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Best Hotels in Iceland

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About Iceland

Remote, unspoilt and replete with activities for nature lovers, Iceland is gaining popularity as a superb destination for outdoor explorers. Catering to a growing number of visitors each year, Iceland offers a wide range of accommodation options — from smart city hotels to laid-back B&Bs — fit for a whole array of budgets. Our pick of the best places to stay in Iceland includes chic boutique spots in the heart of Reykjavik, romantic inns for foodies and remote eco-retreats nestled amidst geo-thermal hot springs and striking hiking trails in the island’s vast interior.

Bright, vibrant Reykjavik is a wonderful place to begin any Icelandic journey. Home to fewer than 150,000 people, it has an impressive reputation as one of the cleanest, greenest and safest cities in the world, and is home to a burgeoning cultural scene. Visit the National Museum, as well as several world-class arts and design museums, relax in cosmopolitan cafes and restaurants, and catch live music on long summer evenings.

City hotels range from big business spots to luxurious boutique properties with great onsite restaurants and downtown locations – ideal for strolling past brightly-painted buildings and soaking up the best of Reykjavik’s nightlife. The marina is the city’s most up-and-coming district, and one of our favourite city hotels is situated right in the heart of the action — a top choice for trendy couples on the hunt for great cocktails in a historic location.

The other appealing aspect of such a small capital city is the ease with which visitors can venture into the wilds of rural Iceland, where bright geothermal pools, glittering glaciers and volcanic land formations await exploration. Gaze at geyser-fields and mud-pools, take tours of volcanoes, amble around tiny fishing villages and marvel at the huge expanse of sheer space which Iceland has become so famous for. With sea kayaking, horse riding, hiking and birdwatching all on the agenda, there’s stacks for adventurous couples and families to do.

The standout highlight is, of course, the chance to admire the Northern Lights in all their glory. Most visible between March and April or September and October, the aurora borealis is one of the world’s most striking natural wonders, and well worth venturing to Iceland’s remote rural corners to discover.

Whether you’re dreaming of a helicopter ride to the top a glacier, eager to go puffin-spotting with the kids, or keen to bask in the wonders of a natural spring, Iceland has it all. Many of the best places to stay in Iceland are appealingly remote, offering visitors a brilliant opportunity to reconnect with nature — either in charming traditional inns or in dramatic glass-fronted design hotels. Wherever you decide to stay, there’ll be spectacular views for certain.

The best places to stay in Iceland

For Reykjavik

  • The Hotel Borg is an upscale Art Deco hotel with elegant rooms and suites hidden behind an imposing façade on historic Asuturvollur Square. Pick this place for an excellent city centre location, stacks of style, friendly staff and a lovely spa. Perfect for exploring the city!
  • Centrehotel Thingholt promises 52 monochrome rooms and suites with free-standing bathtubs and slick minimalist decor. Whilst the bistro and bar are lovely and lively, the real highlight is the award-winning spa. Unwind in style with a 55 minute aromatherapy massage after a day out exploring the city. A a cool, cosmopolitan choice.
  • Sandhotel is a luxurious boutique spot in the heart of Reykjavik. Think slick Icelandic design, muted tones and a superb restaurant. Pick this place for its location, history and cosy, relaxed atmosphere.
  • 101 Hotel offers super-slick minimalist decor in 38 rooms and suites. Expect monochrome decor, big bathtubs and balconies, as well as an excellent spa and stylish restaurant. A chic design spot in one of the city’s top postcodes.
  • Reykjavík Marina Hotel is a hip property with 147 colourful, contemporary rooms and suites in a landmark building overlooking Reykjavík’s marina. Highlights include the onsite Slippbarinn restaurant, Slipp cinema — seating up to 20 people — and a small fitness suite. The trendy marina location offers an insight into Reykjavik’s fishing history, whilst the buzzing restaurant is a top spot for a cracking cocktail.
  • Grand Hotel Reykjavík offers smart, spacious rooms in a quiet area of the city. A great business choice, the hotel also has a gym and a spa, as well as impressive sea views. Interconnecting rooms are a good option for families. An excellent value choice for a modern city stay with all the facilities.
  • Hilton Reykjavik Nordica is a smart choice for a professional trip. Just outside downtown Reykjavik, the hotel boasts excellent city views, a five-star gourmet restaurant, a gym and a spa. Choose this spot for its business district location and big hotel facilities.

