21 Incredible Ring Road Hotels in Iceland for Every Budget
Are you planning on driving Iceland’s Ring Road? After road tripping the country multiple times, here are the 21 best Ring Road hotels in Iceland.
The Ring Road is one of the most popular road trips in Iceland. It’s actually one of the most popular road trips in the world, and for good reason.
The scenery is stunning, there is so much variety, and which other country can you see volcanoes, glaciers, and incredible waterfalls on the same road trip?
And, while the idea is pretty simple, the logistics of planning an Iceland Ring Road trip can be a little more complicated, including deciding where to stay.
We often found that it was difficult to decide which hotels to book and even harder to work out how long we actually needed to stay in a certain part of the country.
But after much trial and error, we’ve worked out the best way to do this road trip, the best places to stay, and how long to stay there.
We’ve also figured out the best budget hotels, the best places if you prefer a bit of a splurge, and the best options if you need to book last-minute – which we did on our last road trip!
The hotels in this list are places we either stayed in ourselves or researched extensively while planning our own trips. Every single one has something that makes it worth recommending, whether it’s an unbelievable view, a great restaurant, a cosy atmosphere, or simply being in the perfect location.
So, if you’re wondering where to stay on the Ring Road, these are the 21 best hotels.
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In a hurry?
These are the best ring road hotels in Iceland!
- GOLDEN CIRCLE: ION ADVENTURE HOTEL
- SOUTH COAST: BLACK BEACH SUITES
- JOKULSARLON: FOSSHOTEL GLACIER LAGOON
- EASTFJORDS: HOTEL 1001 NOTT
- NORTH ICELAND: VIKING CABINS AND APARTMENTS
- REYKJAVIK: TOWER SUITES REYKJAVIK
How to Choose Ring Road Hotels
Choosing where to stay along Iceland’s Ring Road can feel a little overwhelming at first, especially if it’s your first time visiting the country.
It’s hard to know how long to spend in each place and which hotels to choose, as there are a lot of options in some areas and significantly fewer in other regions.
The route circles the entire country, and the landscapes change dramatically as you go, so the “best” hotel really depends on how you travel.
If you prefer comfort and amenities, stick to hotels in the larger towns like Reykjavík, Akureyri, Egilsstaðir, and Vík. These places usually have restaurants, supermarkets, and petrol stations nearby, making evenings much easier.
Then again, there are also some exceptions to this rule.
Many of the Fosshotels around the island have restaurants on site, and many other remote hotels have dining options – purely because there’s nothing else around!
If you’re more about adventure and escaping the crowds, you’ll absolutely love the more rural hotels, often set among mountains, lava fields, or right by the coastline. They’re magical places to wake up in, and great for Northern Lights viewing in winter.
Another thing to keep in mind is availability. Hotels in Iceland do book up quickly, especially between June and August. Prices also tend to rise the closer you get to your travel date, so we always recommend booking as far in advance as possible.
Planning where you’ll stay ahead of time is the easiest way to avoid stress later.
How Many Nights to Stay in Each Area
This really depends on the pace you travel. We’ve driven the Ring Road in 7 days and changed base each night, but I also know from past experience that this speed of travel isn’t for everybody.
When we visited Iceland with my parents and explored the south coast, they preferred to spend at least 2 nights in each base. This was more relaxing, and they didn’t want to be re-packing every night.
We would actually recommend spending 1 night in a few places, such as the Golden Circle and Jokulsarlon region, but spending 2 or sometimes more nights in other parts of the island.
For example, we always recommend spending two nights in Vík or somewhere on the South Coast, especially if you want enough time for glacier hikes, ice caves.
The same goes for North Iceland, as Akureyri and the Lake Mývatn area easily deserve one full day each. There’s so much to do there, from whale watching to volcanic craters and geothermal lagoons.
Reykjavík is another spot where you might want to add an extra night.
In general, here’s what we recommend:
- Golden Circle: 1 night
- Vik: 2 nights
- Jokulsarlon: 1 night
- East Fjords: 1-2 nights
- North Iceland: 1–2 nights
- Reykjavík: 1–2 nights
You could easily spend longer here, but this is the absolute minimum we recommend. This gives you enough time to see the highlights without spending the entire trip in the car.
