3 star hotels in Iceland

Great staff! Food was amazing and rooms were great. Stayed for two nights with 3 young kids. Felt really welcome and comfortable nights sleep.

We’ve stayed at Laugarbakki hotel in February 2026 during our 7days around the Iceland solo tour.Our tour agent originally had arranged a different hotel but changed the booking to Laugarbakki in the last minute due to other hotel’s closure. We were glad they’ve changed our reservation for Laugarbakki. First of all welcoming and friendly staff welcomes you relax and friendly way. Cosy clean room,...

We had the best time at this hotel. We just happened to arrive on the night that they were serving a traditional Iceland christmas dinner and it was amazing. We got to watch the northern lights from one of the three gigantic hot tubs. The staff were absolutely amazing and very friendly. The manager let us know the northern lights were out, which was perfect because it was the only night in Iceland...

This hotel is in the middle of nowhere, so you'll get a great night's sleep because there's no noise, the person that was at the front desk at the time of our arrival was the most friendly we encountered in all of our time in Iceland and so was the rest of the staff. The bed was very comfortable, warm room, and clean. The only thing that I didn't like was the ravioli, the pasts was a bit overcooked...

A nice place to stay. My wife and I stayed here for one night with a tour group. The room was comfortable and clean. There was a full bar serving beer, wine and cocktails. We had a group dinner and everyone was pleased with meal. I had the wolf fish (a first for me) and my wife had the spinach ravioli, both excellent. Breakfast was a buffet with a great selection of breads, fruits, meats, cheeses,...

It was a makeshift stay due to bad weather, and the breakfast was terrible.

Very convenient - a short, flat walk from the airport. Front desk staffed 24 hrs. Rooms large, clean with great shower. Breakfast included. Staff very helpful and professional. So much better than spending 10 hrs in the airport. Slept and well rested for next flight. Made all the difference to traveling!

We stayed one night at this hotel in a family apartment.It had 2 double beds and one twin which fit 5 of us perfectly.This is almost like a hostel the check in information was emailed a day before the which was convenient.Can’t comment on staff since we did not interact with anyone.Overall it’s an alright place to stay close to the airport.

I stayed here two nights prior to my flight to Spain. The hotel is very nice with very easy access to the Terminal building. The breakfast was very good and offering a variety of items to suit most tastes. My only criticism is the dinner menu is extremely pricy and limited. Overall a great stay clean and comfortable hotel which I would really recommend.

Fine accommodation warm showers and comfy beds

Nice clean hotel, only calked to collect our hire car from Mycar, service excellent.

It’s an airport based hotel so no didn’t expect any frills especially for the price we paid. That said the room was very spacious, bed was clean and comfortable. We didn’t have time for breakfast but was buffet style and seemed fine. Staff were welcoming and helpful. A very good place to stay if you need to catch and early morning flight!

Excellent staff and amenities. Had a very nice Christmas dinner at the hotel.

The staff was so friendly and helpful and the hotel was beautiful and comfortable. It’s set on a remote beach so the views can’t be beat. The food was excellent as well. I would definitely stay here again!

Beautiful location — the room accommodations were excellent... and we saw the Northern Lights!

While we were excited to be in Iceland to take in the landscape and sights, Hotel Budir was a whole experience in itself. It’s absolutely beautiful reminding us of a high-end inn with that is warm and inviting. Every one of the staff members from reception to the bartenders, to the chef were kind and drinks and food were nothing short of 5 star. The outside was just majestic with views of the sea and...

Check in was very easy . It took perhaps 2 minutes! The receptionist was knowledgeable and appeared to be able to speak several languages. There is a beautiful view from the sitting areas near the bar. We took advantage of this and had some wine and enjoyed the view of the ocean, seals, mountains and waterfalls. The room was spacious. Bathroom was clean. The electrical outlets were a little difficult...

We stayed in the newer wing of the hotel which was very lovely. The rooms were spacious and the interior was very modern. The hotels restaurant also served delicious food though there are not many other options near by. I woild stay here again.

The best hotel if you're going to Reykjavik. In front of the main church. It was a wonderful experience. A quiet, comfortable, and clean place with a decent breakfast for the price. Last but not least, we want to highlight Leonardo's kindness; he helped us with everything we needed, always with a wonderful portuguese smile ;) Thank you!

