Accommodation in Iceland

Accommodation in Iceland

So, you’re coming to Iceland. Or you’re thinking about coming to Iceland. Where do you want to stay? Have you ever wondered what sort of accommodation you might find in the Land of Fire and Ice? 

Iceland has a great range of accommodation to suit a wide variety of needs; you might say it is as diverse as the nature in the country itself! In this post, we wanted to give you a little run-down of the types the types of accommodation in Iceland, so here it is:

Sleeping bag accommodation

The premise here is basic: you get a bed and a pillow and sometimes a duvet. Your job is to bring a sleeping bag (and probably a sleeping bag liner, always a good idea). This is the most inexpensive accommodation in Iceland.

Sleeping bag accommodation can be found in hostels in multi-bed dorms, and on farmstays where you more likely to have a private room with one or two beds. Breakfast usually costs a little extra on top and does not come as standard.

We would place hostels in this category too, and there is a good network of quality hostels all over the country, especially the operated by Hostelling International (HI Hostels).

Photo: Visit West Iceland


Next up in our accommodation list are “farmstays”. It does pretty much exactly what it says on the tin: you stay on a farm. Farms are very important places in Iceland, almost institutions, and their historical relevance holds, even in modern times.

For this reason, we really like farmstays because they can often offer a very personal take on life in Iceland. Often, a lot of the produce you will find at the breakfast table (often included) is actually produced on the farm itself.  You will find farmstays dotted all over the country, often in scenic/countryside locations (no surprises there).


Next up are guesthouses. The kind of accommodation standard is likely to be similar to a farmstay, but without the farm. Also, as opposed to a purpose-built building like a hotel or hostel, a guesthouse is an arrangement where a regular house is opened up by the owner of the house, and the rooms therein are available for overnighting. 

Many times, the owner of the household is present, and it’s a great way to meet locals. These people have often lived in their houses for decades, and they have a lot of stories to tell!

Photo: Visit Sout Iceland

Cabins & Summerhouses

Instead of meeting people, you can go it completely alone. Book a cabin for a night or three for some peace, quiet and solitude. They are dotted all over the country and can often be found in some pretty fantastic locations: overlooking valleys, positioned out towards a fjord opening or by a river. In Icelandic, they are called "bústaðir".

Photo: Gold and Green Forests

Sometimes, these are self-catering and they often come with a stove, oven and sink. Some of the larger and more expensive cabins will have a “full” kitchens, with washing and drying facilities and some of the very high end options will have the possibility of adding a personal chef.


Our last accommodation option is the most standard and, in Iceland at least, the most expensive. You will find a hotel in every larger-than-very-small town, and most of them hover around the 3* quality mark, with breakfast included.

However, recently there have been some new hotels popping up around the country, offering a higher level of amenities and services, 4* in quality. These are a welcome addition to the accommodation spectrum in Iceland, these include Hotel Siglo in the north, and Hotel Rangá as well as the Fosshotel Glacier Lagoon in the south.

Photo: Center Hotels

Any way you like!

So that’s our little roundup of the accommodation options in Iceland! Iceland Rovers does a lot of work with private and tailor made tours, so when it comes to choosing your accommodation options, you can have it any way you like, location permitting of course!

Enjoying the blog? Subscribe!

How's the blog? Enjoying it? If so, Subscribe and keep up to date with the latest info, tips, tricks and travel advice from Iceland Rovers. You’ll get a monthly newsletter with a nice little roundup of the posts that we have put out. 



Hailing from London and born into a British/Brazilian/Italian housebold, Joseph came to Iceland originally to complete a masters degree in Environment and Natural Resources from the University of Iceland: the rest is history.

Currency Settings

Choose your currency

Please note that our currency exchange rate is taken from the Icelandic Central Bank and might differ slightly from your bank's currency rate. Additionally, all charges are made in Icelandic Krona (ISK).

Select currency:

Iceland Rovers - Search

Looking for something special?

Subscribe to our mailing list

* indicates required
You may also like to receive: