Where to Stay on Iceland’s South Coast: A Complete Area Breakdown
Planning where to stay in South Iceland? The South Coast is a great place to start. It’s one of Iceland’s most scenic regions, stretching from the capital city of Reykjavik to the glaciers in the east. Along the way, you’ll pass waterfalls, black sand beaches, lava fields, and small coastal towns, each offering a different experience.
Whether you're planning a quick day trip from Reykjavik or a full Ring Road journey, where you stay matters. This guide breaks down the best areas along Iceland’s South Coast and what each one offers.
Hveragerði: Geothermal Town Near Reykjavik
Hveragerði, home to some of Iceland’s geothermal wonders, is one of the closest towns to Reykjavik along the South Coast. It’s a convenient first stop if you’ve just picked up a car rental from the airport.
The area is known for the Reykjadalur hot spring river, where you can hike and bathe in naturally warm water. In the center of town, Hveragarðurinn Geothermal Park releases constant steam, giving the area a distinct geothermal feel. It’s a great option for travelers who want to ease into their trip without driving too far from the capital city.
Best for: First or last night, short stays, geothermal experiences
Keep in mind: It’s not close to major South Coast highlights like the Jökulsárlón Glacier Lagoon
Ölfus: Outdoor Adventures on Iceland’s South Coast
Wondering where to stay in South Iceland away from the crowds? The municipality of Ölfus is a lesser-known area that offers a mix of coastal scenery and outdoor activities. It’s a great choice for travelers looking for a quieter, more local experience.
Despite being a quieter region, Ölfus offers plenty to see and do. You can explore lava fields and caves, ride Icelandic horses, or even try surfing from Þorlákshöfn. It feels more off the beaten path than other stops along the South Coast.
Best for: Outdoor activities, fewer crowds, unique experiences
Keep in mind: Fewer accommodation options than in larger towns
Selfoss: Best for Food, Culture, and Convenience
Selfoss is one of the largest towns in South Iceland and a popular base for travelers who want more amenities. It’s also a common stop for those combining the Golden Circle with the South Coast.
The town has a growing food scene, with restaurants, cafes, and local shops centered around its rebuilt town square. If you want variety and convenience, Selfoss is a great option.
Best for: Dining, comfort, easy access to services
Keep in mind: Less dramatic scenery compared to areas further east
Hella & Hvolsvöllur: Gateway to Waterfalls and Volcanoes
Hella and Hvolsvöllur are often the first real stops along Iceland’s South Coast after leaving Reykjavik. They sit close to some of South Iceland’s most famous waterfalls, including Seljalandsfoss, Skógafoss, Gljúfrabúi, and Kvernufoss.
Hella is known for the Caves of Hella. It also offers activities such as volcano dirt bike tours and horseback riding across the surrounding landscape. Nearby Hvolsvöllur offers access to Super Jeep tours into Þórsmörk, as well as scenic hiking trails. It’s also home to the Lava Centre, where you can learn more about Iceland’s volcanic activity.
The two small towns are also close to Landeyjahöfn, where you can ride a ferry to the Westman Islands (Vestmannaeyjar).
Best for: Waterfall and volcano access, Vestmannaeyjar trips
Keep in mind: Quieter towns with fewer dining options than in larger bases
Vík í Mýrdal: Best Base for South Coast Highlights
Vík is one of the most popular places to stay in South Iceland, and for good reason. It’s centrally located along the South Coast, making it a great base for exploring nearby attractions.
The town sits next to the famous Reynisfjara Black Sand Beach, known for its basalt columns and powerful waves. From here, you’re also within easy reach of Dyrhólaey, Skógafoss, and Sólheimajökull Glacier.
Vík offers a range of accommodations, from simple guesthouses to luxury hotels. It’s also a great option for chasing Northern Lights in Iceland in winter, with famous landmarks as your focal point.
Best for: First-time visitors, central location, iconic scenery
Keep in mind: It’s a popular stop, so book early during peak season
Kirkjubæjarklaustur: Quiet Stop Between Vík and the Glaciers
Often called “Klaustur,” this small village sits between Vík and the Jökulsárlón Glacier Lagoon. It’s a peaceful place to stay and a good option for breaking up longer drives along the Ring Road.
The area is surrounded by unique landscapes, including Stjórnarfoss Waterfall, Eldhraun Lava Field, Fjaðrárgljúfur Canyon, and Dverghamrar Basalt Cliffs. It’s also close to the Svartifoss Waterfall, which inspired the architecture of the Hallgrímskirkja Church in Reykjavík.
It feels remote, with fewer crowds and wide-open views. With minimal light pollution, it’s also a great option for spotting the Northern Lights during the winter months.
