Stays in Iceland
Budget & guesthouse · Seyðisfjörður

Best Budget Stays in Seyðisfjörður, Iceland

Seyðisfjörður is a small fjord town in East Iceland with a short list of places to stay, and several of them suit a careful budget. The choices are a hostel in an old hospital building, a hostel on the harbour, guesthouses with a communal or shared kitchen, and two guesthouses with private bathrooms and free parking. Hafaldan HI hostel in the old hospital, Seydisfjördur Guesthouse and Við Lónið Guesthouse are the three I would open first. Check whether a room has a private or shared bathroom before you book, because that is the biggest difference between the cheaper options here.

Seyðisfjörður is a small fjord town in East Iceland, reached by a mountain road, with colourful wooden houses, a harbour and the Smyril Line ferry terminal. It is calm and creative, with few services and a lot of nature close by.

6 staysUpdated October 12, 2026

Where to stay

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Hostels, kitchens and private bathrooms

Why Seyðisfjörður works on a budget

Hafaldan HI hostel in the old hospital building is the most reviewed stay in town, with more than 1,580 reviews and a score of 8.6. It offers rooms with fjord views and free WiFi, a fully equipped kitchen, a lounge and a barbecue area, and it also has a sauna and spa area, a children's playground and a fishing lake on site. For a low budget, a hostel with a full kitchen and a sauna is hard to beat, as long as you accept shared facilities and a simple setting without hotel service.

Seydisfjördur Guesthouse has fjord-view rooms, a garden, a fully equipped communal kitchen and a laundry room, and it is about a 5-minute walk from the town's swimming pool, sauna and hot tub. It scores 8.6 from 546 reviews, and rooms come with private or shared bathrooms, so pick carefully. The laundry room and the kitchen mean you can travel light and cook, which keeps the cost of a longer stay under control in a small town with few restaurants and no supermarket chain nearby. That makes it a sensible base for a few nights.

If you want a private bathroom without a hotel, Við Lónið Guesthouse is a characterful wooden building with Scandinavian minimalist design and original wood furnishings, and each room has a private bathroom with a walk-in shower and a coffee machine. It scores 9.2 from 449 reviews and has fjord views. Curry house rooms also offers private bathrooms with free toiletries, a terrace, free WiFi and free private parking, scoring 9.2 from 109 reviews, and it lists Gufufoss waterfall 3.9 km away. These two are the better choice if shared bathrooms put you off.

For families or groups, Media Luna Guesthouse offers family rooms with private bathrooms, walk-in showers, free WiFi, a shared kitchen, an outdoor seating area and free on-site parking, 4 km from Gufufoss, but it scores 8.1, so read recent comments. Hafaldan HI Hostel - Harbour Building has family rooms with private entrances and parquet floors, a lounge and a shared kitchen with mountain and sea views, though bathrooms are shared and its score is 8.1. Both give a family more privacy than a dormitory bed. Neither suits a solo traveller as well as a family.

A traveler's take

For the lowest cost with a kitchen and a sauna, I would book Hafaldan HI hostel in the old hospital and accept the shared facilities. If I wanted a private bathroom and a quiet room, I would choose Við Lónið Guesthouse for its 9.2 score and its wooden house. For a car and a waterfall day, I would pick Curry house rooms with its free parking.

Við Lónið GuesthouseBudget & guesthouse
Seyðisfjörður

Við Lónið Guesthouse

★★★★★4.6(449)
Budget & guesthouse

Fjord-view rooms in a historic wooden house with minimalist design

Why guests love it

Við Lónið Guesthouse occupies a characteristic wooden building in Seyðisfjörður, with Scandinavian minimalist design and original wood furnishings. Each room has a private bathroom with a walk-in shower, a coffee machine and views of the fjord and the town, and parking is available on site. Guests rate it 9.2 across 449 reviews. I would choose it for couples and design-minded travellers who want a calm base.

4.6Guest score
Available
Curry house roomsBudget & guesthouse
Seyðisfjörður

Curry house rooms

★★★★★4.6(109)
Budget & guesthouse

Comfortable guest house with private bathrooms and free parking in Seyðisfjörður

Why guests love it

I would choose Curry House Rooms for a plain, comfortable night in Seyðisfjörður. The guest house rooms have private bathrooms with showers and free toiletries, and there is a terrace, free Wi-Fi and free private parking on site. Gufufoss waterfall is 3.9 km away. Guests rate it 9.2 across 109 reviews. It focuses on a good night's rest rather than extras, so I would pick it for couples and budget-minded travellers who want the basics done well.

