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

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. 

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.

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. 

Set directly into Reykjanes's famed moss-covered lava fields, the Silica Hotel offers a tranquil retreat just minutes away from the Blue Lagoon. Expect high-end, Scandinavian-style furnishings paired with spectacular views of the countryside.