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Map of Ring Road Hotel Locations
To help you visualise where everything sits along the Ring Road, here’s a quick overview before we dive into the specific recommendations. Nearly all of the hotels in this guide sit directly on, or just a very short detour from, the main road.
We’ve grouped the hotels by region, for instance, Golden Circle, South Coast, Glacier Lagoon, East Iceland, North Iceland, and Reykjavík – so it’s easy to plan your stops.
When you look at the map, you’ll notice that the longest stretches without major towns are between Vík and the Glacier Lagoon, and again between the East Fjords and the North.
This is why booking hotels ahead of time is really important – options are limited in these remote areas, and they fill up quickly.
You can easily put each hotel into Maps when planning your itinerary, but having everything grouped by region should help you see how your trip fits together and where you might want to adjust your route.
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Hotels in the Golden Circle
The Golden Circle is one of the most popular areas to visit in Iceland, so it makes sense that there are also a lot of hotels and accommodations here.
This region is home to some of the most unique accommodations in all of Iceland, from bubble domes to fancy turf houses, but you can also find more affordable budget hotels and guesthouses.
You can visit the Golden Circle as a day trip from Reykjavik, but, in our opinion, it’s well worth spending at least one night here, because there’s a lot to see that the typical tourist route misses. Check out our full Golden Circle itinerary for all of our tips.
Here’s where we recommend staying;
👉 Check out our full guide on where to stay on the Golden Circle for all our top choices.
1. Hotel Geysir
Hotel Geysir is undoubtedly one of the best places to stay on the Golden Circle. Its location is in the name – right next to the famous Geysir Geothermal Area.
Staying here is the perfect way to see Strokkur erupt without the crowds – especially if you visit during summer, since you can explore at night when all the tourist buses have gone but you still have 24/7 daylight.
The rooms are modern, spacious, and very comfortable, making this a great option if you’re looking for something slightly more upmarket without feeling over the top.
There’s also an excellent on-site restaurant, which is a big bonus in this part of Iceland. Free parking is available, and the location makes it easy to continue your Ring Road journey the following day.
2. Bjork Guesthouse
We booked a last-minute stay at this guesthouse during our drive around the Ring Road in June and were very impressed. Not only was it cosy and comfortable, but they also had efficient self-check-in, free parking, and spacious rooms.
The beds were very comfy, and they had a large en-suite bathroom. They also provided a tea and coffee station with a complimentary bar of Icelandic chocolate and a few discount codes for local attractions, too.
There was a restaurant nearby, and it was the perfect location between Thingvellir National Park and Geysir, so ideal for exploring some of the best attractions in the Golden Circle.
🏨 BOOK A ROOM AT BJORK GUESTHOUSE
3. ION Adventure Hotel
If you’re looking for a truly unique place to stay on the Golden Circle, ION Adventure Hotel is hard to beat.
It’s built into the lava landscape just outside Þingvellir National Park, and it feels really remote even though you’re still close to the main sights on the Golden Circle.
The design is sleek and modern, with huge windows looking out over the surrounding lava fields and mountains. They also have an outdoor hot tub and geothermal spa area, which is the perfect place to unwind after a day of exploring.
On clear nights, it’s also a fantastic spot for spotting the Northern Lights.
While it’s more of a splurge than some other Golden Circle hotels, it’s also more of a special experience. In our opinion, this would work best if you want a memorable night in a stunning setting rather than just a convenient stop along the route.
🏨 BOOK A ROOM AT ION ADVENTURE HOTEL
4. Hotel Selfoss
This is our go-to hotel on the Golden Circle. We stayed here as part of our winter itinerary around South Iceland, and it’s been a favourite of ours ever since.
The rooms are fairly simple – spacious beds, en-suite bathrooms, and some have wonderful views out over the river. However, what makes this hotel one of our favourites is the on-site spa.
You’ll find a sauna, steam room, hot tub, cold plunge, and more. It’s a lovely way to spend an evening before heading to the restaurant for dinner.
Alternatively, it’s also walking distance to our favourite food hall in Iceland, so this is another great option for food!
The breakfast in the morning is delicious. Selfoss has everything you need to stock up before continuing your road trip, and you’ll be in the perfect location to continue east towards Vik.
Hotels in Vik
Vik is likely going to be your next stop on your Ring Road itinerary after the Golden Circle. It’s one of the most popular places to stay in South Iceland.
