The 10 Best Hotels In Iceland

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Picking a hotel in Iceland is very much a “choose your own adventure” kind of task. That may seem obvious, in a way, but consider this: it is a country with incredibly remote reaches within an afternoon’s drive of buzzy city scenes. The easiest choice is to select a hotel in Reykjavik for the entirety of your trip while filling your itinerary with day excursions, while the alternative is renting a car and really getting out there. You’ll be hard-pressed to find splashy newcomers the further out you go, but the best hotels in Iceland are surprisingly diverse, running the gamut from chic boutiques and family-friendly properties to luxury lodges and adventure hotels.

It takes a good amount of research to find the right spot for you and it often takes more than one visit to truly understand the breadth of your potential adventures. To give you less work, we narrowed down the best hotels in Iceland for every type of trip. Our expertise is based on over a dozen trips to Iceland, during which we visited all of the below properties. From the centrally-located Exeter Hotel, perfect for first-timers, and the private lagoon access found at The Retreat At Blue Lagoon Iceland, to the tucked away romance of Sigló Hotel and the all-inclusive luxury experience found at Deplar Farm, here’s where to stay on your next trip to Iceland.

Best Hotel In Reykjavik: Exeter Hotel

Exterior of Exeter Hotel

Courtesy of Exeter Hotel Exeter HotelReserve At Booking.com Who Will Love It: Budget-minded travelers who don’t want to feel like they’re skimping on style All-Star Amenities: Luggage lockers; fitness center; harbor views; in-room coffee and tea; heated bathroom floors; free breakfast What Not To Miss: Sauna and relaxation room; in-house bakery, Deig, serving the best doughnuts in the city Location: Reykjavik (Old Harbour neighborhood)

While most people flock to the center of the action to set a home base—usually, one of the hotels lining Laugavegur—the Old Harbour neighborhood sets a more tranquil scene to start and end each day. Exeter Hotel packages design-forward interiors, friendly service, and more amenities than you’d expect for the room rate into a budget-friendly option for travelers looking to fall somewhere between “local” and “just passing through.” The four-star hotel opened in 2018 and has since become a hub for local events—such as a fashion show venue for local designer Magnea for the city’s 2023 DesignMarch.

The best part is that it still feels a bit like a hidden gem: The vibe is perfectly moody in the way Scandinavian has become famous, and it’s not hard to lock in a room. Only adding to its stealth, the hotel lobby is located behind Le Kock & Tail, a burger joint loved by Icelanders and visitors alike. Guests have to walk past the restaurant to access the lobby, which is full of comfy chairs and a set of secure luggage lockers for early guests who want to explore the city unburdened. A slight elevator next to a courtyard leads to the upper floors where the rooms live—and speaking of the rooms: each one has a comfortable bed, a flat-screen TV, and a color palette that will soothe the most flustered of travelers.

Best High-End Hotel In Iceland: Deplar Farm

Deplar Farm exterior.

Courtesy of Eleven Experience Deplar FarmReserve At Expedia Who Will Love It: Adventurous spirits who don’t want to deal with the bill once dinner ends All-Star Amenities: Northern lights wake-up call; Champagne welcome; all meals are included What Not To Miss: The outdoor pool, which might just be the best Northern Lights (or Midnight Sun) viewing spot in the region Location: Troll Peninsula

The first thing you should note about Deplar Farm is that the hotel manager will wake guests up if the elusive Northern Lights decide to make an appearance—if they ask for it, of course. The turf-topped home has been completely transformed from its initial life as a farmhouse, and there are only 12 suites, which adds to the intimate atmosphere of the property. But don’t let its small size fool you: there’s a lot going on here. A fully-stocked gear room lending out adventure necessities for guests marks the beginning of outings such as snowshoeing and hiking; a spa, outdoor sauna, steam room, open-air pool (geothermally heated, of course), and swim-up bar serve as the perfect pre-sleep ritual; and laundry services make easy work of getting everything back in order for the next day of only-in-Iceland activities. Oh, and all meals are included, so you never have to worry about settling up once the dishes are cleared.

Each room feels thoughtfully curated and unique to its surroundings. For example, Freya—a top-floor, treehouse-style accommodation—features a two-person hammock and three wall-size windows giving you direct panoramic views of the surrounding nature. To top it off, guests receive invites to two guided adventures a day and roundtrip airport transfers from Akureyri.

Best Boutique Hotel In Iceland: ION Adventure Hotel

Frontier at ION Adventure Hotel.

