10 Crazy Best Places To Stay In Iceland

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Need a little trip inspiration of the best places to stay in Iceland? We highly recommend trying one of these 10 unique hotels in Iceland for the trip of a lifetime. That could be you exploring glaciers and sleeping in a bubble! 

Iceland is one of the most mysterious and fascinating countries in the world. Known as the land of fire and ice, it has about 30 active volcanoes as well as massive glaciers that make the center of the country a vast wasteland of ice and snow.

The dramatic environmental contrasts and its historic sagas make the country a place of wonder and adventure, providing some really interesting and crazy places to stay in Iceland.

10 Crazy Best Places To Stay In Iceland

If it isn’t at the top of your bucket list, put it on there right now.

Go ahead…I’ll wait.

How much are hotels in Iceland?

I’m just going to rip off the bandaid. Iceland is expensive. You’ll pay double, triple, even quadruple the amount you would normally expect to pay for just about everything.

Sorry, that’s the bad news.

But the good news is that as long as you are aware of what you are in for, you can plan your budget accordingly. Don’t get caught off guard and you’ll still be able to have an amazing trip.

While I highly recommend everyone visit this wonderland, before book your plane ticket you might want to take a peak at the 9 Things I Wish I Knew Before Going to Iceland.

Where to Stay in Iceland

While most travellers to Iceland opt to stay in Reykjavik, to get the real Icelandic experience, you should try some accommodation options outside the city.

While it’s nice to be centrally located to downtown Reykjavik within walking distance to a restaurant and bar or two, you’ll miss out on some really interesting experiences!

The Buubble

Have you ever wanted to sleep in a bubble? Maybe not, but you can do just that in Iceland. I’ll bet you just added “Bubble Hotel Iceland” to your trip wishlist too, didn’t you?

crazy places to stay in iceland bubble hotel iceland
Bubble Hotel Iceland Photo Credit Shaherald Chia

There are five outdoor bubble structures available to stay in. The transparent inflated bubbles have a bed and space heaters, and they allow occupants to sleep right out in the middle of nature where you have complete view of the stars and northern lights.

There is a service house with a shared bathroom and self-service kitchen area just a short walk from the bubbles.

Iceland is known for its incredible scenery so why not spend at least one night completely immersed in it.

Ion Hotel

The award winning ION Adventure Hotel in Iceland is the perfect place to stay for beautiful views and luxury amenities.

This boutique hotel is located within close proximity to the Golden Circle Tour makes it a convenient choice close to some Iceland’s major attractions. However, it is the views of endless lava fields and the breathtaking northern lights, that truly attract guests.

crazy places to stay in iceland Ion Hotel
Photo Credit Yuan

After a long day of exploring Iceland, you can relax at the Lava Spa before enjoying a nightcap at the award winning Northern Lights Bar. It captures the essence of Iceland and offers everything you might need along the way.  

It also reminds me of AT-AT walkers from Star Wars, but maybe that’s just me.

Hotel Viking

Vikings discovered Iceland, and viking culture plays a major role in the country – including elvish lore.

unique places to stay in iceland viking hotel
Photo Credit Jennifer Boyer

Visitors can stay at Hotel Viking and live like a Norse god. Decked out in a medieval theme, the décor is just as the Vikings would have experienced in their day.

There is a hotel, guesthouses for rent and a traditional Icelandic restaurant to have the ultimate Viking adventure.

Hotel Glymur

Overlooking the Whale Fjord, also known as Hvalfjörður, Hotel Glymur is north of Reykjavík and offers cozy villas that make for an amazingly romantic getaway.

Set against the backdrop of the deep brooding landscape of the Whale Fjord, guests can explore the Fjord where British and American troops built a naval base during World War II eventually leaving behind its abandoned remains.

hotels in iceland  Hotel Glymur
Photo Credit Ben Husmann

In the town of Glymur, adventurous hikers can see one of the tallest waterfalls in Iceland.

