Iceland Hotel Review and Trip Advice

Iceland comes with priceless memories but also a hefty price tag for hotels. With demand far exceeding supply, hotels are not cheap from the capital to remote cities. Let’s be clear: they’re expensive. But, that’s the price you pay for visiting Iceland. Reykjavik is under a major construction renaissance with 12 major hotels currently being built. Throw that on top of the current ones, and you’ve got some options. Because we were hopping around cities, we didn’t look into Airbnb. If you’re staying put longer than 2 days, then I would recommend investigating it.


Fosshotel Reykjavik - I chose this hotel as the price was right, it’s new, and comes with a bountiful breakfast and that very Instagrammable wall (above). While it’s a little off the main drag, it’s in wonderful walking distance from anywhere you want to be in the city. I was also able to book this hotel on Chase miles so that saved us heaps of money. The rooms were new, single beds were firm but fine, and bathroom just right. No fuss. The staff was friendly. Since it’s a new hotel, it’s immaculately kept. It can get a little toasty in there since they don’t really come with AC - this is a summer time travel problem. Average price right now: $400

Honorable mention: Hotel Borg and Hotel Alda (great location too)

The Golden Circle

Oops, I forgot to take a photo so here is their photo

Hotel Grimsborgir - This hotel came as an advice from a travel agent here in the US. It’s a few clicks outside of Reyk, so you’ll need a bus or car to get there. Do yourself a favor and hire a car for a few days and explore on your own. This hotel feels remote because it is while providing access to the Golden Circle. There isn’t much around and you’ll be having all your meals here. Hotel rooms are comprised of smaller buildings. Our hotel room was in a more private building with about 8 rooms total and a shared kitchen. So, you can cook your own meals to save some cash money. The rooms and bathroom were large. Single beds were just fine. The same situation with the room being hot with no little air to circulate was present. We just kept a window or door open a bit and prayed the bugs didn’t get in. This hotel seemed to be best suited for families traveling. We forked over $600 for one night and dinner.

Glaciar Lagoon

Fosshotel Glacier Lagoon - Hundres of kilometers east of Reyk, you’ll find yourself in Mars. Located in the green lush hill is a beautiful structure called the Fosshotel Glacier Lagoon. You are surrounded by vast expanses of land, some sheep, a waterfall and the ocean. We felt remote and loved it. The breakfast, included, was delicious and the light dinner we had at the bar carried us over. In fact, those were some of the best chicken wings I’ve ever had in my life. The rooms are very modern, smallish, and expensive. I think we paid $650 USD all in. Again, it’s high season with no other options in the area. Beds were firm and fine, and the staff was super friendly. To note, the hotel is under construction and being increased in size. So, it’s not super gorgeous when you drive in to see half of it under construction.

Blue Lagoon

Not the most photogenic, but it’s certainly the most practical.

Northern Light Inn - Huge room, comfy bed and nice bathroom products. We chose this hotel for logistical reasons. It’s next to the Blue Lagoon and close to the airport - almost 1/3 less the distance if coming from Reyk to airport. Since we were flying out the next morning, it worked. The food was delicious and the staff super nice. You stay here for some comfort but access to the Blue Lagoon and airport. It also has a direct view of the geo thermal power plant - a view to say the least. We paid about $432 for one night.

Sharing the same view and lot as the hotel (and Blue Lagoon), this geo thermal plant is your view (and pretty cool).

Final Hotel Booking Tips

  1. Can you use miles? This saved me tons of money by using my Chase Sapphire miles

  2. Run all the booking engines to see if it’s cheaper and breakfast is included. I found some hotel direct rates to be more expensive

  3. Try to travel not in peak season if you’re trying to save money. Summer ain’t cheap..