171 Best Hotels in Iceland

This classy hotel is designed to offer more than just a practical base; it's somewhere you can hang out, relax, socialize, and dine. With lots of comfy sofas, the welcoming lobby functions as a bar, café, and lounge, yet it also pays tribute to the town’s winter sports heritage with old snowshoes and skis mounted on the walls. Rooms are bright, with crisp linens and large windows overlooking either the fjord or the mountains to the west.

What began as minimalist rooms with shared bathrooms and a kitchen inside a renovated fish factory now encompasses hotel-standard rooms with private balconies, plus well-appointed, family-size apartments. The spa here has saunas and hot tubs overlooking the sea, with the options of beer and seaweed baths, too. The on-site restaurant-bar Frystiklefinn serves a range of locally sourced dishes. The cherry on top of it all: an on-site craft brewery and distillery.

This sleek, minimalist boutique hotel has put Blönduós on the map as a culinary destination, as its owners are also authors of the fabulous Icelandic cookbook Into the North. The hotel also hosts workshops on Iceland’s food history and intimate dinners by a supersize window that frames epic sunsets during the summer and regular displays of northern lights in the darker months. Each of the rooms has a distinctive character presenting a refreshing mix of both new and old.

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 coffeemaker, stylish decorations, and more, that's only a short walk away from a private black-sand beach.  

This family-owned guesthouse may not feature every luxury amenity under the sun, but the serenity and breathtaking views have few comparisons in all of Iceland. The unbelievable natural vistas include eagles swooping overhead and frequent appearances by the northern lights. The minimalist design includes some quirky choices, with each room named after a specific cow from the on-site farm and decorated in color palates modeled after brands of tractors.

The loudest noise you'll hear at this beautiful 1890 house is birdsong, and although luxury amenities are not the focus, there's no substitute for the coziness of staying at this family's home. You can reserve a double room or a larger room if traveling as a family.

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.

At 469 meters (1,539 feet), Fjalladýrð is the highest farmstead accommodation in Iceland, and a night here gets you a little closer to the stars and offers even better views of the northern lights in winter. Located at the expansive Möðrudalur farm, it's an ideal place to explore the Highlands, especially the Askja and Kverkfjöll routes. Accommodations are a cool mix of upscale private hotel-style rooms (that include breakfast), cheaper guesthouse rooms with shared bathrooms, sleeping-bag dormitories, family cottages, and a campsite. 

Spread across four of the town’s historic buildings, Fosshotel Eastfjords is one of the best lodging options in the region. The beautiful, bright, and modern rooms and spaces maintain a classy look throughout.

Your first impression of this hotel will be one of lofty sophistication, as among the modern, stylish design features in the lobby and lounge are giant felted balls that hang from the ceiling. Given its location in the whale capital of the north, the interior designers also left room for a bit of whale-theme fun: while you let your companion deal with check-in, you can enjoy some great complimentary coffee and play spot the whale. The guest rooms are contemporary and comfortable.

This historic lakeside farm saw the town grow up around it and began offering guesthouse services in 1884. It has since transformed into a modern 50-room hotel, with a mix of older and more modern rooms as well as a quality restaurant and spa.

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 Icelandic cuisine.

For a little rural respite in a remote location—with sea views—head to this guesthouse, where you can combine the thrill of the great outdoors with a stylish, boutique design and all the creature comforts you need.

Perched on a hilltop above the town center, this collection of cabins is beautifully decorated, and has all the amenities you need for a self-catering holiday. The delightful couple running Hestasport Cottages go above and beyond to make guests staying in their little village of adorable timber cabins happy. There’s also a lovely large stone communal hot tub in the center. Note that the cottages are in a different location to the Hestasport reception, where you check in.

This remote mountain complex is now a year-round resort featuring an upscale hotel with lodges, a restaurant, and the Highland Baths that tap local geothermal waters. In the summer, when the Kjölur route is open to regular traffic, there’s also a campsite and simple private huts. It's located in an area with several shapely peaks, steaming valleys, and canyons riddled with hiking trails. The resort can arrange activities for guests, from summer mountain e-biking to winter stargazing. Winter access is arranged via the hotel and requires a Super-Jeep transfer due to the snowbound terrain. The complex is 10 km (6 miles) off Route 35, along Route F347.

