Where to Stay Near Diamond Beach: The Ultimate Guide to Southeast Iceland Stays

If you’re planning a trip to Southeast Iceland, one of the first questions you’ll face is where to stay near Diamond Beach. This area, home to the glittering black-sand shoreline of Diamond Beach and the world-famous Jokulsarlon Glacier Lagoon, has relatively limited accommodation options, making your choice of base critical. The right stay will save you hours of driving, help you make the most of your sightseeing days, and give you a cozy retreat after long adventures.

During our summer trip, we stayed in the remote Southeast region and fell in love with Nonhamar Cottages, which became our personal top pick. But there are other great options as well, from luxury lagoon-side hotels to mid-range lodges and convenient town-based properties. In this guide, we’ll break down the best choices, share detailed insights about Nonhamar, and offer practical tips to help you plan your visit.

Quick Picks: Best Places to Stay Near Diamond Beach

These four options represent different travel styles and priorities, making it easy to pick the stay that fits your Iceland adventure.

Style	Property	Notes
Cozy & Rural	Nonhamar Cottages	Ideal for couples or small groups, private cottages with kitchen, deck, and stunning views.
Classic Hotel	Fosshotel Glacier Lagoon	Mid-range comfort, convenient location, restaurant on-site.
Splurge / Luxury	Hotel Jokulsarlon – Glacier Lagoon Hotel	Right at the lagoon, perfect for luxury seekers and minimal driving.
Ring Road / Town Base	Milk Factory Hotel (Hofn)	Great if you want a town vibe, restaurants, and easy access to the Ring Road.

Exploring Diamond Beach and Jokulsarlon Glacier Lagoon

If you’re wondering where to stay near Diamond Beach, it helps to know exactly what makes this area so special. Located on Iceland’s southeast coast, just off the Ring Road, Diamond Beach sits directly across from Jokulsarlon Glacier Lagoon. The lagoon itself is fed by the massive Vatnajokull Glacier, one of Europe’s largest glaciers, and icebergs calve from the glacier into the lagoon, eventually drifting out to the Atlantic. Some of these ice chunks wash ashore on Diamond Beach, creating the iconic sight of sparkling ice scattered across black volcanic sand — hence the “diamond” name.

Jokulsarlon is one of Iceland’s most photographed destinations, and for good reason. The lagoon is alive with floating icebergs that range from brilliant white to deep sapphire blue, and if you’re lucky, you might spot a seal bobbing between them. The ever-changing ice formations mean no two visits are alike, and the light throughout the day — particularly at sunrise or sunset — can transform the landscape into a photographer’s dream.

Diamond Beach is perfect for a leisurely walk. Ice chunks glint like gemstones under the sun, and the contrast between the black sand and icy blue makes for stunning photos. Many visitors start here before heading to the lagoon, or combine the two in one trip. Both sites are accessible directly from the Ring Road, making them convenient to pair with nearby attractions like Fjallsarlon Glacier Lagoon or Skaftafell National Park.

Where to Stay Near Diamond Beach and Jokulsarlon

When planning your visit to Southeast Iceland, choosing the right base can make all the difference. Staying near Diamond Beach and Jokulsarlon Glacier Lagoon gives you easy access to these iconic sites, minimizes driving time, and lets you soak in the remote Icelandic landscape. Whether you prefer a cozy countryside cottage, a mid-range hotel, a luxury lagoon-side property, or a town-based option with restaurants and amenities, there’s a spot to suit every travel style.

Below are our top four picks for accommodations in the area, each with its own vibe and advantages:

1. Nonhamar Cottages: Cozy, Remote, and Perfect for Adventurers

We stayed at Nonhamar Cottages and loved every minute. Here’s why we think it’s one of the best options for travelers wondering where to stay near Diamond Beach.

Location & Accessibility

• About 1.5 hours from Hofn and 2 hours from Vik.
• Conveniently off the Ring Road, near Jokulsarlon, Diamond Beach, Skaftafell National Park, and Fjallsarlon Glacier Lagoon.
• Ideal for travelers who want to explore the Southeast without spending hours driving each day.

Accommodation Features

• Cottages for 2–3 guests, with one small bedroom, a living space/main bedroom, kitchen, and bathroom.
• Deck with stunning views of wide-open fields and mountains—sheep included!
• Amenities include blackout curtains, WiFi, and free parking.
• Self check-in makes arrivals easy, even after a long drive from Reykjavik.

Pros & Cons

Pros:

• Prime location for visiting Jökulsarlon, Diamond Beach, and surrounding natural attractions.
• Private, quiet, and peaceful, perfect for unwinding after a day of adventure.
• Space to cook and stretch out, which feels luxurious after multiple nights in hotel rooms.

