48 Best Hotels in 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 coffee maker, stylish decorations, and more, that's only a short walk away from a private black sand beach.  

With a sauna, gym, bakery, and restaurant, there's a lot to love about the Exeter Hotel. The design skews industrial, but not without the token warmth that's essential to Scandinavian design.

Höfn is a popular overnight stop on any Ring Road adventure, and this branch of the Fosshotel chain is a modern, stylish place with epic glacier views. It's located 14 km (9 miles) north of Höfn town, with just quiet nature as your neighbor. There's an on-site restaurant serving up local specialties, including langoustine. 

Guest rooms here are separated into categories from budget to business class, and the more expensive are naturally more spacious (most are neutral in terms of decor). There's also Wi–Fi and a business center. Room rates include breakfast and complimentary shuttle service to town every morning. Junior suites have perks like free entry to the spa and breakfast delivered via room service. The on-site Restaurant Brasserie Grand serves organic Icelandic cuisine.

In contrast to the ultramodern glass-and-chrome architecture around Reykjavík, the city's oldest hotel is pure 1930s Art Deco—from the black marble statues in the entryway to the brass-and-wood railing on the stairs to the square little coffee cups in the rooms. Period black-and-white bathrooms are well appointed, with Philippe Starck fittings and heated marble floors; some rooms have whirlpool baths. All rooms have fluffy down comforters, black-and-white prints (some antique), and coffee machines. Perhaps the most enticing aspect of the Borg is its location: right in the heart of the city, overlooking Austurvöllur Square and close to Alþingishús (Parliament House) and various restaurants. The in-house Borg restaurant offers a good selection of Icelandic food in a glamorous setting.

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. 

This quietly elegant member of the prestigious World Hotels group has impeccable service and free Wi-Fi throughout, making it a favorite among business travelers. Though the rooms are small by modern standards, all are decorated with works by leading Icelandic artists—the hotel owners have the largest privately owned art collection in Iceland. There is a fitness room in the hotel, and all guests get free access to the largest gym and swimming pool in Iceland (a 7-minute cab ride away).

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.

Over the years, this remote mountain complex has featured a campsite and A-frame huts alongside a low-key restaurant in a beautiful setting, but now it's enjoying a complete overhaul under the guiding hand of Blue Lagoon, getting new life as an upscale hotel with lodges, a glamping area, a campsite, and lagoons tapping into the local geothermal waters. It's in an area with several shapely peaks, steaming valleys, and canyons riddled with hiking trails. It's 10 km (6 miles) off Route 35, along Route F347.

Evidence that Icelanders will renovate almost any building to turn it into a guesthouse, the Milk Factory was once—you guessed it—a milk factory and the stylish redesign has resulted in 17 modern, minimalist rooms, including family rooms that sleep four (with beds on a mezzanine level). It's a friendly place with thoughtful touches that's open year-round.

From the moment you step into this hotel, you'll know you're somewhere special: the staff is friendly and alert, the on-site spa is worth a visit, and the rooms showcase the best of Scandinavian design taste. The room rate is steep, but it's the kind of place you want to stay for the most special occasions. Plus, the hotel's location near the harbor sets the scene for great pre-bedtime walks.

Located right in the center of Reykjavík, the Sand is one of the more luxurious hotels in the city. Art deco details set the scene, and supersoft beds seal the deal. Next door you'll find Sandholt, known as one of the best bakeries in the country. Don't miss their breakfast: It's the perfect way to start the day.

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 five-story hotel designed by owner Ingibjörg Pálmadóttir, contemporary works by renowned local artists adorn the walls (the hotel also hosts exhibitions), and large, open-plan rooms are well appointed, with big, comfortable beds, American oak floors, and (in some) freestanding baths. The restaurant-bar serves great European and Asian food and killer cocktails beneath a dramatic glass ceiling. The cozy lounge and library area boasts leather sofas and an open fireplace. Massages can be arranged in your room, and in the basement you'll find a sauna, Jacuzzi, and small plunge pool.

