Where to Stay in Iceland: Best Areas and Hotels for Your Ring Road Trip

Figuring out where to stay in Iceland can feel overwhelming, especially if it’s your first visit. The country has so many amazing regions, and the driving distances between the top sights are longer than you might expect.

On my July 2024 trip, we rented a car and drove part of the Ring Road, staying one night in Reykjavik, one night along the Golden Circle, three nights near Vik, and one night near Keflavik before our flight home. Breaking the trip into these stops made it easy to explore without rushing, and it let us enjoy each area at a relaxed pace.

If you’re still deciding your route, check out my 4-Day Iceland Itinerary for ideas on what to see each day.

Whether you’re doing the full Ring Road or a shorter itinerary, planning smart overnight stops will save you time, limit backtracking, and help you make the most of your trip.

Below, I’m breaking down the best areas to stay along the Ring Road, what each area is known for, how many nights to spend, what to do nearby, and hotel recommendations.

➡️ If you’re still in the early planning stages, my How to Plan a Trip to Iceland guide walks through budgeting, driving tips, packing, and everything you need to know before you go.

Where to Stay in Iceland: Ring Road Stops

Reykjavik – Best for City Life and Restaurants

• Recommended Nights: 1–3

Reykjavik is relatively small, easy to walk around, and a good spot to start your Iceland trip. It’s about a 45-minute drive from Keflavik Airport, so you can get to your hotel pretty quickly after landing.

We stayed here the first night of our trip before starting the Ring Road, and it worked out really well. It gave us time to settle in, grab food, and explore a bit without feeling like we had to rush into sightseeing right away.

If you arrive early in the day, one night here is usually enough to see the main highlights. But if you land in the afternoon or evening, I would plan two nights so you have time to explore at a relaxed pace.

🏨 Where to Stay in Reykjavik

• Airbnb – We stayed at this Airbnb for our first night, and it worked really well. The location was convenient, the space was clean, and it was comfortable for settling in after the flight.
• Miðgarður by Center Hotels – Right in the center and super convenient for walking around.
• Hotel Reykjavik Saga – Modern and close to the waterfront.
• Reykjavik Residence Apartment Hotel – Apartment-style rooms with extra space. Great if you want to prepare breakfast before heading out or just have more room to relax after traveling.

✅ Top Things to Do in Reykjavik

• Hallgrímskirkja – This iconic church is hard to miss in Reykjavik. There is an elevator you can take to the top for panoramic views, but we didn’t go up. We still enjoyed walking around outside and exploring the inside a bit. The design is inspired by Iceland’s basalt columns, which you will see later at places like Reynisfjara Beach in Vik and Svartifoss.
• Sky Lagoon – A geothermal pool with ocean views, just a short drive from downtown Reykjavik. We booked an evening slot, which was the perfect way to unwind after a day of exploring. There’s a swim-up bar if you want a drink, and you can try the seven-step ritual, which includes a cold plunge, sauna, steam room, and a few other stations. Definitely worth the $$! You can book tickets here.
• Food & Coffee – You can’t visit Reykjavik without trying a hot dog at Bæjarins Beztu Pylsur and a cinnamon bun from Brauð & Co. They were both delicious! If you want to try more local foods, joining a food tour is a fun way to explore the city and try local foods.

Golden Circle – Best for Waterfalls and Geysers

• Recommended Nights: 1

The Golden Circle is one of the most popular areas to visit in Iceland because it’s close to Reykjavik and has a few of the country’s most well-known sights. Gullfoss Waterfall is the main reason most people go.

Before our trip, I kept seeing people say the Golden Circle was overrated. And I get where they’re coming from since compared to the South Coast, the scenery isn’t quite as dramatic.

But I still think it’s worth adding to your itinerary if you have the time. Gullfoss ended up being one of the waterfalls that impressed me the most. It’s huge, powerful, and only requires a short walk to reach the viewpoints.

We visited the Golden Circle at the very beginning of our trip, which worked out well. If you’re short on time, I think I would skip the Golden Circle and put more of your days along the South Coast.

But if you have more time in your itinerary, spending one night near the Golden Circle lets you get an early start and skip the tour bus crowds.

🏨 Where to Stay Near the Golden Circle

• Airbnb – We stayed one night in the Golden Circle area at a charming countryside Airbnb on a horse farm. It was convenient for exploring the main sights.
• Hotel Gullfoss – Just minutes from Gullfoss, perfect for an early start before the crowds.
• Guesthouse Fludir – Close to restaurants and the Secret Lagoon.
• Gardur Stay Inn by the Secret Lagoon – Within walking distance of the Secret Lagoon!

