If you’re planning on travelling Iceland’s Ring Road, you’re in for a real treat, but you’re going to need places to stay. Read on for recommendations for some of the best, most unique and cool Iceland Ring Road hotels.
The Ring Road, also known as Route 1, is an epic road trip adventure, taking you all around Iceland and taking in much of the best of the country: black sand beaches, glaciers and glacial lagoons, mountains, waterfalls, volcanic craters, geothermal areas and hot springs.
Of course, you will need somewhere to stay, as it normally takes people at least a week to complete the full loop. I already created itineraries for driving the Ring Road in 7 or 10 days, but I thought it would help to have more recommendations and choices for Iceland Ring Road hotels.
I’ve been to Iceland a couple of times and drove the Ring Road on my second trip – so I have my recommendations in this article. However, to give you even more ideas, I have also asked some travel blogger friends, who also know and love Iceland, to share the great hotels in which they stayed. This list is our combined recommendation of the best places to stay along the Ring Road in Iceland.
Disclosure: This article contains affiliate links. These are links to products or experiences I recommend and if you were to buy something after clicking on them, I might earn a small commission at no extra cost to you. Any earnings go towards the upkeep of this blog, which I appreciate.
Table of Contents
Iceland Ring Road Accommodation
Whilst this article is about Iceland Ring Road hotels, I thought it would help to start with a brief rundown of all the Iceland ring road accommodation options that are available, starting with the cheapest.
Iceland Ring Road Camp Sites
Now, a lot of people camp in Iceland – both tents are campervans are common. There are campsites all over Iceland and in my experience, you don’t need to reserve in advance – you can just pitch up and pay.
For more on my experience, read my post about the things I wish I’d known before my camper van road trip in Iceland.
Iceland Ring Road Hostels
There are also quite a few hostels in Iceland, and not just in Reykjavik or the major towns.
These can be a great option if you want to visit Iceland on a budget but don’t like the idea of camping. I didn’t stay in hostels on the Ring Road, but if you’re interested to see what’s on offer, check Hostelworld.com.
Short-Term Lets In Iceland
Both Airbnb and Vrbo operate in Iceland, so it is possible to rent apartments
I did this a couple of times on my first trip to Iceland, normally after comparing hotel prices to see which offered better value for my preferred dates.
Try Vrbo to see what options there are.
Hotels In Iceland
There’s a whole variety of hotels in Iceland, from budget backpacker-style hotels to guesthouses, cute cottages or cabins and big plush hotels.
This list of Iceland Ring Road hotels includes a mix of each type, giving options to suit all budgets.
16 Iceland Ring Road Hotels
OK, here are our recommendations for hotels on the Ring Road, in order of location, starting in Reykjavik and then going anti-clockwise around the Ring Road.
1. Skuggi Hotel, Reykjavik
By me, Martha from MayCauseWanderlust.com
The first Iceland Ring Road hotel is in Reykjavik. Many people’s Ring Road trips start and end in the capital city, so I figured it would be useful to have a recommendation for a hotel in Reykjavik.
On my second trip, the one with the camper van, my husband and I both got pretty sick of sleeping in the tiny van, so by the time we finished the Ring Road and got back to Reykjavik, we were desperate for a comfortable bed and a good breakfast. And we found them at the Skuggi Hotel.
It’s a 3-star hotel, but in my view, it’s better than your average 3-star place. It has a stylish interior and very comfortable rooms. Once we checked in, we both kind of crashed out! The breakfast in the morning was also great, and there’s underground parking, which is handy for road trippers – it’s accessible via a steep road to the side of the hotel off Hverfisgata Street.
The hotel is perfectly placed for exploring the city centre, so while you’re in Reykjavik, why not check out my free self-guided walking tour of Reykjavik?
Check out Skuggi Hotel by Keahotels on Booking.com, where it has a rating of 8.7
2. Hotel Rangá, Hella
By Michelle Moyer from Moyer Memoirs Empty Nest Travel Adventures
Hotel Rangá is located in Hella on the southwest side of Iceland, right off of the popular Ring Road that encircles the island nation. It is a prime location not only for easy access to the southern route for Iceland’s ice caves, black sand beaches, and waterfalls, but it is also only an hour and a half from the main stops along the Golden Circle.
This countryside hotel is a prime location for seeing the Northern Lights because of the limited city light pollution. The hotel even offers a wake-up phone call service if the lights appear in the middle of the night. Warm snowsuits and cosy blankets are provided as a bonus to snuggle in while viewing this amazing show at the remote getaway.
