Where to Stay in North Iceland

Where to Stay in North Iceland

North Iceland offers some of the country's most spectacular landscapes, from the powerful Dettifoss waterfall to the otherworldly formations around Lake Mývatn. Choosing the right accommodation base can make or break your northern adventure, with options ranging from luxurious lakeside retreats to working farm guesthouses that put you right into Iceland's rural heart.

Akureyri: The Northern Capital

**Best for:** Urban amenities, dining, shopping, and as a touring base

**Distance from Reykjavík:** 388km

Iceland's second-largest city makes an excellent base for exploring North Iceland, particularly if you appreciate creature comforts after long days of sightseeing. The city offers the widest selection of accommodation in the region, from boutique hotels to budget hostels.

**Hotel Kea** (Hafnarstræti 87-89) stands as Akureyri's premium option, with rooms from 28,500 ISK (€195) per night. This historic hotel overlooks the fjord and provides easy walking access to the city's restaurants and the excellent Akureyri Art Museum. The hotel's Mulaberg Bistro serves exceptional Nordic cuisine using local ingredients.

For mid-range comfort, **Icelandair Hotel Akureyri** offers reliable accommodation from 19,800 ISK (€135) per night, whilst budget travellers should consider **Akureyri Backpackers** (Hafnarstræti 98), where dormitory beds cost 6,400 ISK (€44) and private rooms from 16,200 ISK (€110).

From Akureyri, you're 103km from Lake Mývatn, 186km from Húsavík for whale watching, and just 50km from Goðafoss waterfall. The city also serves as a gateway to the Tröllaskagi peninsula's dramatic landscapes.

Lake Mývatn: Heart of Geological Wonders

**Best for:** Volcanic landscapes, hiking, Northern Lights viewing

**Distance from Akureyri:** 103km

The Mývatn area demands at least two nights to properly explore its pseudo-craters, lava formations, and geothermal features. Staying lakeside puts you within walking distance of many attractions and offers excellent Northern Lights viewing from September through March.

**Hotel Laxá** provides the area's most comfortable accommodation, with rooms from 24,300 ISK (€166) per night including breakfast. The hotel sits directly on the Laxá river, famous for its salmon fishing, and offers stunning views across the lake to the Krafla volcanic system.

**Fosshotel Mývatn** represents excellent mid-range value at 18,900 ISK (€129) per night. Located in Reykjahlíð village, it's perfectly positioned for exploring Dimmuborgir lava fields (2km away) and the Krafla geothermal area (8km north).

Budget accommodation centres on **Hlíð Ferðaþjónusta**, offering basic but clean rooms from 14,500 ISK (€99) and camping facilities for 2,200 ISK (€15) per person. The guesthouse provides excellent home-cooked meals and local knowledge about hiking trails.

Húsavík: The Whale Watching Capital

**Best for:** Marine wildlife, traditional fishing town atmosphere

**Distance from Akureyri:** 186km

Húsavík's position on Skjálfandi Bay makes it Europe's premier whale watching destination, with 98% success rates for spotting cetaceans between April and October. The town warrants 1-2 nights, particularly if you're taking multiple boat trips or visiting the excellent Whale Museum.

**Fosshotel Húsavík** offers the town's best accommodation, with rooms from 21,600 ISK (€147) per night. Located just 300 metres from the harbour, you can walk to whale watching departures whilst enjoying views across the bay to the Víknafjöll mountains.

**Guesthouse Árból** provides charming mid-range accommodation in a renovated 1890s house, with rooms from 16,800 ISK (€115). The traditional wooden building sits in the town centre, within easy walking distance of restaurants and the harbour.

For budget stays, **Húsavík Hostel** offers dormitory beds from 5,800 ISK (€40) and private rooms from 13,200 ISK (€90), with a communal kitchen and cosy common areas perfect for meeting fellow travellers.

Diamond Circle Farm Stays

**Best for:** Authentic rural experience, farm-to-table dining, tranquillity

Several working farms around North Iceland's Diamond Circle route offer accommodation that provides genuine insight into Icelandic rural life whilst positioning you perfectly for sightseeing.

**Sel-Hotel Mývatn** combines working farm operations with comfortable guest accommodation 15km south of Lake Mývatn. Rooms cost 19,500 ISK (€133) per night, including breakfast featuring the farm's own produce. The location offers excellent access to Dettifoss (45km) whilst maintaining peaceful rural surroundings.

**Fosshóll Farm** near Goðafoss provides authentic farm stays from 17,200 ISK (€117) per night. The 19th-century farmhouse has been carefully restored whilst maintaining its historical character. Evening meals showcase traditional Icelandic cuisine using ingredients from the farm and surrounding area.

Practical Considerations

**Transportation:** A rental car is essential for exploring North Iceland efficiently. Public transport exists but operates infrequently outside Akureyri. Book accommodation early during summer months (June-August), as options remain limited outside major towns.

**Seasonal Variations:** Summer accommodation rates peak in July-August, whilst winter stays (November-March) offer better value but require flexibility due to weather-dependent closures. Many rural properties close entirely from October through April.

**Booking Strategy:** Reserve Lake Mývatn accommodation well in advance, as options are most limited here. Akureyri offers greater availability but still requires advance booking during peak season. Farm stays typically require direct contact rather than online booking platforms.

North Iceland's accommodation reflects the region's wild, sparsely populated character. Whether you choose urban comfort in Akureyri or remote farm tranquillity near Dettifoss, you're guaranteed access to some of Iceland's most spectacular and least crowded natural wonders.

Getting around Iceland is easiest by car. Compare rental options and find the best deals on Discover Cars — free cancellation available.

Browse and book tours and activities on GetYourGuide — glacier hikes, whale watching, northern lights tours, Golden Circle day trips and hundreds more. Instant confirmation, free cancellation on most bookings.

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