Where to stay in Iceland (including an inflatable igloo)
May 19, 2026
6 MIN READ
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Sel-Hotel Mývatn in North Iceland. Daniel Dorsa for Lonely Planet
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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
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.
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
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
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
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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