For the Northern Lights

  • Ion Hotel offers simple, ultra-modern rooms, as well as a gourmet restaurant and a revitalising spa just 45 minutes from Reykjavik. The hotel’s architecture is the real sell: this impressive design space boasts floor-to-ceiling glass, perfect for admiring the Northern Lights by night and the rural views by day.
  • Hotel Ranga is a cosy resort offering traditional wood-panelled rooms in South Iceland. The gourmet restaurant serves Icelandic specialities, and this is an ideal spot to see the Northern Lights. This is one for outdoor adventurers in nearby nature reserves: think horse riding, off-road driving, dips in hot springs and volcanic hikes, making the most of the unspoilt southern scenery.
  • Hotel Grimsborgir lies in Iceland's famed Golden Circle, offering five-star luxury in stunning surroundings. Rooms, suites and apartments are classically elegant, there are 29 geothermal hot tubs on-site, and a lively restaurant offering international cuisine. Pick this place for beautiful accommodation, live entertainment each weekend, and lots of outdoor activities — as well as a great chance of seeing the Northern Lights.

For a B&B

  • Hótel Aldan is a historic riverside B&B with cosy rooms kitted out in soothing shades, hardwood floors and lovely views. The self-catering Old School apartments on a second site in Seydisfjordur town centre are great for groups or families. Pick this place for a relaxed guesthouse feel, traditional charm and stacks of nearby activities — including sightings of the Northern Lights.

For foodies

  • Hotel Budir offers 28 elegant rooms and suites in a remote location on the Icelandic coast. Book a room here for plenty of charm, outdoor activities galore — from bird watching to horse riding — and a wonderful view of the Northern Lights if visiting in March. The real highlight is the gourmet restaurant, serving exquisite eastern Icelandic cuisine.
  • Hotel Husafell is a luxurious contemporary hotel occupying a fabulous rural location. Minimalist rooms make the most of the wonderful views and there’s a lovely heated pool.Visit geothermal pools, lava fields and waterfalls, before returning to dine at the striking restaurant. Dishes fuse Icelandic flavours with international influences, and the views from the restaurant are spectacular. Kids’ menus are also available, and interconnecting rooms or sofa beds make this a great family choice.
  • Hotel Flatey is an idyllic summer guesthouse offering 11 pretty rooms on the island of Flatey. Set in a quiet village, the best of the bright, cosy rooms have breathtaking sea views, and the onsite restaurant serves delicious fresh seafood. An intimate hotel ideal for a remote, romantic stay — and fresh, foodie delights which draw Icelanders from the mainland.

For Families

  • Hotel Glymur is a collection of 25 cosy wooden rooms and villas nestled near a remote fjord. The onsite restaurant serves fabulous Icelandic food, there are geothermal baths and all the mod. cons, as well as wonderful views of the Northern Lights — if you time your stay correctly. Self-catering villas with hot tubs sleep 4 - 6 guests, and are ideal for families!
  • Siglo Hotel offers chic Icelandic style in a gorgeous harbour-front location. Grown-ups will love the indulgent outdoor hot spring bath, hot tub and steam room, whilst kids can play volleyball or mini-golf in the adjacent Marina Village. The onsite restaurant and bar are top-notch, too. Choose this hotel for a picturesque northern location, classic style and family-friendly feel — including additional kids’ beds on request.
  • Blabjorg Hotel is a magical guesthouse in a little fishing village on Iceland’s eastern coast. There’s a cool industrial-chic vibe, with a hot tub, infrared sauna and steam room, as well as a relaxed restaurant and bar focusing on local, seasonal fare. Two or three-bedroom self-catering apartments are ideal for families, and kids will adore spotting puffins just a couple of metres away! This is a peaceful haven for trekking, birdwatching or fishing.
  • Heydalur is a rural guesthouse and campsite in a beautifully remote north-west setting. Farmhouse rooms are simple and bright, whilst summer houses offer family or group accommodation in pretty pine cabins. This is a real retreat to nature: think hiking, sea kayaking, birdwatching and horse riding with expert guides. A low-key base for lovers of the great outdoors!

