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The most popular hotels in Southern Peninsula

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Southern Peninsula Hotels for Your Next Holiday

Why Tourists Visit Southern Peninsula

  • * Soak in the Blue Lagoon's geothermal waters.
  • * Walk across the Bridge Between Continents.
  • * Explore Reykjanes Geopark's volcanic landscapes.
  • * Visit the Gunnuhver Hot Springs and geothermal area.
  • * Discover the historic Reykjanes Lighthouse and stunning sea cliffs.

There are over 30 hotels across the Southern Peninsula, catering to all types of travelers. Keflavik and Grindavik host the majority of them, with 3-star hotels averaging $150-$200 per night and 5-star options like The Retreat at Blue Lagoon starting around $1,200. Recently built, The B59 Hotel in Borgarnes is gaining attention for its modern design, spacious rooms, and excellent views of the nearby harbor.

The Southern Peninsula, known as Reykjanes Peninsula, is a geothermal wonderland and home to some of Iceland's top attractions, such as the Blue Lagoon, the Bridge Between Continents, and spectacular lava fields.

This region is famous for its rugged coastline, bubbling mud pools, and volcanic craters, making it a paradise for those seeking unique landscapes and natural phenomena.

With its proximity to Keflavik International Airport, the area is ideal for first-time visitors and seasoned travelers looking for convenience and breathtaking scenery.

Southern Peninsula Tips You Must Know

* Book hotels near key attractions like the Blue Lagoon for easy access.

* Visit during summer (June-August) for warmer weather and longer daylight hours.

* Renting a car is highly recommended, as public transport options are limited in the region.

* Always check if your hotel offers airport shuttles or free parking.

* Pack sturdy, waterproof clothes for outdoor activities, regardless of the season.

Reykjavik

Reykjavik, Iceland's capital, is a vibrant city combining modern creativity and ancient Viking history. Its iconic Hallgrímskirkja Church offers panoramic views, while Harpa Concert Hall's design reflects the northern lights. The quirky Sun Voyager sculpture adds a symbolic touch of adventure.

Experience the charm of hotels in Reykjavik for a unique blend of Icelandic culture and modern comfort.

Grindavik

Grindavik is home to the world-renowned Blue Lagoon, where geothermal waters meet luxury relaxation. The town's active fishing industry supplies local restaurants with some of Iceland's freshest seafood. The Icelandic Saltfish Museum reveals surprising tales of this vital industry's past.

Discover the perfect hotels in Grindavik near legendary geothermal wonders and coastal beauty.

Keflavik

Keflavik is best known for Iceland's main international airport but also offers cultural gems like the Icelandic Museum of Rock 'n' Roll. The charming waterfront promenade provides views of the Atlantic, and Viking World showcases a life-sized Viking ship replica.

Stay in welcoming hotels in Keflavik conveniently located near vibrant attractions and the airport.

Hafnir

Hafnir, a quaint village near Reykjanes Geopark, surprises visitors with its impressive 9th-11th century archaeological site. The coastline teems with birdlife, perfect for nature lovers. The atmospheric Stafnes Church ruins provide a poignant reminder of Iceland's past.

Relax in serene hotels in Hafnir and immerse yourself in Iceland's coastal and historical treasures.

Sandgerdi

Sandgerdi, a charming fishing town on the Reykjanes Peninsula, boasts rich birdwatching opportunities at Sudurnes Science and Learning Center. Its waterfront paths are ideal for a meditative stroll, while local cafés serve hearty Icelandic fare with a seaside view.

Explore wonderful hotels in Sandgerdi for a peaceful stay near wildlife and tranquil coastlines.

Central Stays in Southern Peninsula

Find more stylish and convenient Central hotels in Keflavik for your next stay.

Hotel Name
Description
#
Price per night

Blue Viking Guesthouse

Keflavik

  • Keflavik International Airport (5 km)
  • Giantess Cave (1.2 km)
  • Viking World Museum (3 km)

This charming guesthouse features uniquely decorated rooms inspired by Icelandic folklore, giving every stay a cultural touch.

  • Cozy atmosphere

  • Great value

  • Convenient location

$90-$130/night

Blue Viking Studios

Keflavik

  • Keflavik International Airport (4.5 km)
  • Duus Museum (2 km)
  • Garðskagi Lighthouse (10 km)

These modern studios offer a minimalist Nordic design with fully equipped kitchenettes, perfect for self-catering stays.

  • Clean and modern

  • Self-catering facilities

  • Near airport

$110-$150/night

Courtyard By Marriott Reykjavik Keflavik Airport

Keflavik

  • Keflavik International Airport (0.9 km)
  • Viking World Museum (3.5 km)
  • Giantess Cave (4 km)

This sleek hotel is noted for its panoramic airport views and Iceland-inspired cuisine at its in-house restaurant.

  • Modern amenities

  • Proximity to airport

  • Excellent on-site dining

$190-$240/night

Luxurious Escapes in Southern Peninsula

Experience exceptional comfort and style with more Luxury hotels in Keflavik.

Hotel Name
Description
#
Price per night

Hotel Berg By Keflavik Airport

Keflavik

  • Keflavik International Airport (6 km)
  • Duus Museum (0.8 km)
  • Giantess Cave (0.6 km)

Perched by a marina, this boutique hotel offers a heated rooftop pool with uninterrupted views of the Atlantic Ocean.

