Best of South Iceland 2019: Best Accommodation - Hotels & Hostels

Best of South Iceland 2019: Best Accommodation

Best of South Iceland 2019: Best Accommodation

Published May 13, 2019

Main photo by
John Rogers & Art Bicnick

South Iceland contains many of the most popular sights, sites and destinations in the country—and much of Iceland’s best accommodation. Close to Reykjavík is the Reykjanes Peninsula, with the Blue Lagoon, Keflavík Airport, and many wild spots and charming villages; over the Hellisheiði mountain pass lies the tranquil farmland and small towns like Hveragerði, Selfoss and Flúður. The Golden Circle and south coast roads are busy during the summer, and there are several glaciers dotting the coast and volcanoes silhouetted against the skyline. Vík í Myrdal is the halfway point, and Höfn—beneath the mighty Vatnajökull—marks the gateway to the east. To help you out along the way, here are the best South Iceland hotels, as chosen by our panel.

Best Accommodation

Skálakot Manor Hotel
Hvolsvöllur

Ideally located in the heart of South Iceland, Skálakot is our favourite from a considerable crop of recently-opened hotels. It’s a new building, but you’d never know from the comfortable country manor vibe; every detail of the rooms is perfect, from the tasteful patterned wallpaper to the modernist kettles, slender coffee makers, cloud-like beds and deep bathtubs. The in-house restaurant is also excellent. “It’s like an Icelandic version of the Twin Peaks Great Northern Lodge,” said the panel.

Runner-Up:

Fosshotel Glacier Lagoon
Hnappavellir, Öræfi

Fosshotel is a reliably comfortable hotel chain, and the Glacier Lagoon location is one of their newest additions. The rooms are comfortable and minimal, with nice design touches, and all south-facing windows look directly onto the sea; it makes a luxurious base from which to explore the Vatnajökull area.

Budget Option:

Héraðsskólinn Boutique Hostel
Laugarbraut 2, Laugarvatn

This old schoolhouse is a proud and pleasing piece of architecture set on the shores of lake Laugarvatn. It retains an old-Iceland charm that’s increasingly hard to find, and offers everything from dorm bunks to en-suite private rooms, so it’ll always suit your budget.


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You can buy a copy of the full Best Of Iceland 2019 magazine—an essential guide to having fun in Iceland, from this best south Iceland accommodation and otherwise—here, posted worldwide. We also have a Special Offer double-pack here that also includes our Best Of Reykjavík magazine, about places to eat, see, swim, visit, and shop in the country’s capital city.

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