For an eco-stay

  • Magma Hotel is an intimate eco-retreat in a striking part of southern Iceland. Spacious, contemporary rooms are housed in individual moss-topped cabins, with glass doors offering impressive lakeside views. There’s also a lovely onsite bistro. With spectacular volcanic scenery to explore, this is a great pick for nature lovers.
  • Frost & Fire Hotel promises smart, modern boutique rooms set amidst bubbling springs. A contemporary eco-choice with seasonal produce served in the restaurant and impressive spa-style facilities. Think two hot tubs, an outdoor pool and a black stone sauna, as well as a warm river for swimming and hiking trails aplenty. An outdoorsy hot spring experience.

For an apartment

  • If you'd prefer a self-catering option, we suggest that you visit our online partner Booking.com.

Travel Information

  • Fly to Keflavik International Airport, 40kms outside Reykjavik, and hop aboard a bus or taxi into town. Reykjavik Airport offers domestic flights — perfect for remote Icelandic stays!
  • If you would like to hire a car, we suggest that you contact our online partner Rentalcars.
  • Visit during the summer months (May to August) for warmer weather and the impressive midnight sun. If you’re eager to spot the Northern Lights, time your trip for February - March, or September - October. With darkness lasting almost 20 hours in December, and the sun setting so briefly during the summer months that the sky has barely any chance to really darken, the light (or lack thereof!) plays a huge part in many travellers’ memories of Iceland, and it’s worth timing your trip accordingly.

Still not sure?

See all » 9 hôtels in Reykjavik

  • Sandhotel Reykjavik 52 rooms from £155

    Sights nearby  -  Five minutes walk from Hallgrímskirkja Church.
    Romantic  -  Good for couples.
    Restaurant  -  Recommended.

    Stylish and sleek, Sandhotel is in the heart of Reykjavik. Embodying Icelandic minimalism, the hotel features sharp design, muted colour scheme, carefully chosen furnishings and a superb restaurant. A great base from which to explore Iceland's capital. See More

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  • Grand Hotel Reykjavik Reykjavik (105 REYKJAVÍK) 311 rooms from £163

    Sights nearby  -  Botanical Gardens, Reykjavik Art Museum - free bus shuttle service to city centre
    Views  -  Great views from hotel
    Local markets  -  Good for local colour.
    Back to Nature
    SpaRestaurantGardenDisabled accessViewsNo pets

    Environmentally-friendly four star hotel in Iceland's capital Rekyjavik with great views across the city. Range of light, spacious and modern rooms and suites available including family friendly options. Free shuttle services to city centre, and free entry to Botanic Gardens. For a slick city stay. See More

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See all » 1 hôtel in Siglufjorder

  • Hótel Aldan Siglufjorder 26 rooms from £141

    Groups  -  The self-catering Old School apartments are great for groups, with a fully-equipped kitchen and three sleeping areas
    Local exploring  -  A trip to Iceland is not complete without a tour of the Northern Lights; enquire at the hotel to arrange yours
    Active Holiday  -  Ski equipment and bikes are available to hire from the hotel so you can make this an active holiday
    Sights nearby  -  Book a package tour to take you to Iceland's top attractions, from the Northern Lights to the icebergs on the glacier lagoon

    This historic riverside hotel is split across two sites, Hotel Snæfell and Hótel Aldan. The décor of the rooms seeks to preserve a sense of the buildings' tradition, with pine floors and dark wood furniture. Groups can stay in the Old School apartments in the old town centre. A charming guesthouse. See More

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See all » Other hôtels in Iceland

  • Hotel Glymur Saurbaer, Iceland 25 rooms from £199

    Sights nearby  -  Northern Lights. 45 minute drive from central Reykjavik
    Romantic  -  Good for couples.
    Local exploring
    Remote  -  Off the beaten track.
    RestaurantGardenDisabled accessViews
    Recommended by  -  I Escape