I really liked staying at this hotel. I stayed on the 4th floor to get the larger room. The other reviews are correct, the slant ceiling is no joke. This is not a room for tall people. The bathroom shower is also very tight. There is also no elevator so consider your packing. With that said, the staff is amazing. Someone is always available, friendly and knowledgeable. The breakfast is fantastic...

Currently here with my daughter and she'd like to move in. Lol. We are in the west building facing the church. The location is great and there's a free parking lot across the road. Because we came in from Canada our sleep times are way off, but the black out curtains helped a lot. The road noise can be a bit high but it didn't affect us at all. It's a corner room so we get a lot of people outside taking...

Good Place， just infront of the church

Excellent location. Brilliant staff, nothing was too much trouble for them. No tea or coffee making facilities in the room, although there was tea, coffee and hot chocolate available on demand in the downstairs bar... not really convenient in the middle of the night. I had quite a poky little room right at the top of the hotel. Facilities in the room left a little to be desired. No spare electricity...

Everything about this hotel in Reykjavík was perfect. The location is outstanding, making it easy to explore the city on foot. The breakfast was delicious with a great selection, and a perfect start to the day. I also loved that there was complimentary coffee and tea available in the lobby — a really nice touch after walking around in the Icelandic weather. Overall, a fantastic stay. I would absolutely...

It was a good one night stay for our journey North on our clockwise Route 1 journey. We did a late check-in close to 10pm and found the keys and a map (which could have been clearer) to find our room. We rented an amazing spacious 2 bedroom apartment at a reasonable price.

Easily one of the coolest hostels I've stayed at. For starters, you can have your own room without bunks like a regular hotel. Showers and bathrooms were well kept. The location was epic and staying in a former school was super unique. Definitely will be back!

Camped for a day there, absolutely stunning place middle of mountains. Hot tub, toilets, showers everything was fantastic. Staff are super friendly, Raymond is fun to talk to, great service. Thanks guys!

We went from the Myvatn area to Straw Hat Mountain. We gave up the whale watching trip to Husavik, but the distance to Straw Hat Mountain was a bit long, so we chose this hotel as a transfer. It has a kitchen for cooking, a swimming pool and hot springs, and you can also barbecue!

It used to be a school. Fortunately, it was the only hotel/tourist accommodation on my trip to Iceland that had a human being at the reception desk. The room is modest and simple but has all the basics. Comfortable mattress and pillows. It was cleaner than the other (higher-end) hotels I stayed at. The bathroom is huge and the shower is incredibly spacious. I loved the bathroom. Clean shower with no...

Nice guesthouse if you are in the area - it is a disused school, so there is plenty of space

Very cozy and welcoming palce. Is it not a luxury hotel, but you can enjoy and warm and welcoming room, great breakfast and very nice personnel. Would recommend

We spent our night in this hotel. A little bit dated but extremely clean, very nice staff. Breakfast was good with good variety of choices. Night call for the Aurora available.

A little expensive but there are not much choices there if you want to glacial hike and not drive too much early in the morning. Cheaper food options opposite which is also owned by them. The car park is too bright for the northern lights. They have northern light calls technically but I doubt they call.

This hotel is in a great location but otherwise is very basic. It has no soundproofing at all and you can easily hear everything people do in the rooms next to you or in the hallway. It does have the benefit of radiator heating, which you can turn off, so it doesn't get as uncomfortably warm as other hotels in Iceland. Our shower drain was clogged, which caused the whole bathroom floor to flood (the...

I rarely review hotels, whether for business or leisure, it's usually just a quick one-night stay. But this stay was exceptionally meaningful for me. This was the third hotel I stayed at during my Iceland tour during the National Day holiday. On the night of my arrival, around 9 pm, I witnessed my first-ever aurora borealis display—it was incredibly exciting!!! The hotel area is very open; you can...

I loved staying here! The staff was kind and helpful. The room was cozy with a cool view of the glacier. The beds were comfy and the room was clean. The food for breakfast and dinner was delicious. Just be aware that dinner is expensive. I had chicken legs and my friend had arctic char and we both had dessert. Our meal together was close to $200 USD.