Cons:

• Bathroom is small, typical of a cottage in remote Iceland.
• Main bedroom doubles as the living space, so minimal separation for privacy.
• Limited nearby restaurants and shops—stock up in Vik or Hofn before arrival.

[Check prices & book Nonhamar Cottages →]

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Why We Loved Nonhamar Cottages

One of the highlights of staying at Nonhamar was the feeling of being immersed in Iceland’s natural beauty. From our deck, we could watch sheep grazing against a backdrop of distant mountains. The cottages are modern, clean, and well-equipped, but they still feel cozy and personal.

We appreciated the kitchen, which allowed us to prepare our own breakfast and dinner. After long days of kayaking at Jokulsarlon and hiking Mulagljufur Canyon, coming back to our own space felt like a real retreat. Even the small touches, like blackout curtains and a tiny deck for morning coffee, made a difference.

For travelers asking where to stay near Diamond Beach, Nonhamar offers a unique experience you won’t find in standard hotels—quiet, remote, and right in the heart of Southeast Iceland’s natural wonders.

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2. Fosshotel Glacier Lagoon: Reliable Mid-Range Option

If you prefer hotel-style accommodations, Fosshotel Glacier Lagoon is an excellent choice.

• Located between Skaftafell and Jokulsarlon, making it a convenient base for day trips.
• Offers comfortable rooms, an on-site restaurant, and standard hotel amenities.
• Ideal if you want a mid-range stay with minimal fuss, yet still close to the natural attractions.

Pros: convenient, reliable, on-site dining.
Cons: less privacy and charm compared to a cottage like Nonhamar.

[Check prices & book Fosshotel Glacier Lagoon →]

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3. Hotel Jokulsarlon – Glacier Lagoon Hotel: Luxury Option

For travelers seeking luxury right at the lagoon, Hotel Jokulsarlon is unbeatable.

• Located right on Jökulsarlon Glacier Lagoon, perfect for sunrise and sunset photography.
• On-site restaurant and modern amenities.
• Minimal driving needed to reach Diamond Beach and the lagoon.

Pros: luxury experience, unbeatable location, perfect for photographers.
Cons: higher cost, less secluded feel than a cottage.

[Check prices & book Hotel Jokulsarlon →]

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4. Hofn: Town Base for Ring Road Travelers

If you’re traveling along the Ring Road and want a town vibe with services, Hofn is a good option.

• Milk Factory Hotel and similar properties provide access to restaurants, shops, and a more urban environment.
• About 1–1.5 hours from Diamond Beach / Jokulsarlon, still feasible for day trips.
• Ideal if you want more amenities or are using Hofn as a base for multiple stops along the Ring Road.

Pros: restaurants, town services, convenient for multi-day Ring Road trips.
Cons: requires a drive to reach Diamond Beach and Jokulsarlon.

[Check prices & book Milk Factory Hotel →]

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How to Choose the Right Stay

• For cozy, rural vibes: Nonhamar Cottages
• For mid-range hotel comfort: Fosshotel Glacier Lagoon
• For luxury / lagoon access: Hotel Jokulsarlon
• For a small town base on the Ring Road: Hofn hotels

Each option offers a slightly different experience, so consider what matters most: privacy and nature, hotel convenience, luxury, or town amenities.

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Tips for Visiting Diamond Beach and Jokulsarlon

• Book early: Accommodations in Southeast Iceland are limited, especially during peak season.
• Consider travel time: Some places like Nonhamar are remote—plan your driving and sightseeing accordingly.
• Pack for variable weather: Even in summer, weather can change quickly.
• Take advantage of your base: Whether you’re at a hotel or cottage, plan early mornings or late evenings to avoid crowds at Diamond Beach and Jokulsarlon.

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Final Thoughts

Knowing where to stay near Diamond Beach can make your Iceland trip far more enjoyable. Our pick, Nonhamar Cottages, offers a unique combination of privacy, charm, and proximity to the area’s incredible natural wonders. But depending on your travel style, Fosshotel Glacier Lagoon, Hotel Jokulsarlon, or a Hofn town base might be the better fit.

No matter which option you choose, this guide to where to stay near Diamond Beach will help you make the most of your visit to Jokulsarlon and the Southeast region of Iceland.

[Check prices & book Nonhamar Cottages →]
[Check prices & book Fosshotel Glacier Lagoon →]
[Check prices & book Hotel Jokulsarlon →]
[Check prices & book Milk Factory Hotel →]

Best For…

Nonhamar cottages are best suited for couples or small groups/families of 3 people, or even the solo traveler looking for some space to stretch out. Each cottage offers three twin beds, a small living space, a kitchen, and bathroom.