You’ll find many of Iceland’s most popular waterfalls nearby, including Skogafoss and Seljalandsfoss, plus the famous Reynisfjara Black Sand Beach.
Vik itself is also super cute with its iconic hilltop church, surrounding mountains, and coastal scenery. There are lots of great places to stay in Vik and plenty to do as well.
We recommend spending at least two nights here and maybe three. You’ll be within easy reach of the incredible Katla Ice Cave and glacier hiking tours on Solheimajokull, which remain one of the most incredible things we’ve ever done in Iceland.
Here are a few of our favourite places to stay in Vik:
👉 Check out our full guide on where to stay in Vik for all our top choices.
5. Hotel Kria
Hotel Kría is one of the best Ring Road hotels in Vík. Located right in the centre of the village, it’s within easy walking distance of restaurants, cafés, and shops, which makes evenings incredibly easy after a long day of exploring the South Coast.
The hotel itself is modern, warm, and very comfortable, with large plush beds, chairs, and modern bathrooms.
The rooms are also pretty spacious by Icelandic standards, and there’s a restaurant on site serving excellent food. Although you’ll also be within easy reach of the famous Black Crust Pizza, if you fancy something a little different.
Parking is free, and its location makes it an ideal base for continuing east towards the glacier lagoons.
6. Black Beach Suites
Black Beach Suites is our go-to when we’re staying in Vik. It’s a beautiful place and perfect if you want something a little more unique than a traditional hotel.
These stylish self-catering apartments are located near the famous Reynisfjara Black Sand beach and offer incredible views over the coastline and surrounding mountains. If you visit in winter, on a clear night, it’s a great spot for seeing the Northern Lights.
Each suite is modern, cosy, and well-equipped with a small kitchenette. We especially loved how peaceful it feels here compared to staying right in town.
🏨 BOOK A ROOM AT BLACK BEACH SUITES
7. Hotel Dyrhólaey
Hotel Dyrhólaey is a great choice if you’re looking for a quieter, more rural stay on the South Coast. Located a short drive from Vík, this hotel has some of the best views of the mountains and countryside around the town.
The rooms are simple, clean, and comfortable, and the hotel has an on-site restaurant. It’s a family-run place that started a lot smaller than it is, and it has a truly lovely story.
It’s an easy place to stay if you want to be in the perfect location for exploring the South Coast without the crowds.
Hotels near Jokulsarlon
Another of our favourite places to visit in Iceland is the region around Skaftafell National Park.
There’s just so much to see here, from the beautiful Jokulsarlon Glacier Lagoon to the impressive Svartifoss waterfall and unique Diamond Beach – so you could easily spend 2-3 nights here.
If you’re planning to do boat trips on the lagoon or glacier hikes, remember to book this in advance, as spots can sell out, especially in peak months.
Here’s where we recommend staying:
👉 Check out our full guide on where to stay near Jokulsarlon for all our top choices.
8. The Potato Storage
The Potato Storage is one of the most unique places you can stay on the entire South Coast. It’s honestly one of the coolest hotels we’ve come across in Iceland.
It’s also a fantastic budget option near Skaftafell, and the rooms aren’t too expensive, even in the peak summer months.
As you may have guessed by the name, the hotel is set inside a refurbished potato storage building. It’s cosy, rustic, and feels incredibly homely. The rooms are modern and clean with huge windows that bring in so much natural light.
It’s peaceful, tucked away in the countryside, yet still only a short drive from many of the major South Coast landmarks. Plus, because it’s away from town lights, this is also an amazing Northern Lights hotel in winter.
🏨 BOOK A ROOM AT THE POTATO STORAGE
9. Fosshotel Glacier Lagoon
If you want a hotel that feels luxurious, modern, and perfectly placed for exploring the glacier lagoons, Fosshotel Glacier Lagoon is a brilliant choice.
Located between Skaftafell National Park and Jökulsárlón, it gives you unbeatable access to some of the most dramatic landscapes in Iceland.
The hotel itself is beautifully designed, with large rooms, comfortable beds, and big windows overlooking the mountains. The on-site restaurant is genuinely fantastic, making it easy to relax in the evenings without having to drive for dinner.
Plus, after a long day exploring the ice caves or hiking, soaking in the outdoor hot tubs is absolute bliss.
