One of the biggest questions we get when planning our unique itineraries is, ‘where are we staying?’, but more importantly, ‘why did Hidden Iceland choose it?’ This page will delve into what qualities an accommodation must have in order for us to include it in your itinerary, while showcasing some of our favourites.

The accommodation showcased below tends to be a little more affordable than the luxury options, but still hold a high level of quality that we’ve come to trust over the years. Our comfort level accommodation options are quite diverse and unique, e.g. boutique country hotels, guest houses, city-apartments and even farm-stays. We have preferred accommodations all around the island, so there’s no limit to where you can travel with Hidden Iceland. Scroll down to see some examples of accommodations that we like to use.

If you’d like to see what luxury options we like to use, you can jump over to our Luxury Accommodation page.

What qualities are required of a comfort accommodation?

1. Extensively tested. Every accommodation you stay at has been tried and tested by a member of Hidden Iceland and in most cases, other guests will have stayed there many times before you, and provided us with great feedback.

2. Location is everything. Especially in winter, we aim for Northern Lights friendly locations whenever possible, but the main aim is finding somewhere that works well with your itinerary.

3. Clean, cosy and private. The hotel could look incredible from the outside, but if the room isn’t clean and cosy, then it doesn’t get included in this list. All rooms we choose will always have private bathrooms too (and wifi).

4. Great food or local options. Most accommodation has their own locallly sourced restaurant that celebrates authentic Iceland cuisine. If not, then there’s always something great nearby.

Do you offer budget accommodation as well?

Sadly not. The budget traveler who prefers to stay in hostels, camp grounds or even use a camper van is not something we can cater for. The main reason for this is that we cannot guarantee quality in some of these accommodation types. Comfort and luxury are the lowest quality level we will go and still be proud to send our guests to them. If you are looking for ‘as cheap as possible’ options then we might not be the right fit for your style of travel.

Iceland doesn’t tend to use the ‘star’ system in the same way as other countries, but if we were to put a number on it, I’d say 3 star is considered the minimum level for anything we will book.

Please note; Hidden Iceland does not own any of the accommodations we are showcasing below. They are our preferred options only. 


South East Iceland

The south-east of Iceland is a great location for seeing blue ice caves, taking adventurous glacier hikes and seeing icebergs at Jökulsárlón Glacier Lagoon and Diamond Beach.

Lilja Guesthouse

Lilja Guesthouse built a brand new guest house on top of the family sheep farm. This farm-stay has brand new rooms, all fitted out with modern features for the most comfortable stay in the area. You will wake up to views over some of Iceland’s highest mountains and its biggest glacier, the mighty Vatnajökull. This is the perfect place to stay to ensure you see the best sights in one of our favourite areas of the country. The restaurant is simple but does well to offer many locally sourced dishes. This hotel is a must for those aiming for Northern Lights spotting in winter. It’s also a must if you are want to get close to the newly born lambs in spring and early summer.

We stay at Lilja Guesthouse every week on our two day glacier hike tour and two day ice cave tour (winter only).

Location: LILJA Guesthouse, Hólabrekka, 781 Hornafjörður.