The best places to stay in Iceland: an expert's guide

21.07.2023 - 07:48 / roughguides.com / Aurora Borealis

When looking for the best places to stay in Iceland, you may suddenly realise you've hit the destination jackpot. No matter where you are in the country, there is something spectacular nearby, whether that's great food, dramatic and rugged mountainous landscapes, powerful waterfalls or charming fishing villages.

What can be much harder to figure out is where to stay in Iceland, depending on your priorities. Northern lights? City life? Dramatic landscapes? Fear not – when the choice gets a bit overwhelming, that's where we come in.

We've put together a list of the best places to stay for the best travel experiences in Iceland, whatever tantalising aspect of the country you're in the mood for. The information in this article is taken from The Rough Guide to Iceland your essential travel guide for Iceland.

Despite being isolated in the Atlantic Ocean, Reykjavík is a city on par with some of the trendiest in the world. It's daubed with street art and offers mouth-wateringly good restaurants plus cute cafes and colourful buildings. Take a look at our guide to the best restaurants in Reykjavik.

With all the Icelandic culture we've come to love internationally, you'll be missing out if you don't spend at least some time here. And not only do we feature the city in our guide to the 30 best places to go with kids, it makes a great base for for all types of visitors and is one of the best places to visit in Iceland this summer.

Find more accommodation options in Reykjavik

Prefer to leave planning and booking to experts? Have a look at our Iceland itineraries. All Tailor Made Trips can be modified together with your local expert, and then booked for a stress-free holiday.

Downtown Reykjavik © Edwin Verin/Shutterstock

Sure, Reykjavik has the main international airport nearby and is effortlessly cool, but it isn't the only city to stay in that will give you an insight into Icelandic life. Take Akureyri, the second most populous city in Iceland, although its population is still less than 20,000.

Located at the base of a fjord in north west Iceland, this pulsing city offers excellent skiing, eclectic cafes and restaurants. It's also home to impressive, Akureyrarkirkja church and surrounded by stunning natural phenomena like Lake Mývatn and Dettifoss, which you can see in our 30 incredible photos of Iceland.

Find more accommodation options in Akureyi

Akureyrarkirkja church © Francesco Dazzi / Shutterstock

The northern what? Just kidding – Iceland is pretty much synonymous with the northern lights, and with good reason. Between November and March, you're in with a pretty good chance of witnessing the colourful, wispy curtain dangling in the sky that makes up the sought-after Aurora Borealis.

And as long as you stay