The Ring Road is one of the most popular routes in Iceland, offering visitors all sorts of interesting attractions along the way. Among the most famous are Gullfoss Waterfall, the Jokulsarlon Glacier Lagoon, and the Geysir Geothermal Area.
Even though you technically can drive the entire route of 1330 km in one day, it would be a complete waste as you’d just be waving to the various attractions as you pass by.
If you really want to enjoy and get to know Iceland driving down the Route 1, you’ll need to make a proper road trip out of it. And for that, we recommend at least 10 days. Carefully plan where to stay each night, as there’s all sort of hotels and accommodation along the Ring Road, and not all might fit your needs.
But as most travelers who have arrived at a destination that doesn’t look like the photos know, finding accommodation is not that easy. That’s why we’ve put together this guide to the best hotels and accommodation options on Iceland’s Ring Road.
What to Look for in a Hotel along the Ring Road in Iceland
Where you book will heavily rely on your preferences and requirements. These are some of the things you need to consider:
Accessibility
There are plenty of accommodation options off the Ring Road in Iceland, but there are also plenty of accommodation options off the Ring Road. Be cautious where you book and double-check the location.
If it means a detour of 2–3 hours off-route, you’ll need to adjust your itinerary accordingly and it might not be worth it. Also, check the road conditions. If the road to the accommodation is up a rocky mountain pass, your vehicle might not be suitable to reach it.
Your Budget
Hotels in Iceland can be costly compared to other countries in Europe. It can be the best hotel along the Ring Road, but if you can only afford a hostel, your booking will be for naught.
If you intend to book more affordable accommodation such as hostels and campsites, you’ll need to budget between $120-$200 per night.
If you’re planning on staying at Airbnbs, guesthouses, and hotels, you’ll need to budget at least $150 - $350 per night. If you’re looking for luxury accommodation, you’re probably not the type that needs to budget anyway and can completely disregard this point.
Amenities & Facilities
There might be certain extras that are non-negotiable to you. For example, if you’ll need to attend to work whilst on holiday, a place without Wi-Fi is out of the question. You might not be traveling with much food and in the more remote areas, a restaurant on-site is essential.
Or maybe you just want a balcony with a view or a hot tub to combat the ice in Iceland. Whatever it is, you need to check whether the accommodation has it before booking.
The Atmosphere
This is something many underestimate. If you are a social person who enjoys informal settings, the luxury hotel with a private butler is not going to work for you.
The same goes for the private individual that just wants some peace and quiet – booking into busy backpackers will be an absolute disaster. Think about the atmosphere you want to have surrounding you.
Reykjavík
Reykjavík is the capital city of Iceland and is usually the first stop for visitors once they’ve landed at Keflavik Airport. Reykjavík is a city in every sense of the word. Here you can shop till you drop, hop from one restaurant and bar to the next and choose between activities such as whale watching boat tours, and museums.
You can stay a week in Reykjavík and still not have done everything this hustling-and-bustling city has to offer. Your first night on the island (and, technically, your first stop on your Ring Road trip) will most likely be in the capital. But you can, of course, extend your stay if you wish to do so. Here are some of the best places to stay in Reykjavik:
Where | Accommodation Type | Price Range | Best for… | Where to Book |
Hotel Reykjavik Saga | Hotel | $$ |
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Downtown Guesthouse Reykjavik | Guesthouse | $$ |
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Kex Hostel Reykjavik | Hostel | $-$$ |
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Hella
Hella is a small town in the southern part of Iceland, roughly 94 km east of Reykjavík. Despite it being such a small town, you’ll find plenty to do here, such as visiting the Caves of Hella. But when it comes to hotels and accommodation on Iceland’s Ring Road, this is a practical option for staying over. Some of the best places to stay in Hella include:
Where | Accommodation Type | Price | Best for… | Where to Book |
Bru Guesthouse | Guesthouse | $$ |
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Loa’s Nest | Guesthouse | $$ |
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Hotel Ranga | Hotel | $$$ |
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Skaftafell Area
Skaftafell is a nature reserve that now forms part of the bigger Vatnajökull National Park. As one can expect from a national park; it is a stunning area that holds many natural wonders. The highlights are the Svartifoss Waterfall and Oræfajökull Volcano.
