Iceland Guesthouses on a Budget

ICELAND GUESTHOUSES | Adventurers Anonymous

On my trip to Iceland last year, I was in charge of booking hotels, or in our case, guesthouses. Guesthouses are essentially Iceland’s version of a bed & breakfast. They’re cheaper than hotels (by quite a bit) yet have the same standards of cleanliness.

To give you an idea, guesthouses for 10 days were cheaper than a rental car for the same amount of time. They’re usually in a great location, too, since a lot of the smaller cities don’t actually havehotels around.

Now, I could give you a list of guesthouses that I searched and liked the look of, but there are plenty of posts like that out there. Instead, here’s a list of every room we actually stayed in, how much it cost, and what I liked and didn’t like about each.

Note: these were the actual prices we paid when we went last year in December. I decided not to put current prices because it depends so much on when you plan to go. But, know that all of these are incredibly affordable, no matter the time of year.

Planning a trip to Iceland? START HERE

P.S. this post contains affiliate links. This means that if you click through and purchase something, I may receive a portion of the price. It’s at no extra cost to you, but the profits go directly back into improving this blog 🙂

Route 1 Guesthouse

A simple and uber-clean room, with all the necessary features. Honestly, the best part of this was the extremelyhot shower I got to take, for the first time in 24 hours… it was heavenly. The room we got was small, but it was everything we needed.

There’s plenty of grocery stores nearby, and a shared kitchen, too, so you can save some  money and make your own meals. The beds are pretty comfy and you can choose to have them separate or pushed together.

It’s a little bit outside of Reykjavik, but it’s a short drive and significantly cheaper than hotels in the city. Don’t expect a palace, but it’s a good place to get some rest before the next day’s adventures.

Info:

  • Location: Hafnarfjordur (10 minutes from Reykjavik; near KEF Airport)
  • Price per night: $84
  • Free Wi-Fi
  • Free private parking
  • Heating
  • Breakfast not included
  • Shared or private bathrooms (we had private)

Blue Grove Guesthouse 

This was my absolute favorite guesthouse, and possibly the most amazing host I’ve ever had. So Anita (and her husband who’s name I forget) are just fabulous with their guests. They are there for absolutely anything you need. We had to check in late and it was no problem.

Upon arrival, they gave us slippers, told us of all the best places around, and were extremely hospitable. The bathrooms have everything you may need, even if you forgot some things.

They had the best breakfast of the entire trip, with various meats and cheeses, crepes, fresh fruit, etc. Plus, they had the BEST coffee, and I’m not much of a coffee drinker.

The next morning we woke up to some incredible snowy sights. The property is surrounded by pine trees, walking trails, etc., and looks like a winter wonderland when it snows. I forgot to mention that it’s a log cabin, so you’ll feel like you’re in a fairytale.

When we checked out, they even gave us a jar of ash from the infamous Eyjafjallajokull eruption, which I snuck through customs (oops) and still have. It’s located within the Golden Circle, in close proximity to Geysir and all of the other sights on the way.

Info:

  • Location: Reykholt (inside Golden Circle; also near Thingvellir National Park)
  • Price per night: $82
  • Free Wi-Fi
  • Free private parking
  • Heating
  • Breakfast included (sooo good)
  • Shared or private bathrooms (we had shared)

South Iceland Guesthouse

We were in this guesthouse for two nights, and had the entire place to ourselves! It was awesome because we basically just hung out in the living room at night. Fun fact: we bought wine… we forgot a corkscrew… we pushed in the cork with a wooden spoon… it worked.

It’s sort of in the middle of nowhere (even though it’s really close and on the way to Vik), and can be hard to find. But, you wake up to the most incredible views. There are snowy mountains and hills surrounding you, with cows just roaming around in the backyard.

It also snowed this night, so we (ok, Trent) spent the morning scraping snow/ice off the car. It’s the prettiest sunrise/sunset around. In fact, I honestly don’t remember much else about this place, but that was probably the wine.