✅ Top Things to Do in the Golden Circle

• Thingvellir National Park – A UNESCO World Heritage Site where you can literally walk between the North American and Eurasian tectonic plates. I recommend doing this short 3-mile round-trip hike to Öxarárfoss Waterfall via the Almannagjá Trail. If you’re feeling adventurous, you can even snorkel between the tectonic plates at Silfra which is definitely a once-in-a-lifetime experience.
• Gullfoss – The standout of the Golden Circle, this waterfall is huge and powerful. The main hike to the viewing platforms is only about a mile round trip.
• Strokkur Geysir – This geyser erupts every 6 minutes, shooting boiling water into the air. I had never seen a geyser before, and it was so cool to watch. The walk from the parking lot is short, so it’s a quick stop.
• Fridheimar – If you’re hungry, this tomato farm restaurant is amazing, and it’s close to the Golden Circle sights. Everything on the menu features tomatoes. You can get unlimited tomato soup and bread, or try pasta dishes. It’s extremely popular, so make reservations months in advance if you can. If you can’t, you can try walking in and getting a seat at the bar, but it is a more limited menu.

➡️ If you’re short on time, check out my 2-Day Iceland Itinerary that includes the Golden Circle highlights.

Vik & the South Coast – Best for Waterfalls and Black Sand Beaches

• Recommended Nights: 1–2

Vik is hands-down one of my favorite stops along the Ring Road. I loved the town and how close it is to the ocean and its dramatic cliffs.

It’s a great base for exploring Iceland’s South Coast, from waterfalls to black sand beaches and coastal hikes.

Staying here also breaks up the long drives and gives you the chance to catch sunrise or sunset at some of the most iconic spots before the crowds show up.

🏨 Where to Stay in Vik

• Airbnb – We stayed at an Airbnb in Vik and really enjoyed it! It was a short walk to Reynisfjara Black Sand Beach and offered amazing views.
• Hotel Kría – Modern, comfortable, and right in town. It’s an easy walk to restaurants and perfect if you want quick access to nearby beaches and cliffs.
• Black Beach Suites – Apartment-style rooms with ocean views, great if you want more space.
• Hótel Vík í Mýrdal – Conveniently located in the heart of Vik, close to restaurants and just a quick drive from Reynisfjara Beach.

✅ Top Things to Do in Vik

• Skógafoss – This is one of those waterfalls that makes you stop in your tracks. It’s huge, loud, and super easy to visit since it’s right off the Ring Road. You can walk right up to the base (prepare to get misted – wear a rain jacket!) and make sure to climb the long staircase for a view from the top.
• Kvernufoss – Just a few minutes away from Skógafoss, but way less crowded. It’s a short and easy walk to get there from the parking lot, and the best part is that you can walk behind the waterfall. We were able to take our time and enjoy it without crowds, which made it one of my favorite stops. Make sure to stop at Mia’s Country Van for delicious fish & chips nearby!
• Reynisfjara Beach – The basalt columns here look like something out of a movie! Just be very cautious, the waves are unpredictable and strong, so always keep an eye on the water and never have your back towards the ocean. This is a great spot for sunrise or sunset if you’re staying in Vik.
• Dyrhólaey – A quick stop with big views. You will see dramatic cliffs, black sand beaches, a lighthouse, and if you visit in summer, you will most likely see puffins nesting on the cliffside! We saw them when we visited in July. It’s an easy place to pull over and take in the scenery without a ton of walking.

➡️ I have an entire post on the best things to do in Vik if you’re planning more time in this area.

Skaftafell / Jökulsárlón / Diamond Beach — Best for Icebergs and Glacier Hikes

• Recommended Nights: 1-2

This is one of the most dramatic and unique parts of Iceland. You will see glaciers, floating icebergs, and black sand beaches all within a short drive of each other. It feels like a completely different world!

If you’re planning to do the Vatnajökull Glacier hike (which I can’t recommend enough!) staying overnight in this area makes things a lot easier. This ended up being our favorite activity of the entire trip!

We booked with Local Guide of Vatnajökull and loved the experience. Our group was small (just eight of us), and the guides helped us gear up with crampons and ice axes before taking us out onto the glacier.

Walking across the ice and seeing the formations up close was incredible and something I will never forget. We chose the longer Glacier Discovery tour, which takes most of the day, but it was 100% worth it!

