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Best Ring Road hotels in Iceland, ranked

2026-01-225 min readcheaphotels
Small hotel beside Route 1 with mountains behind Small hotel beside Route 1 with mountains behind

A ranked list of 9 hotels spaced roughly every 200km around Route 1, so you can drive the loop in 7 days without a single 3-hour dinner detour.

South coast: Vik to Hofn

Hotel Ranga near Hella ($340) is the smart first-night stop — 90 minutes from Keflavik, aurora wake-up call, and the restaurant is genuinely good. Fosshotel Glacier Lagoon ($310) puts you 15 minutes from Jokulsarlon; ask for a room in the newer wing. In Hofn, Milk Factory ($200) is a converted dairy with the town's best langoustine downstairs. Skip Hotel Vik i Myrdal — overpriced for what you get, and the black beach is a 10-minute drive anyway.

East and north

Fosshotel Eastfjords in Faskrudsfjordur ($230) breaks up the long east leg in a converted French hospital. Skip ahead to Sel-Hotel Myvatn ($260) for the northern midpoint — hot springs at the door, Godafoss 30 minutes west. In Akureyri, Kea Hotel ($240) is central and walkable. Do not stay in Egilsstadir town itself; drive 20 minutes to Wilderness Center ($180) for the actual atmosphere.

Book while you read Median night$165 Cheapest area$110 Hotels tracked4 Find a hotel

Before you book

What people ask before booking Keflavik.

How many nights do I need on the Ring Road?

Seven is the minimum, ten is comfortable. Under a week and you’re driving 6 hours a day in bad light between November and March.

Do these hotels have restaurants?

All nine do, which matters because rural Iceland has almost no evening options. Expect $45-60 for a main course.

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