Here, you have the option of staying at the park or in the nearby surroundings. These are the places to stay in the Skaftafell area that come highly recommended:
Where | Accommodation Type | Price Range | Best for… | Where to Book |
Hotel Skaftafell | Hotel | $$-$$$ |
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Fosshotel Glacier Lagoon | Hotel | $$$ |
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Skaftafell Campground | Campsite | $ |
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Egilsstadir
Egilsstadir is the largest town in East Iceland and is nestled on the shores of Lake Lagarfjlot. Some of the nearest attractions include Studlagil Canyon and Hallormsstadur Forest. Some of the best places to go camping in Iceland and to stay in Egilsstadir include:
Where | Accommodation Type | Price Range | Best for… | Where to Book |
Gistihusid Lake Hotel | Hotel | $$ |
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Tehusid Guesthouse & Hostel | Guesthouse & Hostel | $-$$ |
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Camp Egilsstadir | Campsite | $ |
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Husavik
Husavik, also known as the whale capital of Iceland, is a quaint town sitting on the shores of Skjalfandi Bay on the north coast of the island. Husavik has always been famos for its whale watching tours, Geosea and the Transportation Museum. Yet, the city has become better known for its Oscar-nominated song, "Husavik - My hometown". You can hear it in the popular Will Ferrel movie, Eurovision.
Some of the best places to stay in Husavik that you can consider are:
Where | Accommodation Type | Price | Best for… | Where to Book |
Fosshotel Husavik | Hotel | $$-$$$ |
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Arbol Guesthouse | Guesthouse | $$ |
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Husavik Green Hostel | Hostel | $ |
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Akureyri
Akureyri is considered to be the capital of the north and is the second-largest city in Iceland. The city sits at the head of Eyjafjördur, Iceland’s longest fjord. It is best known for the Laufas Turf Houses, the Arctic Botanical Gardens (yes, things do grow here), and the Aviation Museum.
If that doesn’t take your fancy, you can always opt for being wined-and-dined at one of the many local restaurants and bars. A few options for places to stay in Akureyri include:
Where | Accommodation Type | Price Range | Best for… | Where to Book |
Saeluhus Apartments & Houses | Holiday apartments & houses in a resort setting. | $$ |
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Akureyri Guesthouse | Akureyri GuesthouseGuesthouse | $$ |
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Lava Apartments | Holiday apartments | $$ |
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Blönduos
Blönduos is a small town in northern Iceland that only officially became a real village in the 19th century. Despite the little town still being a “baby” of the island, you’ll find plenty to do and see here. This includes attractions such as the Textile Museum, the Icelandic Salmon Center, and the river, Blanda. Some of the best accommodation options in Blönduos are:
Grundarfjördur
Grundarfjördur is located in the north of the Snæfellsnes Peninsula and is nestled in between a mountain range and the sea. As you can imagine, this makes for a beautiful setting. The best local attractions include Kirkjufell Mountain, Grundarfoss Waterfall, and the Orca Sculpture. Accommodation here is extremely limited, so make sure that you book well in advance. Here are a few of the best places to stay in Grundarfjördur:
Where | Accommodation Type | Price Range | Best for… | Where to Book |
Kirkjufell Guesthouse | Guesthouse | $$ |
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Guesthouse 43 | Guesthouse | $$ |
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Grundarfjördur B&B | B&B | $$ | $$
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Reykjavík/Keflavik Airport
On the 10th day of a Ring Road trip, visitors are heading back. If you have to catch a flight the same day, it’s best that you head straight to the airport. If you still have one night left on the island, you can either opt for staying in Reykjavík again. Or you can opt for accommodation at or around the Keflavik Airport:
Where | Accommodation Type | Price Range | Best for… | Where to Book |
Courtyard by Marriott | Hotel | $$ |
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Kef Guesthouse | Guesthouse | $$-$$$ |
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Konvin Hotel | Hotel | $$-$$$ |
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Iceland Ring Road Hotels & Accommodation; a Final Word of Wisdom
As we already mentioned, places such as Grundarfjördur has very few accommodation options and needs some pre-booking. Know that the same will apply to ALL the Ring Road hotels during the busy summer months.
So, if you’ve already decided that you’ll be visiting during summer, please ensure that you book your rental car in Iceland well in advance. Same goes for your Ring Road accommodation, do book according to your itinerary and the length of your trip too.
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