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Best affordable places to stay in Iceland?

With limited lodgings that are only open (or making any money) half the year, hotels in Iceland are expensive. Do you have a favorite hotel or bnb you like in Reykjavik or further afield in Iceland? Places you'd go back to when you can travel again? Share your top spots -- ones that can fit a budget -- and help us all dream of trips to come!

Posted by
5945 posts

In Reykjavik, I stayed at "4th floor hotel". The location was quite good and the price was right. I would stay there again.

Posted by
2464 posts

I’ve stayed in apartments 3 times. Quite a bit cheaper in Oct. than in June

Posted by
32 posts

I've stayed at Hotel Skuggi twice. I love the accomodations and the location. The price is probably average for Reykjavik. Interesting fact: "skuggi" is Icelandic for "shadow."

Posted by
9429 posts

There’s a very good hostel called Kex where my son stayed. Very affordable. My son has high standards and this hostel is solid. They have a nice restaurant and bar that’s popular with locals.

Posted by
2461 posts

We stayed at the Hotel Eyvindara in Egilsstadir which is in the northeast of Iceland. It is in a pretty, quiet setting surrounded by birch trees. Very clean and modern. Super friendly staff and delicious dinner at the hotel. We had spent the day seeing the puffins in Borgafjordur Eystri which is a little over an hour away so this was a convenient place to stay en route to our next destination. We also loved the Hotel Skuggi in Reykjavik.

Posted by
3 posts

I stayed a few nights in an airbnb on the Snæfellsnes Peninsula just west of Kirkjufell, the nearest town is Grundarfjörður. There are three small cabins which have a bedroom, bathroom, sofa that becomes a bed, a kitchen, and a deck outside. It's on a horse farm and there are the most incredible views, and there's a small lighthouse on the end of the peninsula the farm is on. There are also beaches with columnar basalt cliffs dropping down to black sand. It was the most incredible place I've ever stayed and I can't wait to get back to Iceland and stay there again, I highly recommend it! Kirkjufell is one of the most stunning mountains I've ever seen and this is a great place to stay if you're interested in seeing it! It cost about $150 a night and one cabin could fit three or maybe four people if they share beds. The listings are called Berg 1, 2 and 3 on Airbnb.