The best thing about looking for places to stay in Iceland is that you’ll find a variety of options, from green hotels in Reykjavik and other main towns to locally owned, fully-equipped, cozy cabins in remote places, surrounded by mountains, glaciers, and waterfalls.
During my 2-week trip to Iceland, two my of favourite accommodation were a gorgeous hotel in Akureyri (though unfortunately it did not have a green certificate for sustainability), and a lovely remote wooden cabin in the East Fjords where we saw the northern lights from the comfort of the cabin.
So here’s a list of the top eco-friendly hotels in Reykjavik, and from then we move on to the locally-owned cabins and guesthouses we stayed at along the Ring Road.
Here’s a list of the top 5 eco-friendly hotels in Reykjavik, offering everything from complimentary parking to terraces to fitness centres. These hotels, especially the ones in the city centre, are perfect as pick-up locations for your Golden Circle day trip.
The Sand Hotel by Keahotels is centrally-located along the main street (Laugavegur) and surrounded by restaurants and shops, which makes it ideal for those looking for a convenient accommodation in Iceland in the middle of all the action.
The hotel has a bar, a terrace, and offers complimentary breakfast, and is located along the main street (Laugavegur) surrounded by restaurants and shops.
Sand Hotel has a BREEAM certificate. BREEAM focuses on sustainable design, reusable materials, and reducing waste.
Also located on Laugavegur street, Midgardur Hotel has bright rooms, offers breakfast (it’s an extra cost, or included depending on the room booked), but provides complimentary parking at the back of the hotel.
The hotel also has an onsite restaurant that serves traditional Icelandic and international cuisine, plus a fitness centre and a spa. The famous Hallgrímskirkja Church is only 800 metres (0.5 miles) away.
The hotel has a Green Key certificate, which focuses on reducing overall use of resources for a more environmentally friendly establishment, and raising awareness among staff, suppliers, and guests.
Fosshotel Reykjavik is a hotel with 16 floors, with city and sea views. It has a fitness centre and 2 onsite restaurants, and offers paid parking and airport shuttles. Breakfast is at an extra cost, or complimentary, depending on the type of room booked.
Fosshotel Reykjavík has a Green Key certificate.
Hotel Reykjavik Saga is a pet-friendly hotel, and has a fitness centre, a spa area, a garden, terrace, onsite restaurant, and serves breakfast (at an extra cost or complimentary, depending on the room). There’s also a shuttle service for an additional charge. It’s conveniently located, has various bus stops nearby, and is a short walk to the famous Rainbow Street.
The hotel has a Green Key certificate.
Hotel Reykjavík Grand is ideal for those looking for more peace and quiet, as it’s not in the city centre. There’s paid parking at the hotel, and they offer breakfast (at an extra cost or complimentary), a fitness centre, a bar, and an onsite restaurant.
The hotel has a Green Key certificate.
As you go further out of Reykjavik, the accommodation options in Iceland go from hotels to locally-owned guesthouses or farms with individual cabins.
In Vik, we stayed at a locally-owned guesthouse, Kosy Vik. The owner of our accommodation lives there too, on the floor above. There are two rooms on the guest floor, each with their own bathrooms, and a small common area with cookies and coffee and tourist information.
There are direct views of the ocean and rock formations from the guest rooms, and you can see the northern lights from there, weather and season-permitting. There’s also plenty of restaurants within walking distance. Parking is on the road and is free.
We stayed at a locally-owned place near the Skalafell glaciers, Guesthouse Skalafell. The accommodation offers free breakfast, and individual ensuite cabins and rooms by a small river and waterfall. The best part is that they have sheep and a beautiful, friendly Icelandic sheepdog on the premises.
My favourite stay by far: Asgeirsstadir Holiday Homes. It’s a family-owned farm in the middle of nowhere but still within reasonable distance of a small town (Egilsstaðir), which has gas stations, restaurants, and supermarkets.
We never met the owners, we simply drove up to our cabin and the keys were already there, and the place was set up. The cabin is fully-equipped cabin with a fully functioning kitchen, a living room, a bathroom, and a separate bathroom. We saw the northern lights there, without having to leave our cabin.
Despite all the appreciation for remote, cozy cabins, I also loved that our next stop was Hotel Akureyri. While there was unfortunately no sustainability certificate, it fit our budget, and is a very beautifu hotel, conveniently located in the middle of the own, with free parking, free breakfast, and direct views of the fjord.
The remote West Fjords were the perfect spot to disconnect and be away from everything. Literally. There was no supermarket, gas station, or anything within one hour of our accommodation, so if you’re heading there, make sure to stock up on gas and groceries, though you can also buy products such as meat from the owners on site.
We stayed at Mora guesthouse: it has a fully-equipped kitchen, a separate living room, a bathroom, a bedroom, and free private parking. It was refreshing to wake up to a glowy sunrise on the mountains and the fjord from right across the street. You can also see the northern lights there.
There’s also a natural pool across the street, and in September and October you can book local activities like Réttir, where you visit farms and help farmers retrieve their sheep that were roaming around all summer.
We stayed at Kast Guesthouse, which offered free breakfast at the restaurant on site. It’s a quiet and serene spot, with a sweet and friendly cat that were greeting us everyday. The people working there were very friendly, and you get the best views of the mountains from the bathroom window. There are also Icelandic horses around, but they belong to the neighbours, so don’t pet or feed them without permission. More on Icelandic etiquette here.
This really depends on what your plan is for your Iceland trip. If you’re staying on for a few days, then it’s best to base yourself in Reykjavik and do day trips. But if you’re doing the Ring Road, you will need to book accommodation at various locations throughout the country.
It’s best to stay in Reykjavik first, and explore the multitude of activities nearby, such as the Golden Circle, or the famous Kirkjufell Mountain.
Iceland is not a budget destination, and a mid-budget hotel costs around €150 per night. It also depends on the location, some remote cabins can cost more.
The best time to visit Iceland depends on what you want to do and see, whether it’s whales, puffins, northern lights, or a snowy Christmas.