Last minute booking near KEF. No frills, spartan accommodations with spacious rooms. Has a feel of a hostel but you've got your own bath. Restaurants within 800 meters. Will do the job if you have to be close to the airport.

Very spacious room. Great for a night before the airport. There was no hair dryer.

convenient location and good service, the room was clean but nothing fancy. There is no restaurant but there is one in the hotel next door. A little more expensive than expected

Clean but hardly find and eatery near by

Clean but hardly find and eatery near by

Strategically located near to International Airport and various car rental companies. Hassle free check-in and check-out procedure

Extremely comfortable and amazing view to the town and volcano.

Restaurant was the best in town. Great menu selections with signature cocktails.

The nicest hotel we stayed at in Iceland, and the best toilet paper! Parking lot right across the street (free over the whole island) and centrally located easy to walk to everything in town. Breakfast was also the best we had out of all the hotels we stayed at. Lovely! Would easily come back.

We took a ferry to Westin Island and saw the loneliest houses. The hotel breakfast was great, they even baked pancakes 🧇, and the rooms were clean and tidy. Definitely worth it!

Awesome stay! People are so friendly and very helpful! Even set a crib up for us!

A fantastic 2-night stay for my wife and I. Very clean rooms with a satisfying shower. Fantastic views of the weather is good too. A tremendous value when factoring in their included delicious breakfast buffet. Highly recommended

Nice hotel in an ideal location in downtown close to the shops in Laugavegur and bus stops. Reception was friendly and were helpful to answering any questions or requests we had during our stay. Rooms were small and basic but good if you're just using it as a place to rest during the night. Be aware that the rooms are not very soundproofed and that you may hear noise from the bar located across the...

Fantastic hotel in a great location, fantastically placed for the bus stops, the shopping in town or the nearby supermarket. Farooq was a great host, incredibly friendly and fantastically knowledgeable on all things Iceland even though he hails from West Yorkshire. We stayed in room 505 so was a bit away from any street noise, highly recommend and would definitely stay again

Second visit to this hotel. It maybe not the fanciest of hotels or the biggest, but the staff, location and cleanliness make this hotel fantastic. Front desk,Rushka and Farooq (who asked me to say he was the handsome guy) are first class. Nothing is too much trouble. Night staff and housekeeping are also great. This hotel does not have a bar but there are plenty nearby, so this for me is not a negative...

The hotel has a good location in the city center. The front desk service was excellent; a Pakistani man there even gave us a map showing us places to visit. The room was very nice and spacious, but the kettle leaked.

The location is great. The front desk staff were very friendly and recommended nearby restaurants. The breakfast was not luxurious, but very delicious. We were able to check in earlier than expected.

Well located. Walls are thin and could be noisy at night.

Very friendly staff, good food and nice swimming pool, highly recommended. Good location and nice bike paths. Plenty to do outside include visit the old hot tub, in walking distance from the hotel. The breakfast has everything what you need for a good start.

Best keept secret. All in one. Food, Icelandic nature and peaceful place. Swimming pool, nature pool, historic places, restaurant and great rooms. Fyrsta flokks matur, Frábær þjónusta og rólegt andrúmsloft í sveitasælu.

I've visited last night for 1 night and everything was amazing! The hostess accepted us with a smile on her face and helped us with everything we asked. We booked triple room, the room was clean and comfortable and the breakfast was very tasty! Go visit!

The place was very good and most importantly, the host was amazing and nice! Definitely recommend!

The place is great. We came for one night and the hostess was very kind!

Simple, comfortable. Breakfast and dinner were included 👍 The location is fairly out of the way, but also nice in its seclusion.

I stayed by chance having been booked here by icelandair for a flight disruption. In the unpleasant event of the snowstorm this place turned the situation in a very pleasant stay; though being simple, it is very much homey and welcoming. Plus the very kind and friendly receptionist did his very best to welcome, assist us, and providing an excellent solution for dinner. Takk fyrir!!

Very comfortable stay, near the Airport. The owner and his daughter are extremely friendly. Rooms are clean and quiet.

Clean, warm, and comfortable bed. The shower is deep/hard to get into and slippery. I recommend a no slip mat inside the shower for added safety.

