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

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.

This hotel right off the Ring Road offers various types of accommodations, from self-catering apartments to deluxe suites—all in the same luxurious Nordic style. Outside the hotel are two hot tubs under the open sky, where you might be able to spot the northern lights if you're lucky.

Located in Þórsmörk and accessible via the Reykjavík Excursions Highlands bus—or the Fimmvörduháls or Laugavegur hikes—accommodations here include mountain huts, cabins, and luxury camping facilities with ready-to-use tents. There are also a few huts further into the valley.