Hotel Rangá is one of the top luxury hotels in Iceland and a member of Small Luxury Hotels of the World (SLH), a community of luxury hotels around the world. It is also a green hotel that protects the best luxury in the world, nature. The property prides itself on displaying local artwork and handcrafted furniture throughout the rooms and public areas to create a unique and interesting atmosphere.
One of the best things about Hotel Rangá is its observatory. On clear nights, the observatory is open to view the entrancing universe around the Earth. There are two high-quality telescopes that are so good that details of the rings of Saturn and the surface of Mars can be seen.
Check out Hotel Rangá on Booking.com, where it has a rating of 8.9.
3. Boutique Hotel Anna, Holt
By Paul from Paul Passing Through
Boutique Hotel Anna, also known as County Hotel Anna, is a 3-star hotel located on Iceland’s South Coast, about two hours from Reykjavik and 40 minutes from the small town of Vik. It’s conveniently located near two of the South Coast’s highlights, Seljalandsfoss and Skogafoss, and the port of Herjólfur if you’re planning to take a ferry to Heimaey.
Besides its ideal location, Boutique Hotel Anna is a lovely place to stay with great amenities. It has a handful of rooms in the main building and apartments on the grounds for small families. We were upgraded to one of the apartments. These units are designed for four people and include a living area, kitchenette and large windows overlooking the landscape. Just behind the apartments are two hot tubs to relax in after a long day of sightseeing.
Your stay includes a breakfast buffet with standard continental fare plus a small Skyr yoghurt bar.
The hotel also has a delicious restaurant on-site where they serve gourmet Icelandic fare. It’s a little pricey, but our meal here was one of the best we had during our time in Iceland.
Check out Boutique Hotel Anna by EJ Hotels on Booking.com, where it has a rating of 8.8
4. Hotel Skógafoss, Skógar
By Adriana from Wanderlicious
Hotel Skógafoss is arguably the best hotel in Iceland for its incredible views.
Firstly, it has the best views of Skógafoss waterfall; eat breakfast and sip coffee whilst you watch the rushing torrent of water from the mountains and ridges behind you. It’s rated 9.6 online for its location – no surprise there. You can also walk out to the waterfall before hordes of tourist buses arrive at around 10 am and after they leave around 3 pm. Walk up, enjoy the peaceful setting from your room, walk down to the waterfall with your coffee in hand (it’s only a few minutes walk) and bask in the glory of the meltwater from two glaciers: Eyjafjallajokull and Mýrdalsjökull. The spray from the waterfall means there are constant rainbows shining directly in front of the waterfall. You can’t go wrong with the views here.
Secondly, they have an excellent terrace, where you will be able to watch the Aurora Borealis, or, the Northern Lights. The hotel will let you know if there is a solar storm expected in the evening and whether you might catch a glimpse. We were lucky enough to witness it from our pyjamas – highly recommended!
Check out Hotel Skógafoss by EJ Hotels on Booking.com, where it has a rating of 8.4
5. Puffin Hotel Vík
By Janae from Adventures With TuckNae
If you plan a trip around Iceland on the Ring Road, you’ll want to stop in Vik, Iceland, for a night or two. This charming little town is about two and a half hours from the capital city of Reykjavik, and there are many great things to see and do nearby!
One of the most charming hotels in Vik is the Puffin Hotel Vík. This budget hotel is named for the puffins who nest on the nearby coast during summer. It is centrally located in Vík, and there are multiple things to do within a 10-minute walk, including horseback riding on the black sand beach and Katla Geopark Museum.
The rooms are spacious and clean, with double and twin bed options. Each room has its own private bathroom, and bedding/linens are provided by the hotel. An excellent continental breakfast is included with your room price, and there are multiple restaurants within walking distance. Bonus: the view from the hotel is gorgeous!
Check out Puffin Hotel Vík on Booking.com, where it has a rating of 8.3
6. Adventure Hotel Hof
By me, Martha from MayCauseWanderlust.com
Adventure Hotel Hof is in a gorgeous little hamlet snuggled under misty mountains. One of its neighbouring buildings is a quaint and much-photographed turf-roof church.
It’s located between Skaftafell, which has lots of hiking routes, and Svínafellsjökull glacier and the famous Glacial lagoons of southeast Iceland.
