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The best boutique hotels in South Iceland

Check out our pick of great boutique hotels in South Iceland

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Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
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The family-owned Hótel Lækur is set on an Icelandic horse farm, between the Golden Circle and the south coast. Hella is 10 minutes’ drive away. It offers a sun terrace and a guest lounge.

The bright, modern rooms feature wooden floors and private bathrooms. Some include either a terrace or balcony. The surrounding views take in the Hekla and Eyjafjallajökull volcanoes. Lovely secluded location near a stream and a small forest. Breakfast was excellent and the hotel staff was really pleasant and attentive. They also have Aurora wake up service option which is great!

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9
Superb
1,248 reviews
Price from
US$225
per night

Located by the harbour in Höfn village, Oldairline Guesthouse offers a shared kitchen/lounge, plus free WiFi and parking. Jökulsárlón glacier lagoon is a 1-hour drive away.

Featuring modern décor and a flat-screen TV, all rooms at Oldairline have access to 2 shared bathrooms with free toiletries. Lovely rooms, well appointed kitchen and lounge, good breakfast, comfortable beds, modern fixtures and very clean and tidy.

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9.1
Superb
371 reviews
Price from
US$258
per night

Offering a garden and sea view, Kósý Vík is set in Vík, 800 metres from Black Sand Beach and 34 km from Skogafoss Waterfall. This homestay offers free private parking and full-day security. Boasting family rooms, this property also provides guests with a sun terrace. The owner was wonderful - she not only made everything work but she was also very keen to teach us about Iceland.

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9.3
Superb
181 reviews

Located in central Selfoss, these self-catering apartments include a well-equipped kitchen and free WiFi access. Thingvellir National Park is a 30-minute drive away.

A seating area and flat-screen TV feature in all apartments at Thoristun Apartments. Each apartment has a bathroom with shower. Some have a private terrace. Very roomy and comfort place right in the center of Selfoss, with kitchen and all amenities needed. Location and host instructions are very clear and easy to find. Walking distance to many good restaurants and shops or just to walk around town to stretch our legs after long day stuck in the car driving. Very reasonable price compared to Iceland standard. We thoroughly enjoy our stay.

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9.4
Superb
724 reviews
Price from
US$210
per night

Guesthouse Dyngja is located in Höfn and offers barbecue facilities. This property offers access to a patio and free private parking. Featuring family rooms, this property also provides guests with a picnic area. Well equipped and comfortable.

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9.2
Superb
887 reviews
Price from
US$220
per night

Featuring a stargazing observatory on site, this luxury hotel is in an idyllic remote location next to the Rangá salmon river in Hella. The hotel offers wake-up calls for when the Northern Lights appear and turns off all lighting for the viewing experience. Guests can also enjoy outdoor hot tubs and free WiFi. Amazing location. Very good service

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9
Superb
401 reviews
Price from
US$555
per night

Offering views of Vatnajökull glacier, this former milk factory offers accommodation in Höfn and is just 4 km from the town centre. Free WiFi and private parking is available on site.

The rooms have simple decor and come with a TV. Certain rooms have views of the mountain or garden. All rooms are equipped with a private bathroom. Very nice modern room, comfy bed, good bathroom. Good breakfast

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8.9
Fabulous
2,108 reviews
Price from
US$322
per night

Fosshotel Glacier Lagoon offers luxurious accommodation in Hnappavellir. Guests can enjoy the on-site restaurant and hotel bar. Fjallsárlón lagoon is 20 km from the hotel and the glacier lagoon Jökulsárlón and the diamond beach are 29 km away from the hotel. Free WiFi access is available throughout the hotel. On-site parking is free. The staff was very professional! For our trip we liked the location - it's remote, close to the diamond beach. Restaurant was amazing - thank you! Also, based on my experience the breakfast was one of the best I ever had in a hotel. Room was good and the view was beautiful.

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8.9
Fabulous
4,769 reviews
Price from
US$461
per night

Housed in a former pharmacy building, Apotek Guesthouse offers accommodation in Höfn. This guest house has a shared kitchen and free WiFi. Free private parking is also available on site.

Each room features a flat-screen TV and views of the mountains. Guests can choose from rooms with private or shared bathroom facilities. Bed linen and towels are included for extra comfort. Our room was large and comfortable, even had a couple of chairs and an ottoman! Most of our rooms in Iceland were so small so having the opportunity to spread a bit was a very happy surprise. I got a message a few days in advance with some instructions. My key would be at the front desk with my name and they informed me they had complimentary coffee, tea, yogurt and cereals in the morning. In the message they also apologized for not offering breakfast. I was like What?! Where I come from some hotels call cereal and yogurt breakfast and charge you for it. I would have been happy with coffee alone lol! Anyway, I read somewhere they had laundry facilities available, so I was banking on doing some laundry there. When I asked where I could do my laundry and if there was an extra charge, they were a bit confused but immediately showed me to the hotel's laundry room and let me use it!! This was very nice of them. Lastly, they have the cutest garden, looks like your grandma's place.

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8.8
Fabulous
2,103 reviews
Price from
US$311
per night

Set just 1 km from Hornafjördur Airport. Free WiFi access. The Route 1 Ring Road is right next to the guest house.

A seating area and work desk feature in all guest rooms at Seljavellir Guesthouse. Each room has a private bathroom with shower. Some rooms offer mountain views while others feature glacier views. New rooms. Perfect beds. Big bathroom. You could use common space to prepare and eat your breakfast.

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8.4
Very good
1,922 reviews
Price from
US$257
per night

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