Luxury Hotels & Lodges in Reykjavik & Western Iceland

The great natural phenomenon that is the Northern Lights is a spectacle that makes it to many a bucket list. Watching the lights illuminate the night skies from a totally unique Icelandic hideaway like ION is sure to make the experience all the more memorable, with its impressive angular design and array of tempting offerings. The remote, volcanic surroundings of the Golden Circle only add to the mythical atmosphere you’ll find yourself in. Take a look below at ION and our selection of hotels in Reykjavik & Western Iceland that just take our breath away. 

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

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

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

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

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

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

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

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 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 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

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

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

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

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

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


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