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Iceland Accommodation: Most Popular Cities to Stay

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Our top choices for Iceland hotels

CityHub Reykjavik

CityHub Reykjavik
2.0 star property
Downtown Reykjavik
9.0 out of 10, Wonderful, (366)
"Perfect stay for a solo traveler. Comfortable, clean and great location. "
United States
Jéssica
The price is ₹8,774
₹10,459 total
includes taxes & fees
19 Jan - 20 Jan 2026
CityHub Reykjavik

Fosshotel Reykjavik

Fosshotel Reykjavik
4.0 star property
Laugardalur
9.0 out of 10, Wonderful, (1005)
"Great location"
United States
Jimena
The price is ₹16,679
₹19,086 total
includes taxes & fees
11 Jan - 12 Jan 2026
Fosshotel Reykjavik

Grandi by Center Hotels

Grandi by Center Hotels
4.0 star property
Vesturbær
9.4 out of 10, Exceptional, (1403)
"Lovely place, good breakfast "
United Kingdom
Mohamed Ali
The price is ₹15,011
₹17,235 total
includes taxes & fees
19 Jan - 20 Jan 2026
Grandi by Center Hotels

Fisherman's Village

Fisherman's Village
2.5 star property
Garðabær
9.2 out of 10, Wonderful, (1000)
"Great value-price location. Convenient for a stop-over closeby the city"
United States
Nicola
The price is ₹12,343
₹14,276 total
includes taxes & fees
8 Jan - 9 Jan 2026
Fisherman's Village

Alda Hotel Reykjavik

Alda Hotel Reykjavik
4.0 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (1147)
"We are incredibly happy with our stay. The rooms were clean, the breakfast was delicious, and the staff was amazing! "
United States
Gianna
The price is ₹14,683
₹16,870 total
includes taxes & fees
8 Jan - 9 Jan 2026
Alda Hotel Reykjavik

The Reykjavik EDITION

The Reykjavik EDITION
5.0 star property
Downtown Reykjavik
9.4 out of 10, Exceptional, (558)
"Great location, friendly staff"
United States
Jochen
The price is ₹28,980
₹37,743 total
includes taxes & fees
20 Jan - 21 Jan 2026
The Reykjavik EDITION

Hotel Viking

Hotel Viking
3.5 star property
Hafnarfjordur
8.6 out of 10, Excellent, (1489)
"The whole hotel was spotless, the staff very friendly and we loved the restaurant. "
United States
David
The price is ₹12,629
₹14,594 total
includes taxes & fees
8 Jan - 9 Jan 2026
Hotel Viking

Hótel Berg

Hótel Berg
4.0 star property
Reykjanesbær
9.4 out of 10, Exceptional, (1236)
"Great stay, food lovely and great to have airport transfer "
United Kingdom
Ashleigh
Hótel Berg

Reykjavik Residence Hotel

Reykjavik Residence Hotel
4.0 star property
Downtown Reykjavik
9.6 out of 10, Exceptional, (3153)
"Really good location and easy to check in "
United Kingdom
William
Reykjavik Residence Hotel

Hotel Reykjavík Grand

Hotel Reykjavík Grand
4.0 star property
Laugardalur
9.0 out of 10, Wonderful, (1001)
"Great location loved my stay. "
United States
Shirley
The price is ₹14,743
₹16,936 total
includes taxes & fees
7 Jan - 8 Jan 2026
Hotel Reykjavík Grand

Reykjavik Natura - Berjaya Iceland Hotels

Reykjavik Natura - Berjaya Iceland Hotels
4.0 star property
Reykjavik
8.8 out of 10, Excellent, (1002)
"easy access, many tours picked us up at the hotel"
United States
David
The price is ₹10,519
₹12,248 total
includes taxes & fees
29 Dec - 30 Dec
Reykjavik Natura - Berjaya Iceland Hotels

Center Hotels Arnarhvoll

Center Hotels Arnarhvoll
4.0 star property
Downtown Reykjavik
9.0 out of 10, Wonderful, (1025)
"Staff was friendly and helpful! Service was excellent!"
United States
Jinli
The price is ₹16,165
₹18,515 total
includes taxes & fees
3 Jan - 4 Jan 2026
Center Hotels Arnarhvoll

Hótel Jokulsarlon - Glacier Lagoon Hotel

Hótel Jokulsarlon - Glacier Lagoon Hotel
4.0 star property
Reynivellir
9.8 out of 10, Exceptional, (630)
"Fantastic stay great staff from check inn bar and restaurant thank you"
United Kingdom
Matt
The price is ₹26,633
₹30,195 total
includes taxes & fees
7 Jan - 8 Jan 2026
Hótel Jokulsarlon - Glacier Lagoon Hotel

Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon
4.0 star property
Fagurholsmyri
9.4 out of 10, Exceptional, (1002)
"The perfect stay when in the area. "
United States
Anat
The price is ₹16,609
₹19,008 total
includes taxes & fees
7 Jan - 8 Jan 2026
Fosshotel Glacier Lagoon

Courtyard by Marriott Reykjavik Keflavik Airport

Courtyard by Marriott Reykjavik Keflavik Airport
4.0 star property
Reykjanesbær
9.2 out of 10, Wonderful, (1007)
"Nice hotel, convenient location"
United States
Rhianna
The price is ₹15,322
₹17,579 total
includes taxes & fees
6 Jan - 7 Jan 2026
Courtyard by Marriott Reykjavik Keflavik Airport

The Retreat at Blue Lagoon Iceland

The Retreat at Blue Lagoon Iceland
5.0 star property
Grindavik
9.8 out of 10, Exceptional, (161)
"Wonderful experience - loved every minute"
United States
Laura
The Retreat at Blue Lagoon Iceland

Miðgarður by Center Hotels

Miðgarður by Center Hotels
4.0 star property
Tún
9.4 out of 10, Exceptional, (1225)
"pleasant stay"
United Kingdom
Ann
The price is ₹13,985
₹16,095 total
includes taxes & fees
12 Jan - 13 Jan 2026
Miðgarður by Center Hotels

Hotel Ísland - Spa & Wellness Hotel

Hotel Ísland - Spa & Wellness Hotel
4.0 star property
Háaleiti
8.2 out of 10, Very good, (1000)
"The hotel was nice for what we needed, but would prefer to be closer to town next time. Staff were amazing "
United Kingdom
James A.
Hotel Ísland - Spa & Wellness Hotel

Center Hotels Laugavegur

Center Hotels Laugavegur
4.0 star property
Downtown Reykjavik
9.2 out of 10, Wonderful, (1348)
"Helpful staff, clean place, great breakfast."
United States
James
The price is ₹15,586
₹17,872 total
includes taxes & fees
7 Jan - 8 Jan 2026
Center Hotels Laugavegur

Kvosin Downtown Hotel

Kvosin Downtown Hotel
4.0 star property
Downtown Reykjavik
9.8 out of 10, Exceptional, (1000)
"Great place to stay!"
United States
Jorge
Kvosin Downtown Hotel
Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.

Great weekend hotel deals in Iceland

Showing deals for:2 Jan - 4 Jan
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Top Iceland Hotel Reviews

Price trends for hotels in Iceland

Less expensive
More expensive
Next month
April
August
₹13,763
Month
Price
January
₹13,763
February
₹14,996
March
₹14,626
April
₹13,685
May
₹16,631
June
₹23,438
July
₹25,695
August
₹26,373
September
₹18,450
October
₹16,426
November
₹14,923
December
₹16,717
Price trend information excludes taxes and fees and is based on base rates for a nightly stay for 2 adults found in the last 7 days on our site and averaged for commonly viewed hotels in Iceland.

Guide to exploring Iceland

Iceland: A breathtaking land of fire and ice

Iceland, a land of diverse landscapes and natural wonders, is a must-visit destination for any traveler. With friendly locals and a plethora of activities to indulge in, this Nordic island offers something for everyone. Reykjavik, the capital city, offers cheap hotel options and a vibrant nightlife scene. Cold-weather enthusiasts can explore stunning destinations like the Golden Circle and the Vatnajökull Glacier. Nature lovers will be captivated by the majestic waterfalls and hiking trails that abound. For ski enthusiasts, there are excellent ski resorts to enjoy. Overall, Iceland is a paradise for adventure-seekers and nature enthusiasts alike.

Top reasons to visit Iceland

  • Blue Lagoon: Immerse yourself in the warm waters of this hotspring point of interest in Grindavik, surrounded by picturesque landscapes. Take a tour, enjoy the company of friendly locals, indulge in a delightful meal, and even catch a glimpse of the magical Northern Lights.
  • Jokulsarlon Glacier Lagoon: Witness the awe-inspiring beauty of glaciers at this point of interest. Take a tour, interact with friendly locals, savor delicious dining options, explore walking paths, visit museums, appreciate the wonders of nature, and marvel at the majestic waterfalls.
  • Thingvellir National Park: Explore this national state park in Bláskógabyggd, known for its remarkable tours, friendly people, dining opportunities, Northern Lights sightings, shopping experiences, scenic walking paths, educational museums, stunning natural landscapes, captivating waterfalls, and thrilling hiking trails.
  • Reykjavik: This vibrant capital city is known for its friendly people, delicious dining options, and vibrant nightlife. Explore the city's museums, go on nature walks, or take tours to see the famous Northern Lights.
  • Vik I Myrdal: Located in the south of Iceland, Vik I Myrdal is famous for its stunning black sand beaches, dramatic sea cliffs, and picturesque waterfalls. It's a great destination for hiking and enjoying the beauty of nature.

