Small, cozy hotels in Iceland

Super friendly and excellent value. Fantastic host. Ideal location for exploring Snaefell peninsula. Located in small seaside town with fantastic amenities and interests. Bar. supermarket, gym, fantastic open air pool and hot tubs nearby.

Stayed for a night here - was lucky to even get a room as I originally booked elsewhere as the price was much cheaper here. Was lucky enough to see the northern lights at the Stykkish harbour nearby and even from our room at the basement - no need to brave the cold for it! There’s even a lookout deck on the top floor of the hotel to see the northern lights. Ofc photos won’t be as nice since there are lots of city lights, but it’s nice to stay in your room without having to chase. Room was on the smaller side, didn’t have space to fit 3 luggages but granted it’s a small hotel. Bathroom was clean and had branded shower gel (can’t remember the brand but it was local). There was a huge tour group that booked the room, pretty lucky that a room appeared while I was looking up accoms in the area, got lucky! Breakfast was included in the room rate, no hot options but more than enough esp for the price we are paying. Would definitely come back here again!

Lovely place in Stykkisholmur. We really liked it! It is in the middle of the town where you have supermarket and some restaurants. The owner (I guessed) who welcomed us was really kid and helpful. Our room was big and well cared with a nice paint. The bathroom was beautiful and comfortable. They offered breakfast, which was very decent with plenty of options in a cosy dinning room. Highly recommended!

Tiny rooms but all fine and functional. Kitchen downstairs has coffee, tea, snacks all day long.

What a beautiful setting for an inn. We stayed 3 nights in August 2025, obviously the overall construction wasn’t finished on the site but our unit was perfect and we were not disturbed by any construction while we were there. Breakfast was plentiful, the rooms very comfortable, check-in very easy with the code to the door sent by email. We enjoyed exploring around the area also, many things to do, less touristy as it isn’t on the Ring Road circuit.

Check-in was super easy and quick. The room was clean and comfortable. Breakfast was really good with plenty of options. Staff were very friendly and helpful. Would definitely stay again!

I spent one night at The Stykkishólmur Inn and had a great experience. The town itself is beautiful — small but with every amenity and service you might need. The hotel is very charming, and my room was spacious and well-equipped (towels and other essentials were provided). Breakfast was really good — a compact but complete buffet, not over the top, but totally satisfying. The staff member I interacted with was extremely kind and welcoming. I also appreciated the practical walk-in process: you receive an entry code by email, so there’s no formal check-in needed. All in all, I would definitely recommend staying here!