At this lovely hotel in the trendy Lighthouse Village area of downtown Reykjavík, guest rooms are decorated in a typical Scandinavian-chic style, with a combination of rich, earthy tones contrasted with fresh, crisp whites and the occasional splash of vibrant color. There’s a tidy collection of amenities, including a hot tub, a gym, and a stylish dining area with an old record player and a selection of vinyl records. The atmosphere is thoroughly social in the comfortable lobby area, where a confectionery sells exquisite Icelandic chocolates and the aptly named Barber Bar serves cold beer with your haircut.

The Art Deco architecture here adds some serious curb appeal to this hotel. The rooms may be minimal, but past guests have applauded its proximity to the city's best sights.

Set amid big, bucolic landscapes about 13 km (8 miles) south of Djúpivogur, Bragðavellir is a family-run farm with a collection of cozy timber cottages, with one or two bedrooms. Each has a small kitchen, though the farm has a Barn Restaurant open in the summer that showcases local ingredients. Also located here is a small adventure tour company, Arctic Fun ( www.arcticfun.is) which operates kayaking and cycling tours in the area. 

For a once in a lifetime experience, sleep under the Midnight Sun or the northern lights 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. For extra ambience, they can provide champagne, rose petals, and more for a fee. 

If being centrally located is your main priority, this hotel is a good option. Just remember this means the area is full of bars and nightclubs, which can get noisy on the weekends.

Located right in the center of the buzziest street in downtown Reykjavik, this hotel comes with some serious value. Much less expensive than its competitors, it still boasts some of the same amenities like an on-site bar and restaurant, close attention to the interior design, and spacious community areas.

Found right off of Laugavegur, next door to foodhall Hlemmur Mathöll, the location of this hotel could not be better. Views of Mt. Esya will lull you to sleep and the best bars are steps away from when you want to put off bedtime for a bit.

Hotels can be far and few between in this region of Iceland and often follow an "all-in-one" mentality; this spot is no exception with its role as a restaurant, hotel, bar, and gathering space. Enjoy a great meal, take in a few drinks, and roll right into bed without going outside.

This mammoth hotel in the business district of Reykjavík has spectacular views and huge common areas. Inside its austere exterior there are 320 large rooms (odd-numbered rooms have ocean views) and a few suites, all furnished with those dark muted tones of Scandinavian chic and enlivened by crisp whites and shiny surfaces. Guests can dine at the beautifully decorated restaurant, hang out at the steampunk-style Beer Garden, shop at a small souvenir store, and make use of the gym. There are great facilities to accommodate wheelchairs and plenty of rooms with walk-in showers.

From the bar to the rooms, guests are surrounded by moody, cozy vibes at this hotel. A 24-hour concierge, room service, and wheelchair-accessible spaces will take your stay to the next level. Plus, they offer a northern lights wake-up call during the winter months.

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. 

Hilton's first hotel in Iceland is geared primarily toward business travelers, though families are given priority for larger standard rooms. The hotel offers a choice between guest rooms, suites, and Executive rooms; Hilton Guest Rooms Plus offer spectacular sea and mountain views. All rooms are bright and spacious, with modern furnishings and wooden floors, and guests have access to the gym, which is open 24/7. Guests on the Executive floor have complimentary access to the award-winning Hilton Reykjavík Spa as well as the Executive Lounge, which has a panoramic view over the city. The VOX Brasserie and Bar is also popular.

This guesthouse offers up rooms with private bathrooms, shared facilities, and campground spots, making it a great spot to meet fellow travelers. The amenities may be basic, but its proximity to Latrabjarg (one of the best places to spot puffins) can't be beat.

Opened in 1944, the Hotel Kea has clean and comfortable guest rooms with leather furniture and businesslike decor. Múlaberg, the on-site restaurant, offers excellent continental and Scandinavian-inspired cuisine using Icelandic ingredients.

The geothermal swimming pool is the biggest draw at this remote hotel. The accommodations are basic, but the stunning scenery takes the edge off. This hotel also marks the halfway point between Ísafjörður and Reykjavík and is surrounded by tons of things to see, including the Sorcerer’s Cottage, the Museum of Sorcery & Witchcraft, hiking, and cross-country skiing. 

You've got options at Hotel Laxarbakki: there are single, double, twin, and family rooms as well as a charming cottage. With a children's playground, hot tub, and sauna on-site, there's something for everyone.