Iceland is, literally, a country in the making. It’s a vast volcanic laboratory where mighty forces shape the earth: geysers mush, mudpots gloop, ice-covered volcanoes rumble and glaciers cut great pathways through the mountains. Its supercharged splendeur reminds visitors of their utter insignificance in the greater scheme of things. And it works a treat: some crips clean air, an eyeful of the cinematic landscape, and everyone is transfixed. 

Keeping things simple, here’s your shortcut to the best hotels in Iceland.

Best Luxury Hotel in Iceland: The Retreat Blue Lagoon 

Best Luxury Hotels in Glasgow for couples: Eyja Guldsmeden Hotel

The Best Hotel in Iceland for Northern Lights: Hotel Ranga

The Best Boutique Hotel in Iceland:  Eyja Guldsmeden Hotel 

Best Hotels in Iceland with Hot Springs: ION adventure hotel

(For more details on each hotel, please keep scrolling).

How to book hotels in Iceland:  You will find in this guide direct links to the biggest hotel booking portal in the world, is one of the safest and easiest ways to book your stay.  


Few things to consider before booking a hotel in Iceland

Location: Iceland is a place where nature reigns supreme. Aside from the modern and cosmopolitan capital, Reykjavík, population centres are small, with diminutive towns, fishing villages, farms and minute hamlets clustered along the coastal fringes. The Interior, meanwhile, remains totally uninhabited and unmarked by humanity: a starkly beautiful wilderness of ice fields, windswept upland plateaux, infertile lava and ash deserts and the frigid vastness
of Vatnajökull, Europe’s largest glacier. To help you better understand Iceland’s neighborhoods and choose one that suits you best, we’ve made a short guide through the best areas to stay in Iceland at the end of the article.  

Price: Full-service hotels in the countryside will range from $300 per night for a family room to $300 per night, per room that sleeps two at more exclusive locations like the glacier lagoon. There are also some guest houses that start around $150 per night, per room, especially in less crowded areas. However, prices depend on the hotel’s star rating, amenities, and of course – the location. Moreover, do take note that prices are higher during the holidays, weekends, and special events.

Amenities: Since this is an article about high-quality Hotels in Iceland, you can expect the best amenities and services offered in a city. 

Lifestyle: Each one of us has its character and preferences. There are certain hotels that are specific to their themes. You can find modern, vintage, high-class designs, or hip and chic hotels. There is something for everyone.

1. Svartaborg – Húsavík


Svartaborg Best hotels in Iceland

Luxury Villas in a Peaceful Valley

Svartaborg Luxury Houses are located in a  quiet and remote valley in the north of Iceland. The houses stand on a mountain featuring great views. The location is perfect for visiting the most popular sights in north east Iceland, day-tripping to all these sights is ideal. The houses which were built 2020 have a unique luxurious feel, designed by the owners to make your stay as comfortable as possible. A unique place in the north you should not miss.

Each villa is 55 square meters in size with one bedroom, bathroom and a living area with a fully fitted kitchen, dining area and a large comfortable sofa which can be used as a sleeping sofa.

The bedroom boasts an environmentally friendly double bed (180 x 200 cm) which can be separated into two twin beds. The sofa can be turned into two 90 x 200 cm sofa beds. There is a walk in shower in the bathroom and all toiletries and towels are included.

Restauracja w hotelu Navis szybko zyskała miano wyjątkowego doznania kulinarnego.

Hotel rating: 9.9  (Exceptional)   Rooms/Villas: 6





Key Features

Great Service

tranquil location

Authentic, local design

2. Hotel Rangá – Hella


Hotel Rangá Hotel Best hotels in Iceland

Log cabins given the luxury treatment in out-of-this-world South Iceland

Situated about 75 minutes south of Reykjavik, the Hotel Ranga is a 51-room luxury property that’s in proximity to some of Iceland’s most spectacular natural and remote wonders. It’s best known for its exceptional views of the northern lights, and even has its own observatory with high-end telescopes for serious stargazers. Frequented by celebrities and honeymooners, the hotel features cozy cabin decor, an exceptional restaurant with a free breakfast, and outdoor geo-thermal hot tubs.

Guest rooms range from continental-themed suites to Standard and Deluxe Rooms with simple decor; most have hot tubs and outdoor terraces. The standard and deluxe rooms are simply decorated, with wooden floors and walls, but they’re still cosy and have comfortable beds and, in some cases, whirlpool baths. The suites are themed after each of the seven continents, and are superior in terms of size, décor and amenities. Imported wood has been used in ‘Australia’, while animal skins hang from the walls in ‘Africa’.

