9 Best Hotels Along Iceland’s South Coast
Looking for the best hotels along Iceland’s South Coast? The picturesque region has some of the best hotels in Iceland, so here are all our top tips!
The South Coast of Iceland is one of the most visited parts of the country. There is so much to see, from stunning waterfalls to black sand beaches to incredible hotels.
Despite it being a popular day trip from Reykjavik, if you’re planning to visit Iceland, I recommend spending longer than a day along this route.
As such, you might be wondering where to base yourself for this part of your trip to Iceland. Well, the good news is that there are lots of options.
The south coast stretches for around 400 km between Selfoss and Höfn and, while some areas of the country are quite remote, you’ll still have plenty of choice of accommodation.
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In a hurry?
These are my favourite places to stay in South Iceland!
- SPLURGE: HOTEL RANGA
- HIGH END: UMI HOTEL
- MID-RANGE: HOTEL KRIA
- AFFORDABLE LUXURY: HOTEL SELFOSS
- BUDGET: HOTEL LAEKUR
9 Best South Coast Hotels in Iceland
So, if you’re planning on spending a little longer exploring the hidden gems of Iceland and secret spots along the south coast, here are 9 of the most incredible places to stay.
1. Hotel Selfoss
Location: Selfoss. A 15-minute drive from Kerid Crater.
Perfect for: People driving the Ring Road or the Golden Circle.
Budget: ££
For those looking for affordable luxury accommodation with a perfect location for both the Golden Circle and the South Coast, you can’t go wrong with Hotel Selfoss.
This hotel is located in the town of Selfoss on the banks of the Olfusa River, and our view when we stayed here was right out over the water.
As well as being a great location for exploring two of Iceland’s most popular tourist routes, Hotel Selfoss is also not too far from Reykjavik. This means that if you have a late-night flight into Iceland, it’s not too far to dive before you reach your hotel.
Once you do arrive, you’ll find lots of amenities here. The rooms are fairly simple but very comfortable, with large beds, a tea and coffee station, and a modern bathroom.
The breakfast buffet in the morning is incredible. It was honestly the best breakfast of our entire Iceland road trip!
Lastly, the cherry on top for me was the spa. You can add this to the cost of your hotel room, and it’s well worth it.
We were able to relax in the sauna and steam room, plunge into the ice bath, make use of several cold showers, including one with a bucket and chain, which was very fun, and relax in a hot tub.
It was the ideal way to end the day exploring Iceland and I cannot recommend this hotel enough. They also have free parking, perfect for those driving around Iceland.
2. Fosshotel Glacier Lagoon
Location: Hnappavellir. A 25-minute drive from Jökulsárlón Glacier Lagoon.
Perfect for: Exploring Vatnajokull Glacier
Budget: £££
Located on the opposite end of the south coast of Iceland, this boutique hotel is ideal for people who want to spend a little more time exploring Europe’s largest glacier.
It’s located just a short drive from the country’s only glacier lagoons where you’ll be able to see real icebergs bobbing around on the icy waters.
It’s also the ideal position for glacier hiking, ice cave tours, and exploring glacier tongues, and beautiful waterfalls.
The hotel is a little more expensive than Hotel Selfoss. The double rooms are large, well-lit, and comfortable. There is a wonderful onsite restaurant where you can grab a delicious dinner and a scrummy breakfast spread the next morning.
There are several room options including a deluxe room with a seating area, a suite with a panoramic window and a bathtub, and an executive suite with a private hot tub.
The whole hotel is very tastefully decorated and they also have an on-site spa – ideal for relaxing in the evening or energising yourself before you start your day.
3. Magma Hotel
Location: Kirkjubæjarklaustur.
Perfect for: A remote stay and spotting the northern lights.
Budget: £££
Magma Hotel is located in Kirkjubæjarklaustur, a small town almost equal distance between Vik and Jökulsárlón Glacier Lagoon. Despite being a hotel, each room is designed to look like a cute cabin.
This definitely adds to the overall appeal of the hotel and is one of the reasons I think this is one of the best hotels along the south coast of Iceland.
