The Best Hotels Near Skógafoss: Where to Stay in Skógar (2026)
From a room overlooking the waterfall to a working sheep farm beneath a glacier, these are the best places to stay near Skógafoss.
Most people see Skógafoss for about an hour, maybe more. You’ll pull into the car park mid-morning, walk to the base of the falls, climb the staircase, take the photo, and then carry on towards Vík. Which is precisely why staying overnight here is such a good idea: by early evening the coaches have gone, and one of the most photographed waterfalls in Iceland is suddenly close to empty. One of my favourite memories of Iceland ever is wandering around the area after dinner in the summer, with the golden hour light making the entire place feel like a paradise. It’s a side of the waterfall that most road-trippers don’t see.
The catch is that Skógar is tiny. There's no supermarket, the dining options are limited to the restaurant at Hótel Skógafoss, whose kitchen closes at 9:00pm. The nearest town conveniences are 30 minutes away in either direction, so it’s important to note that otel , and the nearest town conveniences are 30 minutes away in either direction. So, it’simportant to note that when you’re staying in a place like this, the hotel restaurant usually is dinner. And kitchens in the countryside close early — last orders at 8:30pm is common, and 9pm is pushing it. There’s also no real late-night fallback within reach of Skógar.
With that in mind, what follows are the five places I'd actually book, from the two hotels at the falls themselves to the farm stays and design hotels within a fifteen-minute drive.
Which hotel near Skógafoss should you book?
Here’s the short version: Hótel Skógafoss if you want to be at the waterfall with a restaurant on-site; Hótel Skógá if you want the same location for less and don't mind self check-in and walking over to the other hotel for dinner; Drangshlíð for families and a proper farm setting; Skálakot if you want the best small hotel within reach of the falls; and Umi if design matters most.
| Hotel | Best For | Price | Distance to Skógafoss | Dining On-Site | Rates |
|---|---|---|---|---|---|
| Hótel Skógafoss | At the falls, with a restaurant | $$$ | 5-min walk | Yes (bistro & bar) | Check rates |
| Hótel Skógá | The affordable Skógar base | $$ | 5-min walk | No | Check rates |
| Hotel Drangshlíð | Families, farm setting | $$ | 5-min drive | Yes | Check rates |
| Skálakot Manor Hotel | The best small hotel nearby | $$$$ | 20-min drive | Yes (restaurant) | Check rates |
| Umi Hotel | Design-led comfort | $$$$ | 15-min drive | Yes (restaurant & bar) | Check rates |
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1. Hótel Skógafoss — Skógar
The hotel at the waterfall itself.
If being as close to the waterfall as possible is the whole point of the stay, this is the booking. Hótel Skógafoss sits directly across from the falls, under a 10-minute walk from the base, with a bistro and bar whose glass walls frame Skógafoss while you eat. The truth is that this is a hotel that could rest on its location alone, but doesn’t. The rooms are individually designed by local artists, which gives the place more character than the standard South Coast roadside hotel, and the floor heating and blackout curtains cover the practical side of an Icelandic winter or midnight sun.
A stay here means you can enjoy Skógafoss in the midnight sun, under the northern lights, and in the early morning before hordes of visitors arrive for the day. The same goes for the other waterfall in the area, Kvernufoss; stay here and you can take the time to walk over in that direction instead of using the official parking area, which is now paid. I’ve been to Skógafoss more times than I can count, and even though it’s gaining in popularity, the pattern remains the same: Kvernufoss receives a fraction of the visitors that Skógafoss does.
Others who might be interested in this hotel are those undertaking the Fimmvörðuháls trail. This makes a good base for the night beforehand or after you’ve finished your trek if you’re coming from Thórsmörk, with comfy beds and a warm meal.
2. Hótel Skógá — Skógar
The same location for less.
A few hundred metres from its sister property, Hótel Skógá is the budget-conscious way to sleep in Skógar. It’s cheaper because it’s a smaller, self check-in hotel. It has just twelve rooms, no front desk, and access is via codes sent the day before you arrive. It’s also simple, with comfortable rooms, blackout curtains, bathrooms a bit on the smaller side, and no restaurant of its own, so you’ll have to walk over to the Skógafoss Bistro & Bar for dinner. Which in practice is no hardship given that it’s basically next door.
Essentially, this is a place to sleep close to the falls. You’re paying for a clean bed, a hot shower, and to be within walking distance to one of Iceland’s greatest waterfalls. And if you’re running a tight South Coast itinerary and want the empty-evening version of Skógafoss without paying the higher prices of Hótel Skógafoss, this is the hotel for you.
3. Hotel Drangshlíð — Skógar (Drangshlíð farm)
A farm hotel beneath one of South Iceland's most storied rocks.
Leaving Skogar now, we head five minutes west of the falls to Hotel Drangshlíð, a property that sits on a farm at the base of Drangshlíð rock, a huge freestanding crag with old turf-fronted outbuildings built directly into its side. Icelandic folklore holds that the rock is home to elves, and whatever your position on that, it's an undeniably atmospheric thing to wake up next to, with Eyjafjallajökull rising behind the property. The rooms are spread across three buildings, all with private bathrooms, and the family rooms, which can sleep up to five, make this one of the more practical options near Skógafoss for anyone travelling with kids.
