Accommodation
Where to Stay in Iceland
Accommodation in Iceland ranges from Reykjavík's design hotels and boutique guesthouses to remote highland huts accessible only by 4WD. The price range is wide but broadly higher than most of Europe — Iceland is an expensive destination and accommodation is a significant part of any budget.
In Reykjavík, the 101 postal code (downtown) concentrates most tourist accommodation. Along the Ring Road, guesthouses and farm stays are the standard option. In the Highlands and on trekking routes, FÍ mountain huts are the only option — book as early as possible. We have written detailed where-to-stay guides for all regions and cities covered on this site.
Hotels by City & Region
Detailed where-to-stay guides covering honest picks across budget categories, neighbourhood breakdowns, and booking advice.
Types of Accommodation
City Hotels in Reykjavík
Reykjavík has Iceland's widest hotel range, from large international brands (Hilton Nordica, Marriott) to characterful boutique properties in the 101 postcode. Budget guesthouses around the city centre run approximately ISK 15,000–25,000 per night; mid-range hotels ISK 30,000–55,000; luxury options ISK 70,000 and above as of 2026.
Guesthouses and Farm Stays
Much of Iceland's accommodation outside Reykjavík sits in family-run guesthouses and working farms. These offer simpler rooms at lower prices (approximately ISK 15,000–25,000 per night) and often include a kitchen. Farm stays along the Ring Road provide genuine contact with Icelandic rural life.
Highland Mountain Huts
The Ferðafélag Íslands (Iceland Touring Association) operates a network of mountain huts throughout the Highlands, essential for trekkers on Laugavegur and Fimmvörðuháls. Huts must be booked well in advance — in peak season (July–August) they fill months ahead. Sleeping bag spaces from approximately ISK 7,000–10,000 per night.
Campsites
Iceland has an extensive campsite network open June to August (some year-round). Sites in Þórsmörk, Landmannalaugar, and along the Ring Road cost approximately ISK 1,500–2,500 per person per night. Bring a tent designed for Icelandic conditions — wind and rain are standard at any time of year.
Plan your stay in Iceland