Iceland, known for its breathtaking landscapes, geothermal wonders, and vibrant culture, offers a range of luxurious accommodations that promise an unforgettable stay amidst its natural splendor. Whether you’re visiting Reykjavik, exploring the Golden Circle, or venturing into the remote wilderness, Iceland’s top hotels combine modern comfort with unique experiences. This guide explores some of the finest accommodations across the country, categorized by region, to help you plan your next luxurious Icelandic getaway.
Best Hotels in Iceland
Reykjavik
The Retreat at Blue Lagoon Iceland
The Retreat at Blue Lagoon Iceland is a world-renowned luxury hotel located in the heart of the otherworldly Blue Lagoon geothermal spa. This five-star hotel offers exclusive access to the mineral-rich waters of the Blue Lagoon, with rooms and suites designed to harmonize with the volcanic surroundings. Guests can unwind in private lagoon suites with direct access to the Blue Lagoon, enjoy gourmet dining at the Moss Restaurant overlooking the lava fields, or rejuvenate at the Retreat Spa with innovative treatments inspired by Icelandic nature. The Retreat at Blue Lagoon Iceland promises a serene and indulgent retreat just a short drive from Reykjavik.
Ion Adventure Hotel
Located in the serene landscapes of Thingvellir National Park, Ion Adventure Hotel offers a unique blend of luxury and adventure. This design-forward hotel features rooms and suites with minimalist Scandinavian décor, panoramic views of the surrounding mountains or Thingvallavatn Lake, and amenities that emphasize sustainability and relaxation. Guests can dine at the hotel’s Silfra Restaurant, which celebrates Icelandic cuisine, unwind at the Northern Lights Bar with signature cocktails, or embark on outdoor activities such as hiking, snorkeling in Silfra Fissure, or exploring nearby geothermal hot springs. Ion Adventure Hotel provides an ideal base for exploring Iceland’s natural wonders while enjoying contemporary comforts.
South Iceland
Hotel Rangá
Hotel Rangá is a luxury countryside hotel nestled amidst the rugged beauty of South Iceland, known for its proximity to the Golden Circle attractions. This four-star hotel offers cozy rooms and suites inspired by Icelandic themes, with views of Mount Hekla or the Rangá River. Guests can experience gourmet dining at the hotel’s acclaimed restaurant specializing in local cuisine, relax in the geothermal hot tubs with views of the Northern Lights, or enjoy stargazing with the hotel’s telescope observatory. Hotel Rangá’s peaceful location and warm hospitality make it a favorite among travelers seeking tranquility and natural beauty.
Frost and Fire Boutique Hotel
Frost and Fire Boutique Hotel, located in Hveragerði, offers a tranquil retreat in the heart of Iceland’s geothermal region. This intimate hotel features cozy rooms and suites with views of the rushing river or the surrounding geothermal landscape. Guests can unwind in the hotel’s hot springs-fed hot tubs, dine at the riverside restaurant specializing in organic Icelandic cuisine, or explore nearby hiking trails and hot springs. Frost and Fire Boutique Hotel combines rustic charm with modern amenities, providing a relaxing getaway immersed in Iceland’s geothermal wonders.
West Iceland
Hotel Glymur
Hotel Glymur, nestled in the serene landscapes of Hvalfjörður fjord, offers a secluded escape with panoramic views of Iceland’s dramatic scenery. This boutique hotel features elegantly designed rooms and suites with views of the fjord or the hotel’s lush gardens. Guests can indulge in gourmet dining at the hotel’s restaurant, which emphasizes fresh local ingredients, relax in the outdoor hot tubs overlooking the fjord, or explore nearby hiking trails and waterfalls. Hotel Glymur’s tranquil setting and personalized service ensure a peaceful retreat in West Iceland, perfect for nature enthusiasts and those seeking relaxation.
Hótel Búðir
Hótel Búðir, located on the remote Snæfellsnes Peninsula, is a historic countryside hotel surrounded by lava fields and the majestic Snæfellsjökull glacier. This charming hotel offers cozy rooms and suites with views of the lava fields or the ocean, blending traditional Icelandic décor with modern comforts. Guests can dine at the hotel’s acclaimed restaurant, known for its seafood and local delicacies, unwind in the cozy lounge with panoramic views, or explore nearby black sand beaches and hiking trails. Hótel Búðir provides a peaceful retreat in a remote and picturesque setting, ideal for travelers seeking solitude and natural beauty.
North Iceland
Deplar Farm
Deplar Farm, located in the remote Fljót Valley in North Iceland, offers an exclusive retreat amidst rugged landscapes and pristine wilderness. This luxury lodge features stylishly appointed rooms and suites with views of the mountains or the fjord, complemented by modern amenities and Icelandic-inspired design. Guests can indulge in farm-to-table dining at the lodge’s restaurant, relax in the geothermal hot tubs with panoramic views, or participate in outdoor activities such as heli-skiing, horseback riding, and whale watching. Deplar Farm provides a secluded and luxurious escape, combining adventure with comfort in North Iceland’s untamed wilderness.
Fosshotel Myvatn
Fosshotel Myvatn is a contemporary hotel located near Lake Myvatn in North Iceland, renowned for its geothermal landscapes and volcanic formations. This modern hotel offers comfortable rooms and suites with views of the lake or the surrounding lava fields, featuring minimalist Nordic design and amenities for relaxation. Guests can dine at the hotel’s restaurant specializing in local cuisine, unwind in the outdoor hot tubs with views of the Northern Lights, or explore nearby attractions such as Dimmuborgir lava formations and Myvatn Nature Baths. Fosshotel Myvatn provides a convenient base for exploring North Iceland’s natural wonders while enjoying modern comforts and warm hospitality.
