Best Luxury Hotels in South Iceland

Discover our favourite luxury accommodation in South Iceland. Our collection of luxury hotels and resorts showcase the very finest in world-class hospitality. Each one has been selected, by our Editors, based on its exceptional service, refined interiors, excellent amenities and standout location. Let our expert selection help you find your perfect place to stay.

South Iceland, Nesjavellir

ION Adventure Hotel

Hotel
(4 stars)
At a glance
Rooms 45 Rooms, including a Unique Thermal Junior Suite
Amenities Silfra Restaurant Serving Modern Nordic Cuisine, the Northern Lights Bar with Panoramic Views, a Lava Spa with a Sauna & Geothermal Outdoor Pool, & a Fitness Centre
More Located on Mount Hengill near ingvellir National Park

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.

South Iceland, Vík

Hótel Kría

Hotel
At a glance
Rooms 73 Modern Accommodations, Including a Suite
Amenities Features the Drangar Restaurant Serving Traditional Icelandic Cuisine, a Cocktail Bar with Daily Happy Hour, & is Conveniently Located Near Key Attractions
More Situated Near the South Coast's Stunning Natural Landmarks, Including Black Sand Beaches

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.

South Iceland, Hnappavellir

Fosshotel Glacier Lagoon

Hotel
(4 stars)
At a glance
Rooms 125 Contemporary Rooms & Suites
Amenities Restaurant Serving Icelandic Fusion Cuisine, a Bar, Complimentary Spa Facilities with Hot Tubs, Sauna, Gym, Pet-Friendly
More Located Between Skaftafell National Park & Jökulsárlón Glacier LagoonLocated Between Skaftafell National Park & Jökulsárlón Glacier Lagoon

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.

BOOK YOUR STAY
Fosshotel Glacier Lagoon

South Iceland, Skogar

Umi Hotel

Hotel
(4 stars)
At a glance
Rooms 28 Rooms & Suites with Mountain or Ocean Views
Amenities Fine Dining Restaurant Serving Locally Sourced Cuisine, a Lounge Bar with Views of Eyjafjallajkull, in-room Fitness Kits, & a walking Trail Leading to a Secluded Black Sand Beach
More Located along Iceland's South Coast near Major attractions

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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