10 Most Incredible Golden Circle Hotels in Iceland
Looking for the best Golden Circle Hotels in Iceland? We’ve got you covered!
The Golden Circle is often covered as a day trip from Reykjavik. However, if you want to make the most of this route, I recommend spending longer than a day here. There’s a LOT to see on the Golden Circle, but many people just head to the main sights and skip the hidden gems.
Don’t be that person! This is why I advise everyone who visits Iceland to spend at least one full day and night on the Golden Circle. There’s just too much to see in an afternoon, trust me!
So, these are the 10 best hotels on the Golden Circle or near the famous route. They range from affordable hotels to luxury stays so there’s something for any budget. You’ll also find a great range of locations because everyone is usually after something different.
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In a hurry?
These are my favourite places to stay in South Iceland!
- SPLURGE: HOTEL GEYSIR
- HIGH END: THE GREENHOUSE HOTEL
- AFFORDABLE LUXURY: HOTEL SELFOSS
- BUDGET: ASAHRAUN GUESTHOUSE
1. Hotel Selfoss
Location: Selfoss
Perfect for: Access to the Golden Circle and the South Coast of Iceland
Budget: ££
If you’re after the perfect affordable luxury hotel, you’ll love Hotel Selfoss. Located in Selfoss, one of the largest towns on Iceland’s South Coast, this hotel is pretty affordable considering everything that it offers.

The rooms are spacious and comfortable with large beds and modern bathrooms. If you opt for the River View Rooms, the view out of the window is pretty impressive. The breakfast spread is also pretty impressive. It was one of the best breakfasts we had in Iceland.

There was so much choice! Eggs, bacon, sausages, cereals, pastries, cakes, fruit, salads, ham, cheese, juice, for some reason, digestive biscuits, and so much more. It was delicious and I’d recommend Hotel Selfoss for breakfast alone.
The spa, however, took it to another level. If you fancy getting back from a day exploring Iceland and relaxing in a sauna, taking a dip in a hot tub, sitting in a steam room, or perhaps even braving a cold plunge, you’ll love this hotel even more. Their spa is epic and well worth a visit.

They also have a restaurant on-site for dinner, and a cosy bar, located right opposite a food court if you don’t fancy eating at the hotel every night, and they also offer Northern Lights wake-up calls.
2. Hótel Laugarvatn
Location: Laugarvatn
Perfect for: Exploring Thingvellir National Park
Budget: ££
This modern hotel sits alongside Lake Laugarvatn, just a 15-minute drive from Thingvellir National Park, a 20-minute drive from Geysir Hot Springs, and a 30-minute drive from the Silfra Fissure.

When you’re not exploring the national parks hiking trails, snorkelling between tectonic plates, and admiring hot springs, relax at the hotel bar or tuck into a meal at the on-site restaurant.
At Hótel Laugarvatn, you can choose between rooms with mountain and lake views. Every room has an ensuite bathroom, cupboard space, and WiFi. The hotel staff will also happily organise activities for you, and breakfast can be included in your stay.
3. Klettar Tower
Location: Fludir
Perfect for: Unique accommodation
Budget: ££££
If you’re looking for a unique accommodation option for your Iceland road trip, consider Klettar Tower.
Klettar Tower is a fascinating tower offering spacious bedrooms surrounded by nature 6 miles outside the small village of Fludir. In Fludir, you’ll find the Secret Lagoon and Hrunalaug Hot Spring.
All rooms have a private bathroom with a shower, a double bed, toiletries, and a seating area. The tower also has a shared lounge, garden, and WiFi.
However, Klettar Tower’s best feature is its bay windows, which offer panoramic views of the Northern Lights. Popular activities in the area include fishing, hiking, and golfing.
4. Hotel Gullfoss
Location: Brattholt
Perfect for: Visiting Gullfoss Falls
Budget: £££
Hotel Gullfoss is one of, if not the closest hotels to Gullfoss Falls. Located on the Hvita River, Iceland’s iconic falls are only 1.8 miles away. Meanwhile, the Great Geysir is only a 10-minute drive away, and Thingvellir National Park is 35 minutes away.