    A remote hotel in the perfect position for viewing the Northern Lights. Positioned above a fjord, it offers magnificent views from its own geothermal hot tubs. Rooms and cottages all in wood with balconies and all the mod cons. Fabulous food. Perfect for couples, families, and activity seekers. See More

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  • Hotel Ranga Hella, Iceland 51 rooms from £205

    Foodies  -  Gourmet restaurant serves Icelandic specialities.
    Back to Nature
    Views  -  Great views from hotel
    Recommended by  -  I Escape

    A cozy and heartwarming, small luxury hotel in the South East of Iceland with an outstanding dining experience. See More

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  • Hotel Budir IS-365 Snaefellsnes, Iceland 28 rooms from £127

    Romantic Break
    Active Holiday
    RestaurantGardenPet friendlyViewsParking
    Recommended by  -  I Escape

    An utterly charming hotel on the coast line in a remote setting. Traditional rooms and suites offer wooden floors, big bath tubs, and attractive country house style furnishings. Gourmet restaurant serves fabulous Scandinavian cuisine. Romantic, very family friendly, and perfect for Icelandic sports. See More

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  • Siglo Hotel Iceland 64 rooms from £163

    Back to Nature  -  Surrounded by awesome natural scenery, with beautiful hiking trails in the surrounding mountains and valleys
    Great walks  -  Many popular hiking trails nearby, the most popular leading into Héðinsfjörður, a nearby fjord of pristine and natural beauty
    Sights nearby  -  Check out the isolated town of Siglufjardarskard, offering speactuclar views from the mountian pass built in 1967
    Hideaway  -  Tranquil and intimate.
    RestaurantGardenDisabled accessViewsParkingNo pets

    Gorgeous Icelandic style harbourside hotel boasting stunning views of the harbour and mountains. Rooms are chic, modern and bright, and there is an indulgent outdoor hot spring bath, hot tub and steam room to enjoy. A top quality restaurant serves European cuisine. Superb! See More

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  • Ion Hotel Nesjavellir, Iceland 46 rooms from £145

    Views  -  Fantastic lake and moutain views, as well as the Northern Lights!
    Foodies  -  Modern Nordic delicacies.
    Back to Nature
    Spa breaks
    SpaRestaurantSwimming PoolGardenViewsParking
    Recommended by  -  I Escape

    An Icelandic marvel ideal for watching the Northern Lights from. Contemporary designer space with floor to ceiling glass to capture the night sky. Gourmet cuisine from a modern Nordic kitchen, and a revitalising spa. Lagoons, geysers, and sea to swim, fish, and snorkel in. Romantic and adventurous! See More

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  • Frost & Fire Hotel Iceland 22 rooms from £183

    Hideaway  -  With its beautifully secluded natural setting this is a perfect place to getaway from the real world
    Active Holiday  -  Iceland's landscapes are wonderfully unspoiled and perfect for hiking excurions or mountain biking
    Spa breaks  -  Located amidst Iceland's renowned geo-thermal baths, guests can expect a spa break like no other
    Fishing  -  Buy a fishing permit from reception and fish for salmon in the local Varma river
    Air conditioningSpaRestaurantSwimming PoolGardenNo pets

    Set among bubbling springs, the hotel's eco approach and contemporary lifestyle promise an exceptional experience. The bright rooms feature wood flooring and are designed by local artists. Offers an outdoor pool, two hot tubs, plus the Varna restaurant serving local produce. A magical stay. See More

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  • Hotel Husafell Iceland 48 rooms from £188

    Hideaway  -  A contemporary hotel set in a secluded (and outstanding) location surrounded by waterfalls, lava fields and glaciers.
    Swimming Pool  -  Outdoor pool
    Views  -  Great views from hotel
    Outstanding location
    RestaurantSwimming PoolGardenDisabled accessViewsParkingNo pets
    Recommended by  -  I Escape