East Iceland
Hotel Aldan
Hotel Aldan, located in the charming village of Seyðisfjörður in East Iceland, offers a cozy retreat surrounded by mountains and fjords. This boutique hotel features individually decorated rooms and suites with views of the fjord or the village, blending historic charm with modern amenities. Guests can dine at the hotel’s restaurant overlooking the harbor, relax in the sauna and outdoor hot tubs, or explore Seyðisfjörður’s art scene and scenic hiking trails. Hotel Aldan provides a peaceful and intimate getaway in East Iceland, ideal for travelers seeking tranquility and exploration off the beaten path.
Fosshotel Eastfjords
Fosshotel Eastfjords is a modern hotel situated in the picturesque fjord village of Fáskrúðsfjörður in East Iceland. This contemporary hotel offers comfortable rooms and suites with views of the fjord or the surrounding mountains, featuring minimalist Scandinavian design and amenities for relaxation. Guests can dine at the hotel’s restaurant serving local cuisine, unwind in the outdoor hot tubs with panoramic views, or explore nearby hiking trails and historic sites. Fosshotel Eastfjords provides a serene retreat in East Iceland’s tranquil fjord landscape, perfect for travelers seeking natural beauty and cultural exploration.
Best Budget Hotels in Reykjavik
Reykjavik, Iceland’s vibrant capital, offers a range of budget-friendly accommodations that provide comfort, convenience, and affordability for travelers exploring this unique city. From cozy guesthouses to stylish hostels, these hotels offer a welcoming atmosphere and essential amenities without breaking the bank.
Kex Hostel
Located in a converted biscuit factory near Reykjavik’s harbor, Kex Hostel combines industrial charm with modern amenities. This budget-friendly hostel offers a variety of accommodations including dormitories and private rooms, each uniquely decorated with vintage furniture and artistic touches. Guests can relax in the communal lounge with a cozy fireplace, enjoy meals at the hostel’s gastropub serving Icelandic cuisine, or unwind with live music and events hosted regularly. Kex Hostel’s central location allows easy access to Reykjavik’s attractions such as Harpa Concert Hall and Hallgrímskirkja Church, making it a popular choice for budget-conscious travelers seeking a social and cultural experience.
Hlemmur Square
Hlemmur Square is a stylish budget hotel located near Reykjavik’s main bus station, offering affordable accommodations with a contemporary design and cozy atmosphere. The hotel features a variety of room types including dormitories and private rooms, all tastefully decorated with modern furnishings and Icelandic artwork. Guests can socialize in the communal lounge and kitchen area, enjoy meals at the hotel’s bistro serving Icelandic and international cuisine, or relax with a drink at the bar. Hlemmur Square’s convenient location allows guests to explore Reykjavik’s vibrant food scene, local markets, and nearby attractions like Laugavegur shopping street and Reykjavik Art Museum.
Loft Hostel
Loft Hostel is a trendy budget accommodation situated in the heart of Reykjavik, overlooking the city’s main shopping street, Laugavegur. This vibrant hostel offers dormitory beds and private rooms, all featuring modern décor and comfortable amenities. Guests can socialize in the spacious lounge area with panoramic views of Reykjavik, enjoy meals at the onsite bar and café offering a variety of snacks and beverages, or participate in the hostel’s events such as movie nights and live music performances. Loft Hostel’s central location provides easy access to Reykjavik’s nightlife, cultural attractions, and public transportation, making it an ideal choice for budget travelers looking to experience the city’s dynamic atmosphere.
Reykjavik Downtown Hostel
Reykjavik Downtown Hostel offers affordable accommodations in a prime location, just a short walk from Reykjavik’s main attractions including Harpa Concert Hall and Reykjavik City Hall. The hostel provides a range of room options from dormitories to private rooms, all equipped with basic amenities and modern comforts. Guests can relax in the cozy lounge area, prepare meals in the communal kitchen, or unwind in the outdoor patio during the summer months. Reykjavik Downtown Hostel also offers bicycle rentals and organizes tours and excursions, allowing guests to explore Iceland’s natural wonders and cultural landmarks on a budget.
Galaxy Pod Hostel
Galaxy Pod Hostel provides a futuristic and budget-friendly accommodation experience in Reykjavik, offering unique pod-style sleeping units inspired by space travel. Located near Laugavegur shopping street, the hostel features compact yet comfortable pods equipped with personal TVs, power outlets, and privacy curtains. Guests have access to shared bathroom facilities, a communal kitchen for self-catering, and a lounge area for socializing. Galaxy Pod Hostel’s innovative design and central location make it a popular choice for budget travelers seeking a memorable and affordable stay in Reykjavik.
Reykjavik’s best budget hotels offer a range of affordable accommodations that cater to travelers looking to explore Iceland’s capital without overspending. Whether you prefer the social atmosphere of a hostel or the comfort of a budget hotel, these accommodations provide essential amenities, convenient locations, and opportunities to connect with fellow travelers. From trendy hostels with panoramic views to cozy guesthouses near cultural landmarks, Reykjavik’s budget hotels ensure a pleasant and budget-friendly experience for every visitor exploring this vibrant city.
Conclusion
Iceland’s best hotels offer a combination of luxury, comfort, and unique experiences amidst the country’s stunning natural landscapes. Whether you’re soaking in the Blue Lagoon, exploring the Golden Circle, or venturing into Iceland’s remote regions, these hotels provide an ideal retreat. From urban sophistication in Reykjavik to serene escapes in the countryside, each hotel offers exceptional hospitality, breathtaking views, and opportunities for cultural immersion and adventure. Whether you’re planning a romantic getaway, a family vacation, or a solo adventure, Iceland’s top hotels ensure an unforgettable stay in one of the world’s most awe-inspiring destinations.
