46 Best Hotels in Iceland

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. 

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.

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.

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.

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. 

Located a 40-minute drive from Reykjavik, Gallery Guesthouse is a basic accommodation for those on their way into the Icelandic wilderness. Free breakfast is a great perk before you hit the road for the next leg of your journey.

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.

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.

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.

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.

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.

This modern hotel has eight single rooms and 29 double rooms as well as a delightful dining area with large windows providing stunning, panoramic views of the lake and surrounding landscape. The restaurant holds up to 250 guests and has an à la carte menu.

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).

This countryside hotel feels worlds away, thanks to the panoramic views of Lake Svínavatn that you can enjoy from the large swimming pool. The accommodation is basic but it does the job—the mattresses are comfortable and the shared bathrooms are always squeaky clean. It's a good base camp to explore all that the area has to offer. 

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.

Across the street from the hilltop church of Hallgrímskirkja, this hotel is a short walk from most of Reykjavík's major attractions. Some guest rooms have balconies. Interiors are cozy, with hints of Scandinavian design here and there, and give off the vibe that you're staying with a good friend instead of at a nondescript hotel.

Located in the center of town, this hotel is close to restaurants, bars, cafés, and shops. There are 41 rooms with floral prints, modern furnishings, and TV. The hotel also has free Wi–Fi.

Five buildings in a calm corner of an older part of town make up this hotel with cheery and efficient guest rooms, some with nice views over Reykjavík's colorful rooftops. Its many regular guests choose it for its intimacy and convenience to the Old Town. The hotel's restaurant, Snaps, serves fish and steak from a bistro-type menu.

Situated downtown, this hotel has rooms decorated in pastel colors, and common areas with lots of natural light thanks to the glass ceiling over the lobby. In the basement, there is a museum built around the remains of a Viking longhouse from the 9th century that was found during the construction of the hotel.

Located right next to Lake Tjörnin on one of the city's main streets, this hotel features intimate, design-forward rooms and plenty of communal spaces. The hotel's gym and spa are available for guests, as well as two roof terraces, an outdoor patio, and a glass atrium.

This popular hotel has pastel-color rooms, and staff members who provide helpful general information about surrounding attractions. Myllan (The Mill) restaurant ($$) serves entrées such as local Arctic char, and rhubarb pie for dessert. Another on-site though separate eatery, Gamli Bærinn, changes from a friendly daytime café to a congenial pub at night.

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 that wants a themed experience with modern amenities. They also have a hot tub (as all Vikings do) and sauna.