Hotel Ranga overlooks the East Ranga River and features floor-to-ceiling windows on three sides. It has a ‘farmers’ market’ concept that draws on predominantly local ingredients and modern Nordic cuisine: examples include reindeer carpaccio with ruccola salad and truffle oil, and pan-fried cod with barley, spinach, dill, sundried tomatoes and white wine sauce.


Hotel rating: 9.0  (Superb)   Rooms: 51





Key Features

Faulous Breakfast

Family Rooms

northern lights watching

3. ION Adventure Hotel – Nesjavellir


ION Adventure Hotel

Soulful soak beneath the Northern Lights

Based in a location where fire meets ice, Ion offers eco-conscious luxury and an unrivalled opportunity to explore the best of Iceland.

Bolstering the hotel’s mood as a secluded retreat are driftwood and other natural materials from the surrounding area. Fairtrade organic linens and wooden flooring are found in all accommodations, where the sustainable ethos of the hotel is also realized via water-saving shower systems and beds and chairs made from recycled materials.

A mix of industrial chic aesthetics and natural materials define the hotel’s 45 rooms, which have salvaged hardwood floors and a gray color palette accented by sheepskin furs, glazed concrete, and natural wood. Standard Rooms have colorful chairs and shelf-style desks with small flat-screen TVs. Twin or double beds are topped with fair-trade organic linens, including fluffy duvets, and all rooms have free Wi-Fi, iPod docks, and espresso machines.

One of the most notable aspects of the hotel’s design is its outdoor deck, punctuated by slim concrete columns and a long hot tub that’s fed by local hot springs. The sleek spa has a sauna built of lava rocks and offers a full range of treatments, which are typical but for their heavy incorporation of Icelandic herbs. For dining, Silfra Restaurant serves beloved regional staples like locally caught Arctic Char and New Nordic cuisine. The restaurant has a huge outdoor deck, while the Northern Lights Bar is smartly designed with a wall of floor-to-ceiling windows to provide optimal viewing of the phenomenon from which the bar takes its name (temperamental weather conditions and season providing).


Hotel rating: 7.9  (Good)   Rooms: 45





Key Features

SPA and jacuzzi

swimming pool

northern lights watching

4. 360 Hotel & Thermal Baths – Selfoss


360 Hotel & Thermal Baths Best hotels in Iceland

Modern, central, and with all the magic of Iceland.

360° Boutique Hotel & Thermal Baths is a family-run luxury hotel situated in the beautiful countryside of the South of Iceland. The hotel, which opened in August 2018, is placed on a top of a hill and has a 360° view of the mountains and volcanoes on the South Coast.

This 4-star  lodge offers spacious and modern suites and deluxe rooms. All the rooms have high ceilings and large open windows featuring a beautiful view to ensure the best stay possible. All guests have access to a spa which includes a pool with warm geothermal water, a sauna, and a relaxing lounge with fire. Due to the richness of the minerals in the water bathing is said to have therapeutical and healing benefits. The size of the hotel, 13 rooms, provides the owners with an opportunity to offer their guests a very personal and attentive service.

 Another quite unique thing about the hotel is the dining experience which can be explained as a community host table. In the evening a three-course dinner from local produce is served and all the guests are seated together at two long tables. The diners enjoy this culinary experience in the company of each other. They get to know each other and share their travel stories. Some have even formed a friendship with their fellow travelers. 360 hotel is where the past and the present meet – modern, central, and with all the magic of Iceland. All in all, the design style is about minimalistic, timeless, and classy interiors that remain warm and inviting, and are as much about function as style, with strong, clean lines and without a hint of excess.


Hotel rating: 9.4 (Superb)   Rooms: 13





Key Features




5. Hotel Grimsborgir – Ásborgir


Hotel Grimsborgir - Your Golden Circle Retreat

Your Golden Circle Retreat

Hotel Grimsborgir is a luxury hotel located 70 km east of Reykjavik in the heart of the Golden Circle, nestled on the bank of river Sogid surrounded by stunning landscape. Some of the highlights of Iceland´s nature, geography and history are within easy reach. The hotel has a particularly tranquil atmosphere, enhanced by the peaceful, natural environs outside, and warm, smiling staff inside. 

The accommodation consists of 68 superior twin or double rooms, 7 junior suites, 5 studio apartments for up to 4 guests and 7 big apartments in a private house with 4 bedrooms for up to 8 guests. 

