A destination brimming with mystery and allure, Iceland graces many a bucket list thanks to its prime position for Northern Lights viewing. Adventure awaits on the European island, which is known for its geothermal hot springs, ice-topped glaciers, and of course, mesmerizing solar activity.
While it’s easy to strip your trip to Iceland back to the basics, this relatively expensive country is ideal for the luxury traveler too. Check out this list of the best luxury hotels in Iceland to decide where you’ll be living it up on your Nordic trip.
The 10 Best Luxury Hotels In Iceland
1. The Reykjavik Edition, Reykjavik
One of Iceland’s most famous luxury hotels right in the capital
Known as one of the best hotels in Iceland, the Reykjavik Edition is just a stone’s throw from Solfar Sun Voyager. Here, you’ll be treated to modern and stylish rooms with a range of five-star amenities and creature comforts, from a 24-hour front desk to free luxury toiletries.
There’s a bar on the grounds for those cold nights when you don’t want to leave the hotel but aren’t quite ready to turn in, along with a restaurant and fitness center.
2. Hotel Egilsen, Stykkishólmur
A lavish gateway to the West Fjords and Flatey Island
If you’re looking to explore the West Fjords and Flatey Island on your Icelandic adventure, staying at Hótel Egilsen in Stykkishólmur could be a good choice. The ferry terminal is a short walk from the hotel, which is also within driving distance to Snæfellsjökull National Park.
The hotel building itself is more than 150 years old and boasts fantastic views of the Atlantic Ocean, which are equally dreamy in summer and winter. Also on the property is a small shared library, while organic eggs are served every morning.
3. Siglò Hotel, Siglufjörður
Serene accommodation in the heart of Siglufjörður, ideal for nature enthusiasts
Siglò Hotel offers guests stunning views of the surrounding panorama, either from the quiet terrace or from select rooms, some of which are equipped with a balcony.
But most people don’t come to Siglufjörður for the vistas: the area is known for its outdoor recreation, so naturally there’s a 24-hour front desk at the hotel operated by staff who will organize tours and excursions for you, whether you prefer hiking, fishing, or skiing.
You’ll also find a restaurant and bar at the property, along with a shared lounge, sauna, and hot tub to help you unwind after a long day of Icelandic adventures.
4. Reykjavik Domes, Reykjavik
A one-of-a-kind Icelandic experience conveniently located near the amenities of Reykjavik
Looking for a unique hotel experience in Iceland? The Reykjavik Domes should be on your bucket list. Every room or dome comes with a patio, garden views, and that all-important fireplace, while select domes have a hot tub.
There’s day security on hand to ensure the safety of guests, along with a shared kitchen where you can meet other travelers and whip up your own meals (eating out can be expensive in Iceland!).
The hotel is a short distance from The Pearl, Hallgrímskirkja Church, Solfar Sun Voyager, and also Reykjavik Domestic Airport.
5. Diamond Suites by Reykjavik Keflavik Airport
Sea views and a hot tub await at this airport hotel
Airport hotels don’t typically make it onto luxury accommodation lists, but the Diamond Suites by Reykjavik Keflavik Airport is in its own lane. With sea views, a bar, and a terrace, the hotel gives the feel of a lavish retreat, whether you’re in town for one night or more.
The suites are roomy and furnished to perfection, while some come with their own spa and hot tubs.
6. The Retreat at Blue Lagoon Iceland, Grindavík
A luxury sanctuary set at one of Iceland’s most iconic natural landmarks
Few people travel to Iceland without visiting the famous Blue Lagoon, and if that’s the main highlight on your bucket list, it makes sense to stay at The Retreat. Surrounded by the steaming waters of the lagoon, the hotel gives guests quick access to the landmark.
Keeping in line with the geothermal theme, the hotel also offers the Retreat Spa, the Retreat Lagoon, and the Blue Lagoon Ritual, in addition to skincare amenities. There’s a sense of community with daily guided hikes and yoga offered by the hotel, in addition to a prestigious restaurant serving authentic yet contemporary Icelandic food.
7. Hotel Borg, Reykjavik
Centrally located art-deco hotel for guests to relax in style while exploring the capital
Though Iceland has many remote and rural locations to enjoy, sometimes the best move for first-timers is to base yourself in the capital. Hotel Borg is one of the most revered hotels in Reykjavik, located in the city’s heart where it boasts sublime views of Austurvollur Square.
Every room is decked out in art-deco furniture, while there’s a spa and gym on the property along with a hot tub, sauna, and steam room where guests can relax after busy days in the city. Shopping enthusiasts will love Laugavegur shopping street just a short walk from the hotel, and the Life of Whales boat safari terminal is just five minutes away.
8. Hotel Rangá, Hella
A remote hotel with its own stargazing observatory designed to facilitate the ultimate Northern Lights experience
The benefit of staying away from the city is less light pollution, which means more optimal conditions to see the Northern Lights. Hotel Rangá is the perfect answer for Aurora Borealis seekers, thanks to its dark and remote location on the banks of the Rangá salmon river, two hours from Reykjavik.
The hotel offers several services and facilities to help guests witness one of the most mesmerizing solar events in existence, including a stargazing observatory and wake-up calls. They also turn off all lighting when the Northern Lights do appear.
But if the Northern Lights don’t appear during your stay, you’ll still be treated to views of Mount Hekla, a Nordic gourmet restaurant, and outdoor hot tubs.
9. Eleven Deplar Farm, Troll Peninsula
Authentic yet lavish rural accommodation with a geothermal pool
Located in northern Iceland’s Fljót Valley, Eleven Deplar Farm is another of the country’s most well-known and respected hotels, named as one of the best by Condé Nast Traveler’s Gold List in 2023.
The converted sheep farm puts guests in the perfect location for outdoor recreation in the surrounding area, including horseback riding, hiking, and fly fishing in some of the country’s most fruitful rivers.
For those who want a more laid-back experience, the hotel has its own spa and geothermal-heated outdoor pool and hot tub. Choose to stay in either a quiet cabin by the banks of the Hölkna River or at the main lodge, which is equipped with floor-to-ceiling windows.
10. Torfús Retreat, Selfoss
A tranquil retreat a short distance from Gullfoss Waterfall
A cozy hotel with its own hot spring bath, Torfhús Retreat is located in Selfoss, which is known for its outdoor activities. It’s one of Iceland’s newer hotels and is a short drive from the wondrous Gullfoss Waterfall.
Some rooms at the hotel come with a kitchen, but room service is available in addition to a restaurant. Meanwhile, the hotel offers scenic views from the terrace, and also has its own private garden.
FAQs About Hotels in Iceland
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