31 Best Hotels in Iceland

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.

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.

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 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.

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.

One of the most luxurious accommodations in the entire county, the Blue Lagoon's Retreat Hotel offers true serenity set among understated luxury. Carved directly into a centuries-old lava flow, the high-end abode offers a subterranean spa and Michelin-starred dining right on-site. Guests have unlimited access to the spa's private lagoon as well as additional access to the public Blue Lagoon. Rooms overlook either the lagoon or stunning volcanic rock formations; some even have their own private hot pools. They also come equipped with luxe linens, a complimentary minibar, walk-in rainfall showers, and high-end Blue Lagoon toiletries. A delicious breakfast is available daily as are yoga classes and an afternoon Icelandic coffee service. 

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. Rates may surpass those of nearby hotels, but this is Reykjavík's sole five-star hotel, and it shows in the level of service and quality of amenities. Its location near the harbor welcomes after-dinner strolls or early morning meanders.

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. This modern boutique hotel offers a complimentary breakfast buffet, as well as a gym and a bar. Next door you'll find Sandholt, known as one of the best bakeries in the country.

Right by the root of a mountain lies this horse farm that has been in the same family for seven generations and their meticulously built, incredibly cozy yet luxurious manor. Romantic rooms have country-French decor. They also offer personal and group horse riding trips to the nearby waterfalls and black beaches.

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. 

The area's leading hotel is where the cast and crew of Game of Thrones stayed when they filmed in this region; it's still on the fancy end of the spectrum, with a signature design of modern Nordic-chic, combined with upcycled vintage wares and local art. Be sure to visit the on-site eatery, Mylla Restaurant, a destination in its own right. 

If being centrally located is your main priority, this hotel is a good option. It's also packed full of local art and other creative touches to infuse character around every turn. Just remember this means the area is full of bars and nightclubs, which can get noisy on the weekends.

The stylish Fosshotel Glacier Lagoon stands out like a black fortress from its surroundings. Designer lighting installations hang down from lofty ceilings in the lobby, continuing in the restaurant where the interior is heavy on geometric forms created to replicate the shape of columnar basalt. Rooms are reasonably spacious and modern, and many have large windows offering mountain or ocean views.

Fosshotel is a regional chain known for friendly and dependable service, and the Stykkishólmur location is no exception. You won't get the same cozy vibe as at some of the guesthouses in the area, but you will get your own private room and bathroom. The hotel restaurant offers great views to go with your meal.

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. 

Open year-round and accessible via a paved road, Hrauneyjar offers hotel rooms and one of the only restaurants in the region. There are two hotel options: Hrauneyjar is more basic while nearby Hotel Highland is a little more upscale. Prices are significantly lower in the shoulder season between October and May. The restaurant caters to both hotel guests and visitors and offers local produce like lamb fillet and pan-fried arctic char. An attached grill offers a variety of cheaper burgers and grilled sandwiches with later opening hours. 

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 offers a panoramic view over the city. The VOX Brasserie and Bar is also popular.

At this luxurious hotel within walking distance of the famous black-sand beaches of Vík, rooms are sleek and modern, and Drangar, the in-hotel restaurant, serves gourmet Icelandic cuisine with breathtaking views of the mountains.

This rustic four-star hotel with uniquely decorated theme rooms and outdoor Jacuzzis is located in the countryside just east of Hella. One of the best rivers in the country for salmon fishing is right next door.

A practical base for those planning a self-catering winter skiing trip, these modern and stylish cottages just off the mountain road to Hliðarfjall ski resort offer sensational views over the town and fjord. Each cabin sleeps up to eight people and has a Jacuzzi.

This sleek, design-forward hotel is located right on Austurvöllur Square, overlooking Alþingishús, Iceland's parliament building. Each room features modern amenities, including TVs, espresso machines, and mini-refrigerators. Guests can dine at Hjá Jóni restaurant, which offers a fusion of local and international flavors or relax at Telebar, known for its cocktails and live jazz.

In a modern yet cozy guesthouse in Stokkseyri are two bright apartments—one that sleeps up to five people and the other seven. Of course, beautiful mountain views and access to a hot tub are also included. 

This boutique hotel is located in the historic Kirkjuhvoll building, which was built in 1900; its warmly decorated rooms echo the historic ambience of the location, without skimping on comfort or modern amenities—including kitchen facilities in most rooms. A concierge is on-site to assist with tours and travel arrangements, and breakfast is served daily.

Located downtown in one of Reykjavík's oldest and most famous buildings, this hotel's exterior is reminiscent of 1919 (the year the building was constructed) but the sleek interiors, accented with touches of Nordic design, are undeniably modern. Rooms are calm, with warm wood floors, comfortable bedding, and televisions. The in-house restaurant Brút is excellent, while the on-site coffeehouse, Kaffi Ó-le, is a popular spot to sit with a warm drink and a pastry.

Occupying a refurbished 1900s department store once owned by Consul Ditlev Thomsen, the Konsulat offers modern luxury with a nod to Reykjavík's past. The hotel features stylish rooms, a bathhouse with a 19th-century stone wall, a 24-hour fitness center, and the Konsulat Wine Room serving Icelandic-European cuisine.

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.