Best 4-Star Hotels in South Iceland

Luxury travel isn’t defined by stars alone, but by a combination of factors that enhance the overall experience. Each property featured within our selection of the best 4-star hotels has been chosen for its exceptional service and meticulous attention to detail at every stage of the guest journey. Interiors and exteriors are finished to a high standard, combining thoughtful design with a sense of place. Facilities and amenities are of a quality that exceeds guest expectations, while each hotel’s location enhances and enriches the overall stay, whether through cultural connection, natural beauty, or urban vibrancy.

This collection reflects the very best of the 4-star category, ideal for those seeking sophistication, character, and comfort in equal measure.

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.

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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.

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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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