The accommodation itself is fairly basic, and some of the rooms have shared bathrooms, but price-wise it was much less to stay here than in other nearby hotels, so it could be a good option for anyone exploring Iceland on a budget.
There’s also a restaurant on site, which offers breakfast and dinner.
Check out Adventure Hotel Hof on Booking.com, where it has a rating of 7.9
7. Fosshotel Glacier Lagoon
By me, Martha from MayCauseWanderlust.com
Contrasting with Adventure Hotel Hof, Fosshotel Glacier Lagoon is much more comfortable: it’s an oasis of luxury in the middle of the wild Icelandic landscape!
It is close to and named for the glacial lagoons of Iceland: Jökulsárlón and Fjallsárlón. It’s about 25 minutes south of Jökulsárlón, the biggest and most famous one, and 15 minutes from Fjallsárlón, which is smaller, quieter and my favourite (depending on the day you ask me, that is).
It’s a modern 4-star hotel with luxe grey tones and wooden textures throughout, accented with copper lamps. The room was really comfortable and the breakfast in the morning was also wonderful. There are some rooms with views towards the sea, but mine was facing the car park.
I stayed at Fosshotel Glacier Lagoon on that camper van trip I did. After four nights on the road, sleeping in the tiny van, my husband and I needed a bit of relief, so we blew the budget and checked in here for a night. I was so glad they had space! It was a very welcome break from squashing in the back of a small van at night and I thoroughly enjoyed my night of creature comforts and stylish interiors.
Check out Fosshotel Glacier Lagoon on Booking.com, where it has a rating of 8.8
8. Hotel Smyrlabjörg, Skálafell
By Rebecca Gade Sawicki from Veggies Abroad
Hotel Smyrlabjörg is located right off Route 1 (Ring Road) in Suðursveit, 46 km south of Höfn.
This is the perfect spot when you’re looking for a place to stay on the southeast side of Iceland that will put you within easy reach of glacier adventures and under three hours from Vik.
This 3-star, family-run hotel isn’t fancy but offers comfortable accommodations that are perfect for a quiet place to rest and recharge. There is an onsite restaurant that serves breakfast, lunch, and dinner and even has vegan and gluten-free options — I highly suggest the black bean burger!
A big bonus of staying here is that you’re less than 30 minutes north of the stunning Jökulsárlón Glacier Lagoon. Here you can take a boat ride on the glacier lagoon, around massive, towering icebergs and learn how climate change is affecting these natural wonders.
Because of its proximity to Jökulsárlón and its position on the east side of Iceland, the hotel is popular with tour groups, so as soon as you know that you’re going, book your room!
Check out Hotel Smyrlabjörg on Booking.com, where it has a rating of 8.4
9. Höfn Guesthouse
By me, Martha from MayCauseWanderlust.com
Höfn Guesthouse is an affordable place to stay in the fishing town of Höfn in East Iceland.
Like some of the other budget hotels I stayed at in Iceland, the rooms have shared bathrooms.
However, I was quite pleasantly surprised with the facilities here. My room was nice: it felt new and was clean and comfortable. The bathroom I had access to wasn’t shared between many rooms and it was a nice bathroom that was clean and spacious. It was more like I was a guest in someone’s well-kept house, using their bathroom, more than the basic or grim facilities you get in some budget hotels and hostels.
Höfn itself is a nice little town. I was recommended to try langoustines there, as it’s a speciality – and I wasn’t disappointed with the meal I tried at Pakkhús.
But the real reason I stayed in Höfn was to visit Vestrahorn, the imposing black mountain on the coast just up the road from the town. Because of the view of the mountain, the beach next to it is one of the best black sand beaches in Iceland!
Check out Höfn Guesthouse on Booking.com, where it has a rating of 7.9
10. Fossardalur Guesthouse
By me, Martha from MayCauseWanderlust.com
If you’re exploring the East fjords, you might need an East Iceland Ring Road Hotel. There’s one I can recommend just off the Ring Road, called Fossardalur Guesthouse.
What I like about this place is how remote it feels. To get there, you come off the Ring Road up a steep road, which takes you a little way into the mountains.
The landscape here is older than along the south coast of Iceland – the mountains are craggy and worn. It feels ancient and mysterious, especially when the mist descends.
There are basic rooms with shared bathrooms in the farmhouse, and there’s also camping on the grounds, which is what I did. There are shared kitchen facilities available for food prep and a dining area in which to eat.