Great airport hotel. Only complaint is that our glass doors on the shower wouldn't close no matter how hard we tried.

Appreciated the staff at this hotel, they were very happy to help with anything needed!

Only intended as an overnight stay to catch the early flight the following day. For this sufficient. Room surprisingly large, but very spartan furnished. Bathroom, shower and especially shower head are getting on in years. Conclusion: For one night ok, but and it was already the cheapest accommodation near the airport, way too expensive.

Quite remote along the south route. They have many full handicap rooms that are wheelchair accessible. Great bathrooms for a handicapped individual. Food is good.

Very good stay. The hotel was very clean, hospitality was excellent, and check-in and check-out were smooth. Highly recommended. Experienced the Aurora Borealis with friends, but it was only faintly visible☺️

Newly renovated rooms. Perfect spot to catch the Northern lights. Had dinner, the waiters are helpfull and friendly. Overall great place to stay at the Southern Iceland.

I was asked to use my credit card upon check-in, but upon check-out the next day, they charged me 40,000 kronor (the room fee had already been paid online). I only found out by checking my credit card statement. I contacted Ctrip customer service, and the hotel claimed it was a fine for smoking, but I hadn't smoked at all. The hotel later said they had mixed up the room and refunded the money a few...

Spacious room. Good price to value

The room was clean and well-insulated, with good heating. The shower and toilet were separate, and there was even a clothes dryer, which was very satisfactory. Environment: The view of the majestic and beautiful mountain peaks outside the window was like a painting hanging on the window. The breakfast was also good.

This place - just Ticks all the boxes. Spot on location that sets you off for beet start ato any direction. Beautifully placed, conveniently close to the main road but far enough to be quiet and peaceful. Fantastic, tasty and all-you-need breakfast. Simple but very comfortable rooms, very comfy beds and good space in the room. And the Staff are made of stars and they’d shine your stay all the way...

We stayed overnight in this beautiful inn as part of our multi day tour package. The location is like in the middle of nowhere but wonderful open area perfect for star gazing Rooms are small but good for 2 people. Rooms are decent, clean and comfortable however the shower area and toilet area are divided only by a shower curtain. They also have a beautiful breakfast area overlooking the hills. The...

A simple and practical accommodation option near Hvolsvöllur, making it convenient for travelers exploring Iceland’s South Coast or visiting nearby sites like Drangurinn í Drangshlíð and Skógafoss. The location is a key highlight, with easy access to major natural attractions while still offering a quieter setting away from the main tourist hubs. Rooms are modest and straightforward, more about functionality...

Room is very basic. No tv. No phone. Warm. Amenities are very basic. Stopped here one night with tour. Clean. Area around hotel is beautiful. Mountains and sheep are pleasant to see.

This place is simple but lovely, and the only reason it doesn't have a perfect rating from me is largely due to factors outside of the hotel's control (mainly location - there's nothing around, and you need to drive everywhere). The instructions for self-check in were clear and the process was smooth. The beds in the room could easily be pushed together for couples, or kept separate. We did have to...

We booked 3 rooms for our family for 2 nights. Our stay was comfortable and clean - no frills, kind of place. The location is convenient for exploring Vík and Skogar, which we used as our 2-day base. Breakfast was great, a nice buffet of everything. We liked that they kept the coffee and tea bar open to enjoy all day and we used the lobby sitting area for playing board games (they have some there...

- the location was very good for sightseeing - the staff was very friendly - good breakfast with good times - good dinner with good fish - can hear the sound of the neighboor rooms very loud - the room was clean

We spent one night here after a long day of travel arriving in Iceland and sightseeing on the Golden Circle. The hotel is located in the country 25 minutes north of Selfoss. The interior was a bit dated with some carpet that needs to be replaced. But this hotel has 2 nice hot tubs and a sauna. We ate dinner and breakfast here as we were tired and far from town. Both meals were excellent. Our...

Great touring base. Rooms need an upgrade but it was comfortable and everything worked well. No complaints just a bit basic. Food was great if a tad pricey. The location was good for touring south Iceland

We were supposed to stay at their sister hotel, Fosshotel Glacier Lagoon but were unable to keep our reservation due to road closures and weather. This is the hotel we were transferred to. I would describe our experience here as average. It would be much nicer if the hot tubs were indoor as it can be quite cold in the winter months to sit in water that is only 40 degrees celsius. The hot tubs also...

