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Best Hotels Along Iceland’s Ring Road: Where to Stay on Your Epic Road Trip

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Blue lagoon iceland

If there’s one thing I learned while driving Iceland’s Ring Road, it’s that the right place to stay can make or break your trip. This isn’t a destination where you can just roll into town and expect endless options. Many areas have limited accommodations that book up fast, especially in summer. So, planning your overnights in advance is key to making your Iceland road trip smooth, cozy, and unforgettable.

If you’re planning your drive, this post pairs perfectly with my Iceland Ring Road itinerary blog. I’ve rounded up my favorite hotels and guesthouses around the entire loop. It ranges from sleek Reykjavik stays to farm resorts with cows and glacier-view rooms. Whether you’re seeking adventure, comfort, or a splash of luxury, these are truly the best hotels along Iceland’s Ring Road.

*Note: This post contains affiliate links. If you click an affiliate link or book through an affiliate program, I receive a small commission at no cost to you.

A Quick Look at Iceland During Winter

If you are short on time, here is a quick mini guide to Iceland During Winter

Aurora lights above mountain

Where to stay:
Reykjavik
Hella
Vik
Hofn

When to visit:
-October – less snow/more visitors
-November-February – shorter days/less crowds
-March – longer daylight hours, still chance to see Northern Lighs

Things to Do:
–Northern Lights Tour
–Horseback Riding
–Snowmobile on a Glacier
–Ice Cave Tour

Quick Route Overview

The Ring Road (Route 1) circles the entire island, covering about 1,332 km / 828 miles. Most travelers take 7–10 days to drive the full loop, stopping in different regions each night. You’ll pass waterfalls, black-sand beaches, glaciers, volcanoes, and geothermal lagoons. Having the right hotel each night helps you rest, recharge, and truly enjoy the magic of Iceland.

Where to Stay in Reykjavik – Start or End of Your Trip

Kvosin Downtown Hotel Reykjavik

Your adventure begins (or ends) in Iceland’s vibrant capital, and Kvosin Downtown Hotel Reykjavik is my go-to for a stylish city base. It is a part of the Mr. and Mrs. Smith collection. It’s modern, cozy, and perfectly located for exploring Reykjavik’s colorful downtown, coffee shops, and iconic Hallgrímskirkja church.

The rooms blend Scandinavian design with comfort. You can think warm wood, soft lighting, and views of the city skyline. I prefer to end our trip in Reykjavik. This is the perfect spot to rest up before a long day of travel and I don’t enjoy being rushed the morning before a flight.

If you’re looking for something more luxurious, this is the place to indulge before you dive into Iceland’s wild landscapes or after you’ve spent a week doing so.

South Iceland – Waterfalls, Lava Fields & Black Sand Beaches

a picture of the front of the stracta hotel. White building with glass doors

Stracta Hotel – Hella

Located in the town of Hella, Stracta Hotel makes an excellent first overnight stop after leaving Reykjavik. The rooms are clean and modern with a touch of Nordic simplicity, and the on-site restaurant serves hearty Icelandic fare. We loved the saunas and the outdoor hot tubs. The hot tubs are perfect for relaxing under the midnight sun, or catching the northern lights if you’re visiting in winter. We’ve stayed in a single room and a 2 bedroom suite with a private hot tub. Both stays were incredible.

It’s also the perfect base for exploring Seljalandsfoss, Gljúfrabúi, and Skógafoss waterfalls. The hotel sits just off Route 1, making it convenient and traveler-friendly. They also offer an aurora alert phone call to your room.

Photo of holiday home. Brown building with glass windows

Heima Holiday Homes

Heima Holiday Homes offers charming self-catering cabins surrounded by nature. These cottages feel like a home away from home. They provide full kitchens, private decks, and wide-open views.

At night, the stars are unreal here, and if you visit in winter, it’s a great spot to watch for the northern lights without any city light pollution. It’s actually the first location we ever witnessed the Northern Lights!

Seljalandsfoss Horizons

For something a bit more remote and unique, Seljalandsfoss Horizons offers modern cabins with panoramic views of the surrounding countryside. The cabins face the volcano-dotted horizon and are just minutes from the famous Seljalandsfoss waterfall (yes, the one you can walk behind).

Each cabin features a kitchenette, minimalist Scandinavian design, and huge windows that let you soak in sunrise and sunset colors over the southern plains. It’s a perfect stay for couples looking for solitude and scenery.

view of black sand beach from window

Hotel Vík í Mýrdal

A modern hotel with an unbeatable location, Hotel Vík í Mýrdal overlooks the dramatic cliffs and black-sand beaches of Vík. We loved how you can literally walk from your room to the beach or stroll into town for dinner. The design is sleek but warm, with local artwork and cozy touches.

Breakfast here is exceptional. It’s a great place to fuel up for the energy you’ll need before tackling Reynisfjara Beach and Dyrhólaey Arch. If you prefer something a little more upscale while still being close to nature, this hotel delivers the perfect balance.

Black Beach Suites

Just a few minutes outside Vík, Black Beach Suites is another one of my favorites. The suites have kitchenettes and floor-to-ceiling windows facing the ocean, so you can wake up to the beautiful view of waves crashing against the basalt cliffs.