Find your hotel in Iceland

When it comes to accommodation options in Iceland, you'll find a variety of hotels to suit your preferences. Here are some popular choices:

  • Reykjavik Natura - This 4.0-star hotel in Reykjavik offers a range of facilities including yoga, steam room, library, wedding services, and a spa. It is also conveniently located near the airport, museums, and various excursions.
  • Alda Hotel Reykjavik - Another 4.0-star hotel in Reykjavik, it features amenities such as whale watching, shopping, sauna, massage, and a bar. It is situated close to the sea, museums, cafes, and coffee shops.
  • Hotel Viking - Located in Hafnarfjordur, this 2.5-star hotel offers an ocean view, whale watching opportunities, a steam room, and a hot tub. It is also conveniently near the airport, a theme park, and the port.

Staying in Iceland offers a unique experience with its stunning natural landscapes, including glaciers, geysers, and waterfalls. The country also provides various outdoor activities like hiking, exploring lava fields, and witnessing the mesmerizing Northern Lights. Booking a hotel in Iceland ensures you have a comfortable base to explore the country's natural wonders and enjoy its rich cultural heritage.

Explore the best places to visit and stay in Iceland

When it comes to exploring Iceland, there are several exciting areas that offer unique experiences and breathtaking landscapes.

  • Reykjavik: This vibrant capital city is known for its friendly people, delicious dining options, and vibrant nightlife. Explore the city's museums, go on nature walks, or take tours to see the famous Northern Lights.
  • Vik I Myrdal: Located in the south of Iceland, Vik I Myrdal is famous for its stunning black sand beaches, dramatic sea cliffs, and picturesque waterfalls. It's a great destination for hiking and enjoying the beauty of nature.
  • Selfoss: Situated on the banks of the Ölfusá River, Selfoss is a charming town surrounded by beautiful landscapes. It's a perfect base for exploring the Golden Circle route, which includes iconic landmarks like the Gullfoss waterfall and the Geysir geothermal area.

Each of these areas offers a unique blend of natural wonders, cultural experiences, and local hospitality, making your trip to Iceland truly unforgettable.

Experience the top activities and must-see sights in Iceland

Experience the unique atmosphere of Iceland with a cheap holiday filled with tours, friendly people, delicious dining options, the chance to see the mesmerizing Northern Lights, shopping opportunities, leisurely walks, fascinating museums, breathtaking nature, stunning waterfalls, and exhilarating hiking adventures.

  • Blue Lagoon: Immerse yourself in the warm waters of this hotspring point of interest in Grindavik, surrounded by picturesque landscapes. Take a tour, enjoy the company of friendly locals, indulge in a delightful meal, and even catch a glimpse of the magical Northern Lights.
  • Jokulsarlon Glacier Lagoon: Witness the awe-inspiring beauty of glaciers at this point of interest. Take a tour, interact with friendly locals, savor delicious dining options, explore walking paths, visit museums, appreciate the wonders of nature, and marvel at the majestic waterfalls.
  • Thingvellir National Park: Explore this national state park in Bláskógabyggd, known for its remarkable tours, friendly people, dining opportunities, Northern Lights sightings, shopping experiences, scenic walking paths, educational museums, stunning natural landscapes, captivating waterfalls, and thrilling hiking trails.

How to find great deals and cheap hotels in Iceland

  • When looking for accommodation in Iceland, consider staying in budget-friendly options such as hostels, guesthouses, or camping sites.
  • Consider visiting Iceland during the off-peak season, which is from September to May, to save on hotel and travel costs.
  • Explore the option of self-catering accommodations, such as apartments or cottages, where you can save money by cooking your meals.
  • Take advantage of the local public transportation system, such as buses, to save on transportation costs while exploring Iceland.
  • Enjoy the natural beauty of Iceland by engaging in free or low-cost activities like walking tours, hiking, and visiting waterfalls.
  • Experience the unique culture of Iceland by visiting museums, which often offer discounts or free entry on certain days.
  • If you're interested in seeing the Northern Lights, consider taking a self-guided tour instead of booking an expensive guided tour.
  • Save on dining expenses by trying local street food or purchasing groceries from supermarkets for picnics or self-prepared meals.
  • Shop for souvenirs and Icelandic products at local markets or duty-free shops at the airport for better deals.

