Hotels in Iceland provide good standards, are clean, well maintained and comfortable. A good choice of hotels, including budget and 5-star, is available in Reykjavik. In other places of the country hotels are more basic, but still keep the country's good standards.
A chain of tourist class hotels - Fosshotels - offers friendly accommodation throughout the country, with hotels located close to the most popular tourist destinations.
Hostels are a popular and affordable option among younger travelers and traveling families.
The accommodation is in small dorms, for two to six beds, with kitchens and usually family rooms. Hostelling International Iceland operates 33 hostels throughout the country and prices start at ISK 2,500 (about US $20) per night for a bed in shared accommodation or ISK 10,000 (about US $80) for a double room with private facilities.
Guesthouses, available in the larger towns, are less expensive than hotels, but also offer less services. They are good alternative to hostels, particularly when traveling in groups.
A popular accommodation option in Iceland is the chain of farmhouses -
Icelandic Farm Holidays - an association of about 150 farmers who who offer accommodation to travellers in their homes, guesthouses, country-hotels and cottages.
Services and facilities offered depend on the particular location and choice (with or without private bathroom, with or without own sleeping bag, self-catering in cottages etc.), but usually include breakfast and some offer additional recreational options like horse riding, fishing, hunting, sailing, swimming or glacier tours.