Where to sleep in Iceland? My good addresses on the circular route

Finding where to stay inexpensively in Iceland is a real challenge that we tried to meet with my friend Shekhar during our 3-week winter road trip . When we organized this trip to Iceland , we looked at the question of renting a van and sleeping wherever we wanted, or renting a car and sleeping in inexpensive accommodation . In the end, we calculated that for the price of renting the van for nearly 3 weeks, we had a budget of 100 € per night. We therefore studied the price of hostels around the circular route. and we were told that it was quite possible to find overnight stays below this price. By searching carefully, we found some really good hostels (even in the south and the golden circle, but not necessarily with the same value for money). Discover my guide Where to sleep inexpensively in Iceland ?

Cheap sleep in Iceland: our needs

With our tight budget for 3 weeks in Iceland in winter  (1500 € per person), we quickly realized that we would have to make compromises to find expensive accommodation. It was pretty obvious to us that we should book hostels with kitchens to avoid either eating badly or spending monstrous bucks on restaurants.

Our selection criteria were therefore as follows:

  • Single room with twin beds
  • between 60 and 100 € maximum per night
  • A common kitchen to be able to cook us dinner (that automatically excluded hotels)
  • A shared or individual bathroom
  • A good value for money anyway (which we evaluated according to the ratings given on  online booking site , the site through which we booked all our nights)

As far as the eastern fjords, we booked our hostels a day or two in advance, it was difficult to predict with the Icelandic weather which can change really quickly . From Höfn we really had to book for our last week as there were no great options left in the south and the Golden Circle, the two most explored areas in winter in Iceland.