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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

  • * Relaxing in the geothermal waters of the Blue Lagoon.
  • * Exploring the Reykjanesviti Lighthouse and its surrounding cliffs.
  • * Walking across two tectonic plates on the Bridge Between Continents.
  • * Touring the Fagradalsfjall volcano eruption site and lava fields.
  • * Witnessing geothermal activity at Gunnuhver Hot Springs.

The Southern Peninsula offers a variety of hotel options including boutique hotels, spa resorts, and budget accommodations, with over 40 hotels mostly concentrated in Keflavík and Grindavík. Average prices for 3-star hotels in the area range from $120-$180 per night, while luxurious 5-star stays, such as at the newly opened The Retreat at Blue Lagoon, cost $800-$1,200 per night, offering exclusive amenities and private geothermal spa access.

The Southern Peninsula of Iceland, also known as Reykjanes Peninsula, is renowned for its diverse landscapes featuring volcanic craters, geothermal hot springs, and dramatic coastlines, making it a UNESCO Global Geopark.

The region draws visitors primarily for the iconic Blue Lagoon, Reykjanesviti Lighthouse, and the Bridge Between Continents, offering both relaxation and adventure in close proximity to Keflavík International Airport.

Its unique position also allows for excellent Northern Lights viewing during colder months, while the summer months offer extensive hiking and exploring opportunities along rugged terrain.

Southern Peninsula Tips You Must Know

* Book your hotel at least 2 months in advance if visiting in peak seasons (summer and winter).

* Rental cars are highly recommended for exploring the region as public transport is limited.

* Stay closer to the Blue Lagoon or Keflavík to reduce travel times to key attractions.

* Allocate at least one night for Northern Lights watching during winter months.

* Check whether your chosen hotel offers free airport shuttles or breakfast to save on costs.

Reykjavík

Reykjavík, the northernmost capital in the world, is a blend of modern culture and stunning natural surroundings, known for the iconic Hallgrimskirkja Church and the Sun Voyager sculpture. Its lively arts scene includes Harpa Concert Hall, a shimmering gem of Icelandic architecture. The city's thermal swimming pools, like Laugardalslaug, showcase Iceland's unique hot water culture.

Discover a variety of hotels in Reykjavík to experience its cultural and natural wonders.

Keflavík

Keflavík is home to Keflavík International Airport and the fascinating Icelandic Museum of Rock 'n' Roll, celebrating the nation's musical icons. Its coastal paths provide serene walking experiences with views of endless ocean horizons. The town boasts quirky attractions like the Giantess in the Mountain cave, a beloved local folklore character.

Stay at one of the cozy hotels in Keflavík to explore this gateway to Iceland.

Grindavík

Grindavík, a small fishing town, is renowned for its proximity to the Blue Lagoon, Iceland's most famous geothermal spa. Its fishing heritage shines at the Saltfish Museum, offering insight into centuries-old curing traditions. Nearby Reykjanes UNESCO Geopark captivates visitors with lava fields, craters, and hot springs.

Explore hotels in Grindavík to stay close to the Blue Lagoon and thrilling geothermal wonders.

Garður

Garður features Iceland's oldest lighthouse, Reykjanesviti, surrounded by dramatic cliffs teeming with birdlife. This quiet town offers echoes of Icelandic seafaring history and unrivaled sunsets over the Atlantic. Its rich folklore, including tales of elves, adds an intriguing cultural twist to your visit.

Find charming hotels in Garður and immerse yourself in its maritime and folklore connections.

Vogar

Vogar, a tranquil town by the sea, offers visitors close encounters with nature, including views of Mt. Keilir, a popular hiking landmark. Its open-air swimming pool with mineral-rich water creates a relaxing retreat. Local farms and produce markets entice with fresh seafood and traditional Icelandic dishes.

Hotels in Vogar provide a peaceful base for exploring Iceland's natural beauty and flavors.

Central Comfort: Hotels Close to the Action

Find more comfortable Central hotels in Keflavík with excellent access to major landmarks.

Hotel Name
Description
#
Price per night

Aurora Hotel At Reykjavik-Keflavik Airport Terminal Kef

Keflavík

  • Keflavík International Airport (0 km)
  • Viking World Museum (4 km)
  • Blue Lagoon (23 km)

This hotel is directly connected to the airport terminal, ideal for travelers needing ultimate convenience.

  • Direct terminal access

  • Soundproof rooms

  • Free breakfast

$120-$200/night

Start Keflavik Airport

Keflavík

  • Keflavík International Airport (2 km)
  • Duus Museum (3 km)
  • Blue Lagoon (21 km)

The hotel offers cozy accommodations with a modern design, specifically catering to early fliers with flexible shuttle services.

  • Airport shuttle

  • Friendly staff

  • Affordable pricing

$90-$150/night

Blue Viking Guesthouse

Keflavík

  • Keflavík International Airport (4 km)
  • Viking World Museum (3 km)
  • Reykjanes Art Museum (1 km)

Famous for its intimate atmosphere, this guesthouse is perfect for budget travelers seeking a local Icelandic vibe.

  • Homey environment

  • Affordable rates

  • Friendly host

$70-$120/night

Luxury Retreats: Lavish Stays in Peaceful Settings

Explore more high-end Luxury hotels in Keflavík for an indulgent escape.

Hotel Name
Description
#
Price per night

Courtyard By Marriott Reykjavik Keflavik Airport

Keflavík

  • Keflavík International Airport (2.5 km)
  • Blue Lagoon (22 km)
  • Viking World Museum (4 km)

This newly built hotel boasts elegant designs and is one of the few properties offering an in-house Starbucks in Iceland.