  • Rooftop pool

  • Seaside location

  • Boutique design

$230-$310/night

Hotel Keflavik By Reykjavik Keflavik Airport

Keflavik

  • Keflavik International Airport (3.5 km)
  • Duus Museum (1 km)
  • Viking World Museum (3 km)

A stylish hotel featuring a gym with panoramic views and golden interiors that give a nod to Icelandic luxury.

  • Fitness center

  • Elegant interiors

  • Close to amenities

$160-$250/night

Park Inn By Radisson Reykjavik Keflavik Airport

Keflavik

  • Keflavik International Airport (4 km)
  • Viking World Museum (4.5 km)
  • Garðskagi Lighthouse (12 km)

Known for its vibrant modern decor, this hotel offers conference facilities ideal for business travelers.

  • Business-friendly

  • Modern design

  • On-site restaurant

$180-$270/night

Family Favorites in Southern Peninsula

Plan your next family vacation with more Family Friendly hotels in Keflavik and Garður.

Hotel Name
Description
#
Price per night

Start Keflavik Airport

Keflavik

  • Keflavik International Airport (4 km)
  • Giantess Cave (3 km)
  • Viking World Museum (4.8 km)

This family-friendly hotel provides spacious family rooms and an early breakfast buffet perfect for busy mornings.

  • Spacious rooms

  • Family-focused amenities

  • Early breakfast

$120-$160/night

Lighthouse-Inn

Garður

  • Garðskagi Lighthouse (0.7 km)
  • Keflavik International Airport (11.6 km)
  • Duus Museum (9 km)

Nestled near the coastline, this inn offers families cozy accommodations alongside stunning views of the Northern Lights in winter.

  • Aurora-viewing

  • Quiet location

  • Charming decor

$140-$180/night

Kef Guesthouse By Keflavik Airport

Keflavik

  • Keflavik International Airport (3.2 km)
  • Viking World Museum (3.5 km)
  • Giantess Cave (3.4 km)

A budget-friendly option with bunk beds perfect for kids and free airport transfers, maximizing family convenience.

  • Affordable rates

  • Airport shuttle

  • Family rooms

$100-$140/night

Hotels with Indoor Retreat

Find more luxurious Hotels with indoor pool in Keflavik for combining relaxation with modern perks.

Hotel Name
Description
#
Price per night

Heart Of Keflavik

Keflavik

  • Keflavik International Airport (4.5 km)
  • Duus Museum (2 km)
  • Giantess Cave (2.5 km)

This hotel features a modern indoor swimming pool with geothermal heating, making it a year-round retreat.

  • Indoor pool

  • Central location

  • Stylish decor

$200-$250/night

Diamond Suites By Reykjavik Keflavik Airport

Keflavik

  • Keflavik International Airport (3.2 km)
  • Viking World Museum (3.7 km)
  • Giantess Cave (3 km)

Iceland's only 5-star boutique hotel offers luxury suites with private hot tubs and access to an elegant indoor pool.

  • Opulent suites

  • Indoor pool access

  • Personalized service

$1,000-$2,000/night

Revitalize Yourself at Spa Hotels

Unwind with exceptional wellness experiences in Spa hotels in Grindavik and Keflavik.

Hotel Name
Description
#
Price per night

Northern Light Inn

Grindavik

  • Blue Lagoon (1.2 km)
  • Gunnuhver Hot Springs (12 km)
  • Reykjanes Lighthouse (15 km)

Located near the Blue Lagoon, this spa hotel combines wellness treatments with stunning views of natural lava fields.

  • Proximity to Blue Lagoon

  • Wellness facilities

  • Scenic views

$250-$350/night

Guesthouse Keflavik By Reykjavik Keflavik Airport

Keflavik

  • Keflavik International Airport (4 km)
  • Duus Museum (1 km)
  • Giantess Cave (1.5 km)

A hidden gem boasting affordable spa facilities with geothermal hot tubs and massage services tailored to weary travelers.

  • Geothermal hot tubs

  • Affordable rates

  • Centralized location

$140-$180/night

Silica Hotel At Blue Lagoon Iceland

Grindavik

  • Blue Lagoon (0.5 km)
  • Gunnuhver Hot Springs (11 km)
  • Reykjanes Lighthouse (13 km)

With its own private lagoon, Silica Hotel elevates spa experiences to an unmatched level of peace and privacy.

  • Private lagoon

  • Exclusive spa services

  • Award-winning design

$750-$950/night

Frequently asked question

What are the best hotels near the Blue Lagoon in the Southern Peninsula?

The Retreat at Blue Lagoon and Silica Hotel are excellent options offering luxury stays and access to the geothermal spa.

Are there family-friendly hotels in the Southern Peninsula?

Yes, Hotel Keflavik offers family rooms, kid-friendly amenities, and proximity to attractions like Reykjanes Geopark.

What is the average cost of lodging in the Southern Peninsula?

Standard hotels typically range from $150-$350 per night, while luxury options like The Retreat at Blue Lagoon can cost over $1,000 per night.

Are there budget-friendly hotels in the Southern Peninsula?

Guesthouses like Eldey Airport Hotel and Start Hostel Iceland provide affordable stays ranging from $100-$140 per night.

What amenities can I expect from hotels in the Southern Peninsula?

Most hotels offer amenities such as free Wi-Fi, on-site parking, breakfast, and proximity to popular attractions like the Bridge Between Continents.

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