Discover the flavours of Iceland

When it comes to dining out in Iceland, prepare yourself for a unique and unforgettable culinary experience. From local restaurants to hidden gems, there are plenty of options to nosh on gourmet Icelandic delicacies. One highlight is Lyng Restaurant, known for its innovative dishes crafted by world-class chefs. You can indulge in high-end high teas or sip sunset cocktails on rooftop terraces, all while enjoying breathtaking views of Iceland's stunning landscapes. Another must-try is Restaurant Downstairs, where you can immerse yourself in the local culture and savor traditional Icelandic cuisine.

Exploring the popular restaurants in Iceland's neighborhoods, you'll find a range of culinary styles to suit every taste. Nord, located in Reykjanesbær, is a charming European restaurant that offers a delightful mix of flavours from across the continent. Meanwhile, Geysir Glima in Bláskógabyggd is a bistro restaurant that promises a cozy and inviting atmosphere, perfect for enjoying a delicious meal after a day of exploring Iceland's natural wonders. Whether you're a food enthusiast or simply looking to indulge in local cuisine, Iceland offers a dining experience like no other.

Best time to go to Iceland

Iceland boasts a year-around average temperature of 5.0°C, peaking at 11.1°C in July, its warmest month, and dipping to an average low of -0.2°C in January, the coolest. Rainfall averages at 67.1mm annually, with October seeing the heaviest showers and June being the driest month.

Monthcalendar iconTemperature (Celcius)temperature iconRainfall (mm)rain icon
January-0.289.9
February0.365.0
March1.565.0
April3.653.1
May6.841.9
June9.640.9
July11.148.0
August10.666.0
September8.471.9
October5.397.0
November2.185.1
December0.481.0

The nearest major airports for your trip to Iceland

When visiting Iceland, you can fly into two major airports: Keflavik International Airport (KEF) and Reykjavik Domestic Airport (RKV). KEF, situated 202.8km from central Iceland, offers nearby luxury accommodations such as The Retreat at Blue Lagoon Iceland, 16.1km away, and Diamond Suites, only 3.2km distant. For RKV, located 167.4km from central Iceland, The Reykjavik EDITION, Tower Suites, and Reykjavik Marina Residence are all excellent choices, each just 1.6km away. Additionally, Akureyri Airport (AEY), located 88.5km from Iceland, has options like Hotel Kea and Lamb Inn Öngulsstaðir, providing convenient access for travellers.

The Iceland info point: What you need to know

Category
Details
CapitalReykjavik
LanguageIcelandic
CurrencyIcelandic Króna (ISK)
Time ZoneGreenwich Mean Time (GMT)
VisaVisa-free for Indian tourists for up to 90 days
Most popular attractionsBlue Lagoon, Golden Circle, Reynisfjara Black Sand Beach
WeatherVaries, but generally cold with mild summers and cold winters
Must-try foodLamb, fish, skyr (traditional Icelandic yogurt)
Recommended activitiesGlacier hiking, Northern Lights hunting, exploring ice caves

Explore a world of travel with Expedia

Frequently asked questions

How much do hotels in Iceland cost?
The season and factors like Christmas, Easter and school holidays can affect the price of a hotel in Iceland. You can find cheap options from ₹10,459 in a few different ways on Expedia. First, enter the dates you'd like to get away, then use the filters like property type and amenities to refine your search. You can also sort by price, so the most economical options appear at the top.
When is the best time to go to Iceland?
Any time is a great time to discover Iceland, just remember that the weather will vary depending on your destination. If a Reykjavik summer holiday is on the cards, book your trip between June and August. You can expect average temperatures of between -13ºC and -11ºC then in this city, which has a oceanic climate.
What is the best area to stay in Iceland?
Reykjavik is one of the most exciting places for a break in Iceland. Base yourself here and explore everything the city has to offer, from its wealth of attractions and activities to its leading accommodation and restaurants.
How can I find cheap hotels in Iceland?
Iceland cheap hotels start at ₹10,459 per night. To browse these types of budget-friendly options, take advantage of our "Price per night" filter. Other suggestions? Be flexible with your getaway dates and book in advance. Browse our cheap hotels in Iceland page for offers you won't be able to resist.
What are the best hotels in Iceland for families?
Expedia makes it simple to lock in a property with everything you need for an unforgettable family getaway to Iceland. Start by clicking on "Family friendly" in the "Traveller experience" heading of our filter tool. Then narrow your search by things like "Guest rating" and "Property type." Whether you need a family hotel in Iceland for a weekend adventure or a long getaway, we've got you and your team covered.
Why should I book my Iceland hotel with Expedia?
Book your Iceland stay with Expedia for ease, price and choice. Also, our One Key™ rewards programme lets you collect OneKeyCash™* on all eligible hotels, holiday rentals, flights, car rentals and more. In addition, we offer flexibility should your schedule change, and if you have any questions or require assistance, our online Help Centre is available 24/7.*Excludes taxes and fees. OneKeyCash is not redeemable for cash and can only be used on Expedia and other participating brands.