🏨Where to Stay Near Skaftafell / Jökulsárlón / Diamond Beach

• Fosshotel Glacier Lagoon – Modern and comfortable, and the location is ideal if you want to be close to both Skaftafell and Jökulsárlón.
• Hali Country Hotel – Family-run option right near Jökulsárlón and Diamond Beach
• Hotel Jókulsárlon – Conveniently located near the lagoon

✅ Top Things to Do in Skaftafell / Jökulsárlón / Diamond Beach

• Skaftafell National Park – There are several hiking trails, many with incredible glacier views. We did the short hike to Svartifoss, a waterfall with a striking backdrop of basalt columns, which takes about 1–2 hours round trip. The trail can be a bit steep in spots, but it’s very manageable, and the waterfall is well worth it!
• Jökulsárlón Glacier Lagoon – Watching icebergs float in the glacial lake was unreal. You can take a boat tour to get closer to the icebergs, but even just walking along the shore and seeing them from a distance was amazing. We even spotted a few seals when they would pop their heads out of the water!
• Diamond Beach – Right across the road from Jökulsárlón, this black sand beach is scattered with glistening ice chunks that wash ashore (hence the name Diamond Beach!). Be careful of the waves, which can be strong and unpredictable.
• Vatnajökull Glacier Hike – This was the highlight of our trip. We did the Glacier Discovery tour with a small group and a local guide, walking across stunning ice formations and crevasses with crampons and ice axes. It was a once-in-a-lifetime experience and absolutely worth the money!

➡️ I share more tips for glacier hikes and South Coast stops in my Iceland bucket list guide.

💡P.S. If you’re traveling internationally, I highly recommend purchasing the Airalo eSIM. It’s a great way to avoid those excessive roaming charges and eliminates the need for plastic eSIMs!

Höfn – Best for Seafood and Coastal Mountain Views

• Recommended Nights: 1

Höfn is a small fishing town on Iceland’s east coast, famous for its fresh langoustine and seafood.

It’s a walkable town, making it easy to explore the harbor, local shops, and restaurants.

The surrounding coastal mountains and views of the glaciers make it a scenic stop along the Ring Road, and it’s a convenient place to stay overnight if you’re driving between the South Coast and the Eastfjords.

🏨 Where to Stay in Höfn

• Milk Factory – Right by the harbor, so you can easily walk to restaurants and explore the town.
• Old Airline Guesthouse – Central location that makes getting around Höfn easy.
• Guesthouse Mikael – Great option if you want a place close to town and the surrounding sights.

✅ Top Things to Do in Höfn

• Try Local Lobster Dishes – Höfn is known as Iceland’s lobster capital, so be sure to try it while you’re in town. Pakkhús is a popular restaurant that comes highly recommended.
• Vestrahorn / Stokksnes – This is a striking mountain on the Stokksnes peninsula near Höfn, right by black sand dunes. There are short walking paths along the beach and dunes, making it an easy spot to explore and take photos, especially around sunrise or sunset.
• Walk Along the Harbor – Höfn’s small harbor is perfect for a walk to watch the fishing boats, grab a coffee at a local café, and enjoy the beautiful views.
• Glacier Views – Vatnajökull is visible from town, and for a closer look, short drives or easy hikes bring you to glacier tongues that are worth exploring.

East Fjords – Best for Scenic Drives and Nature

• Recommended Nights: 1–2

The East Fjords are one of Iceland’s quieter regions, perfect if you want a break from the busier South Coast. You will drive along winding roads near fjords, fishing villages with colorful houses, and mountains along the coast.

The towns are small with a few streets with local cafes and spots to eat. The region is also known for reindeer sightings!

The driving here is really the main draw since the roads follow the coastline, giving you nonstop scenic views.

🏨 Where to Stay in East Fjords Region

• Fosshotel Eastfjords – A good base for exploring several fjords in the area
• Hotel 1001 Nótt – Located in Egilsstaðir, making it convenient for day trips around the East Fjords.
• Hafaldan HI Hostel – Located in Seyðisfjörður, right in the town center so you can easily walk to cafés and restaurants.

✅ Top Things to Do in the East Fjords Region

• Seyðisfjörður – A small, colorful town known for its charming houses and the rainbow path leading to the blue church. There are a few local cafés, making it a nice spot to grab coffee and walk around the town.
• Hengifoss Waterfall – One of Iceland’s tallest waterfalls. The hike to the top is about 1.5–2 hours round trip.
• Drive the Fjords – The real highlight here is the drive itself. Winding roads along the fjords give you plenty of scenic pull-offs and even reindeer sightings are possible in the summer.

