During our trip to Iceland, we traveled around the country. To save money, we decided to stay in guesthouses rather than hotels. In fact, in some places, guesthouses are the only option. I’m going to share my experiences in each of the cities we visited, and I hope it will help you plan your trip.
- Reykjavík – Alba Guesthouse
- Vík – Steig Guesthouse
- Lake Mývatn – Dimmuborgir Guesthouse
- Grábrók Hotel and Holiday Homes
Reykjavík – Alba Guesthouse
In the capital, we stayed at Alba Guesthouse on our first and last night in Iceland. Check-in is from 3 pm, and it’s strictly enforced. When we arrived at 2 pm, the owner sent us away, which didn’t make the best first impression. However, despite this initial setback, our stay was very comfortable. Our room was better on the first night, but we didn’t mind, as both rooms were clean and quiet. The breakfast was great, and believe me, you’ll want to take advantage of it since food is so expensive in Iceland. Both times we stayed, the guesthouse was nearly full. Another rule from the owner is that you must leave your outside shoes by the front door; you’re not allowed to bring them inside, which can be inconvenient if you’re heading to your car. Overall, the stay was good. Although the owner initially seemed harsh, he offered to help us on our first day when there was a big storm. He even offered us a room for a second night, and when we declined, he said we could call him if we had trouble getting out of the capital.
Good things: Parking , good breakfast, clean, quiet rooms and good price
Bad things: No early check-ins (which is understandable), shoes must be left outside, rooms have shared bathrooms (no private ones)
Classification: 3.8/5
Address: Eskihlíð 3, 105 Reykjavík, Iceland
Website: https://www.alba.is/
Vík – Steig Guesthouse
This was where we stayed on our second night in Iceland. Unfortunately, we didn’t get to enjoy the area as much as we’d hoped, as we arrived late due to road closures. However, the owners were incredibly understanding. They offered us dinner for a small fee, even though we hadn’t made a reservation, and it was already late. The Steig Guesthouse is quite isolated and not near any villages, so we didn’t have food options nearby. Our room was spacious, quiet, and had a private bathroom (though some rooms have shared bathrooms). The best part of the stay was the breathtaking view of the mountains, snow, and sky—it truly felt like heaven. We also had breakfast, which was good for the price.

Good things: Friendly and accommodating staff, breakfast and dinner available, beautiful natural surroundings
Bad things: The reception was a bit hard to reach due to snow and ice, as it’s off the main path
Classification: 4.4/5
Address: Steigarafleggjari, Iceland
Website: http://hotelburfell.is/
Lake Mývatn – Dimmuborgir Guesthouse

This was the place where we stayed the longest. Dimmuborgir Guesthouse offers cozy cottages and double rooms (we chose the more affordable double room). The small cottage we stayed in was incredibly comfortable and warm. While it wasn’t overly spacious, it was more than enough for us. And trust me, when you wake up to the stunning view every morning, the size of the room will be the last thing on your mind.

Classification: 4.8/5
Address: Geiteyjarströnd 1, 660 Mývatn, Islândia
Website: https://dimmuborgir.is/
Grábrók Hotel and Holiday Homes
On our way back to Reykjavík from Lake Mývatn, we had roughly two days. We decided to stop around Grábók to visit the volcano and be close to the Víðgelmir Cave, our next stop before heading to the capital.
We booked a room at Grábrók Hotel and Holiday Homes through Booking.com. However, I’m not going to provide the website or address because the place has permanently closed. Honestly, I’m not surprised. Let’s just say it was an “alternative” experience—everything from the bathroom flooding easily to the shelf above the bed being a hazard. The restaurant prices were outrageously expensive. Although the location was convenient, being next to the Grábók volcano, it wasn’t the best experience.
Classification: 1.5/5