Luxury Hotels & Lodges in Iceland

Our European specialists have hand-picked their favourite luxury hotels in Iceland, from the regally imposing Hotel Borg in the vibrant capital, to the space age luxury hotel, ION, situated amongst the volcanic landscape. Spend a few nights walking through Reykjavik to absorb the fantastic Icelandic culture before heading to the far-flung corners to stay in hotels seemingly at the end of the world.  

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We've found [N] hotels in Iceland for you

Hotel Geysir

Location: Reykjavik & Western Iceland | Iceland

Hotel Geysir has an unbeatable setting right beside the stunning Great Geysir in south-western Iceland. The much more active geyser Strokkur is also nearby, while no end of outdoor activities are on offer to help you explore the wilderness. Back at the hotel, stylishly modern accommodation and delicious Icelandic and international cuisine await.

Best for: Luxury Hotel, Setting & Views, Wildlife & Nature, Landscapes & Scenery

Deplar Farm

Location: Northern Iceland | Iceland

Deplar Farm in Iceland is all about the great outdoors – with exclusive, tailor-made adventures including skiing, surfing, kayaking and whale watching, the services of private concierges and expert guides, this unique hotel is heaven for thrillseekers looking for a natural adrenaline rush. Your downtime is no less luxurious or exclusive – enjoy gourmet cuisine and unwind in a sauna, hot tub or flotation tank, or take a dip in the infinity pool beneath the Northern Lights.

Best for: Seriously special, Adventure, Private Groups, Landscapes & Scenery

The Retreat at Blue Lagoon

Location: Reykjavik & Western Iceland | Iceland

The Retreat is a one-of-a-kind boutique hotel in Iceland’s Reykjanes Peninsula, overlooking the Blue Lagoon. The hotel offers unrivalled access to the lagoon – one of its suites even opens directly onto the water – and promises a luxurious stay with a chic Scandi design using natural materials which reflect the volcanic landscapes outside. 

Best for: Setting & Views, Spa & Wellness, Chic Design, Seriously special

Sand Hotel

Location: Reykjavik & Western Iceland | Iceland

With its central location, Icelandic chic style and cosy vibe, the boutique Sand Hotel is a real gem. Located on buzzing Laugavegur, Reykjavik's main street and a hot haunt for shopaholics, the hotel occupies a collection of historic townhouses that have been transformed into a contemporary retreat.

Best for: Boutique Hotel, Chic Design, City Hotel, Family-friendly

Tower Suites

Location: Reykjavik & Western Iceland | Iceland

Tower Suites’ eight luxurious accommodations offer an unrivalled viewpoint over Reykjavik, occupying the 20th floor of the vast Hofdatorg Tower. From the comfort of your suite, featuring a stylish Scandi design with the works of local artists decorating the walls, you can gaze over the bright lights of Reykjavik and the still ocean and untouched wilderness beyond.

Best for: Luxury Hotel, City Hotel, Setting & Views, Seriously special

Black Pearl Apartments

Location: Reykjavik & Western Iceland | Iceland

Modern, stylish and combining the luxury of a top-end hotel with the privacy of your own apartment, Black Pearl promises an elegant stay in the heart of Reykjavik. This hotel is perfectly placed for experiencing the cultural and historical attractions of Iceland’s capital, and the pristine wilds of the beautiful countryside lie within easy reach.

Best for: Family-friendly, Chic Design, City Hotel, Private Villa

Apotek Hotel

Location: Reykjavik & Western Iceland | Iceland

The charming boutique Apotek Hotel is the perfect place to retreat after a day’s sightseeing or braving the beautiful wilds of Iceland’s countryside, while the popular restaurant and bar draw on the hotel’s colourful history. Centrally located in the heart of downtown Reykjavik, this hotel will ensure you get the most out of your time in Iceland’s capital.

Best for: Chic Design, Boutique Hotel, Service & Hospitality, Food & Wine

Hotel Husafell

Location: Reykjavik & Western Iceland | Iceland

The beautifully designed Hotel Husafell has a perfect setting for nature lovers - Husafell is THE place to view the Northern Lights, and is surrounded by glaciers while enjoying a slightly milder climate than most of Iceland, making hikes across the local lava fields or along the Hraunfossar waterfalls slightly more accessible.

Best for: Setting & Views, Off the Beaten Track, Wildlife & Nature, Walking & Trekking

101 Hotel

Location: Reykjavik & Western Iceland | Iceland

In the heart of the old town of Reykjavik, this stylish and modern design hotel contrasts with its historic surroundings, all black & white, sleek edges and brushed metal set off by kooky artwork and hand-picked furniture and décor. With a chic space-age restaurant, a couple of bars and even its own art gallery, the 101 Hotel, like Reykjavik itself, is the epitome of Icelandic cool. 