🏨 BOOK A ROOM AT FOSSHOTEL GLACIER LAGOON
10. Adventure Hotel Hof
Adventure Hotel Hof is another incredibly well-located hotel for anyone exploring Skaftafell, Svartifoss, or the Jökulsárlón glacier lagoon area. It’s actually one of our favourite Ring Road Hotels in Iceland.
The rooms are clean, cosy, and comfortable, and while the hotel is fairly minimalist, it has everything you need for a great night’s sleep. They serve a delicious breakfast in the morning, and they have an on-site restaurant for your evening meal.
The surrounding area is unbelievably scenic, with huge mountains, open countryside, and plenty of hiking opportunities right outside your door. Overall, it has pretty much everything you need for a fantastic few nights.
Hotels in East Iceland
East Iceland is one of the most remote regions of the country, but there are still some wonderful places to stay. This is Iceland at its wildest and most dramatic landscapes.
You’ll find a collection of small towns backed by towering mountains, winding mountain roads that drop off into the ocean, stunning beaches, high mountain passes, endless waterfalls, and so much more.
Even though it’s one of the lesser explored regions, it’s actually one of our favourites.
If you’re driving the Ring Road, you’ll probably want to spend at least one night here, but we’d recommend two if you can. This will give you a bit more time to see places like Studlagil Canyon, hike to Hengifoss, and visit the picturesque Seyðisfjörður.
Here’s where we recommend staying:
11. Lake Hotel Egilsstaðir
Lake Hotel Egilsstaðir is one of the best places to stay in East Iceland, especially if you want somewhere calm, comfortable, and beautifully scenic.
It’s set right on the edge of Lake Lagarfljót, and the views here are absolutely gorgeous, especially early in the morning when the water is still, and the mountains are reflected perfectly across the surface.
The rooms are modern and cosy, and the on-site spa is a fantastic way to relax after long driving days through the East Fjords. There’s also a lovely restaurant serving local Icelandic dishes and a delicious breakfast in the morning.
Egilsstaðir itself is the main hub of the east, so you’ll find supermarkets, cafés, and fuel stations close by. It’s the perfect place to restock before continuing along the Ring Road.
🏨 BOOK A ROOM AT Lake Hotel Egilsstaðir
12. Fossardular Guesthouse
We spent one night at this fantastic guesthouse during our summer Ring Road trip. It’s not a hotel, so the rooms all have shared bathrooms. Our room was one of the biggest in the house and was lovely and cosy.
There was a toilet on the landing near our room, which we shared with another 2 rooms and a shower down at the entrance to the building.
We didn’t find much of an issue with this. The toilet was always vacant whenever we needed it and although there was a small queue for the shower in the morning, it wasn’t too long a wait.
The other benefit over a traditional hotel was the two shared kitchens. We picked up some groceries in Hofn before we drove up and cooked both our dinner for the night and breakfast the next morning there. It was a fab way to save money on food.
It’s also worth noting that the guesthouse also has a campsite on the location. It’s a lovely campsite with a full kitchen and private showers, so if you’re camping in Iceland, this is a good place to stop.
🏨 BOOK A ROOM AT FOSSARDULAR GUESTHOUSE
13. Hotel 1001 Nott
Hotel 1001 Nótt is another of the most beautiful hotels in the east of Iceland. Located next to the lake in the countryside just outside Egilsstaðir, this boutique hotel is incredibly peaceful.
The rooms are cosy, stylish, with mustard yellow accents, and many have floor-length windows and fantastic views across the landscape.
There are two outdoor hot tubs, which is a lovely way to relax, especially in winter when you can soak under a sky full of stars – or, if you’re really lucky, the Northern Lights!
It’s also only a short 7-minute drive from the centre of Egilsstaðir, so it’s convenient enough if you need to buy food and find a restaurant. But, its a location also gives that secluded feel that many more remote Ring Road hotels have.
If you’re looking for a warm, welcoming stay with a personal touch, this hotel is a fantastic choice.
Hotels in North Iceland
There’s a surprisingly large number of things to do in north Iceland, and it always amazes us how many people rush through it.
The area is a volcanic gold mine, with huge craters, geothermal areas, hot springs, underground caves, lava fields, and much more.
You could easily spend an entire week exploring North Iceland, including a few days in Akureyri, a few days around Lake Myvatn, and some time around Husavik.