When the terrain has worn down even the most experienced traveler, return to one of the six villas that each have their own theme and come equipped with TVs, bathroom, a kitchen space and everything you need for a relaxing getaway.

The massive windows look out over the fjord, and it may feel like you are the only person in the world.


This is a budget friendly hostel that is housed in an old biscuit factory in the capital city of downtown Reykjavik. The word Kex is actually an Icelandic word that means biscuit which obviously comes from the nature of the location.

It offers guests a gastro pub and plenty of beer as well as a Gym and Tonic designed like an old boxing gym complete with a punching bag and available for meetings, movie viewings or just a little lite boxing on the punching bag.

hotels in iceland Kex
Photo Credit Eric de Redelijkheid

There is also an old vault that has been repurposed into a barbershop where you can get a haircut or have your beard trimmed.

This unique hostel is a fun place to stay for those adventurous at heart and eager to meet other like minded travelers.

Frost and Fire Hotel 

Tucked away in the beautiful landscape is the hotel known as Frost and Fire which provides access to its own geothermal spa and a restaurant that offers dishes made from the freshest of local ingredients.

hotels in iceland Frost and Fire Hotel
Photo Credit Frost and Fire

Its close proximity to local sightseeing makes it a convenient and relaxing place to stay. Through the hotel you can book excursions like fishing, snorkeling, jeep tours, horseback riding, midnight tours, and even river rafting.

The hotel has a pool, mudbath, herbal kneipp baths, hot tubs, and the adjacent river, naturally heated by hot springs, is warm enough to bathe in.

Kirkjubaer Church

On the coast of a local fishing village you can rent out what once used to be the Kirkjubaer Church. How cool is that?

It has a self-service kitchen and plenty of space to relax.

hotels in iceland Kirkjubaer Church
Photo Credit Jennifer Boyer

Explore the rocky cliffs off the east coast as well as the nearby Petra’s Stone Museum where there is a world famous mineral collection.

There is plenty of hiking and gorgeous scenery best suited for the adventurous, outdoorsy traveler.  

Hotel Jazz

Combining a B & B atmosphere with the amenities of a larger hotel, the Hotel Jazz is located in the town center of Keflavík.

It has rooms with ocean views while still just a brief walk to the city’s best restaurants and shopping.

hotels in iceland hotel jazz
Photo Credit Hotel Jazz

Hotel Jazz is owned and operated by a local from Keflavík, and it is surrounded by a variety of activities.

Guests are just a short distance from the Blue Lagoon, Garðskagi lighthouse and Museum, a golf course, Vatnaveröld Family Swimming Pool, and the Icelandic Museum of Rock n’ Roll as well as a variety other attractions.

The Silica Hotel

You can’t visit Iceland without a stop to the famous Blue Lagoon. Just a 10 minute walk away, the Silica Hotel has 35 rooms with private accommodations and verandas overlooking the lava fields.

The Blue Lagoon is a geothermal spa that is one of the 25 wonders of the world, and a must if you make it to Iceland.

hotels in iceland Silica Hotel
Photo Credit Peter de Ruiter

The hotel also has its own private bathing lagoon, and its award winning design offers guests a peaceful oasis that is one with the landscape.   

The Black House

This Black House for rent was designed after the coastal homes of the 18th century, and its unique, rustic décor makes it an interesting place to stay in Iceland.

The modern but traditional home is an inviting and cozy place to just escape.

hotels in iceland the black house
Photo Credit Boutique Homes

It gives visitors a taste of what it must be like to live in Iceland like a local among the massive landscape and the oppressive, untamable weather.

11 thoughts on “10 Crazy Best Places To Stay In Iceland”

    • I truly think you need to visit at least twice, once in the “summer” and once in the “winter” – you’ll get two completely different experiences!

  1. I have always wanted to visit Iceland, we were supposed to go here for our honeymoon and still have yet to visit. I appreciate this list and will check out one or two to potentially stay at. I am up for the experience!

  2. Iceland is still part of my bucket list and I always love reading blogs about Iceland. Hopefully I can finally tick off this on my list.


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