Best for: Chic Design, Luxury Hotel, Food & Wine, City Hotel

Hotel Borg

Location: Reykjavik & Western Iceland | Iceland

The regally imposing Hotel Borg has become one of Reykjavik’s landmarks, with a past as colourful as that of its founder, the famous strongman and adventurer Johannes Josefsson. He saw an opportunity to realise his dream of opening a luxury hotel fit for everyone, from dignitaries to celebrities, and Hotel Borg was born.

Best for: Luxury Hotel, History & Heritage, Chic Design, Service & Hospitality

Hotel Grimsborgir

Location: Reykjavik & Western Iceland | Iceland

In the very heart of Iceland’s ‘Golden Circle’ of natural wonders, Hotel Grimsborgir is a comfortable collection of traditional Scandinavian country lodges with easy access to attractions such as Gullfoss, Geysir and Thingvellir National Park. This hotel is a fantastic base for fishing, kayaking, and exploring the volcanic and glacial landscapes – not to mention enjoying excellent fresh fish in the classy restaurant.

Best for: Walking & Trekking, Wildlife & Nature, Setting & Views, Food & Wine

ION Adventure Hotel

Location: Reykjavik & Western Iceland | Iceland

In a volcanic landscape dotted with steaming geysers and carved apart by glaciers and icy rivers, and pitch-black night skies illuminated by the dancing light show of the aurora borealis, a stay at ION Adventure Hotel is a brilliant way to experience the ‘land of fire and ice’. The hotel itself is a stylish and comfortable place to recover from a day’s adventure in the ice fields, with luxurious rooms, an acclaimed restaurant and a stunning spa.

Best for: Setting & Views, Walking & Trekking, Wildlife & Nature, Chic Design


Location: Southern & Eastern Iceland | Iceland

Silfurberg is an intimate, boutique retreat in a beautiful farm setting in Breiðdalur Valley in east Iceland. It is sleek and stylish, with elegant Icelandic design touches and plenty of character, and is owned and run by a couple who moved from the city to seek the peace and quiet which pervades the hotel.  

Best for: Setting & Views, Peace & Quiet, Boutique Hotel, Wildlife & Nature

Hotel Kea

Location: Northern Iceland | Iceland

One of Iceland’s most well-established hotels, a stay at Hotel Kea will cater for all tastes, whether you want to see the Northern Lights, explore the rich birdlife and beautiful scenery of the area, or soak up some culture in Akureyri, which is renowned for its immersion in Iceland’s colourful folk history.

Best for: Walking & Trekking, Wildlife & Nature, Food & Wine, City Hotel

Vogafjos Guesthouse

Location: Northern Iceland | Iceland

Family-owned and run, and home to a sheep, cattle and dairy farm, Vogafjos Guesthouse is all about a warm, cosy atmosphere and delicious, homemade local food. It’s a unique, fun guesthouse which serves as a brilliant base for exploring the unique volcanic landscape around Lake Mývatn. It's also a good spot for viewing the famous Northern Lights. You’ll even get to meet the cows!

Best for: Setting & Views, Off the Beaten Track, Rustic, Wildlife & Nature

Hotel Budir

Location: Reykjavik & Western Iceland | Iceland

Surrounded by a protected nature reserve and standing on volcanic lava fields, a stay at Hotel Budir is a truly unforgettable experience. Originally a small guesthouse and fish restaurant, the food remains one of Hotel Budir’s main attractions, along with the plethora of outdoor activities there is to choose from in this wild and beautiful corner of Iceland.

Best for: Setting & Views, Off the Beaten Track, Food & Wine, Wildlife & Nature

Hotel Egilsen

Location: Reykjavik & Western Iceland | Iceland

A charming, intimate boutique retreat in the heart of the fishing town of Stykkisholmur, Hotel Egilsen is pure fairytale Iceland. Set in a lovingly restored timber house dating from the 1860s, it's an atmospheric place to explore this undiscovered Icelandic gem.

Best for: Off the Beaten Track, Village Life, Cultural Immersion, Walking & Trekking

Brimslod Atelier

Location: Northern Iceland | Iceland

A peaceful cottage-style hotel in the sleepy Icelandic seaside town of Blonduos, Brimslod Atelier is all about two things: relaxation and food. Owners Inga and Gisli are committed chefs who have released their own cookbooks and run workshops, where you can learn how to forage and cook in the traditional Icelandic style.

Best for: Food & Wine, Family-friendly, Guesthouse or Inn, Setting & Views

Fosshotel Glacier Lagoon

Location: Southern & Eastern Iceland | Iceland

If you’re looking for a luxury hotel which combines an urban, cosmopolitan style with a stunning location in the Icelandic countryside, Fosshotel Glacier Lagoon is perfect. As the name suggests, it offers easy access to the famous Glacier Lagoon, among other natural wonders such as the Svartifoss waterfall and Vatnajokull National Park.

