10 of the Best Hotels & Lodges in Iceland

Journey Beyond the Ordinary: Our Curated Selection of Iceland's 10 Most Captivating Boutique Hotels and Hideaways.

We've handpicked the top 10 boutique hotels across Iceland, each offering more than just a stay but a gateway to a uniquely Icelandic experience. Let us guide you to places where luxury meets the island's dramatic landscapes, promising unforgettable adventures in the heart of the majestic land of fire and ice.

Learn about how we curate our guides here.


ION Adventure Hotel

ION Adventure Hotel


Perched on the fringes of Þingvellir National Park, less than an hour from Reykjavik, ION Adventure Hotel captivates with its surreal landscapes of dormant lava fields and lichen expanses. It champions sustainable luxury, constructed primarily from eco-friendly materials and employing geothermal heating. Yet, its commitment to green practices doesn't stint on lavish comforts; with water sourced from depths at a scorching 190°C, guests can expect consistently warm showers.

The hotel's interiors harmonize with its rugged surroundings. Guest rooms exude a minimalist elegance, boasting stark concrete walls juxtaposed against warm hardwood floors and furnishings crafted from reclaimed driftwood. High-quality bedding ensures optimal rest, while spa-like bathrooms promise a rejuvenating experience.

Epicureans can relish in the restaurant's innovative pan-Nordic offerings, while the spa offers therapeutic retreats. The outdoor hot tub, offering panoramic vistas, beckons for extended relaxation. Yet, the true essence of ION lies in its adventure: From serene horseback rides and fishing excursions to thrilling glacier treks and tectonic plate diving.

EDITION Reykjavík



Reykjavík has always radiated a unique charm, yet it only recently welcomed a comprehensive boutique hotel that perfectly marries design and nightlife. At the new Reykjavík EDITION, designers Roman and Williams have gracefully infused the brand's mid-century modernist vibe with a Nordic touch, embellishing guest rooms with blond wood and indigenous artistry. The communal areas are a blend of global chic and subtle nods to Icelandic heritage.

The culinary experience is led by Gunnar Karl Gíslason, Iceland's pioneering Michelin-starred chef, and the hotel's sophisticated bars are the ideal spots for both guests and locals to converge. EDITION is in close proximity to Laugavegur Street, a popular shopping area, and the Harpa Concert and Conference Center. This prime location brings together the best of Reykjavik's historical and modern elements, making it the ideal choice for your stay in the city.

Hotel Budir

Hótel Búðir


Situated a mere two hours from Reykjavík, Hotel Búðir proudly stands on the Snæfellsnes Peninsula's south coast, one of the most beautiful regions of Iceland. It's enveloped by breathtaking glaciers, sprawling lava fields, towering mountain summits, and the historic charm of Iceland's oldest church. The hotel's rooms offer a harmonious blend of traditional aesthetics with a contemporary touch, the pinnacle being the modernist-inspired master suite that oozes opulence and comfort.

Beyond its walls, the hotel serves as a gateway to a plethora of outdoor escapades, whether it's exploring the vast landscapes or diving deep into local folklore. The on-site restaurant restaurant is known for its exquisite cuisine, serving a mix of traditional Icelandic dishes and modern European cuisine. Relax in the hotel's hot tub, sauna and indoor swimming pool, all of which offer views of the surrounding mountains and sea.

Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon


Ideally situated for exploring Iceland's southern coastline, Fosshótel Glacier Lagoon represents the modern trend of hotels fusing cutting-edge design and architecture with the stunning vistas of the country’s terrain. Notably, it offers proximity to breathtaking spots like the Jökulsárlón Glacier Lagoon and Skaftafell National Park.

The rooms, with expansive windows, encapsulate the cozy essence of Nordic modernism. The onsite restaurant exudes sophistication, emphasizing locally-sourced ingredients and authentic Icelandic tastes. A visit to the neighboring black-sand beach is essential, and for those eager to witness the Northern Lights, the hotel's front desk offers a special overnight alert service.

Hotel 101

Hotel 101


A modern boutique hotel set in a former office block on a busy corner of downtown Reykjavik, taking its name from the oldest city center postal code, 101. The hotel's prime location makes it an ideal base for exploring Reykjavík, as its just a short walk from many of the city's main attractions.

Torfhús Retreat

Torfhús Retreat


Set in the heart of Iceland‘s magnificent Golden Circle, Torfhús Retreat is an inspiring blend of authentic Icelandic style and relaxed eco-luxury. Inspired by the architecture of the Icelandic Viking farm at nearby Stöng, the traditional torfhús residences and torfbaer suites are crafted from local stone, reclaimed wood and turf. Experience the essence of Iceland while indulging in luxurious travel amenities.

UMI Hotel

UMI Hotel


For years, Iceland's breathtaking vistas were overshadowed by its relatively mundane hotels. However, there's a recent shift that pairs the nation's surreal landscapes with equally mesmerizing modern architectural designs. UMI Hotel stands as a testament to this evolution.

Located less than a hundred miles from Reykjavík, this hotel immerses guests in Iceland's natural magnificence, showcasing views of the rugged southern coastline and the notoriously challenging-to-pronounce volcano, Eyjafjallajökull. Contrary to its contemporary design, Umi is a family venture. Previously an abandoned farm, it was lovingly revamped by Siggi, Frida, and their interior designer daughter, Sandra, into the chic retreat you see now.

UMI provides a warm shelter from the unpredictable Icelandic weather without tipping into opulence. The design is a nod to the functional aesthetics commonly found in Icelandic designs. The 28 rooms offer more than just comfort; some boast truly captivating views. The establishment also features a fashionable restaurant and bar that serves locally sourced dishes, predominantly seafood. And of course, your stay isn’t complete without mingling with Breki, the ever-present family dog, who excels as the hotel's charismatic host.

