The top accommodations in Iceland (including an inflatable igloo)

Searching for a unique place to stay in Iceland?

Discover Iceland's finest country retreats, boutique hotels, exceptional camping options, and one-of-a-kind stays. Some locations are accessible only in summer, while others can be enjoyed year-round. All listed prices reflect peak season rates.

Top Country Retreats in Iceland

Icelanders cherish their sumarbústaðir, or “summer houses,” often nestled in forests and other sheltered locales across the country. While many of these are privately owned by families or labor unions and not open to tourists, there are still plenty of options that provide peace and a connection to nature for visitors.

Heydalur

Starting from US$193 per double room per night

Situated in the narrow Mjóifjörður fjord, between Hólmavík and Ísafjörður, Heydalur is a transformed farm that offers adventure for tourists. Guests can select from en suite bedrooms, studio apartments, summer houses of varying sizes, and a campsite. Enjoy comfortable beds, hearty homemade meals, and a natural setting that's a paradise for outdoor lovers. Activities include hiking, horseback riding, kayaking, fishing, wildlife observation, and northern lights viewing. After a full day of adventures, unwind in one of the pools, hot tubs, or natural hot springs.

Selá Retreat

Starting at US$139 per double room per night

Located about 30 minutes north of Akureyri in North Iceland, Selá is a beautifully renovated old farmhouse and stable offering cozy one- or two-person bedrooms. Guests have access to kitchens, bathrooms, and laundry facilities, along with a meditation loft, fireside lounge, and a workshop area in the historic barn. The retreat features a hot tub ideal for relaxing during long summer evenings or for stargazing in the winter. A short stroll leads to the village of Hauganes, where you can embark on whale-watching tours and enjoy beachside hot tubs, while the nearby town of Árskógssandur provides ferry access to Hrísey island. For skiing enthusiasts, Dalvík's fantastic ski resort is just a 10-minute drive away.

Mjóeyri

Starting at US$214 per double room per night.

Just outside the East Fjords town of Eskifjörður, you'll find charming little red cottages offering cozy accommodations for small groups or families, all with stunning views of the fjord. There’s also a welcoming guesthouse housed in a beautifully restored building from 1895, featuring single and double rooms with shared bathroom facilities. Guests can unwind in a hot tub made from an old boat, enjoy the sauna, or make use of the laundry room. Guided walks and other tours can also be arranged. Nearby attractions include Helgustaðanáma, a protected Iceland spar mine, and the Oddsskarð ski resort. For a taste of local history, visit Randulffs-sjóhús, a museum and seafood restaurant situated in a historic Norwegian herring station, which operates during the summer months.

Top boutique hotels in Iceland

While many of Iceland's boutique hotels are chic and located in urban settings, there are also a few smaller, less ostentatious places that offer a unique and intimate experience.

Hotel Akureyri

Starting at US$248 per double room per night

A micro-hotel dedicated to sustainability, Hotel Akureyri is a family-owned establishment located in the oldest part of the town in North Iceland, offering cozy accommodations. The hotel operates the Urban Farm within a historic box factory, cultivating herbs throughout the year. These fresh herbs are available for purchase at the hotel’s store and are also utilized by the chefs at NORTH, the sister restaurant of the Michelin-starred Dill in Reykjavík.

Hótel Kríunes

Starting at US$390 per double room per night

Combining the best of both worlds, Hótel Kríunes is a family-run countryside retreat located by Lake Elliðavatn, just a 15-minute drive from downtown Reykjavík. Guests can enjoy stunning lake views from elegantly designed rooms, as well as access to a hot tub and sauna. Situated at the edge of Heiðmörk, a sprawling forest area ideal for outdoor activities, this hotel offers minimal light pollution, making it a perfect spot for stargazing and northern lights viewing.

Brimslóð

Starting at US$217 per double room per night

Nestled by the beach in the quaint North Iceland town of Blönduós, Brimslóð Atelier is a hidden gem. This charming guesthouse, run by a creative couple, focuses on serving delectable local cuisine and fostering a sense of community. There are no televisions here, just a “slow TV” — a large window where guests can gaze at the surf and mountains. Occasionally, you might spot whales or catch a glimpse of the northern lights.

Top-tier glamping experiences in Iceland

While Iceland offers numerous excellent traditional campsites, spending the night in a simple tent provides a deeply personal connection to the stunning Icelandic landscape. Why not elevate your experience by choosing a glamping option where all your needs are met?

Glamping in Húsadalur

Starting at US$207 per glamping tent per night

Located in Þórsmörk Nature Reserve, Volcano Huts is a lush retreat in the southern highlands, surrounded by exhilarating hiking paths and awe-inspiring glacier views. In addition to standard camping and rustic lodges, you can rent luxurious glamping tents that come equipped with made-up beds for two or three, heating, and optional goodies. Available for summer bookings only.

Buubble

Starting at US$392 per igloo per night

Why settle for five stars when you can have five million? Nestled in a forested area near Selfoss—close to South Iceland's top tourist attractions—experience sleeping in inflatable, transparent igloos. These heated accommodations come with made-up beds and offer a particularly romantic setting in winter, allowing you to gaze at the stars from your bed while waiting for a chance to see the northern lights.

Fossatún camping pods

Starting at US$85 per pod per night

In West Iceland's Borgarfjörður, you'll find Fossatún, a region playfully described as troll-infested. Fortunately, these trolls are friendly and a delightful draw for adventurous children. Here, you can choose from charming cottages and wooden pods that resemble cozy hobbit homes, perfect for families and couples.

Best unique accommodations in Iceland

Throughout the country, you'll discover distinctive guesthouses that are deeply rooted in Icelandic heritage and culture. Staying in one allows you to almost feel the history that surrounds you.

Kirkjubær

Starting at US$39 per bunk per night

In the fishing village of Stöðvarfjörður, located in the East Fjords, you can stay overnight in a deconsecrated church dating back to 1925. The Kirkjubær hostel offers options for 'sleeping bag accommodation' (bring your own) or cozy made-up beds, complete with access to bathroom and kitchen facilities, all in a friendly atmosphere.

Óbyggðasetrið

Starting at US$222 per double room per night

Nestled in the heart of Fljótsdalur in East Iceland, discover a charming farmhouse built in 1940, now transformed into a guesthouse, museum, and launching point for wilderness adventures throughout the year. At the Wilderness Center, guests can choose from dormitory beds, bed closets, or private rooms.

Möðrudalur á Fjöllum

From US$322 per double room per night

Situated in the northeastern highlands, at Iceland’s highest farm, this location offers a chance to sleep in a traditional turf house reminiscent of the past but equipped with modern amenities. Operated by Fjalladýrð, it also provides various highland tours, along with a campground and a hostel.

Airbnb Regulations

In Iceland, private individuals can rent out rooms or apartments for up to 90 nights per year, provided they hold a license from the relevant authorities. While locals generally view Airbnb positively, there have been some concerns about noise and overcrowding, particularly in central Reykjavík.