However, for the sake of this Ring Road trip, we recommend spending 2-3 days here, depending on how long you’re in Iceland overall.
Here’s where we recommend staying:
👉 Check out our full guide on where to stay in Akureyri for all our top choices.
14. Hotel Kea
Hotel Kea is one of the most centrally located hotels in Akureyri. It’s perfect both if you want to explore the city and if you’re driving the Ring Road through North Iceland.
It’s right in the centre of the city and many of Akureyri’s top attractions, within walking distance of restaurants, cafés, shops, and the waterfront, so you won’t need to worry about driving again once you’ve checked in.
The rooms are modern, comfortable, and spacious, perfect after a long day on the road. They also have an on-site restaurant, which serves an excellent range of local food and is one of the better dining options in Akureyri.
Parking is available nearby, and because you’re staying in town, it’s also easy to organise activities like whale watching or Northern Lights tours from here.
15. Viking Cabins and Apartments
We absolutely loved these cabins during our trip to Akureyri in winter.
They’re located outside of the city, so you don’t get any of the hustle and bustle, but close enough that a 5-minute drive puts you within easy reach of restaurants.
There are 1-bedroom or 2-bedroom cabins, so ideal if you’re travelling as a couple, or with a group of friends. Plus, some of them have their own private hot tub – perfect for relaxing in the evening.
🏨 BOOK A ROOM AT VIKING COTTAGES AND APARTMENTS
16. Fosshótel Mývatn
If you’re exploring the Lake Myvatn Area, you can’t go wrong with Fosshotel Mývatn.
The hotel is set slightly outside the main sightseeing area, which means it doesn’t feel overcrowded, but you’re still only a short drive from places like Hverir, Dimmuborgir, and Mývatn Nature Baths.
The rooms are modern and cosy, with floor-to-ceiling windows that look out over the volcanic landscape. It’s a fantastic hotel for Northern Lights viewing in winter.
The on-site restaurant is also excellent, which is super handy because there are very few dining options around the Myvatn area.
🏨 BOOK A ROOM AT FOSSHOTEL MYVATN
17. Bolstadarhlid Studios
Slightly further along the Ring Road west of Akureyri, this is a fantastic little base if you fancy a secluded night in the middle of nowhere.
We stayed here for one night before our drive into the highlands to Kerlingarfjoll, as it’s right next to the turn off to Route 35, so it saved us a drive from Akureyri in the morning.
There are a few choices here, including the main guesthouse and several self-catering options. We stayed in the cottage, a small self-catering unit separate from the main guesthouse. It’s a little more expensive but worth it in our opinion.
There was a comfy bedroom area, a living space, huge windows overlooking the mountains, and a small kitchenette. We cooked some chicken wraps and sat on the sofa watching the midnight sun, which was pretty magical.
One tip, if you do stay here in summer, though – bring an eye mask! The curtains aren’t that good at blocking out light!
Hotels in Reykjavik
Reykjavik is likely to be your final stop on a Ring Road trip, but it’s 100% worth visiting.
You won’t find much of the gorgeous nature here that makes Iceland so wonderful. But you’ll get a whole host of culture, nightlife, local atmosphere, and some very cool (and unusual!) museums, instead!
In our opinion, it’s worth spending at least 2 nights in Reykjavik towards the end of your trip, to wind down and relax in the city before heading home.
Here are some of our favourite hotels in Reykjavik:
👉 Check out our full guide on where to stay in Reykjavik for all our top choices.
18. Center Hotels Plaza
Center Hotels Plaza was the first hotel we ever stayed at in Iceland. It’s located right in the centre of Reykjavik, so it’s easy to reach all of the city’s top attractions.
On top of that, it was close to restaurants and shops, and, if you’re visiting in winter, there’s an ice rink right outside!
It was close to the bus stops for guided tours, the breakfast was delicious, and there was a stylish bar for evening drinks.
The rooms were simple, but cosy, with a large double bed and en-suite bathroom, and ours had a view over the plaza below.
Plus, considering its location, it’s also not too expensive – for Reykjavik, at least!
🏨 BOOK A ROOM AT CENTER HOTELS PLAZA
19. Tower Suites Reykjavik
If you’re looking for a truly special place to end your Ring Road adventure, Tower Suites Reykjavík is one of the most luxurious stays in the capital. You’ll find it on the top floors of one of Reykjavík’s tallest buildings.
