Best Luxury Hotels in Iceland

If you fancy staying at the most famous attraction in the country, book a minimalist suite at The Retreat at Blue Lagoon and enjoy views over the volcanic delights of the Blue Lagoon. Spa breaks are a speciality – The Retreat Spa is a part of The Retreat experience. Within the main subterranean spa lies Lava Cove, a private sanctuary, reserved for the affluent, offering gourmet dining, in-water massage, and guided yoga sessions. Be sure to try the signature ritual utilising the silica, algae, and minerals of the geothermal seawaters. There’s also a restaurant with an equally soothing atmosphere. And of course, the lagoon, for quintessential Iceland bathing.

Bringing 5-star luxury to the city, the Reykjavik EDITION is the perfect place from which to enjoy the many attractions of the region. Located in the historical heart of downtown Reykjavik the hotel is a short walk from Laugavegur Street, the city´s vibrant shopping district, and the Harpa Concert and Conference Centre whilst the natural geothermal pools at Sky Lagoon are only a 10-minute car journey away. The modern style flows throughout the hotel and room sizes and classes cover every traveller’s needs – with harbour and ocean views available too. The hotel itself boasts a variety of distinctive food and beverage options; from light bites to alfresco dining through to a more formal dining experience lead by Gunnar Karl Gíslason, Iceland’s celebrated first Michelin-star chef. An onsite gym is also available for guests to work up a sweat.  With a fun-loving vibe and lively spaces to socialise, work and relax – this is the place to be! Edition Hotel Reykjavik is part of the Marriott Collection.

The Tower Suites in Reykjavik is also a new private hotel that is designed for people who fancy comfort or those looking for an adventure. It is comprised of eight suites that are on the 20th floor of one of the most iconic buildings in the city. The skyline is one of the great things you will love viewing from this hotel. Every suite has its own character and is filled with panoramic views all around. You will get a one-of-a-kind view of the city and a neighbouring mountain range. In some of the suites, freestanding bathtubs and beds face floor-to-ceiling windows. This means that you get to wake up and bathe to some exciting 360 degrees unforgettable views. Enjoy the luxuries of a nearby wellness and fitness spa too.

Located in Selfoss, the ION Adventure Hotel is a remarkable modernist structure that sits on stilts, cutting an impressive outline in the already dramatic landscape. Once a spooky abandoned inn, it’s now a 45-room (choose between standard and deluxe) boutique hotel with outlooks over Nesjavellir Geothermal Power Plant or across the lava fields towards Thingvellir National Park. As with ION’s City Hotel, there’s a clear presence of salvaged materials in the design with the exterior mimicking the brutal conditions of Icelandic winter. Sigurlaug Sverrisdottir is behind the concept and manager to the ION brand. Once air cabin crew, she’d also created a business, arranging adventure tours -and there’s many wonderful excursions to be enjoyed from here. Adventure Hotel juts out on Mount Hengill as a secluded and sustainable retreat for those wishing to get off the beaten track.

Found between Skaftafell and Jökulsárlón Glacier Lagoon, Fosshotel Glacier Lagoon is one to add to your Icelandic road trip. The 125 contemporary rooms have a minimal peaceful design, with huge windows looking out onto the local wilderness and the country’s highest peak, Hvannadalshnúkur. High ceilings add to the sense of peace and serenity that this hotel embodies. The hotel’s large restaurant is decorated in a geometric style, with dishes inspired by its natural surroundings. The highlight of this property is, of course, its proximity to the Fosshotel Glacier, providing fantastic hiking on the doorstep.

This is a 19th-century hotel that is designed with modern Scandinavian décor. You can find it near the city hall in the downtown area. Their suites are spacious with beautiful art, big private balconies, Wi-Fi, coffee machines and full kitchenettes. Some suites have two balconies that overlook Reykjavik, a huge living area and a second bedroom that is equipped with bunk beds. Their bar stocks some of the best wines, gins and whiskeys. They also offer 24-hour concierge services.

Do not get dissuaded by the rugged-looking exterior of this hotel as the interior is very impressive. You can expect nothing short of a modern style that combines a collection of artworks from local artists and antique furnishing. The public area of the hotel is normally decorated with temporary exhibits. All the facilities offered in this hotel are exceptional. They range from a basement gym and spa that has a steam bath to a hot tub and plunge pool. The 101 hotel also offer their clients in-room spa treatments and a DVD library. Their reception remains open 24 hours a day where you will be served by attentive staff members and also get concierge services.

This was the first luxury hotel to be put up in Iceland. It combines the elegance of high-end art deco with contemporary style. The hotel has numerous amenities, including a relaxation annexe, gym, sauna, steam bath treatment rooms and a spa. Their rooms are adorned with custom-made furnishings, hastens beds, spanning cupboards and elegant Bang & Olufsen TVs. Their restaurant is run by an award-winning chef whose main focus is on refined Icelandic cuisines like langoustine, Arctic char and beef tenderloin. Make a point of visiting their bar for delicious cocktails that are normally prepared using homemade syrups.

Looking out onto the pretty, colourful rooftops of the capital and mountains beyond, ION City Hotel is well-located to explore Reykjavik’s nightlife. One of two ION hotels, rooms feature saunas, recycled wood panelling, organic linens, Bang & Olufsen Bluetooth speakers, mid-century furniture and Scandi style by design studio Minarc. Sumac, the hotel’s restaurant is the hip place to be. One of Iceland’s top chefs Hafsteinn Ólafsson, is at the helm, serving North African dishes in surroundings inspired by the Beirut of the past. Relax in the bar after your meal, with an unusual drinks list including Lebanese wine.

Another city-break favourite is Alda Hotel, on Reykjavik’s main shopping street. Although centrally located, the emphasis here is on tranquillity and calm, creating an oasis-like experience – the outdoor hot tub is perfect for winding down after some hectic sightseeing. 88 swanky guest rooms with L’Occitane toiletries all vary in shape and size, furnished in vibrant colour schemes, eye-catching artworks and designer furnishings. Alda is perfect if you like a stylish, laid back vibe, or are travelling with kids. Meals can be enjoyed at the casual Brass Kitchen & Bar, or you can explore the array of options in the vicinity.

This former department store (previously owned by Consul Thomsen’s family) dates back to the turn of the 20th century and bears a vintage style. This is paired with a cool Icelandic design and exposed original stone walls in some areas. Inside you’ll find a sauna and whirlpool, a fitness centre and the all-day restaurant, the Konsulat Wine Room. Reykjavik Konsulat Hotel is found beside Bæjarins Beztu Pylsur hot dogs ( a very popular street food source), a stroll away from the day-tour bus stops and Harpa Concert Hall.

If visiting the south of the island, stay at Hótel Kría in Vik. This modern yet cosy spot in the land of ice and fire with black sandy beaches just a five-minute walk away. Light wood panelling, charcoal tones and glass feature heavily in the modern design, both inside and out. Meals are taken in Drangar Restaurant, which offers traditional Icelandic cuisine with a modern twist and only the highest quality seasonal ingredients. 38 of the 72 rooms have a picturesque mountain view and there is 1 Suite available. All rooms are equipped with the necessary amenities and are designed in a modern style.