Mývatn Region — Best for Geothermal Landscapes, Lava Fields, and Crater Hikes

• Recommended Nights: 1–2

The Mývatn area in North Iceland is centered around Lake Mývatn and known for its geothermal areas, lava fields, and volcanic craters. It’s a great spot for hiking and exploring unique landscapes.

Spending a night or two here makes it easier to see the main sights at a relaxed pace without feeling rushed.

🏨 Where to Stay in Mývatn Region

• Fosshotel Mývatn – Close to the Mývatn Nature Baths, Hverir geothermal area, and nearby hiking trails
• Berjaya Iceland Hotels – Easy access to the main sights in the Mývatn area.
• Vogafjos Guesthouse – Guesthouse on a working farm

✅ Top Things to Do in Mývatn Region

• Mývatn Nature Baths –A smaller, less crowded alternative to the Blue Lagoon. You can soak in geothermal waters while enjoying views of the surrounding lava fields. There’s also a sauna and a cold plunge if you want the full experience.
• Hverir Geothermal Area – Paths lead around steaming vents and bubbling mud pots.
• Dimmuborgir Lava Formations – Short trails take you through lava pillars and caves. Some trails take 30–60 minutes, which is perfect if you want a little adventure without committing to a long hike.
• Dettifoss Waterfall – Europe’s most powerful waterfall. You can see it from either side: the east side has a closer viewpoint, while the west side is easier to access with a paved road.

Akureyri – Largest Northern Town and Whale Watching

• Recommended Nights: 1–2

Akureyri is the biggest town in northern Iceland and a good base if you’re exploring the north. It’s smaller than Reykjavik but still has a compact downtown with cafés, restaurants, and shops.

The town is located at the base of a fjord, giving you views of mountains on one side and water on the other.

It’s also convenient for day trips to Húsavík for whale watching or the Mývatn area.

🏨 Where to Stay in Akureyri

• Saeluhus Akureyri – Spacious apartments that come with kitchenettes if you want to prepare your own meals.
• Hotel Kea by Keahotels – Right in the middle of downtown, so you can easily walk to restaurants and the waterfront. .
• Akureyri – Berjaya Iceland Hotels – Offers easy access to the main road for day trips.

✅ Top Things to Do in Akureyri

• Botanical Garden – It’s free to visit and has walking paths surrounded by plants and flowers from all over Iceland. If you need a break from driving or hiking, this is a relaxing way to spend some time.
• Whale Watching in Húsavík – Húsavík is about an hour away and is known as the best place in Iceland for whale watching. The chances of seeing humpback whales are really high in the summer months. Check out this popular whale watching tour on Get Your Guide!
• Downtown Akureyri – The main street is small and walkable with cafés, bakeries, and a few shops. It’s a great spot to walk around, grab coffee, and enjoy the views.
• Akureyri Church (Akureyrarkirkja) – You will probably see this church as soon as you arrive. It sits up on a hill above town, and the short walk up gives you nice views of the harbor and colorful buildings below.

Snæfellsnes Peninsula — Best for Iconic Mountains and Coastal Cliffs

• Recommended Nights: 0–1

The Snæfellsnes Peninsula is a scenic region on the west coast of Iceland, a little over two hours from Reykjavik.

It’s known for having a bit of everything Iceland is famous for including coastal cliffs, volcanic craters, lava fields, black sand beaches, and the glacier-covered Snæfellsjökull volcano. Because so many different landscapes are packed into one area, people often call it “Iceland in miniature.”

Most people visit Snæfellsnes as a day trip from Reykjavik or add it on after the South Coast or Golden Circle. The main sights are easy to reach by car and don’t require long hikes, which makes it an easy day trip.

If you decide to go, plan for a full day of driving with stops along the coast. It’s a great option for if you want a wide range of scenery without going too far from Reykjavik.

🏨 Where to Stay in Snæfellsnes Peninsula

• Hotel Snæfellsnes – Convenient location for exploring the peninsula. It’s a short drive to some of the main sights, like the Snæfellsjökull National Park area.

✅ Top Things to Do in Snæfellsnes Peninsula

• Kirkjufell & Kirkjufellsfoss – If you’ve seen a picture of a pointed mountain in Iceland, it was probably this one. Kirkjufell is right off the main road near the town of Grundarfjörður, so it’s very easy to visit.
• Snæfellsjökull National Park – This area is home to a glacier-covered volcano that inspired the book Journey to the Center of the Earth.
• Arnarstapi Cliffs – This is a popular section of the coastline known for basalt cliffs, and sea arches. There is a marked path between Arnarstapi and Hellnar, and you can walk as much or as little as you want.
• Djúpalónssandur Beach – A black pebble beach with views of the ocean and cliffs. There are pieces of a shipwreck scattered across the beach.

