Here are my recommendations for where to stay during your trip to Iceland:
Reykjavik - Iceland's capital is the most popular place for people to stay when they visit Iceland and they use it as a base to then go on day trips nearby. My recommendation for where to stay in Iceland would be Midgardur by Center Hotels. I stayed in this hotel during my time in Iceland and in my opinion it was great value for money and the location was really convenient for exploring Reykjavik and close to the pick up stops for the day tours.
Vik - Vik is a remote seafront village in Southern Iceland and is located just over 100 miles from Reykjavik. My recommendation for where to stay would be Hotel Katla by Keahotels which is located just 3.1 miles from the centre of Vik and just a 5-minute drive from the famous black sand beach.
Akureyri - Akureyri is known as the 'capital of the north' and is by far the largest settlement outside of the nation’s southwest, with a population of nearly 20,000 people. I'd recommend staying at Hotel Kea.
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