    A unique and luxurious hotel occupying a fantastical spot in rural Iceland. Contemporary design throughout - rooms are sleek, minimalist and take full advantage of the fabulous views. Nordic inspired menus are offered up in the beautifully designed restaurant and there are thermal baths too. See More

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  • Hotel Grimsborgir Iceland 34 rooms from £316

    Spa breaks  -  The natural location, massage treatments, hot tubs and natural geo-thermal springs close by combine to offer a unique spa break
    Active Holiday  -  The local region's rich nature provide an abundance of activities to keep you outdoors all day long
    Fishing  -  Iceland's rivers are world-renowned for their salmon fishing
    Private Hot Tub  -  All six apartments come with their own hot tub
    SpaRestaurantGardenDisabled accessNo pets

    Lying in Iceland's Golden Circle, the Grimsborgir's location stirs the senses. The classically-furnished rooms are spacious and have much natural light. Offering geothermal hot tubs and a restaurant with live entertainment and international cuisine. An unforgettable destination. See More

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  • Heydalur Ísafjörður, Iceland 29 rooms from £119

    Back to Nature  -  Set in the spectacular landscape of the Westfjords of Iceland, you can cut off from everything at this back to nature retreat
    Groups  -  The pine cabin apartments are great for groups; relax with your friends in one of the three thermal springs
    Families  -  Families can choose between staying in the spacious summer houses or the child-friendly campsite
    Kayaking  -  Enquire at the guesthouse to arrange a kayaking trip on the neaby lake
    RestaurantSwimming PoolGardenDisabled accessViewsParkingNo pets

    A rural guesthouse and campsite in a beautiful natural setting. Rooms in the old farmhouse are simple and bright with thermally heated floors. The summer houses offer accommodation for groups in pretty pine cabins. Guests can enjoy three thermal springs and a pool. A spectacular retreat to nature. See More

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  • Magma Hotel Iceland 12 rooms from £174

    Spa breaks  -  Iceland's natural geo-thermal springs are famed worldwide and offer peerless spa treatments
    Active Holiday  -  There's natural phenomena abounding from this geologically unique area
    Birdwatching  -  An abundance of fascinating birdlife exists in the region from whooper swans, arctic terns, to whimbrels and more
    Romantic  -  Good for couples.
    RestaurantGardenViewsNo pets

    This intimate hotel offers guests a truly Nordic experience blending a contemporary feel with eco-living. The spacious rooms are located in individual cabins and feature glass doors leading onto beautiful lakeside views. The region is unique and offers guests a host of natural wonders to discover. See More

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  • Hótel Flatey Iceland 11 rooms from £159

    Country Escape  -  Located on the remote island Flatey, with little apart from a local village around, this is a great country escape
    Romantic Break  -  The idyllic village setting and cosy hotel restaurant make this a perfect romantic getaway
    Hideaway  -  Hideout at this pretty, traditional hotel on a little-known Icelandic island
    Birdwatching  -  Half of all nesting birds in Iceland lay their eggs on the islands of Breidafjordur, making it a great spot for birdwatching

    An idyllic summer guesthouse on the island of Flatey. Set in the island's quiet village, the best of the bright and homely rooms have breathtaking sea views. The restaurant serves fresh seafood dishes daily in a traditional dining room. An intimate hotel, and rated one of the top ten in Iceland. See More

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  • Blabjorg Hotel Iceland 5 rooms from £48

    Back to Nature  -  Ideal location from which to explore the natural wonders of Iceland, with mountains, glaciers, thermal springs and more
    Short break  -  Egilsstadir Airport is a close drive from the hotel making this an easily accessible area of Iceland
    Families  -  With self-catering apartments available to rent, the hotel can easily cater to family groups
    Fishing  -  Situated in a small fishing village guests can go out sea-fishing on a local boat
    SpaRestaurantGardenDisabled accessNo pets

    Lying in a fishing village on the island's eastern coast, Blabjorg's location captures Iceland's magical feel. The accommodation includes spacious apartments to rent offering sea views. With a hot tub, infrared sauna and steam room, plus a restaurant and bar. A guesthouse catering to all your needs. See More

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