The Best Hotels in Iceland, From Rural Lodges to Reykjavik Boutiques
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It’s no secret by now that Iceland is one of the world’s greatest destinations. First-time visitors drive jaws agape around the ring road, marveling at the primal landscapes being molded in front of their eyes, ancient to us but younger than most other countries on earth. Repeat visitors delve into the hidden corners of the country, immersing themselves in the small towns that cling to precarious coastlines, undertaking epic multi-day treks, and discovering that every fjord, valley, and mountain heath holds something wondrous.
What is universal for everyone visiting this far-flung island in the North Atlantic is the feeling of awe that journeys through the country bring about. With such drama and adventure on the outside, the hotels sprinkled across the country are suitably relaxed and luxurious, offering peaceful refuges from the elements. From cushy country lodges to sophisticated Scandinavian hideaways, these are the best hotels in Iceland.
How we choose the best hotels in Iceland
Every hotel on this list has been selected independently by our editors and written by a Condé Nast Traveler journalist who knows the destination and has stayed at that property. When choosing hotels, our editors consider both luxury properties and boutique and lesser-known boltholes that offer an authentic and insider experience of a destination. We’re always looking for beautiful design, a great location, and warm service—as well as serious sustainability credentials. We update this list regularly as new hotels open and existing ones evolve.
Sigló HótelhotelSigló Hótel
$Located right on the harbor with a waterside hot tub, walking into the moss-colored Sigló Hotel feels like entering the home of your most country-chic friend. The rooms all have a daydreamy feel, but it could just be the moody filter that veils the entire town. Most have window benches, offering views of the marina or neighboring mountains. The area has deep ties to herring fishing, which you can (and should!) learn all about at the Herring Era Museum across the street from the hotel. Sunna Restaurant is the hotel’s only dining spot, and the view over the marina and landing pier makes for a wonderfully unconventional appetizer. For the main course, go for the baked cod with a side of seafood soup. For most, Siglufjördur is a stop on a larger road trip, where it’s easy to relax and lose yourself in the misty harbor and its surrounding hiking trails.
Highland Base KerlingarfjöllhotelHighland Base Kerlingarfjöll
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Hot List 2024The sustainably-minded sister venture to Retreat at Blue Lagoon, a year-round off-grid retreat for adventure extremists, is 110 miles—and another planet—away in Iceland’s vast and mostly frozen interior, which remained unexplored until the 1930s. Highland Base in Kerlingarfjöll—a reserve of snowdrift-blanketed peaks, glaciers, lava fields, and silence—might as well be on the moon. Getting there is a mission. In winter, after arriving at Skjol Basecamp (90 minutes on the Golden Circle from Reykjavik) it can take two to five hours of “floating” over virgin snow in adapted Super Jeeps. The angular Highland Base huddles in a valley like a Nordic minimalist space station, a 28-room hotel, and six podlike lodges occupying the abandoned structures of the pioneers who have gone before. The pods, which have sunken living rooms, Polaroid-like windows, and hanging ponchos, were designed with sustainable aged wood and concrete by Icelandic firm Basalt Architects, masterminds of the Blue Lagoon. There’s also a sleeping bag option in A-frame huts left over from a 1960s summer ski school. Activities include cross-country skiing, snowshoeing, and hiking, as well as jumping in the geothermal baths to see the northern lights after dinners of Arctic char and warming shots of Brennivín schnapps. —Stephanie Rafanelli
Stefan Lierbermann/Hotel RangáhotelHotel Rangá
Readers' Choice Awards 2020, 2021Upon entering Hotel Rangá in Iceland’s south, guests are greeted with Hrammur, a towering 10-foot-tall taxidermy polar bear who had the unfortunate fate of washing up on Iceland’s shores on a piece of ice that floated over from Greenland. It sets the tone for your stay at this hotel, which straddles the line between luxury hunting lodge and adventurous country manor. This log-style cabin is a wonderful refuge in the middle of Iceland’s south coast; all you need do is turn your gaze inland to spy out the twin glaciers Eyjafjallajökull and Mýrdalsjökull and you’ll feel the pull of adventure coaxing you out the front door.
After a day of exploring—perhaps snowmobiling on the glacier, or a private super jeep tour into the secretive Thórsmörk Nature Reserve—Hotel Rangá is warm, inviting, and convivial. Evoking the feeling of an Icelandic summer house, there’s a real homey feel to the rooms here, while shared spaces are adorned with local artwork and Icelandic quilts. A highlight is the seven high-end suites, each paying homage to one of the world’s seven continents from Africa to Antarctica. Of course, there’s the prerequisite hot tub for an evening soak, and an outstanding observatory, complete with a local astronomer and northern lights photographer to guide you through the skies and how best to capture the dancing aurora borealis.
