Where to Stay in Selfoss, Iceland: Hotels and Guesthouses Guide

Selfoss is South Iceland’s largest town and a practical base for the Golden Circle and upper South Coast. Staying here rather than Reykjavík puts Þingvellir, Geysir, and Gullfoss 30–55 minutes away instead of 1–1.5 hours, and gives you a quieter, cheaper overnight option. The accommodation range is smaller than the capital but covers the main categories at lower prices.

Budget (Under ISK 22,000)

Gesthúsið Selfoss — A straightforward guesthouse in the Selfoss area offering the most affordable private rooms in town. Clean, functional rooms with private or shared bathrooms depending on the room type. Rates from approximately ISK 14,000–20,000 as of 2026. No frills, but well-positioned for the Ring Road. Good for travellers spending one or two nights before continuing east or returning to Reykjavík. Booking directly or via email is often cheaper than booking platforms for this size of property.

Mid-Range (ISK 25,000–45,000)

Hótel Selfoss — The best hotel in town, sitting on the bank of the Ölfusá river. Offers a spa with hot tubs and a sauna, a restaurant (one of the better dinner options in Selfoss), and clean, well-fitted rooms. Doubles from approximately ISK 30,000–42,000 as of 2026. This is a proper mid-range hotel rather than a glorified guesthouse — good for those who want a reliable base with some comfort after long driving days. The river-view rooms are worth requesting if available. Book ahead for summer.

Guesthouse Ás — A guesthouse with more character than the standard roadside option. Rooms are comfortable, breakfast is typically included, and the overall standard sits a notch above basic. Doubles from approximately ISK 18,000–26,000 as of 2026. A solid choice for those who want to stay in a smaller, more personal property than a full hotel without dropping to dorm or hostel level.

Self-Catering Options

Selfoss has Iceland’s best supermarket options outside Reykjavík — both Bónus (budget) and Krónan have branches here, along with a Nettó. If you are self-catering during a South Iceland road trip, stocking up in Selfoss makes sense before heading east, where options thin out significantly past Vík. Several guesthouses in the area offer kitchen access or studio-style rooms with cooking facilities — worth confirming at booking.

What Selfoss Is Good For (and What It Is Not)

Selfoss is a working town, not a tourist destination. It has traffic, supermarkets, hardware stores, and takeaways alongside its guesthouses. For those driving a Ring Road circuit, this is actually the point — it is the one place in South Iceland where you can sort logistics (fuel, groceries, car hire issues, pharmacy, cash) before heading into areas with fewer services.

The town’s restaurants are limited in number but reliable. The Hótel Selfoss restaurant is the main sit-down option in the evenings. Kaffi Krús on Austurvegur is a well-regarded café for lunches and light meals. For a more complete picture of eating options, the Selfoss things-to-do guide covers the public swimming pool, the Ölfusá river walk, and the town’s practical facilities.

The Selfoss public swimming pool (Bankavegur) is open daily and entry costs approximately ISK 1,000 as of 2026. Outdoor hot tubs, a steam room, and a 50-metre pool are standard for an Icelandic municipal pool. After a long driving day, this is one of the better uses of an evening in Selfoss.

Choosing Between Selfoss and Reykjavík

If your primary goal is the Golden Circle and upper South Coast (Seljalandsfoss, Skógafoss, Reynisfjara), Selfoss is a financially sensible base. A couple staying two nights at Hótel Selfoss versus a comparable Reykjavík hotel might save approximately ISK 20,000–30,000 in total accommodation costs. That is a meaningful difference on an Iceland budget.

If you want to explore Reykjavík’s museums, restaurants, and nightlife as a significant part of your trip, stay in the capital. The 50-minute commute to Selfoss is easy to do as a single day trip if the Golden Circle is all you need from that direction.

Practical Notes

• Parking: Free parking is standard at all hotels and guesthouses in Selfoss — unlike central Reykjavík where hotel parking often costs extra.
• Fuel: Multiple N1 and Orkan petrol stations in town — fill up here before heading east toward Vík or Höfn, as prices rise slightly in smaller communities.
• Car hire: Several major hire car companies operate from Selfoss. If you need to switch vehicles or sort a rental issue, the town’s size means you have options.
• Distance to Reykjavík: 50 minutes on Route 1. Easy to spend a day in the capital and return in the evening without a long drive.