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. 

A one-of-a-kind hotel at the edge of the world, Hótel Búðir comes with a rich history and is surrounded by lava fields and the Snæfellsjökull glacier on one side and untamed beaches on the other. You would be forgiven for thinking you stepped into an alternate reality as you lounge in the leather-bound chairs, nursing a coffee and watching the sun set on friendly seals. The excellent on-site restaurant focuses on seasonal and local ingredients—which is fortunate, considering that the nearest alternative is miles away.

This design-forward hotel's one goal is to make you feel as cozy as humanly possible. Set in an 1865 building with a distinctive red facade, each room boasts decor inspired by the surrounding ocean. It serves possibly the best breakfast in all of West Iceland, with a selection that caters to a range of diets, including gluten-free and vegan options. 

It's the only accommodation on the entire island, but luckily Hotel Flatey is a beautiful property with a lot of charm. The hotel staff will offer to transport your luggage from the ferry to the house, but you can also handle it the local way: in a wheelbarrow. Your days here will be filled with birdsong from the arctic tern and scenes from the surrounding ocean. The hotel has teamed up with Seatours Iceland to offer a discounted room rate with the purchase of a round-trip ferry ticket.

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 are few hotel options here, but Hotel Húsafell has everything you need for a solid home base while exploring the region. Each room is decorated with local art by the town's world-renowned artist Páll Guðmundsson. Two on-site restaurants—one a full-service option and the other a café—offer myriad options for all diets. The best part of staying here may be the two geothermal baths: the private Canyon Baths and the area's municipal pool (with possibly the hottest steam bath in the country). The Canyon Baths are a luxurious opportunity to relax in a natural hot spring with a glass of wine and take in the stars or northern lights with a private guide.

This glossy hotel is perfect for Jökulsárlón visitors looking for a luxurious experience that matches their elevated mood after taking in all that icy beauty. The calm, elegantly dressed building is 11 km (7 miles) east of the glacier lagoon, with all the mountain and glacier panoramas you could hope for. Careful attention has been paid to creating an inviting outdoor area with hot pools, a cold plunge, and a sauna.

Perched on the hillside next to the gorgeous Kjarnaskógur forest (about 3 km [2 miles] from the town center), this fabulous hotel provides evergreen respite year-round to those who love nature, hiking, and beautiful views. Originally designed as a health spa and retreat in 1998, it has an emphasis on well-being, and guests can access hot tubs and infrared saunas free of charge. There’s also a conference center and a three-bedroom private cottage with a hot tub.

Modern, minimalist, and trying its best to blend into the landscape with turf grass rooftops, Laxá has a focus on sustainability and low-impact design. Visually stunning on the inside, too, the hotel generates a natural impression where the decor and furniture have been curated to reflect those vibrant, moss greens, and other countryside colors.

The largest hotel in town, Hótel Vesturland offers an elevated level of service. It comes fully equipped with a relaxing basement spa area and gym to meet all basic fitness needs. Rooms are generally spacious and deluxe rooms offer corner views over the fog banks inching from the North Atlantic up the Borgarvogur inlet. There is full dinner service that includes three courses of Icelandic cuisine, as well as a designated lounge and bar area.

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.

The Ion City Hotel is the urban counterpart to the original Ion Hotel, near Þingvellir National Park, and the vibe here is certainly luxurious, with a focus on local designers and art throughout. The rooms are comfortably appointed, with pops of color, and the suites are equipped with private saunas for an extra bit of pampering in the hearth of Reykjavík. Popular local restaurant Sumac occupies the first floor.

This spot is the perfect base for several excellent hiking trails, including the top-notch Waterfall Circle, plus there are two tempting stone pools filled with hot spring water. While the natural pools are the main attraction, the location offers an upgrade on its former hostel accommodation with twin, double, and family rooms, each dedicated to a local nature spot or attraction. There is a view-blessed lounge and dining area where breakfast, lunch, and dinner are served. You don't need to be a guest to access the pools: day visitors pay a fee of ISK 2,700 per person. Note that you don't require a 4WD vehicle to reach Laugarfell in summer (it's just 2 km [just over a mile) off the paved Route 910).