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Nikolas KoenighotelReykjavik Edition
$$ | Hot List 2022The newest arrival to the hotel scene in downtown Reykjavik, the Reykjavik Edition is a breath of cool, fresh air in a city that lives and breathes style and creativity. As a part of the coveted Edition brand of hotels designed by Ian Schrager and Marriott, this establishment puts Reykjavik in the same league as destinations like Manhattan, Barcelona, Tokyo, and Shanghai.
Each hotel in the group is unique to its destination, and Reykjavik’s Edition is no different. The interiors feature splashes of Nordic creativity in the décor tempered by a clean and effortless design, with materials like basalt, lava, warm oak, and concrete capturing the youthful and vibrant feel of Reykjavik perfectly. This all gives way to the warm and inviting rooms, with Italian furnishings made from ash wood and floor-to-ceiling windows that either frame the fjord and Mt. Esja or views of downtown Reykjavik. Gracefully wedged between the Harpa Concert Hall and Reykjavik’s Old Harbour, the location couldn’t be better. Add in a rooftop terrace for viewing the northern lights, a restaurant run by Iceland’s first Michelin Star chef Gunnar Karl Gíslason, and a cushy speakeasy-style bar, and this is the hotel to beat.
Courtesy The Retreat at Blue LagoonhotelThe Retreat at Blue Lagoon
Readers' Choice Awards 2019, 2021The Blue Lagoon is one of Iceland’s most illustrious attractions, with a constant stream of visitors enjoying a dip in the steamy blue water bordered by black lava on Reykjanes Peninsula. Its popularity also splits Iceland travelers firmly into two camps: those who want to stay away from the well-trodden tourist attractions, and those who embrace them wholeheartedly. Should you visit the Blue Lagoon, or give it a miss? That is the question.
Perhaps an easier question to answer is whether to stay at the upscale hotel attached to Iceland’s famed hot spring. Enigmatically named The Retreat, this hotel takes all the geothermal wonder of the Blue Lagoon and instills it into an uber-luxurious wellness establishment. The sleek and minimalist suites mirror the mossy-covered lava fields outside, while floor-to-ceiling windows welcome in the ethereal light of the Reykjanes Peninsula, inciting the stark grey and subdued black interiors into a heady and otherworldly Icelandic spectrum. Inside, all roads lead to the underground spa, a cavernous space offering the patented Blue Lagoon Ritual, a wellness cleanse using the silica, algae, and array of minerals all found in the geothermal waters. Access to a more exclusive section of the Blue Lagoon is also included, and there’s a world-class restaurant to boot.
Courtesy Ion Luxury Adventure HotelhotelION Adventure Hotel
$$ION Adventure Hotel might have one of the most picturesque and otherworldly settings not just in Iceland, but the entire Northern Hemisphere. Jutting out from a set of rugged cliffs above a field of jet-black lava, this hotel sits amid swirling sulfurous steam inside the UNESCO-listed Thingvellir National Park. If the setting is a tad dramatic, the interiors are by contrast an oasis of warmth and tranquillity. The elegant design incorporates driftwood and other natural materials from the surrounding landscapes, creating a blend of high-end luxury with low-key Icelandic sensibilities, an homage to the beauty of the scenery outside.
A highlight is the Northern Lights Bar, elevated over the lava field with huge windows for watching the shimmering aurora unfolding across the night sky. The onsite Silfra Restaurant serves up fantastic dishes, from fresh Arctic char to glazed lamb shank, while a heated plunge pool is artfully exposed to the elements, letting you experience the drama of Iceland’s weather from the warmth of the steamy water. The hotel also acts as a great base for deeper explorations of the Golden Circle. Reception can organize everything from snorkeling between tectonic plates at the nearby Silfra fissure to super-jeep tours on the glaciers and expeditions into nearby lava caves.
Courtesy Deplar FarmhotelDeplar Farm
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Gold List 2019, 2023 Readers' Choice Awards 2019, 2021For travelers looking to escape the Ring Road into Iceland’s remote regions, the Tröllaskagi Peninsula is a splendid choice. One of the most mountainous places in the country, a single road traces the rugged coastline, taking in views of the dramatic Northern Atlantic Ocean and connecting several fishing towns dwarfed by the gargantuan surroundings. Inland, the fog-kissed mountains are cut with several valleys, one of which is home to Deplar Farm. Sitting in a grassy meadow surrounded by imposing peaks, this turf-covered farmhouse is so quiet and unassuming that the odd traveler who does pass by wouldn’t have a clue that it is in fact one of Europe’s most isolated and luxurious mountain lodges.