  • Modern luxury

  • In-house Starbucks

  • Spacious rooms

$200-$350/night

Hotel Berg By Keflavik Airport

Keflavík

  • Reykjanes Maritime Center (500 m)
  • Keflavík International Airport (3 km)
  • Duus Museum (1 km)

This boutique-style luxury hotel offers a rooftop hot tub with stunning ocean views.

  • Rooftop hot tub

  • Scenic views

  • Close to the harbor

$180-$300/night

Park Inn By Radisson Reykjavik Keflavik Airport

Keflavík

  • Keflavík International Airport (2.8 km)
  • Viking World Museum (4.5 km)
  • Blue Lagoon (20 km)

Known for its sleek Nordic design, this hotel offers both luxurious comfort and sustainable practices.

  • Nordic design

  • Sustainable operations

  • Excellent dining

$200-$400/night

Boutique Bliss: Unique and Intimate Stays

Discover more charming Boutique hotels in Keflavík for a distinctive experience.

Hotel Name
Description
#
Price per night

Base Hotel By Keflavik Airport

Keflavík

  • Keflavík International Airport (2 km)
  • Blue Lagoon (22 km)
  • Viking World Museum (3 km)

A quirky and colorful hotel built inside a former U.S. military base, making it a unique conversation starter.

  • Unique design

  • On-site bar

  • Affordable rooms

$80-$130/night

Nupan Deluxe

Keflavík

  • Keflavík International Airport (3 km)
  • Viking World Museum (4 km)
  • Blue Lagoon (23 km)

This charming boutique guesthouse offers free access to an outdoor hot tub, making it a dream for Northern Lights photographers.

  • Outdoor hot tub

  • Personalized service

  • Stylish rooms

$100-$150/night

Hotel Keflavik By Reykjavik Keflavik Airport

Keflavík

  • Keflavík International Airport (2.5 km)
  • Blue Lagoon (22 km)
  • Duus Museum (2 km)

Its steampunk-inspired bar and design make it a standout among the city's accommodations.

  • Unique decor

  • Fitness center

  • Proximity to airport

$150-$250/night

Family Comfort: Ideal for All Ages

Browse more family-centric Family Friendly hotels in Keflavík for your next vacation.

Hotel Name
Description
#
Price per night

ABC Hotel By Reykjavik Keflavik Airport

Keflavík

  • Keflavík International Airport (5 km)
  • Blue Lagoon (21 km)
  • Viking World Museum (6 km)

This family-friendly hotel features interconnected rooms and an indoor play area for young children.

  • Family-focused amenities

  • Budget-friendly

  • Complimentary parking

$80-$120/night

B&B Guesthouse - Bed And Breakfast Keflavik Centre

Keflavík

  • Keflavík International Airport (3 km)
  • Reykjanes Art Museum (1 km)
  • Blue Lagoon (23 km)

The guesthouse embraces a cozy atmosphere with homemade Icelandic breakfasts, perfect for family bonding in the mornings.

  • Homemade breakfast

  • Friendly hosts

  • Family-sized rooms

$70-$110/night

Eldey Airport Hotel

Keflavík

  • Keflavík International Airport (6 km)
  • Blue Lagoon (18 km)
  • Viking World Museum (5 km)

A hotel known for family movie nights in their relaxed lounge, adding fun to a cozy stay.

  • Family activities

  • Spacious rooms

  • Helpful staff

$90-$130/night

Wellness & Spa: Relax and Recharge

Relax in luxury at more rejuvenating Spa hotels in Grindavík.

Hotel Name
Description
#
Price per night

Northern Light Inn

Grindavík

  • Blue Lagoon (1 km)
  • Fagradalsfjall Volcano (10 km)
  • Keflavík International Airport (25 km)

This eco-friendly hotel offers Northern Lights wake-up calls and a wellness center surrounded by volcanic landscapes.

  • Eco-friendly practices

  • Proximity to Blue Lagoon

  • Spa facilities

$220-$350/night

Guesthouse Keflavik By Reykjavik Keflavik Airport

Keflavík

  • Keflavík International Airport (3 km)
  • Blue Lagoon (21 km)
  • Viking World Museum (3 km)

This guesthouse combines affordable accommodations with access to spa amenities shared with its sister property, Hotel Keflavik.

  • Budget-friendly spa access

  • Central location

  • Comfortable rooms

$100-$170/night

The Retreat At Blue Lagoon Iceland

Grindavík

  • Blue Lagoon (0 km)
  • Fagradalsfjall Volcano (12 km)
  • Keflavík International Airport (23 km)

The ultimate in luxury, this award-winning spa hotel is built into an 800-year-old lava field with private lagoon access.

  • Private lagoon

  • World-class architecture

  • Exclusive spa treatments

$1,200-$2,300/night

Frequently asked question

What are the best hotels in Southern Peninsula for exploring the Blue Lagoon?

Hotels like the Silica Hotel and The Retreat at Blue Lagoon are located within walking distance of the Blue Lagoon, offering exclusive access and spa packages.

Are there family-friendly hotels in the Southern Peninsula?

The Lighthouse Inn in Gardur offers spacious family rooms and is close to kid-friendly attractions like the Gardur Old Lighthouse and the Reykjanes Art Museum.

What is the average cost of boutique hotels in the Southern Peninsula?

Boutique hotels typically cost between $200 and $500 per night, with options like the Diamond Suites providing high-end, personalized experiences.

Are there accommodations near Keflavík International Airport?

Yes, options like Aurora Hotel at Keflavik Airport and Hotel Jazz are within a 5-minute drive, providing convenient stays for travelers with early or late flights.

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

Most mid-range to high-end hotels offer free Wi-Fi, on-site geothermal baths, Northern Lights wake-up calls, and breakfast buffets featuring local Icelandic dishes.

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