While listed as two bedrooms, Nonhamar Cottages have one main living space with two twin beds, as well as a separate small bedroom with one twin bed.

Limited Availability

There are only a handful of cottages available to rent at Nonhamar. For the best availability, be sure to book Nonhamar Cottages in advance! They offer free cancellation, so you can secure your spot now and adjust your plans later if needed.

Location & Getting There

Nonhamar Cottages is in Hof, Iceland, conveniently located right off the Ring Road (Highway 1).

Nonhamar Cottages is in a remote area of Southeast Iceland. It’s about a two hour drive from Vik, and about an hour and a half from Hofn.

If you’re traveling from Reykjavik (or the airport), it’s about a 4.5 to 5 hour drive.

Note: If you arrive into Reykjavik airport and make this drive, be sure to drive with caution, especially if you’re jet-lagged. We did this drive, and it made for a long day (especially for Steve, as our designated travel driver). We made lots of stops along the way to make the drive more manageable.

Nearby Attractions & Activities

In our view, Nonhamar’s remote location makes it perfect for those who are looking to get off the beaten path – and away from the crowds – on their trip to Iceland.

Whether you’re traveling the Ring Road all the way around Iceland over the course of a couple weeks, or just venturing along Iceland’s south coast as far as Jokulsarlon, Nonhamar Cottages is ideally located.

Here’s a list of attractions you can reach in less than 30 minutes from Nonhamar Cottages:

• Jokulsarlon Glacier Lagoon
• Diamond Beach
• Mulagljufur Canyon
• Skaftafell National Park
• Fjallsarlon Glacier Lagoon
• Vatnajokull Glacier
• Svínafellsjökull Glacier
• Hofskirkja (traditional turf church)

We know, it’s a long list! And that’s exactly why we wanted to share this Nonhamar Cottages review with you. It makes for the perfect base for outdoor adventuring in Southeast Iceland.

Key Pros & Cons of Nonhamar Cottages

As we mentioned, we absolutely loved our stay at Nonhamar Cottages, but we’ll always share the good and the bad with you.

Keep reading for our full Nonhamar Cottages review, but if you’re just looking for the highlights, we’ll start with the key pros and cons. Keep in mind, these are our pros and cons – yours may be different based on your travel style and preferences.

Pros

Proximity to top destinations

You’re likely considering a stay at Nonhamar Cottages because you’re planning to visit all that nature has to offer in this area. And that’s probably the biggest pro of a stay here.

At Nonhamar Cottages, you can visit places like Jokulsarlon or Skaftafell and not have to worry about spending so much time in the car getting there.

For this reason, we do recommend staying more than one night at Nonhamar, to get the most out of your time in this part of Iceland.

When we stayed here, we arrived the night before kayaking at Jokulsarlon and hiking at Mulagljufur Canyon. After a day full of activity, it was nice to come back to our cottage rather than needing to spend a few hours on the road.

That said, if you’re traveling the Ring Road and need to get a move on, we get it.

Remoteness

When we visited Iceland, we found ourselves in near constant awe as we visited various glaciers, waterfalls, beaches, and more.

The thing is, in many parts of Iceland (especially closer to Reykjavik), you’re often staying in more urban areas and venturing out to see the beauty of Iceland.

But at Nonhamar Cottages, you’re staying right in the beauty of Iceland. It’s literally outside your door (evidence by our backyard view, below).

Space to stretch out

Finally, one of our favorite things about Nonhamar Cottages was the space we had to stretch out.

Maybe this was partly psychological, given that there were wide open spaces just outside.

But still, while the cottage was small, having a kitchen, one separate bedroom space, and small deck felt a bit luxurious. When you’re used to traveling and staying in hotel rooms, these extra little features can make a huge difference.

Cons

Limited options for food & essentials

We mean this when we say it: there’s no grocery store in the area.

If you’re staying at Nonhamar Cottages, be sure to stop for groceries (in Vik or Hofn, depending on the direction you’re traveling from).

If you need something, there is a small convenience store in Freysnes, about 10-15 minutes from Nonhamar. This convenience store is also a gas station and a small restaurant. We dined here one of our two nights.

For a higher-end dining experience, you can also go to the restaurant at Fosshotel Glacier Lagoon.

We ate the remainder of our meals at the cottage. Breakfast with a view!

Main bedroom is also the living room

While Nonhamar Cottages have enough beds for 3 people, the main bedroom (two twin beds) is also the living room – there is no wall separating the two spaces.