Each suite comes with floor-to-ceiling windows and absolutely breathtaking panoramic views over the mountains, ocean, and city skyline.
Inside, everything feels sleek, modern, and spacious, a real contrast to many of Iceland’s simple countryside hotels.
The suites are beautifully designed, and perfect if you want to treat yourself after long days on the road. Breakfast is served directly to your room, which feels incredibly indulgent, and the location makes it easy to explore the city on foot.
🏨 BOOK A ROOM AT TOWER SUITES REYKJAVIK
20. Hotel Borg
Hotel Borg is one of Reykjavík’s most iconic hotels, and it’s very conveniently located right on Austurvöllur Square in the centre of the city. If you want to stay somewhere with real character and a little bit of glamour, this is the perfect choice.
The interiors are very well designed, with polished wood, vintage details, and a classic, elegant feel that makes it feel different from modern hotels in the city.
The location is unbeatable. You’re just a short walk from the city’s best restaurants, museums, bars, and the famous Harpa Concert Hall.
Plus, after a busy day of sightseeing, you can unwind in the hotel’s spa facilities, which include a hot tub, steam bath, and sauna.
21. R13 – A Townhouse Hotel
We spent our final 1 night in Reykjavik at this hotel after our Ring Road trip in June, and it was perfect.
A Townhouse Hotel is slightly further outside the city centre, but a 15-minute bus will get you to Hallgrimskirkja and many of Reykjavik’s top attractions.
The hotel is a self-check-in, so you can arrive at any time. The room was compact and comfortable, with a large, cosy bed, blackout curtains, and a modern en-suite bathroom.
Our room had a little kitchenette as well, so we were able to make breakfast in the morning and pack ourselves a lunch for the day, which is very handy. There’s also a spacious shared lounge area downstairs with squashy sofas and bar stools.
FAQs
How far in advance should I book hotels on the Ring Road?
Honestly, as early as you can. Iceland has far fewer hotels than most countries, especially in rural areas, and they do book up quickly.
For summer (June–August), we recommend booking 3–6 months in advance if possible. In shoulder seasons, 1–3 months is usually fine, but the earlier you book, the better the prices and availability.
Are Ring Road hotels expensive?
Accommodation in Iceland tends to be pricier than many people expect.
A standard double room at a decent hotel typically ranges between £120–£300 ($160 – $400) per night, depending on the location and season. However, we’ve also found smaller hotels or guesthouses for as low as £75 ($100) per night.
Remote areas with fewer options (like the East Fjords) or popular areas (like the South Coast) tend to cost more simply because demand is high and supply is limited.
But ultimately, you can explore Iceland for a reasonable budget if you want to.
Is it better to stay in towns or rural hotels?
It depends on the kind of trip you want!
Hotels in towns and cities like Reykjavík, Vík, and Akureyri are great for amenities, restaurants, supermarkets, and petrol stations.
In comparison, rural hotels offer better scenery, quieter nights, and fantastic Northern Lights viewing with little light pollution.
We’ve always included a mixture of both, as it’s nice to have more of a choice of restaurants sometimes, but then also quite nice to have a few detox nights in more remote locations.
Are budget hotels available along the Ring Road?
Yes, they exist, but options are limited, especially in the more remote parts of the country.
Guesthouses and farm stays tend to be the most budget-friendly choices. If you’re travelling on a budget, book early and consider self-catering guesthouses to save on food.
Final Thoughts: Where to Stay on Iceland’s Ring Road
Choosing the best Ring Road Hotels is a pretty important decision when exploring Iceland.
After driving the Ring Road ourselves and travelling around Iceland multiple times, we’ve learned just how important it is to stay in the right locations, not just the prettiest hotels.
It doesn’t matter what time of year you visit Iceland; picking the wrong places to stay can ultimately mean you end up missing things on your itinerary.
We hope this guide makes planning your Ring Road adventure a little easier (and a lot more exciting!). There are so many wonderful things to do in Iceland – it’s one of the most beautiful road trip destinations in the world, and staying in the right places is the key to a pretty epic adventure!
If you have any questions about planning your trip or want help choosing the best hotels for your itinerary, feel free to ask us anything in our Facebook Group!
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