This is a simple country hotel rather than a designed one, and it's best approached that way: comfortable beds, an à la carte restaurant and bar on-site so you're not driving anywhere after dinner, and a setting that does the heavy lifting. Rútshellir, said to be the largest man-made cave in Iceland, is just along the road, and the hidden Seljavallalaug pool is a short drive west. If you want farm atmosphere, space for a family, and a proper dinner without paying waterfall-frontage rates, this is the pick.
4. Skálakot Manor Hotel — under Eyjafjallajökull
One of the best small hotels in South Iceland, full stop.
Twenty minutes west of Skógafoss, Skálakot is a working horse farm run by Mummi and Jóhanna, with 14 individually designed rooms set in countryside that runs down to the sea. The setting alone would justify a stay — sweeping pasture, the family's own herd of Icelandic horses, riding access to a black sand beach — but it's the food and service that lift it above most country-house hotels in Iceland. The restaurant is consistently among the most praised in the South, the spa building keeps its hot tub and sauna in a quiet outbuilding of its own, and the rooms are done in a contemporary-rural register that would not look out of place on Mr & Mrs Smith.
This is one of those rare hotels where the hosts matter as much as the rooms — Mummi, Jóhanna, and the team are a large part of why guests come back, and the riding tours run from the farm's own stables rather than a third-party operator. The one honest caveat: bathrooms run small, particularly in some of the older rooms, which is the only recurring complaint in an otherwise glowing reception. You give up walking distance to the falls for it, but if you want one stay on this coast that feels like a destination in itself rather than a base, this is it.
5. Umi Hotel — beneath Eyjafjallajökull
The design-led choice between Skógafoss and Seljalandsfoss.
Fifteen minutes west of Skógafoss, Umi is the property to book when the hotel itself is meant to be part of the trip. It's a low, dark, geometric building set two kilometres off the Ring Road at the foot of Eyjafjallajökull, family-run, with 28 rooms facing either the mountains or the sea, a restaurant with views out towards the Westman Islands, a bar by the fire, and a sauna at one end of the building. A footpath leads from the hotel through the fields to its own stretch of black sand beach, which is the kind of detail that justifies the rate on its own.
The position works as well as the design does. You're between Seljalandsfoss and Skógafoss — both within an easy reach — which makes Umi a natural one-or-two-night base for the western half of the South Coast before pushing on towards Vík. In winter there's an aurora wake-up service, and the open, light-pollution-free plain in front of the hotel is about as good a viewing platform as the south offers. The caveats: the hotel is undergoing exterior renovation works scheduled to run until late October 2026 (confined to weekday business hours, but worth confirming with the hotel if your dates fall within that window), rooms run on the smaller side for the price, and this is the most expensive option on this list by a clear margin. If that's within budget and you want one polished, comfortable night between the waterfalls, this is where to spend it.
Staying near Skógafoss: your questions answered
Can you stay right next to Skógafoss?
Yes. Two hotels sit in Skógar itself, both within walking distance of the falls: Hótel Skógafoss, an eight-minute walk away with a bistro and bar overlooking the waterfall, and Hótel Skógá, a smaller self check-in property about fifteen minutes' walk away. There's also a campsite at the base of the falls in summer.
Is it worth staying overnight at Skógafoss?
If your itinerary allows it, very much so. Skógafoss is one of the busiest stops on the South Coast between mid-morning and late afternoon, but the coaches clear out by evening, and overnight guests get the falls close to empty — Skógar at 9pm on a July evening, with the spray catching the low light and nobody on the staircase, is one of my favourite versions of the South Coast. It also positions you perfectly for an early start towards Reynisfjara, Vík, or the Glacier Lagoon before the day-trip traffic arrives.
Where do you eat near Skógafoss?
Options are limited, so plan around them. The Skógafoss Bistro & Bar at Hótel Skógafoss is the main restaurant in Skógar itself, Hotel Drangshlíð has an à la carte restaurant five minutes east, and Skálakot's restaurant — twenty minutes west — is worth the drive in its own right. There's a street food shack near the falls in season. Whichever you choose, confirm the kitchen's last orders when you check in — country kitchens in Iceland close earlier than most visitors expect. There's no supermarket in Skógar either; the nearest proper shops are in Vík (30 minutes east) or Hvolsvöllur (35 minutes west), so arrive stocked if you're self-catering.
Which hotel near Skógafoss is best for families?
Hotel Drangshlíð, whose family rooms sleep up to five across its farm buildings, with a restaurant on-site and animals around the property. Skálakot is the other option worth considering for horse-mad children, with riding tours running from the farm's own stables, though it's a pricier proposition.
Can you see the northern lights from Skógar?
Yes, in season and with the usual caveats of darkness, clear skies, and solar activity. Skógar and the surrounding farmland have very little light pollution, and the aurora over Skógafoss itself is one of the South Coast's signature winter sights. Umi Hotel offers an aurora wake-up service for nights when the forecast looks promising.
Is Skógafoss better as a base than Vík?
They do different jobs. Vík has restaurants, a supermarket, and fuel within walking distance, which makes it the more practical overnight stop — I've covered the best options there separately. Skógar trades all of that for proximity to the waterfall and a quieter night. On a multi-day South Coast itinerary, a night near Skógafoss followed by a night in or beyond Vík is the natural rhythm.