates meet (and where the Vikings held the world's first parliament in 930).

South Coast (Seljalandsfoss, Skógafoss, Vík beach)
natural

Day-trip or overnight from Reykjavík. Black sand beaches at Reynisfjara; the Sólheimajökull glacier hike option.

Jökulsárlón Glacier Lagoon + Diamond Beach
natural

Iceberg-filled lagoon at the foot of Vatnajökull glacier. Adjacent black-sand beach with washed-up ice chunks ('diamonds').

Northern Lights tour (September-March)
experience

Hunt for the aurora from Reykjavík or further north. Boat tours and bus tours both work; weather flexibility is key.

Hallgrímskirkja
religiousReykjavík

73-meter expressionist concrete church inspired by basalt columns. Take the elevator to the tower for the city view.

Westfjords (Dynjandi waterfall, Látrabjarg cliffs)
natural

Iceland's least-visited region. 7+ days of road tripping required.

Húsavík (whale watching)
experience

Northern Iceland; some of the world's best chances of seeing humpback whales (April-October).

Major cities in Iceland

Reykjavík0.1M

Reykjavík's 101 (downtown) is the only central stay that makes sense. Anything outside it costs you taxis to dinner and to the bus station for tours. Don't be tempted by the slightly cheaper hotels in 105 or 107.

Where to stay in Reykjavík

When to visit Iceland

June-August has the Midnight Sun (sunsets at 11:30pm in Reykjavík), all roads open, hiking accessible. September-March is Northern Lights season (October-February for highest probability). December has 4 hours of daylight and is genuinely difficult; February has 9 hours and is much easier. The Ring Road requires June-September for a full clockwise drive; in winter the F-roads (interior highland) close completely.

Where to Stay in Iceland — Reykjavík · WhereToStayEurope