We loved the sense of independence. You can cook your own dinner, sip coffee while watching the light change across the sea, and then take a short drive to the beach for sunset. It’s perfect for couples or families who like a little more space and privacy.

Southeast Iceland – Glaciers, Lagoons & Coastal Beauty

glacier view under the midnight sun

Lilja Guesthouse

As you continue east along the Ring Road, Lilja Guesthouse near Höfn is a dreamy stop with glacier views that will have you speechless. The rooms are clean and simple but perfectly comfortable, and the breakfast spread is one of the best we had in Iceland.

From here, it’s an easy drive to Vatnajökull National Park and Jökulsárlón Glacier Lagoon. The surrounding farmland adds to the charm. You’ll feel like you’re staying on a peaceful Icelandic homestead rather than a hotel.

Hotel Jökulsárlón

If you’re planning to visit the glacier lagoon, Hotel Jökulsárlón is the ultimate stay. The hotel blends modern comfort with an Arctic atmosphere. It’s windows frame the nearby glaciers and rugged peaks. The on-site restaurant serves incredible locally sourced dishes, and the bar has panoramic glacier views.

If you’re looking for a more luxurious vibe, this is one of the most scenic options along the Ring Road. It’s also a great spot to catch the northern lights if you’re lucky!

East Iceland – Quiet Beauty & Hidden Gems

The Milk Factory – Höfn

Despite its name, you won’t find cows here just, comfort and great hospitality. The Milk Factory Hotel is a former dairy turned cozy accommodation on the outskirts of Höfn. Rooms are modern, spotless, and minimalist, with mountain views that change with every hour of Icelandic light.

It’s the perfect stop for travelers continuing east after the glacier lagoons. Don’t skip Höfn’s famous lobster restaurants while you’re here. It’s a local specialty.

North Iceland – Whales, Lava Fields & Epic Views

FossHotel in Husavik along Ring road in Iceland
Fosshotel Husavik located along the Ring Road in Iceland

Fosshotel Húsavík

In the whale-watching capital of Iceland, Fosshotel Húsavík is the best stay in town. The décor nods to the town’s maritime heritage, and many rooms overlook the harbor. After a day on the water spotting humpbacks, you’ll love coming back to the hotel’s cozy bar and hearty restaurant.

It’s also well-located for exploring Ásbyrgi Canyon, Dettifoss, and Lake Mývatn, some of Iceland’s most incredible natural wonders.

Vogafjós Farm Resort

This might be one of the most memorable stays along the entire Ring Road. Vogafjós Farm Resort near Lake Mývatn combines cozy cabins with a working dairy farm. Yes, there are cows! You can actually watch them through a glass window while you eat breakfast in the café.

The rooms are warm and rustic, with wood-paneled walls and mountain views. The on-site restaurant serves local specialties, including homemade cheese and smoked lamb. We loved the family-run atmosphere and the balance of comfort and authenticity.

West Iceland & The Blue Lagoon Region

Silica Hotel – Blue Lagoon

If you’re wrapping up your trip and want a final taste of luxury, Silica Hotel at the Blue Lagoon is pure Icelandic indulgence. Guests get access to a private lagoon separate from the main one, so you can soak in steamy turquoise water surrounded by black lava fields without the crowds.

The rooms are modern, minimalist, and unbelievably tranquil. Breakfast is included and served with lagoon views. It’s a perfect finale after a week of adventure, and you’ll leave feeling completely recharged.

Planning Tips for Staying Along the Ring Road

Book Early, Like, Really Early

Some of these hotels have fewer than a dozen rooms, and they can book out months ahead during summer. If you know your route, reserve your accommodations as soon as possible.

Mix It Up

We found that alternating between hotels and self-catering cabins worked perfectly. It kept things budget-friendly while giving us space to cook a few meals along the way.

Bring Snacks

Many remote areas don’t have late-night dining options, so having snacks or groceries on hand is a lifesaver after a long drive.

Embrace the Variety

One of the best parts of driving the Ring Road is how diverse the accommodations are, from sleek glacier hotels to cozy farm stays with cows in the backyard. Every night feels like a new experience.

If You’re Looking for a More Luxurious Vibe

While most Ring Road accommodations focus on charm and comfort, a few properties add that extra touch of luxury:

  • Silica Hotel (Blue Lagoon) for ultimate relaxation.
  • Hotel Jökulsárlón for glacier views and fine dining.
  • Hotel Kvosin for urban sophistication.

Each one offers elevated amenities, stunning architecture, and unbeatable locations. They are perfect for travelers who want to blend adventure with a little pampering.

Why We Love These Stays

What makes these hotels the best along Iceland’s Ring Road isn’t just their location, but it’s the experience they create. After driving through lava fields, crossing glacial plains, and exploring hidden waterfalls, you’ll crave a cozy bed, a hot shower, and maybe a view that stops you in your tracks.

Final Thoughts: Your Perfect Iceland Road Trip Awaits

Driving the Ring Road is one of the most incredible adventures you can have in Iceland, and finding the right hotels along the way makes all the difference. From farm stays with cows to luxury spas surrounded by lava fields, these are the places we’d book again in a heartbeat.

If you’re planning your own Iceland road trip, check out our complete Ring Road itinerary blog for a detailed day-by-day route that pairs perfectly with these stays. Trust me! Combine these hotels with a little planning, and your Iceland adventure will be nothing short of unforgettable.

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