Where to Stay in Iceland

Where to stay in Iceland is a fun topic to write on because we stayed in all different places all around the whole island. From sharing bunks with strangers in the northern part of the island, to having our own cozy room on a farm in the south.

If you’d like to see where all we went on our five and a half day trip look here.

Where to Stay in Iceland

So, you have several options for where to stay in Iceland. There’s camping, hostels, Air b&b’s, and hostels. We didn’t stay in any hotels because … boring (and pricier). We also ruled out camping because it was the stormy season (we went in October).

This shot was taken the first day … when we were stopping every five minutes to get a picture of some new, stunning view. Then we realized the entire island was like this and we couldn’t take a picture of every rock or sheep and get where we were headed each night.

Back to where to stay in Iceland. We stayed in two air bnb’s and three hostels.

Hostels and Air BnB’s

The first night’s stay was an air bnb in Keflavík for only $55. It was bare bones and just what we needed to crash for the night. I was sick and we didn’t get in till 11:00 P.M. I was feeling so miserable when we finally rolled in. Nate was instructing me on how we needed to be extremely quiet as the owners lived above and there were other guests staying there. Then he proceeded to accidentally blast the car horn. We’re here!

Night number two was in another air bnb in the south of Iceland in a town called Höfn. It was on a quaint little farm and the coastline around there is spectacular! We spent $130 on this night, but it was a fun experience and our host not only helped us with our map for about 30 minutes, but she made a full Icelandic breakfast for us that next morning. When we rolled in she welcomed us and asked where we had come from that morning. “Wow. No one EVER does that.” Not sure if I should be saying thank you right now or …

The third night was in a hostel (around $60). It was our first time to ever stay in one and we weren’t sure what to expect. Everything in Iceland is very clean and this busy hostel was no exception. Thankfully, we liked our two roommates (even though they enjoyed making cracks at Americans …). It was however, very noisy and busy.

The fourth night in Holmavik was our favorite. We were in a shared room, but ended up being the only ones there that night.

If you want a really neat Icelandic experience, I’d recommend coming here. This town is in the Western Fiords and is sheltered from some of the harsher winds that the south gets whipped with. A whopping 375 people live here and our host told us that tourism hasn’t really caught on yet. It’s quiet and quaint. A real taste of Icelandic life.

They do have one gas station and a grocery store, which is also a restaurant. They have some of the best whale watching in all of Iceland and you can literally see whales out of the front window of the hosel and some of the bedrooms during the summer. Incredible! They also have puffins and other wild life. The drive to and from this town was lovely. Just about two hours away we were able to go seal watching, and see a Viking fortress. They also boast a large waterfall nearby and some wonderful rock formations.

These are all pictures of our hostel in Holmavik and the area right around it. The other two hostels were clean, but this one was extra nice. Each bed had privacy curtains and a flat screen TV inside.

We spent our last night in a hostel in Olafsvik. We did have our own room, but this was a really bland hostel. No community room and a single shared shower per floor.

All in all we had a blast seeing new things and staying new places. Driving around the entire island was an aggressive plan, but we saw so much and would probably do it again.

Hotels and Camping

We ran into a couple on the way back to the airport who only stayed in hotels because they didn’t know what to expect and they said the hotels were all great. We also saw lots of camper vans. You can rent them by the day or by the week. They looked like a ton of fun. My understanding is that you’re allowed to pretty much camp wherever. We saw folks with their vans pulled off in the prettiest places (just off the road, not like IN someone’s yard!).


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