Planning the perfect Iceland adventure begins with choosing the right stays, the kind that elevate your journey into something unforgettable. From stylish city hotels in Reykjavík to dramatic glacier side retreats and luxurious countryside escapes, Iceland offers a collection of boutique and experiential stays that match every style of traveler.
This curated list of 10 exceptional hotels including Hotel Ranga, The Reykjavik EDITION, Hótel Jökulsárlón Glacier Lagoon, and more showcases properties that offer comfort, adventure, breathtaking landscapes, and authentic Nordic hospitality.
Whether you're chasing waterfalls, exploring black-sand beaches, or witnessing the Northern Lights, these handpicked stays ensure your Iceland itinerary feels truly magical.
1. The Retreat at Blue Lagoon - Grindavik
A sanctuary built into ancient lava fields, The Retreat offers one of Iceland’s most exclusive luxury experiences. Guests enjoy calming interiors, geothermal waters, and views that feel otherworldly.
What Makes It Special: Private lagoon access, subterranean spa, serene design, and a one-of-a-kind volcanic setting. Experience: A pure wellness escape for travellers seeking deep relaxation and refined luxury.
Situated right beside the iconic Strokkur geyser, this eco chic hotel allows you to witness geothermal eruptions just steps from your room.
What Makes It Special: Architecturally modern with large glass fronts overlooking the geothermal field.
Experience: A scenic and stylish stay perfect for exploring the Golden Circle.
3. Eleven Deplar Farm – Fljót Valley
Remote, luxurious, and adventurous Deplar Farm is among Iceland’s most elite retreats. Set in the Troll Peninsula, it’s designed for travelers seeking exclusive Arctic style luxury.
What Makes It Special: Heli skiing, geothermal pools, custom adventures, and world class service.
Experience: A once-in -a-lifetime stay ideal for privacy, adventure, and northern lights viewing.
4. Highland Base Kerlingarfjöll – Central Highlands
A warm and beautifully constructed basecamp for exploring Iceland’s rugged highlands, surrounded by steaming valleys and colorful rhyolite mountains.
What Makes It Special: Direct access to highland hot springs, remote vistas, and iconic hiking trails.
Experience: A dream stay for nature lovers, wilderness photographers, and hikers.
5. Skálakot Manor – Hvolsvöllur
This boutique manor blends countryside charm with Icelandic elegance. Set between farms and mountains, it’s a peaceful escape with attentive hospitality.
What Makes It Special: Gorgeous manor style rooms, horse riding experiences, and farm-to-table meals.
Experience: A stylish countryside retreat perfect for exploring Iceland’s South Coast.
6. Hotel Parliament – Reykjavík
Located in the heart of downtown Reykjavík, this modern hotel offers sleek interiors and walkable access to the city’s cultural landmarks.
What Makes It Special: Proximity to Parliament House, Harpa Concert Hall, and Reykjavík’s cafés and shops.
Experience: A polished urban base for travelers wanting to immerse themselves in Iceland’s capital.
With minimalist design and dramatic natural surroundings, UMI Hotel offers tranquility on Iceland’s scenic South Coast.
What Makes It Special: Panoramic windows, contemporary interiors, and views of the Eyjafjallajökull volcano.
Experience: Calm, stylish, and perfect for guests who want quiet luxury amid stunning landscapes.
8. Hotel Ragna – (South Iceland / Hvolsvöllur Region)
A beautifully designed boutique hideaway surrounded by quiet farmlands and dramatic southern scenery, Hotel Ragna blends warm hospitality with contemporary Icelandic aesthetics.
What Makes It Special: Stylish minimalist rooms, serene natural surroundings, and close access to waterfalls, volcano views, and South Coast attractions.
Experience: A pure wellness escape for travelers seeking deep relaxation and refined luxury. A cozy, intimate stay ideal for travelers seeking comfort, tranquility, and a refined countryside atmosphere.
9. The Reykjavik Edition Hotel – Reykjavík
One of Iceland’s most sophisticated urban hotels, The Reykjavík EDITION combines sleek design with luxury details and a vibrant social atmosphere. Located by the harbor, it offers stunning views and world class amenities.
What Makes It Special: Rooftop bar, iconic EDITION interiors, Michelin level dining, spa, and Reykjavík’s nightlife and cultural spots just steps away.
Experience: A chic city stay perfect for travellers who appreciate contemporary luxury and want to explore Reykjavík in style.
10. Hótel Jökulsárlón – Glacier Lagoon Hotel
Nestled near the shimmering Jökulsárlón Glacier Lagoon, this contemporary hotel immerses you in the dramatic landscapes of southeast Iceland. The surrounding glaciers, icebergs, and black-sand shores create an unforgettable backdrop.
What Makes It Special: Panoramic glacier views, elegant Scandinavian interiors, and unbeatable proximity to Diamond Beach and Vatnajökull National Park.
Experience: A breathtaking base for photographers, nature lovers, and travelers wanting to witness Iceland’s most iconic glacier scenery up close.
Choosing the right place to stay in Iceland transforms your journey from memorable to extraordinary. Whether you prefer soaking in geothermal waters, waking up to erupting geysers, riding through farmlands, or relaxing in remote mountain valleys, Iceland offers accommodations that are as breathtaking as its landscapes. These eight stays showcase the best of Iceland’s hospitality, immersive, luxurious, and deeply connected to nature ensuring your trip becomes a story worth telling.
