Hotel Costs in Iceland

Accommodation in Iceland ranges from $65/night (budget) to $350+/night (luxury). Here's what to expect at each level.

Budget

$65

per night

Hostels, guesthouses, budget hotels

Mid-range

$150

per night

Comfortable hotels, boutique stays

Luxury

$350

per night

4-5 star hotels, resorts, suites

Accommodation by Type

Hostel dorm$40-65
Guesthouse$100-150
Mid-range hotel$150-250
Luxury hotel$300-600

10-Night Accommodation Cost

Budget

$650

Mid-range

$1,500

Luxury

$3,500

Booking Tips

  • Book 2-3 months ahead for peak season to get better rates
  • Compare prices on Booking.com, Agoda, and direct hotel websites
  • Consider apartment rentals for stays longer than 5 nights
  • Cheapest months: November, December, January, February — hotels can be 20-40% cheaper

When Are Hotels Cheapest?

CheapestNovember, December, January, February — lowest rates, best availability
ShoulderMarch, April, May, September, October — moderate prices, fewer crowds
PeakJune, July, August — highest prices, book well in advance