Courtesy of ION Adventure Hotel Ion Adventure HotelReserve At Booking.com Who Will Love It: Anyone who wants to feel like the main character in a James Bond film All-Star Amenities: A geothermally-heated pool What Not To Miss: The nearby Þingvellir National Park—ION is the closest hotel to some of the area’s best sights such as Silfra, Öxarárfoss, and the stone ruins of Alþing Location: Nesjavellir

Located 11 miles from the storied Þingvellir National Park, ION Adventure Hotel is about as close to staying in the World UNESCO Heritage Site as you can get (without opting for Airbnbs or home rentals). The concrete structure, which has won a Boutique Hotel Award in the sustainability category, seems to jut right out of the moss-covered terrain; you won’t know you’re there until you’re practically on top of it. The rooms run small in footprint, but you’re there for the proximity to outdoor adventure—hiking across ancient glaciers, fly-fishing in a rushing river, and spirited horseback rides are all on the table—and the outdoor pool.

The architecture is courtesy of Minarc’s Tryggvi Thorsteinsson, making the most of local materials such as driftwood and elevating its previous life as a geothermal power plant. Inside, Minarc’s Erla Dogg Ingjaldsdottir prioritized luxury linens, sustainably made furniture, and a rich color palette—it’s a masterclass is living with nature, not against it. Even if there were a bunch of restaurants competing for your meal times (note: there aren’t), dining at the on-site Silfra Restaurant is a treat with its menu of farm-fresh ingredients and extensive beer list. Follow dinner with a drink at the award-winning Northern Lights Bar, named for its prime viewing spot thanks to an expansive wall of windows. Experiencing this hotel is like a long exhale—everywhere you look, there are views of the mossy hills, looming mountains, and quick-passing weather systems.

Best Hotel For Romance In Iceland: Sigló Hotel

Exterior of Sigló Hotel.

Courtesy of Sigló Hotel Sigló HotelReserve At Booking.com Who Will Love It: Honeymooners on the hunt for the most scenic hot tub All-Star Amenities: Free breakfast; sauna; soundproof rooms; lobby fireplace What Not To Miss: You guessed it: the iconic hot tub located right on the water. During the winter, it’s the best place to take in the Northern Lights, and in the summertime, the Midnight Sun will make it hard to get out and go to bed Location: Siglufjörður

Part of the Keahotels family, Sigló Hotel is one of the only accommodations you’ll find in the tiny northeastern town of Siglufjörður—which is really lucky for anyone passing through. The town is located between a mountain and a bay and is only accessible by a set of (very long) tunnels. What may seem like a tough location is actually one of the most tranquil destinations in the country (and that’s saying something). The property is one of those special places that will make you feel like you’re the star of your own romance novel, thanks to moody interior lighting, comfortable rooms that give off major bed-and-breakfast vibes (hello, window box reading nook), and incredible mountain and harbor views from every single angle.

As charming as this property is, the most romantic corner of the hotel is actually outside, in the hot tub. The small pool is built right next to the marina, so it feels like you’re floating right alongside the majestic boat permanently docked next to the hotel. The town’s unique location also gives it a micro-climate of sorts, with fog slowly rolling in over the fjord in the mornings (one of the best times to soak in the tub). Guests are just a quick walk from the Herring Era Museum, a painstakingly curated exhibit that spans three buildings and showcases Siglufjörður’s rich fishing history.

Best Hotel For Families In Iceland: Hotel Ranga

Northern lights at Hotel Ranga.

Courtesy of Hotel Ranga Hotel RangaReserve At Booking.com Who Will Love It: Groups or families looking to get outside of Reykjavik for outdoor adventure All-Star Amenities: Northern Lights wake-up call; Nespresso coffee machines; 24-hour room service What Not To Miss: The stargazing, which is only enhanced by high-tech telescopes and a local astronomer guide Location: Hella

Each room at Hotel Ranga is themed after a different destination around the world, from Africa to Australia (and, yes, Iceland). Most rooms have view of the property-adjacent river, and the staff is happy to bring in extra beds upon request (an underrated family travel amenity). Aside from the amenities, the entire space has a family-friendly vibe. Activities such as stargazing from the on-site observatory and telescopes will appeal to pint-sized travelers while soaking in the hot tub will heal muscles sore from day-long hikes.