Best for: Quiet stays, nature-focused trips, mid-route stopovers
Keep in mind: Limited restaurants and accommodation choices
Höfn: Best Base for Ring Road and Glacier Exploration
Höfn is farther east and is often used as a base by travelers continuing along the Ring Road. It’s about an hour from Jökulsárlón Glacier Lagoon and Diamond Beach, two of Iceland’s most famous sights.
The town is also close to Stokksnes and Vestrahorn, where dramatic peaks rise above black sand dunes. It sits near Vatnajökull as well, making it a great starting point for glacier hikes and ice cave tours.
Known as the “lobster capital of Iceland,” Höfn is especially famous for its langoustine dishes. It also has a more local feel compared to smaller villages along the South Coast.
Best for: Longer trips, glacier access, Ring Road travelers
Keep in mind: Too far for short South Coast itineraries
What to Consider When Choosing a Base on Iceland’s South Coast
Choosing where to stay in South Iceland depends on your priorities, travel pace, and how much time you have. Consider these things before booking hotels in South Iceland:
Travel interests: Different parts of the South Coast offer different landscapes. Some areas are closer to waterfalls and black sand beaches, while others provide better access to glaciers and ice caves.
Travel style: If you prefer a quieter stay with a more local feel, choose less-visited towns along the coast. If you want to be close to major attractions, look for more central and well-connected locations.
Travel pace: The South Coast involves long drives. Splitting your stay between two areas can make the trip more relaxed. On the other hand, staying in one base works better for shorter visits.
Time available: If you have limited time, staying in towns closer to the capital helps reduce driving. On a multi-day trip, you can explore towns farther east along the South Coast and the Ring Road.
Time of year: Winter travel means less daylight, so staying closer to key sights is more practical. Areas with low light pollution are also better for seeing the Northern Lights.
Getting around: If you rent a car, you’ll have more flexibility to stay in quieter or more remote areas. If you rely on buses or tours, choose larger, well-connected towns.
Black Sand Hotel: Your Gateway to Iceland’s South Coast
The South Coast offers a wide range of places to stay, from lively towns to more remote coastal areas. If you’re looking for a quieter base with direct access to Icelandic nature, Black Sand Hotel is a good option.
Located in Ölfus, the hotel sits right along a black sand beach, surrounded by open landscapes and ocean views. The setting feels calm and remote, while still being within reach of key South Coast attractions.
Here’s what makes Black Sand Hotel a comfortable and well-rounded base:
Quiet coastal setting: A peaceful location away from busier stops, with direct access to black sand beaches and wide coastal views.
Close to Icelandic nature: Step outside to experience volcanic landscapes, geothermal wonders, and the endless ocean views the South Coast is known for.
Comfortable rooms with a view: Rooms feature a clean Scandinavian design and views of the ocean or a nearby river.
On-site dining and wellness: Enjoy meals at ÓMUR Restaurant and unwind at the spa after a day of exploring.
Northern lights access: With low light pollution and proximity to the Ölfusa Overlook, it offers good conditions for spotting the aurora in winter.
Whether you’re staying for a night or two, Black Sand Hotel makes a great base for exploring South Iceland.
Planning Your Stay on Iceland’s South Coast
Choosing where to stay in South Iceland comes down to how you want to experience the journey. From central hubs to quieter coastal areas, each location offers a different way to explore the South Coast. With the right base, you can slow down, take in the landscapes, and make the most of your Icelandic adventure.
Ready for the next step? Check out this 3-day South Iceland itinerary from Black Sand Hotel.
FAQ: Where to Stay in South Iceland
Is the South Coast of Iceland worth it?
Yes, the South Coast is one of the most scenic parts of Iceland. It offers waterfalls, glaciers, black sand beaches, and some of the country’s most famous landscapes, all within a relatively accessible route.
What not to miss in southern Iceland?
Top highlights include Seljalandsfoss and Skógafoss Waterfalls, Reynisfjara Black Sand Beach, and Jökulsárlón Glacier Lagoon. These are some of the most photographed places in Iceland.
Where to stay along Iceland’s South Coast?
Vík is one of the best places to stay along the South Coast because of its central location. For a quieter stay, areas like Ölfus are a great option, while Höfn works well for longer Ring Road journeys.
How many days do you need in South Iceland?
Most travelers spend 2–5 days exploring Iceland’s South Coast. A shorter trip can cover the major highlights. Meanwhile, a longer stay allows time for glacier activities and exploration of more remote areas.
What is the prettiest part of Iceland?
Many travelers consider the South Coast one of the most beautiful regions in Iceland. The mix of waterfalls, black sand beaches, glaciers, and coastal landscapes makes it especially memorable.
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