10 Places to stay

10 incredible hotels in Iceland

The world's largest volcanic island in the North Atlantic fascinates with incredible diversity and wild nature. Experience the stunning natural beauty and wonders of Iceland, such as the Northern Lights, glaciers, hot springs, and waterfalls. We have handpicked the most exceptional accommodations in Iceland for you.

Published in: September 2022
Reader count: 95,043

Hotel Budir

Hotel Budir

Hótel Búðir



A charming boutique hotel located on the west coast of Iceland, near the town of Snæfellsnes, in one of the most beautiful regions of Iceland. All rooms are decorated in a traditional Icelandic style and equipped with modern amenities. The 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.

Hótel Búðir
356 Snæfellbær
+354 435 6700


EDITION Reykjavík

EDITION Reykjavík




The Reykjavik EDITION hotel offers a premier 5-star luxury experience in one of the world's most environmentally conscious capitals. Conveniently situated in the picturesque heart of downtown Reykjavik, close to the Old Harbor and just a 45-minute drive from the airport, the hotel 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.

The Reykjavik EDITION
Austurbakki 2, 101 Reykjavík
+354 582 0000


ION Adventure Hotel

ION Adventure Hotel

ION Adventure Hotel



ION Adventure Hotel is an unforgettable experience. Whether you are seeking a quiet, soulful soak beneath the Northern Lights, a challenging trek across an ancient glacier or a day of fly-fishing in plentiful icy rivers. ION is situated next to a geothermal power station, which provides the hotel with its own geothermal energy. The hotel offers an eco-friendly and sustainable experience, with a focus on adventure and outdoor activities.

ION Adventure Hotel
Nesjavellir vid Thingvallavatn, 801 Selfoss
+354 578 3720


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.

Hotel 101, a Member of Design Hotels
Hverfisgata 10, 101 Reykjavík
+354 580 0101


Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon



Located between two of Iceland's most spectacular natural attractions, Skaftafell and Jökulsárlón Glacier Lagoon. The location is perfect for nature lovers, as the hotel is between Skaftafell National Park and Jökulsárlón Glacier Lagoon, two of Iceland's most spectacular natural attractions; a hiker's paradise.

Peace Lodge & Waterfall Gardens
Hnappavellir, 785 Öræfi, Island
+354 514 8300


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.

Torfhús Retreat
Dalsholt, 801 Selfossb
+354 788 8868


UMI Hotel

UMI Hotel



Bare-foot luxury at its best. The hotel is rooted with a deep connection to nature that flows throughout the design, decor and overall experience of the hotel and with only 28 simple yet stylish rooms, offering a mountain or ocean views, guests will never feel over-crowded.

Umi Hotel
Leirnavegur road nr. 243, 861 Hvolsvöllur
+354 518 4001


The Retreat at Blue Lagoon

Panorama Glass LodgePanorama Glass Lodge

Deplar Farm

The Retreat

The Retreat at Blue Lagoon



An underground spa, a geothermal lagoon and restaurant that reinterprets Iceland's culinary traditions is waiting. Here you will be surrounded by the mineral-rich waters of famous the Blue Lagoon. Located in the midst of an extraordinary volcanic region, the retreat offers you unlimited access to the Retreat Spa, the Retreat Lagoon, the Blue Lagoon and the Blue Lagoon Ritual as well as skin care products. Designed with a focus on hospitality and well-being, each suite is the basis for a relaxing, restful and exploring stay.

The Retreat at Blue Lagoon Iceland
Norðurljósavegur 11, 240 Grindavík
retreathotel@bluelagoon.is | +354 420 8700


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.

Panorama Glass Lodge
Austurkrókur 1, 851 Hella
+354 768 8821


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.

Deplar Farm by elevenexperience
570 Fljót, Ólafsfjörður
+1 970-237-5985


About Iceland

The world's largest volcanic island in the North Atlantic fascinates with its incredible diversity and untamed nature. Wild, rough and up close, Iceland presents itself to the traveler on the ring road as well as to the adventurous exploring the inland in an off-road vehicle. The countless waterfalls roar and roar over the moss-covered stones, the solfatarian springs hiss hissingly and smoke out of the hot earth and smaller and larger icebergs calve from the majestic Vatnajökull glacier into the glacier lagoon. Since the beginning of 2021, visitors to Iceland have been able to enjoy a very special natural spectacle: the active Fagradalsfjall volcano with its lava flows, which slowly make their way through nature.


In summer, the highlands with their lonely lunar landscape attract nature lovers to go on a discovery tour, while you can watch the cute puffins in the Westfjords and in the south of Iceland. You should also plan a visit to Reykjavík: thanks to its manageable size, things are leisurely here. Colorful houses characterize the picture, cozy cafés invite you to linger and the capital also has a lot to offer in culinary terms. It is also worth combining the city trip with the Golden Circle and a visit to the Blue Lagoon.

Published in September 2022. All listings on this page were independently selected and personally reviewed by our team of passionate travel experts. The information provided is correct to the best of our knowledge at the time of publication. Do you have any feedback or suggestions regarding our guides, please contact us via the contact us page.

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