Iceland: Where to Stay: Overview

Visitors who are most interested in Reykjavík, with day trips along the Golden Circle, will be happiest based in the capital. There are no true five-star accommodations, especially in terms of amenities and service, but the two four-stars I tried on a recent trip—Hotel Borg and 101 — were charming and well situated. Starwood is planning to open a W hotel in Reykjavík, part of a new performance and music center slated to open in 2009. Adventurers who want to explore the interior and southeast coast should book a few nights at the smaller hotels in the countryside. One of the highly recommended options is Ranga hotel, in Hella near the southwestern coast, from which most activities, including ice climbing, horseback riding, hiking, snowmobiling and deep-sea fishing, are less than an hour’s drive away.