Where to Stay in Iceland: Luxury Hotels & Hidden Gems
Written By: Jamie Cassidy | Road & Table Travel
Table of Contents:
Where to Stay in Iceland (The Road & Table Way)
(And Why Most Travelers Get It Wrong)
Iceland isn’t just a destination, it’s an experience shaped by the drastic landscapes, dramatic light, and the quiet luxury of slowing down.
Distances between destinations can take considerable travel time, making for long days. The weather is unpredictable. Dining options are limited in remote regions. And if your hotels aren’t thoughtfully chosen? You’ll spend more time driving than experiencing, and who wants to travel like that?
Where you stay in Iceland will define your entire trip.
That’s where the Road & Table way comes in—intentional pacing, immersive stays, and a food-forward lens turning ordinary trips into unforgettable experiences.
This guide isn’t a generic list. It’s a strategically curated route of where to stay in Iceland, designed for travelers who want:
- Luxury without pretension
- Incredible food in unexpected places
- Seamless logistics without stress
- Hidden gems alongside iconic experiences
“We didn’t realize how far everything was… and we felt rushed the whole time.
This happens to be one of the biggest issues I see as a travel designer. Iceland is not a “hop-around” destination unless you plan on spending a long enough time there so you don't feel rushed.
- A poorly planned itinerary = exhausting drives
- The wrong hotel location = missed experiences
- Generic stays = missed connection to everything Iceland has to offer
The solution? Strategic hotel placement that:
- Breaks up long drives
- Positions you near key experiences
- Prioritizes atmosphere and food (not just a place to sleep)
Reykjavík: Your Arrival Reset
Why Stay Here:
After an overnight flight, you need comfort, ease, and a soft landing, not chaos. Take a few days here to get acclimated.
- Spacious, modern rooms (rare in Reykjavík)
- On-site spa to reset your body clock
- Easy access to the city without being in the busiest tourist core
Food & Drink Scene Nearby:
Reykjavík is Iceland’s culinary hub—expect:
- Elevated Nordic cuisine
- Creative seafood
- Cozy cafés perfect for slow mornings
Road & Table Tip:
Skip rushing into the Golden Circle immediately.
Give yourself a half-day to arrive, eat well, and settle in.
Snæfellsnes Peninsula: Iceland in Miniature
Why Stay Here:
This is where Iceland starts to feel wild.
- Set dramatically on coastal cliffs
- Near lava fields, glaciers, and black sand beaches
- Quiet, remote, and deeply atmospheric
Food Experience:
- On-site restaurant with panoramic ocean views
- Fresh, local ingredients—simple but memorable
Insider Tip:
Walk the coastal path between Hellnar and Arnarstapi at sunset—it’s one of Iceland’s most underrated experiences.
West Iceland: A Hidden Gem Stop
Why Stay Here:
Most travelers skip this area—and that’s exactly why you shouldn’t. Less-traveled areas are where you really get an immersive experience.
- Boutique feel with modern Icelandic design
- A perfect buffer stop between regions
- Peaceful countryside setting
Food & Drink:
- Thoughtfully prepared, locally inspired dishes
- A quiet, intimate dining atmosphere
Road & Table Insight:
This is what I call a strategic luxury pause—breaking up the drive while enhancing the experience.
North Iceland (Akureyri): Culture Meets Culinary
Berjaya Iceland Hotels Akureyri
Why Stay Here:
Akureyri feels like Reykjavík’s cooler, quieter cousin.
- Located in Iceland’s second-largest town
- Walkable with a surprisingly strong food scene
- Ideal base for exploring North Iceland and whale watching
Food Scene:
- Local seafood
- Creative Nordic menus
- Cozy, design-forward restaurants
Insider Tip:
Plan dinner reservations in advance because Akureyri’s best spots fill quickly.
Mývatn: Otherworldly Landscapes
Berjaya Iceland Hotels Myvatn
Why Stay Here:
This region feels like another planet.
- Close to geothermal landscapes and lava formations
- Minimal light pollution = incredible northern lights potential
- Quiet, immersive, and raw
Food & Drink:
- Simple but elevated dishes
- Ingredients inspired by the surrounding region
Road & Table Tip:
End your day at the
Mývatn Nature Baths—a quieter, more authentic alternative to the Blue Lagoon.
Eastfjords: Iceland’s Quietest Beauty
Why Stay Here:
This is where Iceland slows down.
- Historic building with character
- Located in a tiny fishing village
- Surrounded by dramatic fjords
Food Experience:
- Fresh seafood
- Local, seasonal ingredients
- A quiet, intimate dining setting
Insider Tip:
Drive slowly here—this is one of the most scenic (and overlooked) parts of Iceland.
Glacier Region: Iceland at Its Most Iconic
Hotel Jökulsárlón Glacier Lagoon
Why Stay Here:
This is one of the most extraordinary places in Iceland.
- Near Jökulsárlón Glacier Lagoon and Diamond Beach
- Surrounded by glaciers and vast open landscapes
- Modern luxury meets raw nature
Food & Drink:
- Elevated dining with glacier views
- Locally sourced ingredients
- A memorable, atmospheric setting
Road & Table Insight:
Staying nearby means you can experience the lagoon
early morning or late evening—without crowds.
South Iceland: Geothermal Luxury & Relaxation
Why Stay Here:
The perfect ending to your journey.
- Built around natural hot springs
- Riverside setting with geothermal steam rising around you
- Relaxed luxury atmosphere
Food & Drink:
- Farm-to-table style cuisine
- Dining with views of bubbling geothermal activity
Insider Tip:
Book a riverside hot tub in the evening—it’s the ultimate way to reflect on your trip.
Planning Iceland isn’t just about booking hotels—it’s about:
- Mapping drive times correctly
- Understanding regional food limitations
- Booking the right properties before they sell out
- Creating a natural flow—not just a checklist
This is exactly why clients hire a travel designer.
Instead of:
Final Bite
Ready to Travel Iceland the Road & Table Way? If you want Iceland done right, slow, immersive, and deeply connected to food and place. You came to the right place.
I design journeys like this every day.
Skip the overwhelm and let me handle the details.
👉 Fill out my travel design form to get started
Jamie Cassidy – Founder & Travel Designer at Road & Table
Jamie Cassidy is the founder and travel designer behind Road & Table — a boutique travel brand curating food-forward journeys and authentic travel experiences around the world. From truffle hunts in Tuscany to oyster farms in Connemara, she believes every road leads to a great table (and an even better story).
© Jamie Cassidy and Road And Table, 2023. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Jamie Cassidy and Road and Table with appropriate and specific direction to the original content.
