Best Luxury Hotels In Iceland

Located in the heart of the North Atlantic, Iceland beckons with its otherworldly beauty, captivating culture, and a sense of untouched wilderness that evokes awe at every turn. From the mesmerising dance of the Northern Lights to the soothing warmth of geothermal springs at the Blue Lagoon, and the buzzing cultural and dining scene of Reykjavik, Iceland offers an exclusive experience that promises to leave an indelible mark on the discerning traveller’s soul.

Before you choose your favourite luxury hotel in Iceland, read on to learn a little more about this jewel of an emirate destination.

Why Visit: The land of geysers, hot springs, heavy metal, volcanic rock and Bjork makes for an exciting and adventurous holiday destination. With some lunar-like terrain, adrenaline-pumping activities, and plenty of alternative attractions, it has much to offer those of all ages and tastes. Reykjavik is one of the top city break destinations in the world, particularly for the discerning traveller, while further afield, visitors can explore stunning landscapes. The country has a reputation for being open-minded as well as environmentally conscious and its unusual architecture proffers some unique, luxurious, and eco-friendly places to stay.

Who Goes: Due to its remarkable diversity, Iceland caters to a wide spectrum of travellers. Whether your passions lie in nature, wildlife, street art, or luxury experiences, this destination offers something extraordinary for everyone. It’s also a popular destination for solo travellers too.

When to Visit:  As there is so much to do and see no matter what time of year you visit there will be something that captivates you. For outdoor adventures, the best time to visit Iceland is between June and August when the weather is at its warmest and the midnight sun emerges. If you’re seeking a glimpse of the spectacular Aurora Borealis, AKA the Northern Lights, then the darker winter months are the time to go.

How to Get There:  Keflavik is the main international airport, and the arrival point for most international travellers to Iceland. It offers meet-and-greet services and a private airport lounge.

Private jets can fly into Keflavik or Reykjavik City Airport, which is the main domestic airport in Iceland.

In the Know: For a spot of whale watching visit Akureyri, it’s said to be the best place to see these majestic marine mammals and is known as Iceland’s capital of the Nort, it’s a great city in which to spend a couple of days.

Hotel Selection: The hotels we showcase in this collection have been selected by our editors, contributors, or trusted locals based on personal experience or credible recommendations. From the renowned international resorts to the lesser-known boutiques, each hotel must excel in service, design and facilities.

UMI Hotel, Hvolsvollur

Hotel
(4 stars)

One of the most beautiful mountain ranges in Iceland is the backdrop to the UMI hotel. The hotel presents bare-foot luxury at its best and is rooted with a deep connection to nature that flows throughout the design, décor and overall experience of the hotel with only 28 simple yet stylish rooms, offering mountain or ocean views, guests will never feel over-crowded. Stunning vistas can also be enjoyed from the hotel’s top-class restaurant which serves Nordic and Icelandic cuisine with a Japanese twist in a warm and welcoming atmosphere and the lounge and bar is the ideal spot to take in panoramas of Eyjafjallajökull, the famous subglacial volcano. For guests wishing to enjoy more than the beautiful views, many action-packed activities such as glacier hikes, kayaking and ice-cave adventures can easily be arranged by the team at the hotel. For those who love nature and adventure, this is the hotel for you!

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UMI Hotel, Hvolsvollur

Reykjavík, Reykjavik Greater Region

The Reykjavik EDITION

Hotel
(5 stars)

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.

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The Reykjavik EDITION

Hnappavellir, Iceland, South Europe

Fosshotel Glacier Lagoon

Hotel
(4 stars)

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.

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Fosshotel Glacier Lagoon

Vík, Iceland, South Europe

Hótel Kría

Hotel

If visiting the south of the island, stay at Hótel Kría in Vik. This opened in the summer of 2018, a cool new addition to the area 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, with lamb and fish being especially popular. Innovative creations such as avocado chocolate pudding, skyr and cucumber crystallised white chocolate with dill and merengue appear on the pudding menu – you won’t want to skip dessert at Hótel Kría.

Reykjavík, Reykjavik Greater Region

Canopy by Hilton Reykjavik City Centre

Hotel
(4 stars)

The upscale Hilton chain has you covered on a trip to the heart of the capital at the Canopy by Hilton Reykjavik. The building was once a furniture factory, music and arts venue, repurposed across six interconnected areas forming this eclectic approach to hospitality. Guests are invited to peruse Canopy’s vinyl collection and take a portable record player back to one of their 112 rooms – a selection of which are fully accessible. Pet-friendly and 100% smoke-free, this isn’t the place to stay if you’re a smoker, but a literal breath of fresh air if you’re not.  It’s also home to several dining options, including Geiri Smart, an exclusive restaurant, where chefs prepare food based on the farmers and fishers’ offers of the day.

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Canopy by Hilton Reykjavik City Centre

Reykjavík, Reykjavik Greater Region

Alda Hotel

Hotel
(4 stars)

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.

The Retreat at Blue Lagoon

Hotel
(5 stars)

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.

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The Retreat at Blue Lagoon

Reykjavík, Reykjavik Greater Region

ION City Hotel

Hotel
(4 stars)

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.

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ION City Hotel

Nesjavellir, Iceland, South Europe

ION Adventure Hotel

Hotel
(4 stars)

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.

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ION Adventure Hotel

Iceland Parliament Hotel, Curio Collection By Hilton

(4 stars)
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Iceland Parliament Hotel, Curio Collection By Hilton

Hotel Borg by Keahotels

Hotel
(4 stars)

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.

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Hotel Borg by Keahotels

101 Hotel

Hotel
(4 stars)

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.

Sand Hotel by Keahotels

Hotel
(4 stars)

This is a new boutique hotel right in the middle of Reykjavik. Its strategic location offers the guests the pleasure of enjoying the lively Reykjavik cultural life. You will find numerous Icelandic natural marvels nearby when you choose to stay at the Sandhotel. They have decorated their rooms with a combination of art designs that explain the history of the surroundings and contemporary artwork that sets each room apart. The rooms are designed with only the guests’ comfort in mind. You will have some of the best moments when you spend a night or two there.

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Sand Hotel by Keahotels

Tower Suites Reykjavík

Hotel
(4 stars)

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.

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Tower Suites Reykjavík

Kvosin Hotel

Hotel

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.


* All the properties and products we feature are independently selected by our editors and contributors. If you buy something we may earn a commission.

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