The Best Bed and Breakfasts in Iceland

Get front row seats for the aurora borealis at an Icelandic B&B
Get front row seats for the aurora borealis at an Icelandic B&B | © Joshua Earle / Unsplash
Nammie Matthews


With a realm of grand glaciers and simmering volcanoes, it’s easy to see how Iceland became known as the land of fire and ice. Its B&B hosts are all too happy to show it off. Catch a glimpse of the Northern Lights in a bubbling geothermal pool, or settle into an inviting guesthouse amid rugged mountains and thundering waterfalls. Here’s our pick of the best B&Bs and guesthouses in Iceland.

1. Reykjavík Treasure Bed and Breakfast

Bed and Breakfast

Reykjavik Treasure exterior in winter with Christmas decorations
Courtesy of Reykjavík Treasure Bed and Breakfast / Expedia

A five-minute walk from Reykjavík’s magnificent Harpa, this boutique B&B is close to Laugavegur, a street packed with restaurants, bars and shops, and the mountain-lined harbour. Housed in a charming wooden townhouse, it’s perfect for couples seeking an intimate setting in the heart of the city. It has seven rooms, all exuding comfort and warmth, with delicious home-made food regularly served up by the hosts.

2. Skyggnir Bed and Breakfast

Bed and Breakfast

This gorgeous rural guesthouse has been passed down through generations. Skyggnir is ideal for families wanting a remote home-from-home experience – the B&B even has a cat, dog and two horses. Near the Golden Circle road, it’s just a short drive from the Secret Lagoon and offers a great base for day excursions to Selfoss, Skógafoss and the Southern Peninsula Region – although the hosts’ warm hospitality may make you hesitant to leave.

3. Blue House Bed and Breakfast

Bed and Breakfast

Blue House B&B lounge area with shaggy rug and chest table
Courtesy of Blue House Bed and Breakfast / Expedia

Situated in a peaceful neighbourhood on the small peninsula of Seltjarnarnes, the Blue House is a quiet, friendly retreat that’s ideal if you’re seeking to escape the buzz of the capital. From the B&B, catch a glimpse of the Snæfellsjökull glacier, Mount Esja and Faxaflói Bay, but most come for the Northern Lights. These are best spotted from around the Grótta Lighthouse, a 20-minute walk away.

4. Guesthouse Heba

Bed and Breakfast

Room at Guesthouse Heba with desk, floral curtains and tile floors
Courtesy of Guesthouse Heba / Expedia

With plush Muscovy down duvets, geothermal showers and freshly baked bread served with breakfast each morning, Guesthouse Heba is a tranquil place to unwind. The four-room cottage sits in the southern seaside village of Stokkseyri, which lends its balcony views across the ocean and several volcanoes, including Hekla and Eyjafjallajökull. Hosts Heba and Kristján are experts in their surroundings and always on hand to offer advice on the area.

5. Lamb Inn Öngulsstaðir

Boutique Hotel, Guesthouse

Lamb Inn Öngulsstaðir amid green fields with mountains beyond
Courtesy of Lamb Inn Öngulsstaðir /

If a hot tub under the Northern Lights is what you’re looking for, book the Lamb Inn. This family-run converted barn lies in the Akureyri countryside, a 12-minute drive from the city. Aside from its lodgings, the inn’s bread and butter is the onsite restaurant that serves – you guessed it – local lamb specialities, securing this inviting B&B’s high reputation among foodies seeking authentic Icelandic flavours.

6. Guesthouse 1x6

Bed and Breakfast

Guesthouse 1x6 room with table and chairs, vintage style and tree painting on walls
Courtesy of Guesthouse 1x6 / Expedia

Just a stone’s throw from the Reykjanes Art Museum, Guesthouse 1×6 is a unique boutique B&B created by artists in the old part of Keflavík. It was built as an eco-home, refining and polishing found materials to create an environment that gives you the feeling of care and warmth. Breakfast follows the same suit, with delicious organic dishes served up each morning.

7. Hafdals Hotel

Bed and Breakfast

Hafdals Hotel set on edge of lake with mountains beyond
Courtesy of Hafdals Hotel / Expedia

Luxury service and a stunning view across Eyjafjörður await you at Hafdals Hotel, where everything – from the gorgeous setting to the guests – are well cared for. There’s plenty to do in Akureyri across the fjord, including horse riding, skiing and snowboarding. Why not join in the fun? Hafdals’s attentive host will be only too happy to guide you.

8. Stóru Laugar

Bed and Breakfast

Guesthouse Storu-Laugar exterior with melting snow on hills
Courtesy of Stóru Laugar / Expedia

Nature calls at this tranquil homestay in the tiny village of Laugar. Sleep amid hectares of lush countryside, close to some of the country’s most famous natural attractions. Whether it’s the unique nature baths at Lake Mývatn, whale watching in Húsavík or hiking at Dettifoss, there’s plenty to see within a short distance. The terrace and hot tub for viewing the Northern Lights are the cherries on top.

9. Guesthouse Elínar Helgu

Bed and Breakfast

Guesthouse Elínar Helgu set atop a hill with green surroundings
Courtesy of Guesthouse Elínar Helgu /

Set on Iceland’s east coast, this family-owned wooden cabin has much more to offer than just gorgeous panoramic views of the Fáskrúðsfjörður. Criminally comfortable beds await you, along with a sense of romance and excellent hospitality. Owners Elín and Gestur will happily recommend the must-sees of the area, including a small waterfall just a short walk from the cabin, while the main village, with shops and restaurants, is a 10-minute stroll away.

10. Skjaldarvík Guesthouse

Boutique Hotel, Bed and Breakfast

Landscape taken from the road near Akureyri in Iceland.
© Marc-André Le Tourneux / Alamy Stock Photo

Include horseback tours, cycling and nature walks in your trip to Iceland at this modern eco-friendly guesthouse, overlooking the beautiful Eyjafjörður. The towering Akureyri Church, Hlíðarfjall ski resort and whale watching at Akureyri port are all within a 15-minute drive. End the day relaxing in the outdoor hammock or soaking in the guesthouse hot tub – both offer views over the water.

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