Where you stay in Iceland depends on how you travel. With a car, most people move along the Ring Road and change base every night or two. Without one, Reykjavík is the base and everything else is a day tour. This guide compares the main areas by what you can reach from them, what they are like to stay in, and when they make sense.
Where should you stay in Iceland on a first visit?
For a short first trip, stay in Reykjavík. It has the widest choice of hotels and restaurants, the airport bus stops here, and almost every day tour picks up from the city. The Golden Circle, the Reykjanes peninsula and even the first waterfalls of the south coast are all within a day's return trip.
With a week or more and a car, split your nights. Spend one or two in Reykjavík, then move along the south coast to Vík and on towards the glacier lagoons, staying in a new place every one or two nights. Long drives are tiring in wind and rain, and in winter you only have a few hours of light, so short legs work best.
How do Iceland's main bases compare?
| Base | Best for | From Reykjavík | Good to know |
|---|---|---|---|
| Reykjavík | First trips, no car, winter | — | Most choice; tours pick up here |
| Selfoss & Hveragerði | Golden Circle, early starts | About 45–60 min | Cheaper than the city; easy south coast access |
| Hella & Hvolsvöllur | Waterfalls, aurora nights | About 1.5 h | Dark skies, farm stays |
| Vík | Black beaches, Reynisfjara | About 2.5 h | Small, fills up early in summer |
| Höfn & Vatnajökull area | Glacier lagoons, ice caves | About 5–6 h | Few beds; book early |
| Snæfellsnes | Kirkjufell, coastal walks | About 2–2.5 h | Stykkishólmur and Grundarfjörður |
| Akureyri & Mývatn | The north, whales, hot springs | About 5 h, or a short flight | Iceland's second city; good winter base |
| Ísafjörður | The Westfjords | About 6 h, or a short flight | Remote, quiet, best in summer |
Drive times are rough guides in good summer conditions. In winter, add time and check the roads before each leg.
Is Reykjavík a good base?
Yes, especially for trips of four days or fewer, for travel without a car, and in winter. The walkable centre around Laugavegur, the old harbour and Hallgrímskirkja has most of the hotels, bars and restaurants. Every neighbourhood has a public geothermal pool, which is one of the best and cheapest things to do in the city.
The trade-off is distance. Anything past Vík is a very long day tour from Reykjavík, and you will see the northern lights better outside the city's lights.
Should you stay near the Golden Circle?
Staying in or near Selfoss, Hveragerði, Flúðir or around Laugarvatn lets you reach Þingvellir, Geysir and Gullfoss before the tour buses arrive. It also puts you on the way to the south coast. Hveragerði is the start of the walk to the Reykjadalur hot river. The area has many cabins and countryside hotels with dark skies for aurora watching.
Where should you stay on the South Coast?
The south coast is the busiest route in the country, so base yourself along it rather than driving back to Reykjavík each night. Hella and Hvolsvöllur are handy for Seljalandsfoss and Skógafoss. Vík is the place for Reynisfjara and the Dyrhólaey headland. Further east, Kirkjubæjarklaustur is a quieter halfway stop before the long stretch to the glaciers.
For Jökulsárlón, Fjallsárlón and the winter ice caves, stay in the farms and hotels around Skaftafell and the glacier lagoons, or in the fishing town of Höfn. There are few beds in this stretch, so book it before anything else.
Is Akureyri a good base for the north?
Akureyri is the largest town outside the capital area and a comfortable base for the north. It has hotels, restaurants, a ski area and a good pool. From here you can reach Goðafoss, Lake Mývatn and its nature baths, and Húsavík for whale watching. Flights from Reykjavík make it possible to visit the north in winter without driving the whole Ring Road.
What about Snæfellsnes, the east and the Westfjords?
Snæfellsnes is an easy two-night trip from Reykjavík, with Kirkjufell, lava fields and the Snæfellsjökull glacier. Stay in Stykkishólmur or Grundarfjörður. The East Fjords have small villages and some of the quietest roads in Iceland; Egilsstaðir and Seyðisfjörður are the main bases, and Stuðlagil canyon and Hengifoss are nearby. The Westfjords are remote and beautiful, and best from June to September, with Ísafjörður as the main town.
What should you know before booking a room in Iceland?
- Book early for summer. Many rural hotels are small, and some areas have only a handful of places to stay.
- Read the bathroom details. Many guesthouses and farm stays share bathrooms, which keeps prices down.
- Look for breakfast. In the countryside, a hotel breakfast can save a long search for food in the morning.
- Campervans use campsites. Sleeping in a campervan or car is generally only allowed at campsites, not at the roadside.
- Keep winter plans flexible. Storms can close roads, so prefer rooms with free cancellation from October to April.
Tip: plan the route first and the rooms second. Work out how far you can comfortably drive in the daylight you will have, then book a bed at the end of each day's leg.
Facts checked October 2026. Drive times are approximate and depend on weather and road conditions; check road.is before each journey. Prices and availability change by season.
