Where are we staying? Aside from question about Northern Lights, ice caves and puffins, this is probably the biggest question we get when crafting itineraries. So we wanted to dedicate some time to showcase our favourite comfort hotels around the country and explain what makes them worthy of being added to your itinerary.

The accommodation showcased below tends to be a little more affordable than the luxury options, but still holds a high level of quality that we’ve come to trust over the years. Our comfort level accommodation options are quite 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.

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). We do not provide ‘budget’ accommodation such as campervans, campsites and hostels. The quality has too many question marks to add to our premium style tours.

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.


Hotel VOS

“A relaxing atmosphere, surrounded by stunning nature in a tranquil authentic Icelandic farm.”

Hotel VOS is often the most mentioned comfort-level hotel from our guests after their trip has finished. Aside from it being in an ideal location for Northern Lights hunting, there’s something that can’t quite be defined as to why people like it so much. Perhaps it’s the ambience created by the ever smiling owner, Gyða, as she welcomes you onto her family property. Or maybe, the spacious rooms that walk straight out into the open air, or the hot pool sitting beneath the stars, or maybe the locally sourced food in their quaint restaurant. Whatever it is that makes this hidden gem so well received, we’re sure you’ll enjoy your stay. Oh, and did we mention that you can pet the Icelandic horses the owners have on their property too!

We often stop here on most south coast trips, including our Essential South Iceland 3 day tour.

Location: This country hotel is only 10 minutes from the main ring road, near Hella. This hotel is perfect after a day before or after you explore the Golden Circle. It’s around 1.5 hours from Reykjavík.
Hotel VOS, Norður-Nýjabæ, 851 Þykkvibær, Iceland.

Hótel Laekur

Family run country hotel in boutique style. Take a deep breath. Enjoy the beauty and tranquility.

Hidden Iceland started to use this boutique hotel in the midst of Northern Lights season. The uninterrupted views and rolling hills make this ideal for late night hunting, on foot. But don’t focus to heavily on the evening antics, as this unassuming family run hotel has its own hot tub and stables. After having a delicious dinner in their locally sourced restaurant, perhaps take a stroll and breath in the country air or relax in their cosy nook in the attic with a good book. The hotel has plenty of comfort rooms to choose from, but we always try to place our guests in the stand-along cottages. Perfect for families or those of you looking for a little extra room to socialise together.

Location: Located 10 minutes from the little town of Hella in the south of Iceland. This is perfect when you are visiting the Golden Circle or continuing along the south coast the following day.
Hótel Laekur, Hroarslækur, Hella 851, 851 Hella, Iceland

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

Fosshotel Vatnajökull

“Spellbinding views of the magnificent Vatnajökull [glacier] in the beautiful surroundings of southeast Iceland.”

Fosshotel Vatnajökull often sneaks its way into our luxury itineraries as well as for many comfort options. With a wide range of rooms to account for, this secluded hotel caters to most people’s budget. It’s a little too far away to get here directly from Reykjavík but becomes a mainstay for travellers wanting to spend extra time in the south east of Iceland. And why not, this is where the biggest glaciers in the country are. It’s also quite well situated if you intend to continue your journey around the island. Our ring road self drive tours often include a stay here.

Location: South East Iceland, around 45 minutes from the beautiful Jökulsárlón glacier lagoon & diamond beach. The perfect location if you are intending to continue east around the island, or spend a few days in the Vatnajökull National Park.
Fosshotel Vatnajökull, Lindarbakki, 781 Höfn, Iceland

Lilja Guesthouse

“A family affair, run by Ólafur Páll Vignisson and Þorbjörg Inga Þorsteinsdóttir. [It boasts] magnificent views towards mountains and glaciers. It is a great way to wake up to the stunning landscapes that surround the [farm] 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: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, Hólabrekka, 781 Hornafjörður.

Fosshotel Eastfjords

“Rediscover the past, explore stunning hiking trails, or simply stop off on your Ring Route road trip.”

Don’t be fooled by the title of this hotel. The few chosen hotels within the Fosshotel range that we include in itineraries are anything but ‘chain hotels’. Each has their own unique characteristics with only one similarity – quality! This is why we often like to include a few of these in many of our longer itineraries.

If you were to pick one word to define a stop off at Fosshotel Eastfjords, as you travel around the ring road, it would be ‘landscape’. Settled deep inside one of the most eastern fjords in Iceland, this is a tiny village that is almost always skipped by the average traveller. That’s why we love it! You may need to slow down your ring road tour to get here, but trust us, it’s worth the detour. The angular mountains surrounding this crystal clear fjord protects the village from the wind on many days. Opt for a room with a balcony and watch the sun drop behind the mountains, while savouring the tranquillity of the open water. Many bird species will choose to nest here in summer. The tall mountains in every direction are capped with snow most of the year, making this a photographer’s dream hotel.

If that wasn’t enough, the hotel itself is a national landmark, with historical significance. This isolated location was once a favourite of Icelandic and French fishing vessels, with some of the buildings holding the local doctor’s surgery (now a quaint museum next to the reception).

Location: East Iceland, deep within the winding roads of the Eastfjords. This is a perfect spot to extend your time in the east of Iceland, considered one of the quietest parts of the country.
Fosshotel Eastfjords, Hafnargata, 11-14, 750 Fáskrúðsfjörður, Iceland