The rooms themselves are cosy and comfortable. They are also very spacious, with a seating area, large bed, desk, and stylish bathroom. Since the hotel is situated on a lake, the views out the windows here are also pretty incredible.
The hotel also features a restaurant where you can go for a delicious evening meal and a hearty breakfast in the morning.
4. Black Beach Suites
Location: Vik. The largest town along the south coast.
Perfect for: People looking for a central base along the south coast.
Budget: ££
Black Beach Suites are the best south coast Iceland hotel for those looking to stay somewhere for multiple days. Since Vik is a town, there is much more to do here than many of the more remote hotels on this list.
There is a range of restaurants, cafes, grocery stores, and even some great attractions, making it a superb base for a 2 or 3-day stay.
The suites are also very stylish. Designed as individual cabins, you’ll find a comfortable sofa and a table to relax on in the evening, a small kitchenette where you can prepare a packed lunch or whip up a cooked breakfast, and a comfortable bed.
You’ll also find a coffee maker, a modern shower room, and a flat-screen TV. Many of the rooms also have views over the ocean.
There’s no restaurant on site here, so you will have to make full use of the self-catering kitchen facilities. However, you’ll be within a 5-minute drive of the famous black beach and have all the amenities you could possibly need in Vik.
Ideal for those who want a simpler stay with access to a town.
5. Hotel Ranga
Location: Hella. A 25-minute drive from Seljalandsfoss.
Perfect for: Exploring the waterfalls along the south coast.
Budget: ££££
Located in a pretty stunning location, this hotel is ideal for those who want a luxury hotel somewhere remote.
Named after the Ranga Salmon River that it’s next to, you’ll find a lot of unique amenities here. This includes a dedicated stargazing observatory, outdoor hot tubs, a Northern Lights wake-up call, room service, a restaurant, and a bar.
The rooms here are incredible. You’ll find stylishly designed suites resembling a private log cabin more than a hotel room.
You’ll find wood panelling and faux-animal furs on the walls, a plush wooden bedframe, and a comfortable seating area. The bathrooms in the suites also have either freestanding or jacuzzi baths, ideal for those who want to unwind.
Plus, many of the rooms are individually designed – you won’t find two rooms looking the same in this hotel!
It’s definitely not the cheapest hotel on this list but it’s ideal for nature lovers. If you’re looking for a unique place to stay in Iceland, you can’t go wrong with Hotel Ranga.
6. Umi Hotel
Location: Skogar. A 15-minute drive from Skogafoss.
Perfect for: Exploring the south coast waterfalls and Sólheimajökull Glacier.
Budget: ££££
Another of the best luxury south coast Iceland hotels, the Umi Hotel will stun you. This 4* hotel is located just a short distance from one of the best waterfalls in southern Iceland.
It’s also very close to the Sólheimajökull Glacier, which is where we did our glacier hike when we visited Iceland in winter.
The hotel has some utterly incredible views with a private black sand beach on its doorstep and mirrored panels on the outside that reflect the mountain scenery around it.
You’ll also find a gorgeously decorated restaurant and a bar where you can sample exquisite cocktails.
The rooms themselves are very nicely decorated. You’ll find large beds with snuggly plaid blankets, wooden headboards, comfortable chairs, and a modern shower room.
The hotel also has a gym, a sauna, bicycle hire, and, if you visit in the winter months, a high chance of seeing the northern lights.
7. Hotel Laekur
Location: Hella. A 25-minute drive from Seljalandsfoss.
Perfect for: An affordable stay and exploring the waterfalls along the south coast.
Budget: ££
For one of the most affordable hotels on Iceland’s South Coast, you’ll want to try Hotel Laekur. Located in Hella, it’s the ideal location to start your journey along the south coast, especially if you’ve come from Reykjavik or the Golden Circle.
There are several options to book at this hotel. The standard rooms feature a large double or twin bed, seating area, TV, and bathroom. It’s cosy, comfortable, affordable, and everything you could need.
However, you could also opt for the suite rooms. These are more like individual cabins than hotel rooms and are perfect if you want a more secluded stay. Inside, you’ll find a comfortable living area with a sofa, chairs, and dining table.