This hotel has a restaurant serving local cuisine and seafood dishes, a daily breakfast buffet, a lounge area, and two types of rooms. You can choose from a double room and a superior double room.
Both types of rooms feature large double beds, ensuite bathrooms, and windows. They also have amenities like toiletries, towels, and WiFi.
5. Hotel Geysir
Location: Geysir
Perfect for: Luxury accommodation near Geysir
Budget: ££££
If you want to spend a night in unparalleled luxury right next to the first-known geyser in the world, you have to stay at Hotel Geysir.
This beautiful boutique hotel is only 100 metres from the Geysir, so visiting couldn’t be any easier. Better yet, Gullfoss Waterfall, one of the most beautiful waterfalls in Iceland, is just over 6.2 miles away.

This hotel has a restaurant, bar, garden, free parking, and an ATM. A continental breakfast is served every morning, and there are five types of stunning bedrooms/suites to choose from.
Every room has modern furnishings, ensuite bathrooms, and desks, while the more luxurious rooms also have balconies and bathtubs.
6. Skyggnir Bed & Breakfast
Location: Fludir
Perfect for: Budget backpackers
Budget: £
This budget-friendly, family-run B&B is located on a large piece of farmland just 1.8 miles from the centre of Fludir. Thanks to its proximity to the village, you can easily refuel, stock up on essentials, and find somewhere to eat.
Popular activities in the area include hiking, horse riding, and golfing, and an array of famous attractions are in reach. Notable attractions near the B&B include Secret Lagoon, Hrunalaug Hot Spring, and Gullfoss Falls.
Regarding bedrooms, Skyggnir offers simple yet comfy bedrooms with single and double beds, access to a shared bathroom and kitchen, and complimentary breakfast.
7. Lambastadir Guesthouse
Location: Selfoss
Perfect for: Hot tub and sauna
Budget: £££
If you’ve always dreamt of sitting in a hot tub under the stars in Iceland and watching the Northern Lights, Lambastadir Guesthouse is perfect! This accommodation option is 7 miles from Selfoss and 45 minutes from Reykjavik.
Other points of interest near the guest house include Selfoss Waterfall, Secret Lagoon, and Geysir. The guesthouse is also happy to organise activities. This includes hiking, golfing, river rafting, and snorkelling.
While you’ll likely spend most of your time at the guest house in the hot tub or sauna, the rooms are great, too. They are available in single, double, and triple rooms and feature private bathrooms, desks, and WiFi.
8. South Central Guesthouse
Location: Blesastaðir
Perfect for: Families and large groups
Budget: £
South Central Guesthouse is an affordable and peaceful accommodation on the outskirts of Selfoss. As such, you can easily access the town’s amenities without sacrificing the beauty of the region’s natural surroundings.

Offering everything from single and double rooms to family rooms and a house big enough for 16, the South Central Guesthouse is also perfect for families and large groups.
Rooms come with ensuite bathrooms and seating areas, and the guesthouse has a sun terrace and shared kitchen.
Gullfoss, Geysir, and Seljalandfoss (some of the most beautiful waterfalls in south Iceland) are approximately 45 minutes away, while Selfoss, Urridafoss Waterfall, and the Caves of Hella are just 20 minutes away.
9. Ásahraun Guesthouse
Location: Selfoss
Perfect for: Glamping
Budget: £££
Ásahraun Guesthouse offers budget travellers an affordable glamping experience in an excellent location for spotting the Northern Lights. It’s only 15 minutes away from Selfoss but offers a quieter place to unwind.
Most of the Golden Circle’s best attractions, including Gullfoss, Geysir, Fludir, and Thingvellir National Park, can be reached within an hour. After a busy day of visiting the best attractions, relax in the hot tub or watch the sunset from your small cabin.
The glamping pods at Ásahraun Guesthouse have two single beds, a sink area, storage space, WiFi, and access to a shared bathroom and hot tub.
10. The Greenhouse Hotel
Location: Hveragerði
Perfect for: Sustainable travel
Budget: ££££
If you’re looking for a sustainable place to stay in the Golden Circle, look no further than The Greenhouse Hotel. This boutique lifestyle hotel emphasises environmentally friendly and socially responsible choices.