Exactly what our family needed: a family room for four. Bonus: the room has two bedrooms with two televisions, robes for everyone to use, soap, shampoo, conditioner, mini refrigerator. Diverse breakfast buffet. The chef made the bacon perfectly and the hard-boiled eggs also showed expertise in breakfast-making. We enjoyed the dinner. Kids’ meals are a very good value. Adult choices were chicken...

The hotel did not disappoint. We went there looking for some peace in quiet in a cosy place, surrounded by nature - and that's what we got. The landscape is great and you can see Hekla in the distance. There is a fire place in the bar-lounge area and that makes for a great evening experience. Two hot-tubs and a sauna also on premises. Hot tubs are quite big and have 2 different temperatures, which...

Generally I don't really write reviews but this location just showed us what Iceland is all about. We got trapped here due to a snow storm and roads got closed. Omar and Margaret (owners of the hotel) from the start where very friendly and welcoming but during this difficult day they exceeded our expectations. They where patient and helpful to answer all our questions and help us reassure. Thanks to...

It's alover a good stay. Very kind and helpful hosts. Breakfast is very good. Rooms are big, well headed, comfortable and sparkling clean. Also in winter time, in January, they are here, with all you need. Hot tube is open. They are for Islands kindness. We love this land and come back.

Cabin was an aged but comfortable. Bathroom small but private. Hot water was came out extremely hot and had slight sulfur smell, but pretty unique experience to be using thermally heated water for the first time. The staff was helpful but had stretched thin with large tour groups. The dinner was very good and reasonably priced, as was the hotel.

Very welcoming staff. Hot tub wonderful. Breakfast was great and bountiful. Great night of northern lights.

I was 3 times at this hotel this summer and every time there was problem at check in. I wrote email upfront to hotel that rooms need to be prepared for 2 people not for one, they replied that everything will be ready on arrival. When we arrived, receptionist said that he didn't reply to my email but somebody else, so no room was prepared for 2 people and they had to do it on arrival, which my clients...

We stayed here for one night, and asked for an upgrade to a private cottage, which we did get from the lovely and friendly reception staff. This guesthouse is in an amazing location, tucked away in a little forest right outside of town. Our cottage was very cozy — a bit small, especially in the bathroom, but most places in Iceland are this way. The heater whistled quite loudly at first, but worked...

What a beautiful hotel! Very well designed with attention to details (bravo to the interior designer!). The room was very large with all the comforts including access to a small back garden (some rooms have access to the main garden where hot tubs are located). Excellent service, everyone extremely welcoming. We had dinner and breakfast and we were impressed by the quality of the food. Needless to...

We had a reservation at The Hillguest house and had to come here for check-in, given that was the same item. As soon as in reception i've seen a sign with some general information + hot tub. We had to put aside some spa that day precisely because we hadn't enought time and i've asked some information because i've taken that sign like my last opportunity. The (Very very very kind and lovely) girl told...

The Hill was the least favourable location for us during our visit. Although the hotel itself is beautiful and very aesthetically pleasing - which I’m sure is probably part of its selling point to gain influencers that can take beautiful pictures there. But overall the stay was lacklustre. The pull out bed for our 15 year old was incredibly uncomfortable, we had to line it with pillows for her to get...

We spent our New Year’s Eve here and it was amazing. The hotel is small but that’s the charming part of it: no big crowds, everything feels like home, including the outstanding staff! Cosy, well decorated and conveniently located at the heart of the Golden Circle. It was perfect! I would an only recommend a refurbishment of the bathrooms (although they are functional, this hotel deserves a bit more...

The hotel is lovely and they'd decorated it with fairy lights for Christmas which was cute. However, the woman at reception (in charge?) was quite unwelcoming, which set the tone for the rest of the staff - curt and not a smile between them (with the exception of the lovely South American man). I'd also emailed a few days before with a question. Got a reply saying I'd soon get a reply from reception...

Everything was great! Just wish breakfast was included but over all staff was sweet room was cleaned every day and the hot tub was fun!

The hotel is centrally positioned. Staff are very helpful and accommodating. My plans changed and staff were very understanding.