Even better, the hotel’s adventure offerings are broken down by age group—specifically kids and teens. If the idea of cramming into a car and planning your own itinerary of photo stops gives you a shiver, leave the planning to the experts at Ranga. Its location near the southern coast means there are plenty of black sand beaches, hiking trails and waterfalls to be seen.

Best Value Hotel In Iceland: Kex Hotel + Hostel

Library at Kex Hotel + Hostel

Courtesy of Kex Hotel + Hostel Kex Hotel + HostelReserve At Booking.com Who Will Love It: Solo travelers looking to make a friend or two All-Star Amenities: Ocean views; tourist information desk; guest kitchen; on-site gym What Not To Miss: The on-site restaurant, which fills with locals and travelers every night (sometimes with live music) Location: Downtown Reykjavik

There’s no getting around the fact that Iceland can be expensive, but Kex Hotel + Hostel is a reprieve for those looking to save a bit of money. With private rooms with in-room showers and shared rooms with community showers and a kitchen, Kex sets a scene where everyone mingles around every corner. The private rooms feature vintage furniture and art from local creators, while the dorms are simple bunkbeds flanked by safes. Most notable, there’s also one “Tiny Room,” which features a queen-size bed and a private bathroom perfect for a couple.

The real draw of staying here are the common spaces. The bar and restaurant are often filled with locals (and also serves as the spot for the breakfast, an additional cost for guests), and a heated outdoor patio is perfect for sharing a pint while trying to spot the Northern Lights. There’s also an on-site barber, Raxtur, offering beard trims and haircuts. The cherry on top is the library, which acts as a massive book exchange and meeting space for friends new and old.

Best Adventure Hotel In Iceland: Highland Base at Kerlingarfjöll

Highland Base suite interior.

Courtesy of Highland Base Highland Base at Kerlingarfjöll Reserve At Highland Base Who Will Love It: Hikers who want the ultimate Iceland experience All-Star Amenities: Free breakfast; guided adventures; high-speed WiFi What Not To Miss: The Highland Base Baths, a new hot spring experience that will make you feel completely lost to the landscape (in a good way) Location: Central Highlands

The most recent opening on this list, Highland Base at Kerlingarfjöll is comprised of a number of different accommodation types: hotel rooms, a hostel, campsites, lodges and huts. There’s a relatively unprecedented range in room styles and the associated rates: campsites start at $230 a night—not bad considering the next-level surroundings. Amenities in the most luxe option, the Highland Base Lodges, include free breakfast, welcome drinks, stargazing during the wintertime, expansive views, and designer interiors.

The entire goal of the Base is to get people outdoors in the landscapes the country is so known for—particularly the colorful hills of Kerlingarfjöll. Historically, this isn’t an easy place to access and that remains true in the wintertime. You’re going to need a vehicle equipped for all kinds of winter hazards, if you make the trip October through March. Expect adventures such as snowmobiling across snow-covered tundras, once-in-a-lifetime guided hikes, and ski tours with panoramic views.

Best Airbnb In Iceland: Svartaborg

Dining room at Svartaborg.

Courtesy of Airbnb SvartaborgReserve At Airbnb Who Will Love It: Solo travelers looking for a central place to explore northern Iceland All-Star Amenities: Personal hot tub; fully stocked kitchen; unbeatable Northern Lights views What Not To Miss: The incredible natural sights within driving distance, from the geothermal Myvatn region to the ominous lava rock fields of Dimmuborgir Location: Húsavík

One of the best things about Iceland is that its countryside isn’t dotted with hotels and other travel facilities, but that can also be a tough fact to deal with when you’re road-tripping in the north. Svartaborg is the perfect answer, packaged as a set of stunning black tiny homes dotting the hillside just a 25-minute drive outside of Húsavik (known as the whale capital of the country, or the inspiration behind the Will Ferrell film “Eurovision Song Contest: The Story of Fire Saga”). Inside, the homes have everything you need for feeling like you actually live in Iceland: a kitchen stocked with every appliance you can think of, floor-to-ceiling windows looking toward the distant water, a cozy bedroom with light-blocking shades, and a shower that opens directly outside—steps from your personal hot tub. If you look hard enough, you can even spot the spray from the nearby Goðafoss.

It’s rare to find a central-ish hub with such close proximity to so many different points of interest, let alone luxury digs that make you feel like you found the ultimate hidden gem thousands of miles from home. The fact that the owners are two designers who left city life in Reykjavik for a quieter lifestyle only adds to the fairytale—and explains the expert interior touches.