Then, your bed is on the second floor, where you’ll also find skylights looking up at the stairs. There’s also a deck area and a stylish shower room. Oddly, there’s no kitchenette here, though, so you will need to use the hotel’s restaurant for breakfast.
8. Seljalandsfoss Horizons
Location: Hvolsvollur. A 30-minute drive from Seljalandsfoss.
Perfect for: Viewing the northern lights.
Budget: £££
If you love cosy cabin vibes and unique accommodations, you’ll love Seljalandsfoss Horizons. Located right next to the famous Seljalandsfoss waterfall – you can literally walk there in 30 minutes – these incredible mini-villas are some of the best hotels on the south coast of Iceland.
If you want complete privacy, you can’t go wrong here. Each cabin is individual and has everything you need for a relaxed stay. You’ll find two double beds, a mini kitchenette with a coffee maker, microwave, and hob, and a comfortable living space.
It’s all very tastefully designed too with plush velvet accents, chandelier lighting, and wood panelling. In the evening, the surroundings are completely dark, ideal for chasing the northern lights.
Plus, they also offer a breakfast service, delivered to your cabins. This contains a range of foods including pancakes, fresh bread rolls, jams, butter, muffins, cereals, cheese and ham, coffee and tea.
9. Hotel Kria
Location: Vik. The largest town along the south coast.
Perfect for: People looking for a central base along the south coast.
Budget: ££
Considering the style of this place, it’s surprisingly affordable! If what you’re looking for in these south coast Iceland hotels is a town location, affordable luxury, and a beautifully designed room, then Hotel Kria ticks all of those boxes!
The location is very convenient. You’ll be within easy reach of the black sand beach and the famous waterfalls, yet be within walking distance of supermarkets and restaurants.
The modern hotel has an on-site restaurant as well, perfect for a relaxed breakfast or dinner, plus a bar where you can grab a drink in the evening.
The rooms are simple, yet stylish with comfortable beds, modern bathrooms, and, if you choose that option, great views of the majestic mountains behind Vik.
Plus, if you enjoy being able to walk to attractions, you can explore some of the lesser visited black beaches in Iceland within just a 5-minute walk.
Highlights of the South Coast of Iceland
As one of the most visited parts of Iceland, there are lots of things to do along the south coast of Iceland. Here are some of the things you shouldn’t miss:
- Reynisfjara Black Sand Beach
- Skógafoss Waterfall
- Seljalandsfoss Waterfall
- Dyrholaey Cliffs
- Kvernufoss
- Jokulsarlon Glacier Lagoon
- Vatnajokull Glacier
- Skaftafell National Park
Things to Consider Before Booking South Coast Iceland Hotels
Whilst all of these south coast Iceland hotels are wonderful choices, here are some things you’ll need to consider before you book.
They sell out quickly
There are plenty of hotels in southern Iceland, but considering what a popular spot it is to visit, these often sell out. And often well in advance too!
If you’re thinking of booking a south coast Iceland hotel, do it quickly before all the good ones have gone!
Double-check if breakfast is included
Breakfast is sometimes included in hotels along the south coast of Iceland, but be sure to double-check this. And also be sure to check the standard of breakfast.
Some hotels will give you a pretty sketchy pre-made plate of food instead of the usual buffet breakfast that you’d expect when booking a hotel.
They can be pretty pricey
It’s no secret that Iceland is an expensive place to visit. In fact, all of Scandinavia is a pretty expensive part of the world. However, some of the hotels along the south can be particularly extortionate.
This is primarily because it’s such a popular part of Iceland to visit and usually sells out well in advance, particularly in high season.
👉 Check out our full guide to the best time to visit Iceland.
They are usually very isolated
Many of the hotels along the south coast seem like they’re in the middle of nowhere. You can be driving along the Ring Road (also known as Route 1) and see a building coming up in the distance, and it’s usually a hotel, house, or solitary lodge.
This can be extremely peaceful. There’s often nobody for miles, no light pollution, and no disturbance from noise and cars. This is also the ideal condition for stargazing and chasing the northern lights.
