14 March 2026
Where to Stay in East Iceland
Where to Stay in East Iceland
East Iceland's dramatic landscapes stretch from the highland glaciers to the windswept Atlantic coastline, offering some of Iceland's most remote and spectacular accommodation experiences. From the artistic hub of Egilsstaðir to the isolated fishing villages of the Eastfjords, this region demands thoughtful planning for where to rest your head—distances are vast, weather can be challenging, and services sparse outside the main settlements.
The region encompasses roughly 22,000 square kilometres, making it larger than many European countries yet home to fewer than 12,000 residents. This isolation creates both challenges and opportunities for travellers seeking authentic Icelandic experiences away from the Ring Road crowds.
Egilsstaðir: The Eastern Capital
As East Iceland's largest town with 2,300 residents, Egilsstaðir serves as the region's accommodation hub and transport nexus. Located 646km from Reykjavík via the Ring Road, it's the logical base for exploring Lagarfljót lake, accessing the Eastfjords, or venturing into the highlands.
**Hotel Egilsstaðir** (Miðvangur 1-5) stands as the town's premier accommodation, offering 41 rooms with rates from 22,000 ISK (€150) per night. The hotel's restaurant sources ingredients from local farms in the Fljótsdalsherad valley, and the property maintains a reliable booking system year-round—crucial in a region where spontaneous accommodation can prove elusive.
Budget-conscious travellers should consider **Egilsstaðir Guesthouse** (Kaupvangur 17), where simple but clean rooms start at 8,500 ISK (€58) nightly. The guesthouse provides kitchen facilities and washing machines—practical amenities for extended East Iceland exploration.
**Wilderness Center Egilsstaðir** (Miðhúsavegur), 7km south of town, offers a unique wilderness lodge experience from 18,000 ISK (€123) per night. The centre provides guided highland access tours and maintains Iceland's most comprehensive collection of wilderness-related literature and maps.
Seyðisfjörður: Artist's Haven
This picturesque fjord town, 27km southeast of Egilsstaðir, combines Scandinavian architectural heritage with contemporary artistic energy. The weekly Smyril Line ferry from Denmark ensures regular international visitors, making advance booking essential from May through September.
**Hotel Aldan** (Norðurgata 2) occupies three meticulously restored 1890s buildings in the town centre. Rooms range from 19,800 ISK (€135) to 34,000 ISK (€232) nightly, with period furnishings and modern amenities thoughtfully integrated. The hotel's Restaurant Aldan showcases East Iceland's emerging culinary scene, featuring langoustine from nearby waters and lamb from highland farms.
**Hafaldan Old Hospital Hostel** (Austurvegur 3) provides budget accommodation in a converted 1930s hospital building. Dormitory beds cost 4,800 ISK (€33) while private rooms start at 14,500 ISK (€99). The common kitchen facilities and central location make this ideal for independent travellers exploring the town's numerous art installations and hiking trails.
Remote Eastfjords Villages
The isolated fishing settlements scattered along East Iceland's deeply carved coastline offer accommodation experiences ranging from luxury eco-lodges to working farm stays. Road 92, the primary Eastfjords route, stretches 340km from Egilsstaðir to Höfn, with accommodation opportunities carefully spaced for practical touring.
**Fosshotel Eastfjords** in Fáskrúðsfjörður (Hafnargata 59) represents the region's most upscale coastal accommodation. This 43-room hotel charges from 26,400 ISK (€180) nightly and provides the only spa facilities between Egilsstaðir and Höfn. The hotel's location, 120km from Egilsstaðir, makes it an ideal midpoint for Eastfjords exploration.
In Djúpivogur, 86km south of Egilsstaðir, **Hotel Framtíð** (Vogaland 4) occupies a restored 1905 merchant's house. Rates from 16,700 ISK (€114) include breakfast featuring locally sourced ingredients. The hotel provides boat tour bookings to nearby Papey island and serves as base for exploring the striking geological formations around Stokksnes peninsula.
Highland Wilderness Lodging
East Iceland's interior presents some of Europe's last true wilderness areas, accessible only during summer months (June-September) and requiring specialised accommodation arrangements.
**Laugarfell Mountain Hut**, 65km southeast of Egilsstaðir via Route F910, offers basic but essential shelter in the Kverkfjöll region. Managed by Ferðafélag Íslands (Iceland Touring Association), beds cost 4,500 ISK (€31) nightly for members, 5,500 ISK (€38) for non-members. The hut provides cooking facilities and serves as base for accessing Kverkfjöll's glacial caves and geothermal areas.
**Snæfell Base Camp**, accessed via the challenging F909 route, provides accommodation for serious highland adventurers at 6,200 ISK (€42) per night. The facility operates June through August only and requires advance booking through local tour operators.
Practical Considerations
East Iceland's accommodation requires more strategic planning than other regions. Weather conditions can close mountain roads with little warning, potentially stranding travellers or forcing lengthy detours. The region experiences some of Iceland's most extreme weather, with winter temperatures regularly dropping below -15°C and summer conditions ranging from Mediterranean warmth to Arctic storms within hours.
Fuel and supplies become increasingly limited away from Egilsstaðir and major coastal towns. Many smaller accommodations close entirely from October through April, while others operate on reduced schedules requiring advance confirmation.
Mobile phone coverage remains spotty throughout much of the region, particularly in the highlands and along remote coastal stretches. Travellers should inform accommodation providers of expected arrival times and carry emergency communication devices for highland ventures.
The reward for careful planning is access to Iceland's most pristine landscapes and authentic cultural experiences, where traditional farming and fishing communities maintain lifestyles largely unchanged for generations.
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Our Verdict
A practical guide worth reading before you go.