33 Best Hotels in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

Imagine getting to experience the Icelandic wilderness firsthand, except with high-end furniture, cozy carpets, and a heated mattress—enter Camp Boutique, Iceland's prime destination for glamping. Sleep outside in a luxurious and spacious tent, complete with a coffeemaker, stylish decorations, and more, that's only a short walk away from a private black-sand beach.  

Experience Nordic style at its best at this surprisingly chic hotel next to the famous Geysir and Strokkur springs. Various Icelandic specialties, like langoustine soup and lamb cured in Icelandic thyme, are served in the large, ornate restaurant. This is a truly upscale experience that is only made better by the distant views of steaming hot pools.

Clean, green, and emerging from the landscape, the ION Hotel is a striking sight in the primordial surrounds of Nesjavellir, a geothermal area close to Þingvellir National Park. Although it's only 40 minutes away from Reykjavík by car, its location could easily pass for extraterrestrial. Apart from the luxury rooms fitted with mattresses made from organic material and Scandinavian-inspired decor, other highlights include a luxury spa with a large outdoor geothermal hot tub, and the Northern Lights Bar, where double-size windows offer guests unimpeded views of the auroras when they happen.

One of the most luxurious accommodations in the entire county, the Blue Lagoon's Retreat Hotel offers true serenity set among understated luxury. Carved directly into a centuries-old lava flow, the high-end abode offers a subterranean spa and Michelin-starred dining right on-site. Guests have unlimited access to the spa's private lagoon as well as additional access to the public Blue Lagoon. Rooms overlook either the lagoon or stunning volcanic rock formations; some even have their own private hot pools. They also come equipped with luxe linens, a complimentary minibar, walk-in rainfall showers, and high-end Blue Lagoon toiletries. A delicious breakfast is available daily as are yoga classes and an afternoon Icelandic coffee service. 

Right by the root of a mountain lies this horse farm that has been in the same family for seven generations and their meticulously built, incredibly cozy yet luxurious manor. Romantic rooms have country-French decor. They also offer personal and group horse riding trips to the nearby waterfalls and black beaches.

Despite being in a simple turf house, the Torfhús Retreat is one of the most luxurious hotels in all of Iceland. Mixing heritage Icelandic style with modern amenities and true high-end service, a night in one of their delightfully rugged guesthouses will be one you won't forget. Their basalt stone hot pool is also a nice touch. 

Hidden in the trees in Reykholt is this charming wooden cottage with cozy rooms. The owners are very attentive and warm, and they serve a great breakfast buffet.

For a once-in-a-lifetime experience, sleep under the northern lights or the midnight sun in a luxurious bubble, with unforgettable nighttime vistas. Nicknamed the “five million star hotel,” this hotel provides a unique experience you won't soon forget.

Sitting proudly alongside the Varmá River, the Frost and Fire hotel offers proximity to nature while just a short walk from shops and restaurants. No need to go far for dinner though—the excellent Varmá restaurant is right next door.

In addition to simple, spacious, and well-equipped apartments right by the sea in Garður, this guesthouse features satellite TV and a kitchen. It's a smart option for families or groups.

This guesthouse is located on a horse farm within close driving distance to both Gullfoss and Geysir and provides both rooms and wooden cottages for rent. Strokkur erupting in the distance, the beautiful scenery, the friendly Icelandic horses, and the helpful owners all make this place a lovely country retreat.

This leafy locale feels distinctly upscale, with lots of plants, high-end design, cozy rooms, and a trendy clientele. The boutique spot prizes sustainability and eco-friendly choices above all else. In fact, many of their materials are recycled, upcycled, or used. Make sure to try out their popular food hall Mathöll Suðurlands and peruse their shops. 

At this unique and artistic guesthouse on a quiet street, each room is special and made out of driftwood and volcanic stone. The hosts go out of their way to make guests feel welcome and offer airport pickup with advance notice.

Located in the beautiful Flóahrepp countryside, right along Route 1 near Selfoss and Hveragerði, this guesthouse with views over the mountain Hekla was initially built as a women's prison (though those plans were never realized).

A small, family-run hotel located between the two greatest waterfalls of the South, this romantic, old-fashioned spot serves excellent meals made from local ingredients in their restaurant.

This modern hotel sits by a peaceful harbor at the northern end of Keflavík in close proximity to the airport. It offers comfortable and cool rooms, as well as a chic common area and a romantic outdoor pool to relax in after a long day.

This charming country hotel dedicated to the Icelandic horse is located right off the Ring Road, only a few minutes’ drive from Hveragerði. Each room is simple but bright, with a private bathroom and a door that leads directly outside. There's also a hot tub to relax in after a long day of riding. 

This classic American-style country hotel guarantees luxury on every account: it's secluded, peaceful, only a 15-minute drive from Selfoss, and 20 km (12 miles) from Þingvellir National Park.

Family-run for more than 30 years, this hotel sits in a valley just five minutes from the magnificent Gullfoss. Visitors can take a beautiful walk up the old road to the waterfall in the morning or evening, dodging the crowds.

For over 30 years, Hótel Keflavík has been welcoming visitors beginning or finishing their trip to Iceland. Positioned in the heart of Reykjanesbær, the hotel offers a variety of standard and deluxe rooms and a gym, as well as tour reservation services.

At this luxurious hotel within walking distance of the famous black-sand beaches of Vík, rooms are sleek and modern, and Drangar, the in-hotel restaurant, serves gourmet Icelandic cuisine with breathtaking views of the mountains.

This rustic four-star hotel with uniquely decorated theme rooms and outdoor Jacuzzis is located in the countryside just east of Hella. One of the best rivers in the country for salmon fishing is right next door.

Sitting on the banks of the grand river Ölfusá with views of the nearby mountain, Hótel Selfoss offers tranquility just a few minutes' walk to the town center, with all its restaurants and shops. The hotel also has its own restaurant, bar, and spa.

This no-frills hotel offers everything you need: comfortable beds, modern amenities, and a great location. Plus, it's only steps away from Selfoss's vibrant downtown, which is filled with shops, restaurants, and a number of quirky museums to explore. 

While not in the most charming neighborhood, Hótel Vellir is convenient to both the Reykjavík city center and Keflavík Airport, close to the biggest indoor geothermal pool in Iceland, and only a 10-minute walk to restaurants and shops in downtown Hafnarfjörður.

This hotel right in the heart of Vestmannaeyjar offers every luxury one needs for a great night's stay, namely an excellent restaurant, a romantic lounge where cocktails can be enjoyed, a spa to relax in after a long day of exploring, and scenic views from rooms.

This delightfully cheesy hotel—which along with the restaurant Fjörukráin makes up a building referred to as the Viking Village—is a paradise for anyone who wants a themed experience with modern amenities. They also have a hot tub (as all Vikings do) and sauna. 

In a modern yet cozy guesthouse in Stokkseyri are two bright apartments—one that sleeps up to five people and the other seven. Of course, beautiful mountain views and access to a hot tub are also included. 

Located mere steps from the beautiful coastline at Garður and only a 10-minute drive from the Keflavík airport is this log hotel. Guest rooms are very clean and spacious, and the kind family that runs it prepare a nice breakfast with American flair.

These modest yet beautiful country-inspired cottages are located just a few steps from the North Atlantic Ocean. Expect a romantic and quiet stay that is very close to everything you need in this charming small town.