Check out Fossardalur Guesthouse on Booking.com, where it has a rating of 8.2
11. Stora Sandfell Rooms & Cottages, Egilsstadir
By Jina from byjinalee
If you’re planning on driving to the Diamond Circle as part of your Ring Road trip, consider staying at the Stora Sandfell Rooms and Cottages.
The Stora Sandfell is a budget-friendly accommodation located near Egilsstadir, the largest town near the colourful Seydisfjordur. Each cosy cottage is one, spacious room that comes well-equipped and even features a compact kitchen where you can cook your own meals. They also offer free parking and WiFi for guests.
Outside, you’ll be treated to stunning panoramas of the surrounding mountains and forests. Nearby, you can immerse yourself in the tranquillity of the countryside or trek out to the Litlanesfoss and Hengifoss Falls.
The Stora Sandfell offers all the serenity of camping with hotel services such as booking horseback riding tours. No matter what you decide to do next, you’ll undoubtedly find Stora Sandfell to be an idyllic stop-off as you make your way around the Ring Road.
Check out Stora Sandfell Rooms and Cottages on Booking.com, where it has a rating of 8.9
12. Fjalladyrd – Modrudalur Á Fjollum
By me, Martha from MayCauseWanderlust.com
Fjalladyrd – Modrudalur Á Fjollum is possibly the best place I have stayed in Iceland. And it’s not because it’s luxurious – it’s because it’s one of the most unique places to stay in Iceland.
Firstly, it feels off the beaten path. Not entirely: I did see a bus of tourists arrive there. But relatively speaking, it didn’t seem very busy (and I was there in peak season because I love Iceland in summer so much). It’s in a flattish area, but you can see the cones of volcanoes dotted around it and I’ve read it’s a good place for seeing the Northern Lights.
Secondly, I loved that it feels very rustic: the guest house is in a tiny hamlet that includes a quaint church and several turf-roofed buildings. It’s very picturesque and feels a little like you’ve stepped back in time.
Third: the food is amazing. There’s a buffet breakfast available, and the restaurant also does evening meals. The food isn’t cheap, but it is really good. I tried moss soup here for the first time – Iceland does good soups, yum… They also have a bar and snacks available all day, including these round, dense doughnut-type things called Love Balls. They’re scrumptious: I love those love balls!
Finally, I saw two Arctic foxes here! They were just frolicking in the grass next to a stream. Obviously, it is not likely every visitor will see them because they’re wild, but even if the foxes elude you, there are other animals to see: goats roam the grounds and you could see Icelandic horses, too.
There’s a mix of shared and private bathrooms in the guest house. There’s also camping, which is what I did there. The road to get there from the Ring Road is gravel and can have potholes – so drive carefully!
Check out Fjalladyrd – Modrudalur Á Fjollum on Booking.com, where it has a rating of 8.9
13. Mývatn – Berjaya Iceland Hotels
Cristina, From Honest Travel Stories
If you’re looking for a cosy and comfortable place to stay on the northern stretch of the Ring Road in Iceland, Mývatn – Berjaya Iceland Hotels is a great option.
Located near the stunning Mývatn Lake and the gorgeous Myvatn Nature Baths (one of the best hot springs in Iceland), this hotel is perfect for nature lovers looking to explore the surrounding area.
This 3-star hotel offers a range of rooms, from budget-friendly options to more luxurious suites. Each room is equipped with modern amenities, including a private bathroom, flat-screen TV, and free Wi-Fi. Some rooms offer beautiful views of the surrounding landscape, but also black-out curtains so you can get some rest even if there’s light outside at 2 AM.
I particularly loved the modern bathroom and the overall snuggly feeling of the room (especially an absolutely adorable throw blanket I fell in love with, so I ordered myself when I arrived home). The whole decorative style of the room was done to make you feel at home and enjoy being here after days of hiking in rainy weather.
One of the highlights of staying at Mývatn – Berjaya Iceland Hotels is the delicious breakfast they offer. You can expect a variety of options, including fresh bread, pastries, fruits, and traditional dishes. If you’re looking for other meals, the hotel also has an on-site restaurant that serves various dishes throughout the day.
Check out Mývatn – Berjaya Iceland Hotels on Booking.com, where it has a rating of 8.8
14. Hafdals Hotel, Akureyri
By me, Martha from MayCauseWanderlust.com
If you’re driving through the north of the country, you might want a Ring Road hotel option in Akureyri, because it’s a major town in North Iceland.