Booked for a short stay with my son. Staff were very friendly and helpful, answering questions knowledgeably, around where to eat, directions, activities, ordering a taxi and using public transport. Hotel and room were very clean and in order. For the price it was very good value, and met our requirements. Nothing flashy, but good daylight and everything worked. Room was warm and cosy. Personally...

The location was great! All the bus stops are nearby, and there's a supermarket close by too. Highly recommend it.

The hotel is really in the center of the city.

All the staff is so welcoming and helpful. The room is small, but cleaning is perfect. Breakfast is simple, but good. I slept good, but shower pressure is not to good. I will recommend this hotel 🙂

The hotel is located in the center heart, just next to the rainbow road and surrounded by bars and restaurants. 10-minute walk to the nearest by supermarket, Bonus and very near to the Airport transfer bus stop number 14 and tourist bus stop number 6. Breakfast is offered to all hotel guests. Just one reminder there are a few steps before you reach the lift of the hotel and the reception is on the...

The hotel is conveniently located in downtown and 3 mins to bus stop 3. The rooms are decent sized with amenities. The staff was nice. But if you’re staying here on the weekend and facing the street then just be prepared it’s really loud with all the surrounding bars and clubs

Overall: A generally sweet boutique hotel with excellent location. Glad that they had a room available for immediate check-in, given our long flight. Loved the bedding and the extra-thick quilt for winter-y weather. The room, though, does not come with air-conditioning, but you can make do with the openable window. The heater, on the other hand, works perfectly. The room lacks a tissue box, and the...

Expensive, like everything in Reykjavik. There was a qr code to get free breakfast at neighbor hotel, but you do have to pay for it in reservation (kind of misleading). Our room was amazing. Location you can't beat. Needed soap and you have to get it yourself, but they didn't have any. We eventually got soap.

We were given a lovely warm welcome and the staff were amazing throughout our stay. Nice sized room with everything you need and really comfortable bed. A bit of noise from the street outside but the hotel provides you with earplugs and a sleep mask which was a nice touch.

It's OK, a little noisy on the street

They are very responsive, hotel is just next to halal restaurant and supermarkets my stay was perfect

This is a good boutique hotel with rooms that give a quality feel. Excellent shower and balcony that added to my stay after enjoying my adventures in Iceland, I knew I would come back to a warm and clean room. The Breakfast was a great way to start your day. The only tiny issue was a loud door closing in the corridor due to a heavy spring closure. Great staff.

Excellent hotel, great views, and attentive service.

I was looking for an affordable hotel in Iceland, where prices are high, and I ended up here. The room was so small that I had to sleep on the bed, but the bed and linens were comfortable enough to help me relax and recover from my fatigue.

2-night stay The location is great and the downstairs bar is excellent. The breakfast is good but a bit hit and miss with some items. Coffee is excellent! The basic rooms are very small, so if with two suitcases gets cramped. Staff is lovely.

Good Spot Clean room and property. The front desk was very helpful and patient with our many questions about the area.

The hotel is a 5-minute walk from the pier, and the staff are friendly. While there's no parking available, there are paid parking spaces opposite the hotel, and free parking is a 10-minute walk away, but ask the staff. Breakfast is simple, and the seating is limited, but perfect, with no waiting. Children can share a bed at no extra charge.

The room is small and lacks things like a litter bin, a hot water kettle, and a desk. Stayed in a triple room with 3 single beds. Good thing is that we can use their restaurant microwave for ramen. So come here with all the food you can bring.

The room is a bit small, but that's the case for all hotels in Iceland. The surrounding environment is very good. You can hike on the hill in front of the hotel. There is a large lake behind the hotel. When the weather is good, you can see snow-capped mountains in the distance. The grass and birch forest on the side are very pleasing to the eye. There is also a hot spring pool facing the lake not far...

Close to Pingvellir and Geysir. A good base for your southern itinerary. They have a restaurant for dinner and breakfast.

Small little town, stayed in Annex facing the lake. Clean and spacious. Coffee and tea are free.

Small little town, stayed in Annex facing the lake. Clean and spacious. Coffee and tea are free.

Nice place to have a rest. Good view of the lake. Friendly host.