Some of the best places to stay in Iceland are out in the wilderness with lakes, waterfalls and the Northern Lights for neighbors.

Lakefront cabins under the Northern Lights, guesthouses on sheep farms, boutique hotels with waterfall views — these are just a few of the many unique places to stay in Iceland.

If you’re planning a road trip around the Nordic island, you may be wondering where to stay in Iceland outside of Reykjavik. While there are a few Icelandic chains like Fosshotel, Icelandair Hotels and Kea Hotels in populated areas, it’s just as common to encounter hostels, family-owned inns and scenic campgrounds, perfect for campervan road trips around the island.

For an October visit to Iceland, we decided to try out a few different styles of accommodations along a route that stretched as far east as Höfn and as far west as the Snaefellsnes Peninsula, which is a little less than halfway around the Ring Road that circles the island. We wanted spots away from light pollution, for the best chance to see the aurora borealis.

Overall, we had positive experiences at each place and can recommend them all for being safe, clean and moderately priced for Iceland. We averaged less than $150 a night for accommodations in the low season. You might pay more in summer.

Check out these five unique places to stay in Iceland and scroll down to the bottom for tips on searching for and booking Iceland accommodations.

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5 Unique Places to Stay in Iceland

These unique places to stay in Iceland are scattered around the island and include everything from private cottages on a lake to historic hostels.

Arnanes Country Hotel in Höfn

The cozy cabin vibes are strong here, with wood planked walls and minimalist decor, though you’ll still enjoy modern amenities like WIFI and a TV in most spaces. There are several accommodation sizes to choose from with and without private toilets, ideal for everyone from singles to small families. Bathrooms have soap, shampoo and hair dryers, and our room even had extra pillows.

On top of free tea and coffee in the rooms, there’s a complimentary, basic breakfast buffet in the hotel’s intimate seasonal restaurant. Additional places to eat are just a few minutes away in Höfn.  

Nearby attractions: Höfn swimming pool (4 miles), Vestrahorn/Stokksnes Peninsula (6 miles), Hoffellsjökull glacier (8 miles), Jokulsarlon Glacier Lagoon (45 miles), Vatnajokull National Park (80 miles, visitors center in Höfn, 4 miles)

Hotel Katla in Vik

The hotel has more than 100 rooms in few different sizes, including large suites for families or groups. In-room amenities include desks, TVs, WIFI, tea kettles and a range of shower supplies (shampoo, conditioner, soap, lotion and a hairdryer). There are a few buildings on the property with differing room styles. Some have a woodsy cabin look and others are more sleek and modern.

A free breakfast buffet is served in the hotel’s spacious restaurant and features a spread of meats, cheeses, baked goods, waffles and juices. With Vik nearby, you’ll have a handful of eatery options if you don’t want to dine from the hotel’s locally sourced menu, though you’ll definitely want to spend some time on the property soaking in the geothermal hot tub outside.

Nearby attractions: Reynisfjara Beach (10 miles), Dyrhólaey (15 miles), Skogafoss (25 miles), Laufskálavarða (21 miles), Eldhraun Lava Field (30 miles), Fjadrargljufur Canyon (40 miles)

Hotel Hella in Hella

The style of this property is an interesting blend with some sleek and modern areas, and others designed classically with floral wallpaper, sconces and antique-looking furniture. The long, narrow hall lined with bedroom doors even reminded me a bit of the hotel from “The Shining.” You can choose from single, double and triple rooms with WIFI and private baths (soap and shampoo provided but no hairdryer in our room), or book twin rooms with shared baths for a lower-budget option.

The hotel’s dining room serves a free breakfast buffet in the morning with delicious pastries, fresh bread, creamy spreads (like pepper and salmon), cereal and the typical Icelandic selection of meats and cheeses. There’s also a coffee and tea station you can help yourself to throughout the day. The gas station right next door has a dining area and a Quiznos (of all places) plus a selection of quick-fix meals and sandwiches. There’s also a supermarket steps away to stock up on picnic supplies.

Nearby attractions: Kerid crater and the Golden Circle (30 miles), Seljalandsfoss (21 miles), Skogafoss (38 miles), Haifoss (55 miles), Landmannalaugar (62 miles)

Lake Thingvellir Cottages in Thingvallavatn

Sitting on the centerpiece lake of Thingvellir National Park (Þingvellir in Icelandic), Lake Thingvellir Cottages have jealousy-inducing views of the water and surrounding mountains. A little deck and wall of windows on each is perfect for soaking up the scenery indoors and out. Plus, with no towns around to provide night pollution, there’s great potential to spot the Northern Lights when they’re active.

Four fully equipped cottages with a tiny-house feel are available with a choice of one or two bedrooms, perfect for families and small groups. Towels and linens are provided, and there are cozy places to lounge and dine in the open and airy living space. Special touches like matching decorations and dishes and a guestbook to sign really put this place over the edge.

Each cabin has a mini kitchen stocked with just about anything you need to cook a toaster oven or stovetop meal. Supplies include everything from pots, cutting boards and can openers to olive oil, spices and hot drinks. If you grab some groceries in Reykjavik on the way here, you can stick them in the fridge and use the property as a home base for exploring the popular Golden Circle.

*Note: This property does not have a reception building, you have to call a phone number to check-in upon arrival.

Nearby attractions: Thingvellir National Park (2 miles), Silfra fissure (5 miles), Geysir (39 miles), Gullfoss (45 miles), Glymur (32 miles), Reykjavik (22 miles)

The Old Post Office Guesthouse in Grundarfjordur

Rooms for one to three people are clean and white, with amenities like desks, TVs and free WIFI. Some have shared baths and other private facilities. Our accommodations had a sink in the room and cute tote bags stuffed with a towel to carry your things back and forth to the shower. Ask for a room facing the ocean if possible.

Breakfast is not included here, but the shared kitchen downstairs is available to cook your own meals. We were definitely tempted to make some new friends when we woke up to the smell of bacon. The little seaside town of Grundarfjordur also has a handful of restaurants plus a grocery store with a hot dog counter (they were delicious).

Nearby attractions: Kirkjufellsfoss (1 mile), Skarðsvík Beach (25 miles), Saxholl Crater (27 miles), Djúpalónssandur Beach (36 miles), Londrangar (36 miles), Búðakirkja (23 miles), Rauðfeldsgjá Gorge (29 miles)

Tips for Where to Stay in Iceland

2. Accommodations tend to be more expensive and book up fast in summer, and you won’t always have a lot of choices in a particular locale. So if you find something you like, reserve it while you can (and pay attention to available cancellation policies in case you find something better).

3. Reception desks won’t be open 24/7 in most locations, so when you book, look for check-in instructions that tell you to arrive before a certain hour or call a number when you get there.

4. All of the unique Iceland accommodations above come with the basics like towels and bedding, but if you opt for a hostel, they might charge you a rental fee for linens.

5. Booking a property with a kitchen or free breakfast will help you save on one of the pricey parts of visiting Iceland — eating out. If you get creative, even just a coffee pot or electric kettle works for basic meals like ramen noodles, mac and cheese in a cup, or oatmeal.