Trip Details: Annotated Map Photo Gallery Itinerary
Insights: Driving Reykjavik-Weather-Sites/Apps
We decided to stay at 3 star hotels during the trip. But, there are plenty of other options in Iceland from hostels to guesthouses. We used bookings.com to reserve accommodations primarily with the Fosshotel chain. The photos and reviews were pretty accurate and the pricing was a low as any other site. Beware that the free cancellation policy applies until about 5 days before the reservation date.

The rooms we reserved were generally small with two twin beds, all had WIFI connectivity. Except in Reykjavik, the only dinner options were at the hotels which far exceeded expectations and the breakfast buffets were wonderful. Enjoy the waffles!!!
Fosshotel Baron (Reykjavik) – Great location 1 block from the bay with free street parking though rooms were a bit run down. Staff was great as they accommodated our 8a arrival allowing us to check in early. This could by why we had a room a bit run down. This is a main hotel for local multi-day tours.
Fosshotel Hellnar (Snaefellsnes Peninsular) – Ocean and Mountain Views, very friendly staff, very short walk to Hellnar – Arnastapi hiking trail.
Hotel Gulfoss (end of Golden Circle) – Wonderful modern hotel that offered 4 star quality. Isolated near the Gulfoss Waterfall. An option to consider nearby is to book a hotel in Fludir (about 30 min from Gulfoss Waterfalls) so you can end the day at the Secret Lagoon
Fosshotel Nupara (near Skaftafell) – Mountain, glacier views, quite new, very helpful staff.

Hotel Katla (outside Vik) – friendly staff who upgraded us to the modern wing with larger, newer rooms, provided great directions to spot Puffin sea birds, the property has hot tub with geothermal heated water and offers a dinner buffet for $62 which offered variety and quantity but quality couldn’t compare to other hotels. Recommend eating out in Vik rather than the hotel. This hotel accommodates large tour groups.
Fosshotel Reykjavik – a bit away from main drag but still within walking distance. It’s a typical business hotel with smallish rooms. Parking can be difficult either paid (1.70 /hr 10a-6p) on the street or in garage below the hotel. There’s nowhere to pull up to unload your luggage.