The hotel offers a few facilities, including a massage service, airport transfers and sightseeing tours, which range from snorkelling or diving in Thingvellir Park to horse riding, quad biking, snowmobiling, golf and glacier hiking. There are also trips every morning from the hotel in a Mercedes Benz Sprinter bus. There is no spa or pool, but all rooms have access to one of 29 hot tubs, some of which are private.

Hotel Grimsborgir offers a renowned restaurant with a la carte menu that features Icelandic and international dishes made with fresh local ingredients and seating for up to 240 guests. Some of the best dishes serrved are oven-baked salmon, Arctic Char, and Icelandic lobster are among the signature dishes. The interior is a little kitsch with its circular tables and pink tableclothes, but the terrace is terrific in warm weather. The hotel bar has a good selection of beers and wines – and will gladly knock up a killer cocktail on request.

Hotel rating: 8.7 (Fabulous)   Rooms: 87





Key Features


on-site bar


6. The Retreat at Blue Lagoon Iceland – Grindavik


The Retreat at Blue Lagoon Iceland Best hotels in Iceland

World-class luxurious retreat

The Blue Lagoon is one of the most luxurious hotels in Iceland attracting visitors who search for not only a luxurious experience but also a retreat for the body and soul. Located in the midst of the lava field with breathtaking views on a crystal clear Blue Lagoon with water providing some restorative qualities. At night during the season guests can patiently search for Northern Lights thanks to the hotel’s secluded location.

The hotel’s interior design is highly influenced by the surrounding landscape – bringing the lagoon blues and moss greens onto its decorative elements, balanced elegantly with slabs of lava here and there, and decor elements including i.e old Icelandic ceramics.

There are three room categories in the property: ground-level rooms located directly by the lagoon – including room types offering direct access to the water, and first-floor rooms offering lava fields views. The bedrooms’ decor is calm and sophisticated – dominated by grey colors and wood. Bear in mind there is a strict no TV policy in the hotel. If you’re looking for a real treat we recommend the Lagoon Suite with direct access to the mineral water.

The hotel’s key facility is its excellent spa offering a variety of relaxation zones, hammam rituals, access to the lagoon – and that’s only, to begin with. Aside from the SPA guests can access a hotel’s gym, a yoga studio, library as well as daily hikes to Thor’s Bear hill.

You can also find some great dining options at the premises of the hotel. First thing in the morning you can expect a buffet breakfast followed by complimentary afternoon tea later on the day. Furtherly you can find the Spa Restaurant that offers a choice of light dishes. The a la carte menu is available at the Lava Restaurant ( visited mostly by the main Blue Lagoon guests) serving high-quality Icelandic dishes. Finally, you can try an excellent fine-dining restaurant Moss with modern Icelandic cuisine and a fantastic wine menu.

Hotel rating: 9.5 (Exceptional)   Rooms: 62





Key Features

3 on-site restaurants

excellent spa

thermal waters

7. Eyja Guldsmeden Hotel – Reykjavík


Eyja Guldsmeden Hotel Best hotels in Iceland

Boutique hotel for a great city-break.

Eyja Guldsmeden Hotel, a 4-star boutique property located in downtown Reykjavik run by a couple – Linda and Ellert. The hotel’s immaculate attention to detail and exquisite interior design shines through from the very first step you take into the property. Moreover, a strong passion for sustainability is highlighted in and out – from materials to the organic food in the restaurant.

As for guests’ bedrooms, there are 65 rooms coming in three categories: single, double, and superior, all featuring wooden floors, four-poster beds, and some modern commodities such as TVs and coffee machines. The higher the room standard the better views you can expect – including sea and mountains views.

There is a great buffet breakfast served every morning – coming with a wide choice of hot dishes, loaves of bread, and healthy options such as muesli, yogurt, etc. There is a restaurant available on-site serving casual dinings such as pasta, burgers, and salads. Moreover, guests can relax in the lounge area or a swanky bar. Finally, guests can stay in shape during their stay by using the hotel’s gym available 24h.


Hotel rating: 9.0 (Superb)   Rooms: 65





Key Features

fabulous breakfast

bar on-site

Excellent design

8. Kex Hostel – Reykjavík


Chick and breezy hotel / hostel

The Kex Hostel – a former biscuit factory turned into a hip and chic property offering great value for money, especially for those looking to travel Iceland on a budget. It’s located in close proximity to Reykjavik’s main high street as well as some major tourists attractions, shops, and restaurants.