If you’re staying in a self-catering place, I recommend stocking up before you reach your accommodation, though, as it can be hard to find a supermarket.
🏨 Check out our favourite northern lights hotels in Iceland.
The Best Areas to Stay Along The South Coast of Iceland
You may also want to consider your location when choosing somewhere to stay along the south coast of Iceland.
If you don’t like the idea of being in the middle of nowhere, there are several small towns and villages along the coast where you’ll find more accommodation options.
These will also usually have a supermarket, petrol station, restaurants, and other amenities.
Here are a few of the best areas to stay along the south coast of Iceland:
Selfoss
This was the town we stayed at the last time we visited Iceland. Located close to Reykjavik on this list, Selfoss is just an hour away from the capital.
It’s quite a large town and you’ll find a lot here, including many restaurants, a food court, supermarkets, liquor stores, petrol stations, and much more. It’s also quite a pretty place with the River Olfusa on the outskirts and several waterfalls nearby.
You’ll have quite a lot of choices for accommodation here, from large hotels to smaller, self-catering apartments.
Selfoss is a great place to base yourself for visiting the south coast of Iceland and the Golden Circle. It’s only a 15-minute drive from Kerid Crater and fairly close to the beautiful Reykjadalur Hot Spring Thermal River.
Hella
Hella is the next town from Selfoss. Located a further 20 minutes along Route 1, Hella is smaller than Selfoss but has many of the same amenities.
You’ll find a supermarket, petrol stations, and several restaurants. It’s not as big a supermarket as Selfoss, though, so you’ll have less choice.
There are also fewer choices for hotels here, but more options for self-catering accommodation.
The area is surrounded by cute cabins, lodges, and houses that would make the ideal getaway in Iceland. Plus, it’s closer to many of the top attractions in Iceland.
You’ll also find that, because Hella is smaller than Selfoss, there’s less light pollution, so the northern lights can often be seen strongly here.
TOP TIP: The Caves of Hella are also located here, which is a wonderful thing to do in the area.
Vik
Vik is the most popular place to stay along the south coast of Iceland. It’s located close to Iceland’s most southerly point, and there are some great things to do in Vik, such as Reynisfjara Black Sand Beach and Sólheimajökull Glacier.
Many people travelling along the south coast will travel from Reykjavik to Vik and then stay there for a few days exploring the surroundings.
It’s a very small village, but there are quite a few accommodation options, from luxury hotels to boutique self-catering apartments.
Accommodation here tends to sell out well in advance, so if you want to stay in Vik, I recommend booking well in advance.
👉 For the top recommendations, check out this guide with all our favourite hotels in Vik.
Kirkjubaejarklaustur
Located in the perfect position between Vik and Jokulsarlon Glacier Lagoon, Kirkjubaejarklaustur is located much further along Iceland’s southern coast.
We stayed there for a night on our recent Iceland road trip and, while the town is the smallest we’ve covered so far, there are enough things there to stock up.
You’ll find basic supermarkets, a petrol station, several hotels and guesthouses, self-catering accommodations, and a few restaurants.
TOP TIP: If you do stay here, we recommend eating at Systrakaffi. The portions are large, the food is delicious, and it’s not too expensive.
Höfn
The further away from the capital along the south coast, most people only stay here if they’re exploring the east fjords or driving Iceland’s Ring Road.
Located almost 6 hours from Reykjavik, this is a great place to base yourself for exploring the glacier lagoons and Vatnajökull Glacier.
It’s a very small town, but you’ll still find a range of hotels and lodges. There’s even a hostel here for budget travellers and a campground.
Overall…
Iceland’s south coast is a wonderful place to explore. There is so much to see and, while it’s a pretty popular part of Iceland, it’s also not hard to get off the beaten track.
If you’re looking for the perfect places to stay along the south coast, there are plenty of options, from the bustling town of Hella to the isolated Kirkjubaejarklaustur.
If you are planning a trip to Iceland however, I recommend booking your south coast hotels quickly, because they can sell out months in advance!
👉 For more hotel recommendations in Iceland, check out the best hotels near Jokulsarlon Glacier Lagoon and the best Golden Circle hotels.
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