Best for: Setting & Views, Wildlife & Nature, Walking & Trekking, Off the Beaten Track

Canopy by Hilton Reykjavik

Location: Reykjavik & Western Iceland | Iceland

Canopy by Hilton Reykjavik is ideal for a sophisticated getaway in the heart of Iceland’s capital city. The shopping, nightlife, architecture and museums of central Reykjavik are on your doorstep, and borrowing one of the hotel’s bikes is a great way to explore them. Further afield, adventures await in the otherworldly landscapes of the Icelandic countryside.

Best for: Chic Design, Luxury Hotel, City Hotel, Couples

Hotel Aldan

Location: Southern & Eastern Iceland | Iceland

Housed in restored buildings dating back to the 19th century, Hotel Aldan combines the atmosphere of a traditional Icelandic home with fantastic modern cuisine and a great location overlooking Fjardara River in the charming town of Seydisfjordur. The hotel is a fantastic base for trips out onto the fjord, hiking in the surrounding countryside, and enjoying the friendly and bohemian atmosphere of this Eastfjords town.

Best for: Peace & Quiet, Off the Beaten Track, Setting & Views, Guesthouse or Inn

Hotel Laxa

Location: Northern Iceland | Iceland

An elegantly designed contemporary boutique hotel in the heart of the northern Icelandic countryside, Hotel Laxa combines a stylish stay with the chance to explore the beautiful wilderness of the Myvatn region. Lake Myvatn itself lies within easy reach, and is home to natural hot springs, mud pools and otherworldly craters. This unspoilt part of the country also makes a fantastic backdrop to a night-time display from the incredible Northern Lights.

Best for: Off the Beaten Track, Chic Design, Food & Wine, Wildlife & Nature

Hotel Vik I Myrdal

Location: Southern & Eastern Iceland | Iceland

A stylish, modern hotel on Iceland’s mid-southern coast, Icelandair Hotel Vik is a comfortable base from which to explore the famous volcanic landscapes of Vik. Not to be missed are the black sand beach, the volcanic rock formations of the Reynisdrangar Pillars, and the stunning Skogafoss and Seljalandsfoss waterfalls. Back at the hotel, you’ll find a comfortable night’s sleep and fantastic gourmet cuisine at the Berg Restaurant..

Best for: Beach, Setting & Views, Wildlife & Nature, Walking & Trekking

Volcano Huts

Location: Southern & Eastern Iceland | Iceland

If you’re looking for an adventure in the Icelandic countryside without compromising completely on comfort, Volcano Huts offers an ideal base for some of the finest hiking in the country, against a dramatic backdrop of mountains and volcanoes. You’ll stay in comfortable cabins or glamorous tents, refuel with comforting Icelandic food, and laze in the sauna and geothermal pool.

Best for: Setting & Views, Wildlife & Nature, Walking & Trekking, Rustic

Hotel Flatey

Location: Reykjavik & Western Iceland | Iceland

Part hotel, part time capsule, Hotel Flatey offers both a comfortable stay and a glimpse into the past. The hotel is part of the historic village on the remote island of Flatey in the bay of Breidafjordur, where brightly painted traditional wooden houses, now only occupied in the summer months, offer an illustration of Icelandic village life in times gone by.

Best for: Hideaway, Off the Beaten Track, Peace & Quiet, Secret / In the Know

Hotel Ranga

Location: Southern & Eastern Iceland | Iceland

A luxurious countryside hotel which is perfect for exploring the stark beauty of the Icelandic environment, but which offers all the comfort of a modern luxury resort, Ranga is built in a stunning log cabin style and has garnered acclaim for its food, accommodation and service. Surrounded by the geysers, lava fields and glaciers for which Iceland is famous, Ranga is a cocoon of warmth and conviviality in the heart of the tundra.

Best for: Landscapes & Scenery, Walking & Trekking, Setting & Views, Off the Beaten Track

Frost and Fire

Location: Reykjavik & Western Iceland | Iceland

A remote guesthouse on the banks of the River Varma, Frost and Fire feels like a world of its own but is easily reachable from the Icelandic capital, Reykjavik. Whether you would rather laze in a naturally heated hot tub while gazing at the Northern Lights, or snorkel or scuba dive between tectonic plates in the Silfra rift, there is a range of activities on offer here to help you enjoy this uniquely beautiful corner of the Earth.

Best for: Peace & Quiet, Setting & Views, Hideaway, Spa & Wellness

Skalakot Manor

Location: Southern & Eastern Iceland | Iceland

Skalakot Manor is a boutique farmhouse hotel in a rural area of southern Iceland. Horses have been bred here for generations, and this is a great place to saddle up whether you’re a seasoned rider or a complete beginner - the stunning volcanic landscapes of Iceland’s countryside wait to be explored, with hiking and fishing also on offer. At the end of a day’s adventures, come home to comforting country cuisine and luxurious manor house-style accommodation in the lovely farmhouse.

Best for: Landscapes & Scenery, Off the Beaten Track, Riding, Walking & Trekking


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