The property is a convenient mix between a hotel and a hostel – so guests can choose from spacious and airy dorms accommodating from 8 to 16 people, as well as private single, double, or family rooms. Please bear in mind that only two guests bedrooms come with en-suite bathrooms. As for the interior design, there is a close bond with industrial aesthetics mixed elegantly with vintage furniture and an occasional piece of decor.

Interestingly, the hotel features Gym & Tonic – a multifunctional space for anything from live performances and film screenings to business conferences. Book enthusiasts can find a library-like corner spot, moreover, for those in need of some pampering – there is a hip hair salon available on-site. The hotel offers bike renting services, and the hotel staff is always keen to help you organise any extra curriculum activities.

Food-wise, the hotel offers a buffet-style breakfast with some delicious local touches such as jams, cheeses, or freshly-baked bread. Throughout the day and evening, guests can grab some causal dishes from the a la carte menu offered by the Sæmundur gastropub. Moreover, the hotel’s Bar – DRINX will serve you some good local beers, cocktails, and wines. For those who are looking to prepare their own food – there are two kitchens available.


Hotel rating: 8.3 (Very Good)  





Key Features

good breakfast

good location

good value for money


The Best Areas to Visit in Iceland

Hitting headlines, topping bucket lists, wooing nature lovers and dazzling increasing numbers of visitors – there seems to be no end to the talents of this breathtaking northern destination. Each part of the island offers unique wonders of its own, so to help you understand more of the Iceland areas worth a visit here is a simple guide to walk you through:



With miles of nothing but nature all around, Reykjavik is Iceland’s most confirmed repository of all thinkgs cultural, from winning museums and sleek gallery spaces to a sparkling music scene, an intense year-round festival calendar and a colorful guild of craftsfolk and designers. It’s also a perfect layover between Europ and North America: urban walking and biking tours take in the capital’s top sights, but the magic of Iceland unfold just beyond, and the city’s well-oiled travel machine can instantly launch you into the wilderness. 

A perfect place for:

  • Culture
  • Nightlife
  • Easy Escapes

Southwest Iceland & the Golden Circle

The stunning Vestmannaeyjar archipelago has the largest colony of puffins in the world, and the birds offer a spirited welcome as they shoot over the arriving ferries like wobbly firecrackers. Wander into the interior of Iceland and you will find the watchful glare of several grumbling volcanoes. Enter the world of the hiker’s paradise or enjoy one of the horse ranches around Hella.

A perfect place for:

  • Landscape
  • Activities
  • Wildlife 

West Iceland

The Snæfellsnes Peninsula is a technicolour realm composed of exotic splashed of sere lava, green waterfall-cut meadows, Arctic-blue water, and a dazzling ice cap. One of the most impressive vistas is Breiðafjörður – a bay reflecting cloud-filled skies and speckled with thousands of isles.


The highlands region is all about 4WD trails to remote hiking: this mountain range is a hiker’s paradise of heothermal wonders and multihued rhyolite mountains.


Iceland’s second city is a gateway for tours all over the north, plus whale watching, horse riding and unique scuba diving. The ski fields are a wintertime magnet.



We’ve answered some of the most common questions about Iceland:

Which best hotels in Iceland have a restaurant on-site?

Guests can enjoy an on-site restaurant at these hotels in Iceland: 360 Hotel & Thermal Baths, The Retreat at Blue Lagoon.

Do hotels provide free WiFi in Iceland?

Yes! Nearly all hotels offer free WiFi, yet some are paid. Always check through amenities if your hotel of choice offers a free internet connection. Some hotels only offer WiFi in the lobby area. Please make sure you read ahead.

Which hotels in Iceland are good for couples?

Couples traveling in Iceland greatly rated: The Retreat Blue Lagoon, Eyja Guldsmeden Hotel, and 360 Hotel & Hot Baths

Which hotels in Iceland offer good views?

Hotels: The retreat at Blue Lagoon, Hotel Ranga, 360 Hotel & Thermal Baths received great views-ratings from their guests.

Which hotels in Iceland serve excellent breakfasts?

From Iceland’s hotels serving excellent breakfast you can try: The Retreat at Blue Lagoon; Eyja Guldsmeden Hotel.

Which hotels in Iceland have SPA?

Hotels: The Retreat at Blue Lagoon were highly rated among travelers looking for hotels in Iceland with SPA


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