The Retreat

The Retreat at Blue Lagoon


Certainly, Iceland's renowned Blue Lagoon is a constructed tourist magnet, but only a cynic would dismiss it for being manmade. This sentiment is particularly true with the addition of the ultra-chic and undeniably upscale Retreat Hotel. Guests here enjoy exclusive access to their own private geothermal lagoon, offering an escape from the bustling public pool, coupled with a luxurious day spa leveraging Iceland's distinctive volcanic assets.

The suites set a new standard for opulence in Iceland, offering vistas of either the secluded lagoon or the distant lava fields; some even grant direct access to the waters. The laid-back Lava restaurant welcomes diners throughout the day, with some even donning robes, whereas the more refined Moss, open for evening meals, proudly holds a Michelin Plate.

Panorama Glass Lodge

Panorama Glass Lodge


Experience the magic of Iceland by spending the night in the comfort of one of the country's popular glass cabins. Enjoy breathtaking sunsets, sunrises, and stargazing while being tucked in a warm bed. With a bit of luck, you may even witness the Northern Lights dancing above you without having to leave the warmth of your cabin. Another way to enjoy the view is from the cozy outdoor hot tub or the hammock.

Deplar farm

Deplar Farm

Troll Peninsula

The Fljót Valley in northern Iceland is a haven for outdoor enthusiasts, offering a wide range of activities such as mountain biking and sea kayaking. Nestled in the natural beauty of the valley, Deplar Farm, a converted sheep farm, seamlessly blends into its surroundings with its black timber cladding and grass-covered roof. The property boasts floor-to-ceiling windows that provide spectacular views of the surrounding peaks, making it a perfect location to fully experience the beauty of the valley. In 2023 it was named as “Best Hotels in the World” on Condé Nast Traveler’s Gold List.

Best time to visit Iceland

The best time to travel to Iceland largely depends on your preferences and the experiences you seek. Summer, particularly from June to August, is the warmest period with temperatures ranging from 10°C to 15°C. You can experience long days, often with almost 24 hours of daylight, which is perfect for exploring and driving around. This is also the peak tourist season, so popular spots like some waterfalls can get crowded and hotel rights are high.

If you want to see the Northern Lights, the darker months from late September to March provide the best opportunity, though it's essential to note that it's colder during this time, and some roads, especially in the Highlands can be inaccessible due to snow. However, winter also offers other unique experiences like ice caving and snowy landscapes.

If you're looking for a balance between milder weather and fewer tourists, the shoulder seasons, which are spring (late April to early June) and early autumn (late August to early October), might be ideal. During these times, you can still enjoy much of Iceland's natural beauty without the peak season crowds.














Waterfall Countless roaring waterfalls

Frequently asked questions

We know that traveling to a new destination comes with its set of queries and doubts. Our FAQ section is designed to answer the most frequently asked questions about traveling to Iceland, helping you to plan your trip.

  • How do I get to Iceland?

    Getting to Iceland is a journey that usually begins by air, with most travelers opting to fly into Keflavík International Airport (KEF), which is conveniently located just 50 kilometers southwest of the capital, Reykjavík. This airport serves as the main hub for international transportation and is serviced by a range of airlines, including Iceland’s very own Icelandair, offering flights from various cities across North America and Europe. Some Low-Cost Airlines like PLAY, Wizzair and easyjet connect Europe with Iceland as well.

  • Do I need a visa for Iceland?

    Iceland is not a member of the European Union (EU), however, it is part of the Schengen Area. Usually you do not need a visa to enter Iceland for stays of up to 90 days within a 180-day period when traveling within Schengen. Similarly, nationals from countries that have visa exemption agreements with the Schengen Area, including the USA, Canada, Australia, and Japan, also do not require a visa for short stays of up to 90 days.

  • What's the currency and can I use my credit card in Iceland?

    The official currency is the Icelandic króna (ISK). Iceland is known for being a largely cashless society: Credit and debit cards are widely accepted throughout the country, including in taxis, restaurants, and shops. Contactless payments and digital wallets are commonly accepted. ATMs are readily available in urban areas, like Reykjavík, and larger towns, where you can withdraw cash if necessary. However, in rural areas, ATMs might be less common, so it’s advisable to carry some cash just in case, especially if you are planning to visit smaller villages or remote locations.

  • How is the typical weather in Iceland?

    Iceland's weather is known for its unpredictability, often summed up by the local saying, "If you don't like the weather, wait five minutes." Its position in the North Atlantic Ocean, between the Arctic and North Atlantic oceans, and its proximity to the Arctic Circle significantly influence its climate.

  • Where and when can I see the Northern Lights?

    The Northern Lights (Aurora borealis), are a natural spectacle in Iceland and are visible when the skies are dark and clear of clouds. Typically, the best time to see them is during the winter months, from late September to March, when the nights are longest. However, sightings can never be guaranteed, as they depend on solar activity and atmospheric conditions. For the best chances of witnessing this phenomenon, it's advisable to move away from the bright lights of urban areas. While they can sometimes be seen from the capital, Reykjavik, you'll have a much better chance in more remote locations with minimal light pollution. The Westfjords, North Iceland near Akureyri, and the southern parts near Vík can be particularly good spots. It's also beneficial to head to elevated areas where you might be above any low-lying clouds. To optimize your chances, keep an eye on the aurora forecast provided by the Icelandic Meteorological Office, which gives both cloud cover and auroral activity predictions. And remember, patience is crucial; it might take several hours of waiting before the Northern Lights make their mesmerizing appearance.