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

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.

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.

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. 

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.

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. 

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.