Best Design Hotel In Iceland: The Retreat At Blue Lagoon Iceland

Lagoon Suite at Retreat at Blue Lagoon.

Courtesy Retreat at Blue Lagoon The Retreat At Blue Lagoon IcelandReserve At Booking.com Who Will Love It: Design-inclined travelers who have been obsessed with the Blue Lagoon since seeing it on Instagram years ago All-Star Amenities: Michelin-starred restaurants; spa access; daily Icelandic coffee break; free breakfast; morning yoga; Blue Lagoon skincare What Not To Miss: The private lagoon access, which may spoil all future Iceland trips for you Location: Grindavik

The Retreat at Blue Lagoon is a physical daydream manifested by Design Group Italia and Basalt Architects. From the private thermal springs—part of the Blue Lagoon—outside of a number of suites to the lava rock touches throughout the interiors, the indoors and outdoors are having a lively conversation across the property. The focal point is, rightly so, the moss-blanketed landscape and silky blue waters of the guest-exclusive hot spring weaving by windows. To compliment the views, rooms feature furniture from B&B Italia, heated floors, luxury linens, free-standing tubs, and Blue Lagoon skincare products. The 60 suites sit atop the subterranean Retreat Spa, where visitors can experience the Blue Lagoon Ritual (a multi-step experience that celebrates the Blue Lagoon’s natural wonders: silica, algae, and minerals).

Don’t miss the community spaces, which are expertly designed to encourage relaxation and appreciation of the elements. An entire corridor of couches, lounge chairs, and ceramics lives next to the Spa entrance, marking the perfect place to lose a few hours to a good book. No matter where you are, you’ll find a new favorite nook every time you enter a new space.

Best Spa Hotel In Iceland: The Reykjavik Edition

Deluxe King Harbor View at The Reykjavik Edition.

Courtesy of Nikolas Koenig The Reykjavik EditionReserve At Booking.com Who Will Love It: Luxury-minded visitors who want to visit the spa more than once in a single stay All-Star Amenities: Valet parking; fitness facility; room service; exclusive guest spa services What Not To Miss: The spa’s thermal pools and extensive service menu (body wraps, massages, facials, and more inspired by Icelandic ingredients and nature) offers one of the best self care experiences in the city, but the moody hammam, steam room, and sauna make it worthy of a repeat visit Location: Reykjavik’s Old Harbour neighborhood

With four suites—including a nearly 1,400-square-foot penthouse—and rooms with terraces on offer, The Reykjavik Edition serves up all of its namesake luxury from the moment you walk inside. The lobby is anchored by a massive fireplace and scented with the hotel’s signature fragrance (a blend of citrus, pepper, chocolate, smoke, and floral notes). Expect all of the niceties of the most beautiful hotel you’ve ever stayed in: sleek, Scandinavian design in the form of chic wool blankets and dark-hued walls, Le Labo amenities, luxe imported linens, Bang & Olufsen audio fixtures and floor-to-ceiling windows. Outside of the rooms, the hotel spa serves smoothies, tea, and more to guests before their treatments, the latter of which are best followed up with a visit to the hammam, sauna, and steam room (guests without spa service appointments can access the facilities for $30).

The on-site Tides restaurant is a special occasion in itself, helmed by Gunnar Karl Gíslason, the executive chef behind Dill (the first spot in the country to earn a Michelin star). There are also four places to relax with a cocktail or glass of wine: Sunset, an underground nightlife spot with a hefty DJ rotation; Tölt, a cozy speakeasy-inspired bar; Lobby Bar, the best spot for pre- and/or post-dinner conversations; and The Roof, an indoor-outdoor venue that puts the water views on full display. You will feel like the center of attention throughout every moment of your stay, whether it’s while interacting with the top-notch staff lounging in the designer furniture in the comfort of your room.

About Erika Owen, Your Iceland Guide

I am a Brooklyn-based writer, book author, and editor—as well as a self-proclaimed Iceland enthusiast. I have visited the Land of Fire and Ice more than a dozen times and was a contributing author to Fodor’s Essential Iceland guidebook. When I’m not writing about Iceland, I cover local culture and communities for a wide portfolio of travel sites. I am also the author of Lawbreaking Ladies: 50 Tales of Daring, Defiant, and Dangerous Women from History and The Art of Flaneuring: How to Wander with Intention and Discover a Better Life. You can follow my Iceland travels (and more) on Instagram.