Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (2024)

WINNING TIP: Hólmur guesthouse, south-east

Hólmur is a farm and guesthouse just off Route 1 in the south-east. It’s been my regular base while doing field work for my PhD on a local glacier. Alongside the guesthouse there is a small restaurant that serves breakfasts (excellent pancakes) and evening meals. There is also a small petting zoo that on my last visit included a baby reindeer rescued during the winter. Hólmur makes an excellent base from which to explore some of the less touristy glaciers and you’ll have no trouble avoiding the hordes that frequent Skaftafell and Sólheimajökull. Particular highlights include the 17km well-maintained gravel road beside Skalafellsjökull and a short walk to spectacular terminus of the Fláajökull glacier. If it’s cloudy at sea level then the Skalafellsjökull road almost always offers a cloud inversion from the top and some welcome (and rare) Icelandic sun.
Doubles from £43 B&B, holmurinn.is
Alex Clayton

Hof guesthouse, north-west

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (1)

Hof guesthouse in Vatnsdalur is a 15-minute drive from the ring road in the north-west about 20 miles south of Blönduós. Set in a beautiful green valley with a meandering river, the guesthouse is part of the family farm with horses, sheep and chickens. It has a free hot tub, a large modern lounge and dining area. The shared kitchen is well-equipped and great for self-catering. Alternatively, the owners offer an evening meal for a nominal extra charge (one option of fresh fish usually), which is good value and very sociable.
Doubles from £69 B&B, hof-is.com
Cobbywren

Skalafell guesthouse, south-east

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (2)

This guesthouse, between Jökulsárlón and Höfn, is a fantastic option for a one-night stay while driving on the ring road. The cabins are cosy, with comfy beds, Wi-Fi and great views. We had a hearty breakfast with the helpful owner and were walked to our car by his friendly dogs in the morning, amid the most incredible light and silence. Make sure to ask for restaurant suggestions if they are not serving food the night you stay with them – and believe the owner when he tells you to sit outside the cabin for a bit longer because the northern lights will definitely make an appearance.
Doubles from £51 B&B, skalafell.net
Canaria

Edda Vik Hotel, south

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (3)

A budget hotel ideally located just off Route 1 and two hours’ drive from Reykjavik. It is really close to the major attractions such as the Reynisfjara beach with its black, basalt columns and spectacular cliffs. If you are lucky you will see puffins that nest high up on the cliffs. The hotel is close to Mýrdalsjökull where you can walk on the glacier or hire a snow mobile. A couple of hours’ drive east and you will find the amazing Jökulsárlón glacial lagoon that featured in the James Bond film Die Another Day – a must-see. Head back to the hotel and either eat in its restaurant or venture a few metres towards the beach for a wonderful fish supper at a choice of restaurants. The hotel is in such a peaceful location you can be sure of a good night’s sleep to round off your day.
Doubles from £70 B&B, hoteledda.is
hhaywood

Steinhusid guesthouse, north-west

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (4)

This was more like renting a house than a room. Our room was a decent size, and the beds were comfortable. Great blackout shades on the window ensured good sleep. The house itself offered a full kitchen, huge bathroom, and two lounge rooms with games, books, and television to relax after a long day sightseeing. The location in Hólmavík, Westfjords, across from the Icelandic Museum of Sorcery and Witchcraft was perfect.
Doubles from £49, steinhusid.is
Christy Nicholas

Akureyri hostel, north

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (5)

Our stay in Iceland’s second “city” (population 17,000) of Akureyri, the capital of the north, was inspirational and the friendly welcome at the amazing value Akureyri hostel warm enough to make you forget the chill outside. Cosy dorms and twins start from about £20 a night. It’s in the town centre has amazing views, and the outdoor thermal pool and botanical gardens are a 10-minute walk away. Catch free live jazz in a buzzing atmosphere at the Green Hat next door at weekends, too.
Bed in a dorm from £16, doubles from £47, breakfast not included, hostel.is
funinfinland

Hali Country Hotel, south-east

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (6)

On the south-east coast on a working farm 30 miles west of tiny Höfn, this is the perfect stopover for a night if you fancy getting away from Reykjavík. You can choose a room with cooking facilities or you can choose to eat in the restaurant where traditional Icelandic dishes made from ingredients reared or caught on site are available. It is a short distance from the Jökulsárlón lagoon, which offers great photography opportunities – especially if you make it in the morning as the sun rises over the sea. You can choose to stop at the little towns or waterfalls on your way out of the city then explore the Vatnajökull national park on the way back to the capital.
Doubles from £62 B&B, hali.is
snapper78

Hotel Framnes, west

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (7)

This waterfront hotel, originally a fisherman’s hostel, is in the village of Grundarfjördur in western Iceland. With a cheerful red-and-blue exterior, it’s a comfortable no-frills base for exploring the Snæfellsnes peninsula. The free Wi-Fi, sauna and outdoor hot tub more than compensate for the lack of a lift. The restaurant’s speciality is fresh seafood but there are plenty of other choices, too. The helpful staff offer wake-up calls if the northern lights appear and will book local whale-watching tours. The bling-free rooms are en suite with tea and coffee making paraphernalia and face either the fjord or jagged mountains.
Doubles from £72 B&B, hotelframnes.is
ID1256164

Gauksmýri Lodge, north-west

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (8)

Near Hvammstangi (halfway between Reykjavik and Akureyri on Route 1) is the charming Gauksmýri Lodge and horse farm. Surrounded by rolling plains, this hotel is at the heart of horse-rearing, horse-riding, horse-loving Iceland. The lodge offers a variety of well-appointed, horse-themed rooms and boasts some of the friendliest staff we encountered in Iceland. The excellent food is served in the beautiful and light-filled dining room, a perfect place to sit and gaze out at the landscape, or at the four adorable Icelandic sheepdogs who call the farm their home. Most importantly, this is the place to go tölting, a gait unique to the Icelandic horse. Horse riding is offered to guests (beginners to advanced) for around £39 for a 90-minute tour and, set among the mossy northern plains and sheer mountains, is a wonderful experience.
Doubles from £84 B&B, gauksmyri.com
Liam Gale

Budget guesthouses, hostels and hotels in Iceland: readers’ travel tips (2024)
Top Articles
Latest Posts
Article information

Author: Fr. Dewey Fisher

Last Updated:

Views: 5743

Rating: 4.1 / 5 (62 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Fr. Dewey Fisher

Birthday: 1993-03-26

Address: 917 Hyun Views, Rogahnmouth, KY 91013-8827

Phone: +5938540192553

Job: Administration Developer

Hobby: Embroidery, Horseback riding, Juggling, Urban exploration, Skiing, Cycling, Handball

Introduction: My name is Fr. Dewey Fisher, I am a powerful, open, faithful, combative, spotless, faithful, fair person who loves writing and wants to share my knowledge and understanding with you.