Run by the high-end and exclusive Eleven Experience, Deplar Farm offers adventurous travelers the whole experience. From heli-skiing in the winter to mountain biking and salmon fishing in the summer, there’s a gamut of adventures to enjoy with the hotel’s team of expert guides. Waiting for you when you return is world-class food prepared by a team of star Icelandic chefs, a heated pool with a swim-up bar, and cozy, elegant rooms that overlook the peaceful meadow.
Fosshotel Glacier LagoonhotelFosshotel Glacier Lagoon
$It’s impossible to miss the Fosshotel Glacier Lagoon—not just because it’s the only hotel for miles, but because it’s so perfectly tucked against the moss, trickling waterfalls, and anchoring mountain you’ll have to double-take to make sure you’re not stuck in some sort of Nordic mirage. Every single space throughout the property makes the most of the landscape with massive windows and moody interiors that complement the moss that surrounds the hotel in the summertime. Like most luxe stays in Iceland, the front desk is ready to make dinner reservations, book tours, and accommodate room upgrades and requests whenever possible. But they do go above and beyond in small, unexpected ways. If budget is no concern at the hotel’s restaurant, dig into the Dream Feast, which gives the chef full permission to get creative and craft a seasonal five-course experience. Alternatively, it’s the perfect spot to taste some grilled arctic char.
hotel101 Hotel
$$Reykjavik has creativity running through its soul, and for artful travelers looking to experience the height of the country’s design scene, a stay at 101 Hotel comes highly recommended. An exalted member of the Design Hotels group, 101 Hotel offers refined and sophisticated interiors that are unabashedly fashionable and self-assured. The striking black and white interiors play backdrop to a collection of contemporary Icelandic artwork, with tasteful furnishings selected to bring about that effortless designer style.
Rooms are quite warm and personable, with rugs thrown across wooden floors, heavenly beds, and a picturesque view of Mt. Esja across the water. There’s a restaurant on-site with a devout local following, and a chic bar for cocktails after a day of wandering around Reykjavik, with chairs gathered around tree-trunk tables and a cozy fireplace. All this is nestled a short walk from Laugavegur, the city’s main thoroughfare.
Courtesy Hótel BúðirhotelHótel Buđir
$$One of Iceland’s greatest draws is the isolation you can find, the feeling of being alone in the middle of an incredible landscape, intimidated, insignificant. The soul-stirring nature so often leaves us shaking in our hiking boots, in awe at the overwhelming beauty of it all. It’s the reason why Iceland is now one of the most popular destinations in the world; it makes us feel things we don’t often get to feel.
The best hotels in Iceland embrace that quality, elegant backdrops that let the location do all the talking. Hotel Búðir is one such place, marooned on a remote beach on the southern shores of the Snæfellsnes Peninsula. Originally a Danish trading outpost, on all sides the arresting Icelandic landscapes capture your gaze, from the views across the bay to the moody glacier at the center of Snæfellsnes National Park. A dreamy place, the interiors match the mood of the outside perfectly, nothing overdone, everything cozy, soothing, and sophisticated. The vintage-style furnishings add a timeless appeal to the entire property, while the restaurant is famous with Icelanders around the country.
Courtesy IcelandairhotelReykjavík Marina - Berjaya Iceland Hotels
$$The beauty of Reykjavik Marina is its range. From cost-effective double rooms to the funky superior king suite, this accessible property puts guests directly in the magic of the old harbor neighborhood—step outside and you’ll be greeted by looming ships. The petite rooms, some with balconies overlooking the city or the harbor, are bright and airy while the cozy, art-filled common spaces are full of fellow visitors decked out in outdoor gear. The attached bar and restaurant, Slippbarinn, was the first cocktail bar in the city and continues to draw locals with its happy hour and menu full of small bites and various takes on the catch of the day. The hotel is the halfway point between the downtown and Grandi neighborhoods, which is home to an especially vibrant shopping area. If you step outside and walk in the other direction toward the downtown district, you’ll find some of the city’s best cultural institutions, such as the Reykjavík Art Museum Hafnarhús.
Courtesy Hotel BorghotelHotel Borg
$$ | Readers' Choice Awards 2022The Hotel Borg was Reykjavik's first luxury hotel—and it’s still the most beloved. Jóhannes Jósefsson, a native Icelander who worked in the United States as a circus strongman, returned to his native country with dreams of building Iceland’s first four-star property. The elegant hotel, which opened in 1930, hews to a black, white, and silver palette, an Art Deco gem in the very center of the city. It’s still the hotel of choice for Iceland’s celebrities and elites, whom you’re likely to chat with over warm brown bread and strong coffee at the Borg’s guests-only breakfast. And because this is Scandinavia, don’t look for over-the-top glitz: here, the glamor is in the details, like the sleek silver door handles and the dainty chime the elevator makes instead of a beep.
A version of this gallery was originally published by Conde Nast Traveller UK. It has been updated with new information since its original publish date.