Akureyri is nicknamed the ‘Capital of North Iceland’ and it is a major fishing town on the edge of a fjord. It’s a common place from which people go whale-watching and there are plenty of bars and restaurants to find something to eat or drink. There’s also a striking church called Akureyrarkirkja and you should look out for the shape of the red lights on traffic lights: they are heart-shaped!
Now, I camped at a campsite in Akureyi, with no rooms available, so I didn’t experience any of the hotels. However, there is one which I would be interested in if I went back: Hafdals Hotel.
The main reason this one has caught my eye is it’s very highly rated, with praise for the location: it’s just outside the town and some rooms have sweeping views of the fjord.
Check out Hafdals Hotel on Booking.com, where it has a rating of 9.3
15. Sæberg Camping & Cottages
By me, Martha from MayCauseWanderlust.com
On the shore of Hrútafjörður fjord, is a peaceful place to stay in North Iceland. Sæberg Camping & Cottages offers basic dorms, private rooms, camping and exclusive cottages on a quiet farm.
When I was there, the water was still and the air was quiet. A group of Icelandic horses fed right on the banks of the fjord. It felt so tranquil. Dotted around the farm, we saw billows of steam coming up from deep in the ground, a reminder of Iceland’s tectonic activity and geothermal power.
Nearby there’s a local museum with exhibits on local life, women´s history, culture and a shark fishing boat that is over 200 years old. There’s also a hot tub overlooking the fjord.
It’s a great place to stop on the Ring Road between Reykjavik and Akureyri
16. Fossatun Camping Pods & Cottages
By Jade from Two Tall Travellers
Fossatun Hotel is a wonderfully unique hotel in Iceland, just a few kilometres from the Ring Road. It has a variety of room options, from simple camping sites and cosy pods to standard hotel rooms and a self-contained cottage.
There’s a shared kitchen, hot tubs and a mini golf site for you to enjoy during your stay.
The pods are warm and comfortable, and great if you’re on a budget. Sunset Cottage is perfect for families as it has two bedrooms and a private kitchen/bathroom. The cottage gets its name from the spectacular views as the sun goes down!
A breakfast buffet is included with a hotel room booking, but you can pay for this separately if you’re staying in the pods or cottage. You should dine at the restaurant at least once during your stay. They serve international and local cuisine, but the ‘duo’ meals come highly recommended – the lamb stew is to die for!
Fossatun is renowned for its’ troll folklore, Icelandic music and excellent food. The owners have created a relaxed vibe – have a go at the troll games set up in the garden or spend the evening listening to one of over 3000 vinyl records available!
Fossatun is also an excellent place to spot the Northern Lights if you’re in Iceland In November.
Check out Fossatun Camping Pods & Cottages on Booking.com, where it has a rating of 8.8
Need More Ideas For Iceland Ring Road Hotels?
If you need even more ideas and inspiration for accommodation on the Ring Road (or other parts of Iceland), you might find what you’re looking for on Booking.com, which includes apartments, budget hotels and fancier options.
I like Booking.com because you’re able to pay when you check out, rather than in advance, you can easily check cancellation terms and they have a good loyalty scheme:
Map: Iceland Ring Road Hotels
Here’s a map with all the Iceland Ring Road hotels recommended in this article:
How To Use This Map: Click the tab in the top left-hand corner of the map to view the layers. If you click the icons on the map, you can get more information about each one. If you click the star next to the map’s title, it will be added to your Google Maps account. To view it on your phone or computer, open Google Maps, click the menu, go to ‘Your Places’ or ‘Saved’, then click Maps and you will see this map in your list.
The Last Word
I hope this post has given you some good ideas of where you could stay on your Ring Road trip. If you haven’t already, do read my itinerary for driving the ring road, including options for 7 and 10 days.
And if you want some other Iceland road trip ideas, have you considered the Snaefellsnes peninsula or a super jeep tour of Iceland’s highlands?
Thanks for including me on this, Martha. These all look like some great recommendations, but I think I’d like to stay in your favorite, Fjalladyrd, as well! It looks and sounds like a fabulous place, and I’m so jealous you got to see arctic foxes! What did you think of the moss soup? I purchased moss tea as my one souvenir. It’s good as long as I don’t steep it for too long. Gets pretty bitter.
The soup was nice – quite sweet, which was a surprise. I think it’s made with milk and sugar. And the moss seemed similar in taste and texture to seaweed 🙂