Keflavik – Best for Airport Convenience and Geothermal Spa Experiences

• Recommended Nights: 0–1

Keflavik is the town where Iceland’s main international airport (Keflavik International Airport) is located, about 45 minutes from Reykjavik.

If you have an early flight or just want to end your trip stress-free, staying nearby is a a good idea. We stayed at the Courtyard Reykjavik Keflavik Airport hotel for our last night.

The area is also home to the Blue Lagoon, Iceland’s famous geothermal spa. Even if you don’t stay overnight, you can easily visit close to when you arrive or before you depart.

It’s a relaxing way to close out your trip. Booking in advance is highly recommended, as it gets busy, especially in the summer.

🏨 Where to Stay in Keflavik

• Hótel Berg – In the center of Keflavik town close to cafés and restaurants.
• Courtyard Reykjavik Keflavik Airport – Modern and comfortable, just a short drive from the airport. Great for early departures or late arrivals.
• Aurora Hotel – It’s close enough to both the airport and the lagoon.

✅ Top Things to Do in Keflavik

• Blue Lagoon – Just 20 minutes from Keflavik Airport, the Blue Lagoon is Iceland’s most famous geothermal spa. It’s known for its milky-blue water and silica mud masks. Many people use it to relax at the start or end of their trip. Summer can be busy, so it’s best to book in advance.
• Optional: Reykjanes Peninsula – If you have extra time, a quick drive along the peninsula is worth it. You will see geothermal areas, cliffs, and lighthouses, like Gunnuhver hot springs and Reykjanesviti lighthouse.

Final Tips for Where to Stay in Iceland

• Book Early for Summer – July and August are the busiest months in Iceland, and hotels in places like Reykjavik and Vik fill up fast. Once you get farther along the Ring Road, there aren’t as many options, so it’s worth booking early to get the best locations and prices. I recommend booking at least 2–3 months ahead, or even 3–6 months if you’re traveling during peak season
• Rent a Car – Driving is by far the easiest way to explore Iceland at your own pace. It gives you the freedom to stop at waterfalls and viewpoints along the Ring Road. See my full guide here: Tips for Renting a Car in Iceland.
• Plan Realistic Driving Days – The Ring Road is longer than it looks, and you will want time for spontaneous stops. I wouldn’t recommend driving more than about 4 hours a day so you don’t feel like you’re spending your whole trip in the car. My Reykjavik to Vik drive guide has great stops if you’re heading south first.
• Stay Near Major Sights When Possible – Booking hotels close to places like Vik, Skaftafell, or Akureyri makes it easier to visit popular spots early before the crowds arrive. It also helps you avoid extra driving and backtracking during your trip.

➡️ If you’re building your itinerary, don’t miss my Iceland packing list and my trip to Iceland cost breakdown.

Final Thoughts on Where to Stay in Iceland

Breaking the Ring Road into overnight stops made our trip so much easier. We could hike, explore towns, take photos, and still have time to relax without feeling rushed.

Reykjavik is a great place to start the trip. The Golden Circle has waterfalls and geysers, and the South Coast is perfect for seeing Vik, the black sand beaches, and nearby waterfalls.

The northern towns and the Mývatn area offer unique landscapes and fun hiking spots, and staying near Keflavik makes your last day and airport trip simple.

Figuring out where to stay in Iceland helped us keep a steady pace and avoid unnecessary driving. I hope this guide helps you plan a smooth Ring Road trip and make the most of your time in Iceland.

Check out my other Iceland blog posts to help you plan your bucket list trip to Iceland:

• How Much Does a 5-Day Trip to Iceland Cost? [Detailed Budget Breakdown]
• Iceland Summer Packing List: What I Packed for My Trip in July
• Reykjavik to Vik Drive: The Best Sights You Need to Stop at Along the Way
• 2-Day Iceland Itinerary: Must-See Waterfalls, Glaciers, and More
• 9 Jaw-Dropping Hikes Near Vík, Iceland
• 13 Beautiful Waterfalls in Iceland Near Reykjavik (Within 2.5 Hours)
• An Epic 4-Day Iceland Itinerary to See the Best Sights
• Essential Tips for Renting a Car in Iceland: What You Need to Know
• The Ultimate Iceland Bucket List: 43 Adventures You Can’t Miss in Iceland
• 12 Unforgettable Things to Do in Vik, Iceland: A Complete Guide
• How to Plan a Trip to Iceland: Everything I Wish I Knew Before Going