For those who may be looking for a bit more separation of living and sleeping spaces, this might be an important factor to consider.

That said, when your other options are a traditional hotel room, this isn’t much of an issue, especially because there is one dedicated small bedroom, giving at least a little bit of separation for anyone in your party who may be desiring a bit more privacy.

Very small bathroom

Finally, we found the bathroom to be quite small, especially the shower. If you’re looking for a more luxurious or spacious bathroom experience, Nonhamar Cottages might not be the place for you.

However, we managed just fine. That’s the thing about staying in a cottage in remote Iceland. You start to realize how much you don’t need!

Don’t wait! Click here to check prices and book your stay at Nonhamar Cottages.

Our Detailed Nonhamar Cottages Review

First Impressions & Check-In Experience

Although we’d researched Nonhamar Cottages quite a bit before booking, nothing prepared us for arriving there and experiencing it in person.

There’s something about staying in your very own small cottage in middle-of-nowhere-Iceland that makes you think, “wow, I’m really out here, traveling the world!”

The check-in process was very smooth with a key code and lockbox, allowing us to easily get in to our cottage immediately upon arrival. Because of the self check-in process, we didn’t have any direct communication with the hosts, but they were available if we needed anything.

Nonhamar Cottages are exceptionally clean and modern, striking the perfect balance between providing all the amenities you need while still feeling warm and cozy.

We didn’t request it, but our cottage was the furthest from the road, giving us uninterrupted views of the surrounding fields and pasture. We literally had sheep as our neighbors.

Cottage Features

As a family of three fully-grown people, we found Nonhamar Cottages to be the perfect size.

Sure, the cottages are fairly small, at less than 400 square feet. But you also have to remember that you’re staying here primarily so that you can explore all the nature has to offer right outside your door.

That said, for such a small space, the cottage had a number of features we enjoyed:

• Kitchen: While small, the kitchen had enough space for us to cook breakfast and dinner each day (we had lunch while out adventuring). There were plenty of dishes and utensils, and there was a microwave, stove, fridge/freezer, kettle, and French press for making coffee.
• Living room/main bedroom: This is where things start to get cozy. The main bedroom – which features two twin beds side-by-side – is also the living room, with a couple of comfy chairs to lounge in while enjoying the views of remote Iceland out the large windows.
• Small bedroom: When we say small bedroom, we mean small. But this was a fun little nook for Zoey to have her own space during our stay.
• Bathroom: The bathroom has all you need and not much more – shower, sink, and toilet. The shower was quite small, but we found this to be true in most of the places we stayed in Iceland.
• Deck/porch: In addition to indoor space, each cottage has a deck, allowing you to sit outside if the weather cooperates. Since we visited in the summer, we took full advantage of this, especially given the seemingly endless amount of daylight to enjoy.
• Blackout curtains throughout: If you are visiting in late spring or summer, you can take comfort in knowing Nonhamar Cottages has blackout curtains. They’re a complete necessity when you’re going to bed and it’s still fully light outside!
• Free WiFi: We didn’t have any issues accessing the Internet during our stay at Nonhamar. In fact, we had to share the beautiful views with family back home and frequently FaceTimed them over the WiFi!
• Free Parking: It seems sort of odd mentioning this, given how remote the cottages are. But paying for parking in Iceland is often the norm, so it’s worth mentioning that parking at Nonhamar is free.

Views & Atmosphere

We’ve stayed in some pretty unique places over the years, but Nonhamar Cottages ranks high on our list of great stays.

Okay, we’ll just say it. These cottages feel like they were plucked straight from an Ikea showroom and dropped onto a stunning Icelandic movie set.

And we loved that!

What makes Nonhamar Cottages truly special is the view from your window (or porch). There’s nothing out there – yet somehow, it’s everything. Distant mountains, wide-open fields, and sheep as your only neighbors.

In our view, this makes it an ideal – no, the ideal – place to stay in Iceland. It’s the perfect place to come back to and unwind after a day full of adventure.

Wrapping Up: Nonhamar Cottages Review

If you’re planning a trip to Southeast Iceland, Nonhamar Cottages is an incredible place to stay. With its unbeatable location near Jokulsarlon Glacier Lagoon and Mulagljufur Canyon, cozy modern design, and breathtaking views, it offers the perfect blend of adventure and comfort.

We loved the peaceful remoteness, yet still had all the amenities we needed. Whether you’re exploring glaciers, hiking scenic trails, or just soaking in Iceland’s natural beauty, Nonhamar provides an unforgettable home base.

Ready to book your stay?  Click here to check prices and book your stay at Nonhamar Cottages. We know you’ll love it!