63 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 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.

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. 

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.

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.

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.

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.

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.

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 modern, minimalist rooms, including family rooms that sleep four (with beds on a mezzanine level). It's a friendly place with thoughtful touches, and it's open year-round.

The photogenic cluster of small red cottages by the shore on the east side of the fjord belongs to Mjóeyri—a local family-run travel service offering accommodations and activities. Apart from the cottage accommodations, you can also stay in the main guesthouse (cheaper rooms with shared bathroom). Views from the property are sensational, especially from the small boat that's been converted into a hot tub.

The interior of this hotel would look right at home in a Wes Anderson movie; there's a wide range of room styles to fit groups of different sizes—family suites even include private kitchenettes. If a cute, design-forward hotel is what you're after, check out Oddsson.

There’s a touch of class, but not a trace of pretension at Sigló Hótel, which is named after the endearing title given to the town by its locals. Beautifully decorated with a timeless, traditional design, the hotel is warm and welcoming and staffed with genuinely lovely people. Rooms are immaculate with luxury linens, but to tempt you there’s a cozy lounge and an excellent restaurant, plus a bar serving tasty cocktails.

A gem of a guesthouse, Við Lónið has gorgeous rooms featuring either beautiful views over the fjord or the charming scene over Rainbow Road. The cozy tungsten lighting and oil paintings add warmth and a touch of vibrancy to the classy, minimalist Scandinavian design. Rooms facing toward the fjord have private balconies.

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 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.

As the name implies, this hotel caters mostly to adventure tourists and outdoorsy types, and tours---both private and large groups---can be booked through them. They serve breakfast and dinner and offer rudimentary but good quality rooms as a pit stop to your next adventure. 

At this lovely hotel along Laugavegur, 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 and a gym. 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 that lends this hotel's exterior its curb appeal carries into the guest rooms. Though small, the rooms here are comfortable and keep you within close proximity to everything Reykjavík has to offer.

Attention to service, detail, and atmosphere define this harborside hotel, which—thanks to its cocktail bar and bistro—also serves as a popular dining and nightlife spot for locals. Seeking to engage its guests at every opportunity, the hotel presents a curious collection of vintage knickknacks throughout the lobby, the lounge, and beyond. Guest rooms are crisp, clean, and efficiently designed. Each has its own little quirks, but homage to the fishing industry is a recurring theme. Views from the even-numbered rooms are impressive and stretch right across the bay.

Accommodations at this hotel nestled between the verdant Öskjuhlíð hill and Reykjavík's domestic airport, a stone's throw from Reykjavík's geothermal beach, are comfortable and modern. With all its great amenities—including a library, a gift shop, a spa, the solid Satt restaurant, and countless conference rooms and halls—this hotel generates a compelling microculture. 

Hidden in the trees in Reykholt is this charming wooden cottage with cozy rooms. The owners are very attentive and warm, and they serve a great breakfast buffet.

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. 

For a once-in-a-lifetime experience, sleep under the northern lights or the midnight sun 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.

Despite its businesslike vibe, this outpost from the Fosshotel chain is a solid choice for your stay in Patreksfjörður, and you'll get the trusted service this brand is so well-known for. There are certainly trendier Fosshotel locations, like Fosshotel Glacier Lagoon, but you can't beat the proximity to Látrabjarg and Dynjandi.