Where to stay in Iceland (including an inflatable igloo)

May 19, 2026

6 MIN READ

Sel-Hotel Mývatn in North Iceland. Daniel Dorsa for Lonely Planet

A person in a wooden hot tub; a large, low building is across a grassy area.

I love discovering new places – and discovering something new in places which I have visited many times before. Iceland, my home country, constantly surprises me with new natural wonders and ever-changing landscapes, and provides endless inspiration for the children’s books that I write. Far-away places have a certain allure, too, and my biggest adventure to date was hiking to Everest Base Camp. While I enjoy active vacations – hiking, skiing, horseback riding – I also like to relax and soak up …

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Deciding where to stay in Iceland? We've got the best country retreats, boutique hotels, next-level camping and unique stays. Some can only be reached in summer, but others can be enjoyed in all seasons. (Unless noted, prices are for a double room per night during peak season.)

The best country retreats in Iceland

A white house in a green landscape by a low cliff to the sea.
Arnarstapi on the Snæfellsnes Peninsula. Uhryn Larysa/Shutterstock

Icelanders love their sumarbústaðir (summer houses), which can be found in sheltered areas around the country. However, these are often owned by families or labor unions and not available for tourists. Luckily, other options offer tranquility and closeness to nature for visitors.

Heydalur

Westfjords

In one of the narrowest of fjords, Mjóifjörður, between Hólmavík and Ísafjörður, Heydalur is a farm turned adventure land for tourists. Choose between en suite bedrooms, studio apartments, summer houses of various sizes and a campsite. The beds are comfortable, the food hearty and homemade, and the surrounding nature a paradise for outdoor enthusiasts. You can take walks or go horseback riding, kayaking, fishing, wildlife watching or northern lights hunting. And after a day packed with activities, relax in one of the pools, hot tubs or natural hot springs.

From 34,000 Icelandic krónur

Selá Retreat

North Iceland

About 30 minutes north of Akureyri, Selá's beautifully renovated old farmhouse and stable has one- and two-person bedrooms with access to kitchens, bathrooms and washing machines. Guests can also take advantage of the meditation loft, fireside lounge and workshop in the old barn. There’s a hot tub, too, perfect for enjoying long summer nights or stargazing in winter. A short walk will take you to the hamlet of Hauganes, which has whale-watching tours and beachside hot tubs, and from the neighboring town Árskógssandur, you can take the ferry to Hrísey island. Dalvík, with its superb ski resort, is a 10-minute drive away.

From €125 in the main house

Mjóeyri

East Fjords

Mjóeyri's comfy red cottages for small groups or families have a wonderful view of the fjord outside the town of Eskifjörður. There’s also a cozy guesthouse in a renovated house from 1895, with single and double rooms and access to a bathroom. Guests can use a hot tub in an old boat, a sauna, showers and a laundry room. It’s possible to book guided walks and other tours. Helgustaðanáma, an Iceland spar mine now under protection, is nearby, as is the Oddsskarð ski resort. Randulffssjóhús is a museum and seafood restaurant in an old Norwegian herring station (open in summer only).

From €176 in the guesthouse

The best boutique hotels in Iceland

People laying on grass by a one-story black building.
Akureyri Botanical Garden. Daniel Dorsa for Lonely Planet

While Iceland’s boutique hotels are often located in urban areas – and highly fashionable – a few smaller and less flashy establishments provide a special and intimate experience.

Hotel Akureyri

North Iceland

A micro-hotel highlighting sustainability, family-run Hotel Akureyri in the oldest part of the North Iceland town of the same name offers compact comfort. The hotel operates the Urban Farm in an old box factory, growing herbs year-round. The crops are sold at the hotel’s store and used by the chefs at North, the little sister of Michelin-starred Dill in Reykjavík.

From 43,279kr

Hótel Kríunes

Near Reykjavík

The best of both worlds – Hótel Kríunes is a family-run countryside hotel by the lakeshore of Elliðavatn on the outskirts of Iceland’s capital. Enjoy the lake view from a beautifully designed room, plus access to a hot tub and sauna. A 15-minute drive from Reykjavík's center, the hotel is right on the edge of Heiðmörk, a forested area popular for outdoor recreation. Light pollution is minimal: look out for stars and the northern lights.

From 47,800kr

Brimslóð Atelier

North Iceland

By the beach in Blönduós, a town where few visitors stop to explore, is a secret sanctuary. Brimslóð Atelier is run by an artistic couple passionate about serving delicious local food and creating a sense of community in their guesthouse. There are no TVs, only a “slow TV” (a huge window to watch the surf and the mountains). Sometimes whales appear and the northern lights come out.

From US$221

The best next-level camping in Iceland

People walk through grass toward one of three yurts.
Yurts on Traustholtshólmi island in Southwest Iceland. Egill Bjarnason/Lonely Planet

Iceland has many fantastic conventional campsites, and to sleep in a simple tent is an intimate and powerful way of experiencing Icelandic nature. But why not take camping to the next level and book a glamping setup where everything you need is provided?

Húsadalur

South Iceland

Volcano Huts is based in Þórsmörk Nature Reserve, a forested paradise in the southern highlands with adventurous hiking trails and breathtaking glacial views. In addition to regular camping and rustic lodges, you can rent stately glamping tents, with made-up beds for two or three, heating and optional treats. It is open in the summer only.

From 32,961kr for a glamping tent

Buubble

South Iceland

Why settle for five stars when you can have 5 million? In a forested area near Selfoss – close to the most popular tourist attractions in South Iceland – you can sleep in Buubble's inflatable, see-through igloos. They are heated, have made-up beds and are particularly romantic in winter, when you can look up at the stars from your bed and hope for a glimpse of the northern lights.

From €257

Fossatún

West Iceland

Fossatún sits in a self-proclaimed troll-infested area of Borgarfjörður. The trolls are friendly, though, and quite the attraction for adventurous children. There are regular cottages and wooden pods, which look a bit like hobbit houses, snug and cozy for families and couples.

From 21,500kr per camping pod

The most unique stays in Iceland

White houses with yellow trim and grass roofs.
Turf houses at the Glaumbær museum in Skagafjörður in North Iceland. Daniel Dorsa for Lonely Planet

Across the country you’ll find unique guesthouses, closely connected with Icelandic heritage and culture. While sleeping in one, you can almost breathe in the history of the place.

Kirkjubær

East Fjords

In the fishing village of Stöðvarfjörður, you can sleep in a deconsecrated church from 1925. Kirkjubær hostel offers “sleeping bag accommodation” (BYO) or made-up beds – with access to a bathroom and kitchen facilities – all with good spirits.

From US$39 per bunk

Wilderness Center

East Iceland

At the innermost farm in Fljótsdalur, you’ll find an old-fashioned farmhouse from 1940, renovated as a guesthouse, museum and base for wilderness tours in all seasons. Wilderness Center guests can sleep in a dorm, bed closet or private bedroom.

From 36,100kr

Möðrudalur á Fjöllum

Southeast Iceland

In the northeastern highlands, at Iceland’s highest-located farm, you can sleep in a turf house, as Icelanders did for centuries, albeit with modern conveniences. It is run by Fjalladýrð, which in addition offers a range of highland tours. There’s also a campground and a hostel.

From 21,900kr for a two-person bunk room in the hostel

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