The greenhouse-style hotel is a beautiful fusion of modern design and natural elements. Inside, you’ll find eco-friendly bedrooms and restaurants with eco-friendly furniture, energy-efficient lighting, and locally sourced materials.
The Greenhouse Hotel’s bedrooms feature ensuite bathrooms, double beds, WiFi, TVs, and landscape views. Regarding location, this hotel is based in Hveragerði, where you can find hiking and cycling trails, a geothermal river, and hot springs. Selfoss is only 15 minutes away.
FAQ about Hotels Near the Golden Circle, Iceland
Here are some of the most commonly asked questions about the hotels on the Golden Circle in Iceland.
What are the best hotels near the Golden Circle in Iceland?
This somewhat depends on your preference and the area of the Golden Circle you’d prefer to stay in. However, in my opinion, Hotel Selfoss and Hotel Geysir are some of the best hotels in the area.
How far in advance should I book a hotel near the Golden Circle?
I recommend booking these hotels as soon as you know which dates you’re travelling to Iceland. Iceland hotels are notorious for steep price increases closer to the time. Not only that but they can sell out completely in the most popular times of the year.

If you plan to visit during the peak tourist season (June to August) or during winter in Iceland when people come to see the Northern Lights, you’ll need to book these hotels well in advance.
Are there budget-friendly accommodation options near the Golden Circle?
Yes, there are several budget-friendly options such as guesthouses and farm stays. Hótel Laugarvatn and Asahraun Guesthouse are great choices that offer comfortable accommodations at more affordable rates.
Is it possible to see the Northern Lights from hotels near the Golden Circle?
Yes, many of the hotels near the Golden Circle are surrounded by very little. This means barely any light pollution which is ideal for seeing the Northern Lights.
Plus, Thingvellir National Park is known for its dark skies and many of the Northern Lights Tours from Reykjavik will take you there to see them. Some hotels even offer wake-up calls or alerts when the lights are visible.
👉 If you want to photograph the Northern Lights, check out our iPhone photography guide.
How far are the hotels from key attractions in the Golden Circle?
Most hotels near the Golden Circle are within a short drive from key attractions. For example, Hotel Geysir is located right next to the Geysir geothermal area.
However, be sure to finalise your Golden Circle itinerary before booking your hotels as you don’t want to be driving back and forth.
What is the best time of year to stay near the Golden Circle?
This part of Iceland can be visited all year round. We’ve visited the Golden Circle in winter, springtime, and summer in June, and it has been beautiful on all occasions.

However, it’s worth noting that the Golden Circle can get crowded during the peak summer months. It’s one of the most popular things to do in Iceland, so if you want to avoid the crowds, I recommend avoiding July and August.
👉Check out our full guide to the best time to visit Iceland for all our tips.
Is it necessary to rent a car when staying near the Golden Circle?
Renting a car provides a lot more flexibility for exploring the Golden Circle at your own pace. Many hotels offer free parking, and driving in this region is generally straightforward.
There’s virtually no public transport, and, since many of the hotels are quite remote, having a hire car will take a lot of the complication out of navigating the area.
Plus, having a car will give you the flexibility to see a few of the less-visited spots on the Golden Circle, like the beautiful Bruarfoss waterfall.
🚗 We only ever use this car hire company as they have a great range of cars and always have the best prices.
Are there any unique accommodations near the Golden Circle?
Yes, there are unique accommodation options such as the ION Adventure Hotel, which offers an eco-friendly stay with exceptional views, Klettar Tower, where you will literally be sleeping in a tower, and the Bubble Hotel, where you can sleep under the stars in transparent bubbles.
Where is The Best Place to Stay on the Golden Circle?
Overall, there are so many great places to stay on the Golden Circle in Iceland. There are a number of great hotels and lots of affordable guesthouses for those travelling on a budget.
However, if I had to narrow down this list, I’d choose Hotel Selfoss for convenience, price, and location. It’s perfect for exploring both the Golden Circle and driving down to Vik in the south.

If you’re after a luxury stay, I recommend Hotel Gulfoss or Hotel Geysir. They’re both located at the furthest part of the Golden Circle and offer a fantastic stay with everything you could ever need.
Plus, you’d have access to two of south Iceland’s most stunning destinations after the tourist crowds had left.
For a budget stay on the Golden Circle, I’d opt for Hótel Laugarvatn or South Central Guesthouse, both of which offer a comfortable stay for an affordable price.
But no matter where you stay, I’m sure you’ll have a fantastic time because the Golden Circle is absolutely stunning.
👉 For more hotel recommendations in Iceland, check out the best hotels near Jokulsarlon Glacier Lagoon and the best South Coast hotels and the best Northern Lights hotels in Iceland.
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