Info:

  • Location: Steiner (near Vik, Skogafoss, Seljalandsfoss, & Sólheimajökull glacier)
  • Price per night: $117
  • Free Wi-Fi
  • Free private parking
  • Heating
  • Breakfast included
  • On-site bar/restaurant (but eating grocery store sandwiches and chocolate was more fun)
  • Shared bathrooms (although we weren’t exactly sharing with anyone)
  • Full kitchen

Skyrhúsid Guest House 

I chose this guesthouse because of its close proximity to the Ice Cave Tour we were planning to go on. Too bad we were too exhausted (and running late) to make it. But, it still ended up being in a great location for when we were ready to call it a night (it’s less than 8 miles from Jokusarlon Glacier Lagoon).

It was nice having a sink in our room, too, even though the bathrooms were shared. The hosts are extremely hospitable, and provide you with anything you need. Gorgeous mountain views greet you in the morning, and you’ll want to stay and hangout longer (we did).

Breakfast isn’t included, but there is a restaurant just nextdoor. You can also buy some snacks on the property if you need, or just eat all the skyr (thick Icelandic yogurt)your heart desires for free! They have a little fridge stocked with it, so I guess they named this guesthouse appropriately.

Info:

  • Location: Hali (near Jokusarlon & Diamond Beach)
  • Price per night: $115
  • Free Wi-Fi
  • Free public parking
  • Heating
  • Breakfast not included (except skyr and hot drinks)

Lyngás Guesthouse

After almost driving our car into a river (more on that in another post), we just wanted to get some langoustine and call it a night.

We got to Lyngas guesthouse extremely late, after a late drive on some icy cliffs. The host had no problem with it, and welcomed us in. There were plenty of people hanging out and cooking dinner together.

We made late-night sandwiches (again) in their full kitchen, and just enjoyed a hot shower and a comfortable bed. This guesthouse is pretty simple, but it’s extremely clean, warm, and comfortable, so what more could you ask for?

Info:

  • Location: Egilsstadir (near Hofn & Eastern waterfalls)
  • Price per night: $64
  • Free Wi-Fi
  • Free public parking
  • Heating
  • Soundproof rooms (didn’t even realize this but cool!)
  • Full kitchen
  • Breakfast not included

Bólstaðarhlíð Guesthouse

So, here’s the thing… it was another late-night arrival, and we didn’t know if anyone was awake to greet us, so we accidentally walked into the wrong room. We were supposed to have a room in the main house. Instead, we sort of took over the actual guest house, separate from the main building.

It was a huge room and had a private bathroom, living area, kitchen, etc. We were kind of shocked that it was so nice, and because we misunderstood the host’s instructions for finding the room, we just assumed we were in the right place.

He was super nice about it the next morning, and told us he was actually planning on giving us that room, anyway, so it all worked out.

I can’t speak on the quality of the room we originally booked, but if you can swing the large separate guest house we ended up in, do it! We also got there after getting our car stuck in snow, so we really needed it.

Akureyri is a big, fun city right nearby, so go there for dinner if you have time. It’s basically a smaller Reykjavik. Oh, by the way, it’s on a farm and is actually a great location for Northern lights hunting, if the forecast is in your favor.

Info:

  • Location: Bólstaðarhlíð (near Akureyri; past Myvatn)
  • Price per night: $91
  • Free Wi-Fi
  • Free private parking
  • Heating (I think… it doesn’t mention it on the site, but I remember it being warm enough)
  • Private bathroom (even for the regular rooms)

Grund

This guesthouse is only 10 minutes from the Blue Lagoon, which is why I booked it in the first place. Only thing is, I never actually bought tickets to the lagoon, and they were sold out by the time I tried to. Are you sensing a theme here? We were very prepared during this trip(!!)

Anyway, for our last night, this place was awesome. It had a full kitchen again, and we met the nicest older couple during breakfast in the morning. They were just starting their trip, so we got to give them tips on where to go and what [not] to do.

Most importantly, it was great having a private (and really nice) shower before another full day of travel. It’s also about 12 miles from Keflavik International Airport, but with plenty of great stops along the way to finish off your trip.

Info:

  • Location: Grindavik (near Blue Lagoon & KEF Airport)
  • Price per night: $130
  • Free Wi-Fi
  • Free private parking
  • Heating
  • Breakfast included
  • Shared or private bathrooms (we had private)
  • Full kitchen

What are your favorite guesthouses or hotels in Iceland? Comment them below so I can remember them for next time 😛 Keep an eye out for more Iceland posts this week!

xx, Dar

Follow:

2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.