IcelandWhere to stay

The best hotels in Iceland: From geothermal retreats to cozy Arctic hideaways

Iceland Dunes of Sossusvlei・Quiver Trees・Lions at Etosha

Iceland, unmatched in its stark beauty, is a truly extraordinary destination. It enchants with its glaciers, geothermal areas, and Northern Lights. These landscapes are unique and awe-inspiring, and are complemented by luxury accommodations that enhance the experience of exploring this remarkable island

Thomas Stadler By Thomas Stadler
Updated April 2023

Enjoy Iceland!

10 Best hotels in Iceland

Browse through our luxury handpicked, tried-and-tested recommendations.

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.

Hótel Búðir


Hotel Budir

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

Hotel 101 Reykjavik, situated in the heart of Iceland's vibrant capital, is a stylish and contemporary hotel that captures the spirit of Reykjavik. This boutique hotel, known for its modern design and artistic flair, offers a chic urban retreat. The rooms are elegantly furnished with a minimalist style, providing a comfortable and sophisticated space for guests. Each room is equipped with modern amenities, ensuring a pleasant stay in the midst of the city's lively atmosphere.

The hotel's restaurant and bar are popular spots for both locals and guests, serving a variety of creative dishes and cocktails. The menu features contemporary Icelandic cuisine with an emphasis on fresh, local ingredients, offering a taste of the country's culinary innovation. The atmosphere in the dining area is lively and inviting, making it a perfect place to enjoy a meal or a drink while soaking in the urban vibe of Reykjavik.

Hotel 101 Reykjavik's prime location in the city center makes it an ideal base for exploring the cities cultural landmarks, shops, and nightlife. The hotel is within walking distance of the city's main attractions, including the Harpa Concert Hall, the Hallgrímskirkja church, and the bustling Laugavegur shopping street.

Torfhús Retreat


Torfhús Retreat

Tucked away in Iceland's majestic landscapes, Torfhús Retreat merges luxury with the essence of Icelandic tradition and the great outdoors. Drawing inspiration from Iceland's historical turf houses, this retreat beautifully combines the rustic appeal of stone and wood with contemporary comfort. The turf-covered lodgings are designed to blend seamlessly with nature, while inside, guests are treated to state-of-the-art amenities like geothermal underfloor heating. The decor, rich with local craftsmanship and Icelandic design, showcases the nation's cultural heritage.

The dining experience at Torfhús Retreat is a journey through the flavors of Iceland, with a focus on locally sourced, high-quality ingredients. The restaurant offers traditional Icelandic cuisine with a modern twist, served in a cozy atmosphere. Guests can also unwind in the outdoor hot tub area, enjoying the geothermal waters against a backdrop of stunning views.

Situated near Iceland's renowned natural attractions, the retreat provides convenient access to glacier tours, horseback riding, and the Golden Circle, making it an ideal spot for those looking to explore Iceland's geysers, waterfalls, and volcanic beauty while enjoying a serene and luxurious stay.

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 at Blue Lagoon


The Retreat

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

A one-of-a-kind experience that combines luxury, privacy, and the breathtaking beauty of the natural world. Located in a secluded area with minimal light pollution, each of the popular glass cabins is designed to maximize the stunning views of the surrounding landscape and offer unobstructed views of the sky, perfect for observing the Northern Lights or the midnight sun. The interior of each lodge is a blend of comfort and modernity, with cozy furnishings, a fully equipped kitchenette, and a private hot tub, ensuring a luxurious and romantic getaway.

The cabins are designed for guests to connect with nature while enjoying the comforts of a high-end accommodation. The absence of a traditional restaurant or communal areas emphasizes privacy and self-sufficiency, allowing guests to create their own meals and enjoy the tranquility of their surroundings. The outdoor deck with a hot tub is the ideal spot for relaxing and soaking in the stunning views, whether it's the shimmering Northern Lights in winter or the endless daylight of the Icelandic summer.

Located within driving distance of some of Iceland's most famous attractions, including waterfalls, geysers, and black sand beaches, the cabins are perfect for those who want to explore the wonders of Iceland at their own pace. It offers an unparalleled opportunity to experience the raw beauty of Iceland in a private, comfortable setting, making it ideal for couples or small families looking for a unique and unforgettable stay.

Deplar Farm

Troll Peninsula

Deplar farm

This ultra-luxurious retreat in the remote Troll Peninsula in northern Iceland offers an unparalleled experience of adventure and relaxation in the midst of stunning natural beauty. Originally a sheep farm, this exclusive resort has been transformed into a haven of comfort and elegance, blending seamlessly with the rugged Icelandic landscape. The rooms at Deplar Farm are designed with a minimalist aesthetic, featuring natural materials and large windows that frame the breathtaking views of the mountains and valleys. High-end amenities and plush furnishings ensure a comfortable and luxurious stay.

The resort's restaurant takes pride in its farm-to-table approach, using locally sourced ingredients to create exquisite Icelandic and international dishes. Guests can savor their meals in a cozy, sophisticated dining area, while enjoying panoramic views of the surrounding wilderness. The retreat also features a world-class spa and wellness center, complete with an outdoor geothermal pool, saunas, and a variety of treatments and therapies, perfect for unwinding after a day of outdoor activities.

Deplar Farm is an adventurer's paradise, offering a wide range of activities such as heli-skiing, hiking, fishing, and kayaking. In the winter, it's an ideal spot for viewing the Northern Lights, while in the summer, the midnight sun offers endless daylight for exploration. The resort's unique location and luxurious amenities make it a perfect destination for those seeking both adventure and relaxation in one of the world's most extraordinary landscapes.

We hope our curated collection of luxury accommodations in Namibia has inspired your travel plans. If you wish to do a booking, make use of the direct links provided for each hotel.

More about Iceland

Discover the magic of Iceland, where ethereal landscapes meet luxury, inviting you to experience the enchantment of the Northern Lights, majestic glaciers, and geothermal wonders.

Best time to go

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.



Iceland Travel Q&A

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.

All information provided above is accurate to the best of our knowledge at the time of publication. For the latest updates and details, please consult relevant authorities or official sources.