Budget Stays in Sauðárkrókur, North Iceland
Sauðárkrókur is the main town of Skagafjörður, set at the head of the fjord with Tindastóll mountain rising behind it, and it is one of the few places in North Iceland where budget travellers have a real choice of beds. The four stays listed here are guesthouses and an apartment, and all score between 8.4 and 9.2. Helluland Guesthouse and Grand-Inn Bar and Bed keep costs down with shared kitchens, Karuna Guesthouse adds a sauna, hot tub and steam room, and Brim Guesthouse offers a two-bedroom apartment with sea views. Drangey island and the Grettislaug hot pool are close by.
Sauðárkrókur is the largest town in Skagafjörður and the service centre for a wide farming district known for horses. It is a working town with a harbour, shops, schools and a long beach along the fjord. Tindastóll stands to the north, Drangey sits in the bay, and the town gives travellers supplies and a base rather than a tourist scene.
Where to stay
Shared kitchens and fjord views on a budget
Travelling on a budget in North Iceland usually means a shared kitchen and a simple room, and Sauðárkrókur offers both without giving up comfort. The town has supermarkets, a swimming pool and restaurants, so self-catering is easy, and its position on the fjord gives access to Drangey, Tindastóll and the turf buildings of the valley. I would choose Helluland Guesthouse for its score and its kitchen, or Karuna Guesthouse if spa facilities make a long driving day easier to end.
Helluland Guesthouse is the strongest budget pick on paper, with a 9.1 score from 543 reviews. It offers family rooms with parquet floors, a desk and a wardrobe, and the bathrooms are shared, which is the usual trade-off for a lower rate. Guests can see the sea, the garden or the town from their rooms, and they share a kitchen, a sun terrace and outdoor seating. Free WiFi and private parking complete the offer. I recommend it to travellers who want to cook their own meals and still sleep somewhere with a long record of satisfied guests.
Grand-Inn Bar and Bed occupies a historic building in Sauðárkrókur and suits families and couples on a budget. It has a sun terrace, a garden, outdoor seating, free WiFi, a bar and a shared kitchen, and it scores 8.4 from 238 reviews. The bar is the main difference from the other guesthouses: you can have a drink on site after a day out without driving. Skiing on Tindastóll in winter and hiking in summer are both within reach. I would choose it if character and a social evening matter more to you than a private bathroom.
Karuna Guesthouse is the most reviewed stay here, with a 9.0 score from 802 reviews. Its family rooms have private bathrooms, garden views and soundproofing, and guests can use a sauna, a hot tub and a steam room, which is unusual at this level. A sun terrace, outdoor seating, free WiFi and private parking complete the offer, and the guesthouse accepts pets. After a cold boat trip to Drangey, the cliff island in the fjord where seabirds nest in summer, the spa facilities are a real asset. It is the best choice for a budget stay with a little comfort added.
Brim Guesthouse, with ocean view, rents a two-bedroom apartment with a private entrance, a fully equipped kitchen, a dining area, air conditioning and a washing machine. It scores 9.2 from 92 reviews, the highest result in this group, and the property has sea, lake and mountain views with free private parking. For a family or two couples sharing, splitting a whole apartment is often the most economical choice. From town, the Grettislaug hot pool at Reykir lies further north along the fjord shore, and the 1238 Battle of Iceland exhibition in Sauðárkrókur covers the Sturlung era.
A traveler's takeIf I were crossing North Iceland on a tight budget, I would book Helluland Guesthouse for its shared kitchen and its 9.1 score from 543 reviews. I would cook in town, then drive north along the fjord to the Grettislaug hot pool at Reykir, and keep a calm day for the boat trip to Drangey, one of the most striking islands in the north.
Budget & guesthouseBrim Guesthouse, with ocean view
Comfortable apartment with private entrance and panoramic views
Why guests love itI would choose Brim Guesthouse for a family or couple who want a two-bedroom apartment with its own entrance in Sauðárkrókur. There is a fully equipped kitchen and a dining area, plus free Wi-Fi, air-conditioning, a washing machine and free private parking. The property looks out over the sea, a lake and the mountains. Guests rate it 9.2 across 92 reviews. I would pick it for independent stays where flexibility matters more than hotel service.
Budget & guesthouseHelluland Guesthouse
Comfortable guesthouse with family rooms and views in Sauðárkrókur
Why guests love itHelluland Guesthouse in Sauðárkrókur has family rooms with parquet floors and shared bathrooms. Rooms have a work desk and a wardrobe, with sea, garden or city views. Guests share a kitchen and can use a sun terrace, a garden and outdoor seating, and Wi-Fi and private parking are free. Guests rate it 9.1 across 543 reviews, and I would pick it for families who accept shared bathrooms.
Budget & guesthouseKaruna Guesthouse
Family-friendly guesthouse with spa facilities and garden views
Why guests love itKaruna Guesthouse in Sauðárkrókur has family rooms with private bathrooms, garden views and soundproofing. The spa side is unusual for a guesthouse: a sauna, a hot tub and a steam room, with a sun terrace and outdoor seating. WiFi and private parking are free, and pets are welcome. Guests rate it 9 across 802 reviews. Our editorial verdict: a well-reviewed family-friendly stop in north Iceland, with a spa to end the day.
Budget & guesthouseGrand-Inn Bar and Bed
Historic charm with a sun terrace and shared kitchen in Sauðárkrókur
Why guests love itGrand-Inn Bar and Bed occupies a historic building in Sauðárkrókur and is aimed at families and couples on a budget. There is a sun terrace, a garden and outdoor seating, plus free WiFi, a bar and a shared kitchen where a family can prepare simple meals. The listing mentions skiing and hiking nearby. A rating of 8.4 across 238 reviews is good for the category. I would choose it for a budget stay with character rather than for privacy.
Local tips
- 1Cook in the shared kitchens at Helluland Guesthouse or Grand-Inn Bar and Bed to keep daily costs down.
- 2Buy groceries in Sauðárkrókur, the main town of Skagafjörður, before heading to rural parts of the valley.
- 3Book Brim Guesthouse if you travel as a group, since a two-bedroom apartment splits well between four people.
- 4Choose Karuna Guesthouse if you want a sauna, hot tub and steam room without leaving the budget range.
- 5Plan the Drangey boat trip for a calm day; the crossing and the climb are weather dependent.
- 6Visit the Grettislaug hot pool at Reykir for a soak by the fjord after a day of driving.