4.6Guest score
Available
Seydisfjördur GuesthouseBudget & guesthouse
Seyðisfjörður

Seydisfjördur Guesthouse

★★★★★4.3(546)
Budget & guesthouse

Fjord-view rooms with a communal kitchen and easy access to town spa facilities

Why guests love it

Seydisfjördur Guesthouse is 25 minutes from Egilsstaðir Airport, with fjord-view rooms, free Wi-Fi and a garden. Guests share a fully equipped communal kitchen and a laundry room, and the town's swimming pool, sauna and hot tub are a five-minute walk away. Private and shared bathrooms are both offered. Guests rate it 8.6 across 546 reviews, and I would pick it for travellers who want a self-catering base in Seyðisfjörður.

4.3Guest score
Available
Hafaldan HI hostel, old hospital buildingBudget & guesthouse
Seyðisfjörður

Hafaldan HI hostel, old hospital building

★★★★★4.3(1583)
Budget & guesthouse

Fjord-view rooms in a historic building with a sauna and spa

Why guests love it

Hafaldan HI hostel, old hospital building sits in Seyðisfjörður village with fjord views and free Wi-Fi. Guests share a fully equipped kitchen, a lounge and a BBQ area, and there is a sauna, a spa, a children's playground and a fishing lake on site. The Seyðisfjörður Swimming Pool is 30 metres away and parking is free. Guests rate it 8.6 across 1,583 reviews, and I would pick it for families and groups.

4.3Guest score
Available
Media Luna GuesthouseBudget & guesthouse
Seyðisfjörður

Media Luna Guesthouse

★★★★★4.1(374)
Budget & guesthouse

Family rooms with private bathrooms and a shared kitchen near Gufufoss

Why guests love it

Media Luna Guesthouse in Seyðisfjörður is 4 km from Gufufoss and offers family rooms with private bathrooms, walk-in showers and free Wi-Fi. Guests share a kitchen and an outdoor seating area, and private parking on site is free. Guests rate it 8.1 across 374 reviews. I would choose it for families and couples who cook for themselves and want a practical, quiet base rather than hotel service.

4.1Guest score
Available
Hafaldan HI Hostel - Harbour BuildingBudget & guesthouse
Seyðisfjörður

Hafaldan HI Hostel - Harbour Building

★★★★★4.1(368)
Budget & guesthouse

Family rooms with private entrances and mountain-sea views in Seyðisfjörður

Why guests love it

Hafaldan HI Hostel - Harbour Building in Seyðisfjörður has family rooms with private entrances and parquet floors. Bathrooms are shared, and guests use a lounge and a shared kitchen. Wi-Fi is free, the street is quiet, and the views take in mountains and sea. Gufufoss is 4.1 km away. Guests rate it 8.1 across 368 reviews. I would pick it for no-frills stays and families happy with shared bathrooms.

4.1Guest score
Available

Local tips

  1. 1Choose a stay with a kitchen, such as Hafaldan HI hostel or Seydisfjördur Guesthouse, and shop for groceries before you arrive.
  2. 2Check whether the bathroom is private or shared; Við Lónið Guesthouse and Curry house rooms list private bathrooms, while the Hafaldan Harbour Building lists shared ones.
  3. 3Use free parking at Media Luna Guesthouse and Curry house rooms if you drive the mountain road.
  4. 4Use the laundry room at Seydisfjördur Guesthouse to pack lighter on a longer road trip.
  5. 5Check road conditions on the mountain road in winter, since the descent into the fjord is steep.
  6. 6Book early for summer weekends, because the number of beds in town is small.

Related searches

Budget & guesthouse · Frequently asked questions

Yes. Hafaldan HI hostel in the old hospital has a fully equipped kitchen, Seydisfjördur Guesthouse has a fully equipped communal kitchen, and Media Luna Guesthouse and the Hafaldan harbour building have shared kitchens. Cooking is the easiest way to keep daily costs down here.

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