Iceland is a land of contrasts—volcanic landscapes, sprawling glaciers, and the mesmerizing Northern Lights.
Whether you’re hiking across glaciers or soaking in hot springs, the right hotel can turn a good trip into an unforgettable adventure.
From luxury retreats to budget-friendly options, there’s something for everyone in this incredible Nordic destination.
In this list, we’ll take you through 10 of the best hotels in Iceland, each offering a unique experience that complements Iceland’s stunning beauty.
Whether you’re here for wellness, adventure, or simply a relaxing getaway, these hotels provide the perfect base for exploring Iceland’s natural wonders.
So buckle up for a deep dive into the top hotels that’ll make your stay in Iceland truly magical. Get ready to book your next dream vacation!
1. Hotel Rangá – Best Overall
When it comes to a well-rounded Icelandic experience, Hotel Rangá stands out as the top pick.
Located in the heart of South Iceland, this boutique hotel is surrounded by jaw-dropping landscapes, from majestic glaciers to thundering waterfalls.
Its secluded location offers a peaceful, picturesque retreat that’s perfect for those wanting to immerse themselves in Iceland’s natural wonders while enjoying luxurious amenities.
What really sets Hotel Rangá apart is its prime positioning for Northern Lights viewing.
The hotel even has an observatory with telescopes—perfect for catching a glimpse of the aurora borealis in all its glory.
And if you’re into fine dining, you’ll love the gourmet meals made with fresh, locally-sourced ingredients.
Whether you’re visiting Seljalandsfoss or the iconic Skógafoss, you’ll be just a stone’s throw from Iceland’s most famous attractions.
Hotel Rangá blends rustic charm with upscale luxury, making it the ultimate base for your Iceland adventure.
2. The Retreat at Blue Lagoon – Best for Wellness
Located at the world-renowned Blue Lagoon, The Retreat is an oasis of calm and relaxation.
If you’re seeking a wellness retreat in Iceland, this is where you want to be.
It’s not just about the gorgeous setting—though the surrounding lava fields and mineral-rich waters are breathtaking—it’s about the healing power of nature that permeates every corner of this hotel.
Guests at The Retreat enjoy exclusive access to a private section of the Blue Lagoon, so you can take a dip in those soothing, geothermal waters away from the crowds.
For the ultimate spa experience, you can indulge in signature treatments inspired by the lagoon’s healing minerals.
The suites, with their sleek, minimalist design, blend perfectly with the natural surroundings.
Every detail at The Retreat is designed to make you feel completely relaxed and rejuvenated.
After all, there’s no better way to unwind than in one of the most unique natural wonders on Earth.
3. Fosshótel Glacier Lagoon – Best for Nature Lovers
Situated between Skaftafell National Park and Jökulsárlón Glacier Lagoon, Fosshótel Glacier Lagoon offers easy access to Iceland’s most stunning natural wonders.
This hotel is perfect for nature lovers who want to immerse themselves in Iceland’s wilderness.
Whether you’re exploring glaciers, ice caves, or the nearby black sand beaches, the adventure starts right at your doorstep.
The hotel’s modern rooms offer panoramic views of the surrounding mountains and ocean.
And if you’re passionate about sustainability, you’ll appreciate the hotel’s eco-friendly initiatives aimed at preserving the pristine environment.
The location is also ideal for those who want to photograph Iceland’s dramatic landscapes—from towering glaciers to tranquil lagoons, this hotel is a dream for anyone who loves outdoor exploration.
Fosshótel Glacier Lagoon delivers a perfect combination of comfort, sustainability, and access to nature’s most awe-inspiring sights.
ximity to Iceland’s iconic sites make it a top choice for adventurers.
4. Icelandair Hotel Reykjavík Marina – Best for Urban Explorers
For those who love the buzz of city life with a splash of Icelandic culture, Icelandair Hotel Reykjavík Marina is the ideal choice.
Located in the heart of Reykjavík’s vibrant harbor area, this hotel combines urban energy with the cozy charm of Icelandic design.
It’s close to popular attractions like the Harpa Concert Hall and the Old Harbor, making it the perfect place for urban explorers to rest and recharge between city adventures.
The decor is quirky and colorful, reflecting Iceland’s unique artistic vibe.
The hotel also offers a trendy on-site restaurant where you can indulge in local Icelandic cuisine.
Whether you’re strolling through the city, checking out art galleries, or grabbing a bite in one of Reykjavík’s many cozy cafes.
This hotel places you in the perfect spot to experience the city’s cultural heart.
5. Siglo Hotel – Best for Seaside Views
For a peaceful retreat by the sea, look no further than Siglo Hotel in the charming town of Siglufjörður.
Nestled along the picturesque harbor, this hotel offers stunning views of the marina and surrounding mountains.
It’s the perfect place to unwind and recharge while soaking in the breathtaking scenery.
Siglo Hotel features cozy rooms with harborfront views, so you can enjoy a serene morning coffee with the tranquil sound of the sea in the background.
The outdoor hot tubs and the cozy lounge with a fireplace create a relaxing atmosphere where you can kick back and enjoy your surroundings.
And when you’re ready to explore, Siglufjörður offers charming cafes and museums that give you a taste of local life.
Siglo Hotel is perfect for those seeking quiet relaxation in a small-town setting, with the added benefit of a picturesque seaside location.
6. Black Pearl Apartment Hotel – Best for Extended Stays
If you’re planning an extended stay in Reykjavík, or just prefer a home-like experience, Black Pearl Apartment Hotel is your go-to spot.
With spacious suites that come complete with fully-equipped kitchens, living areas, and luxurious bathrooms.
This hotel is perfect for families or anyone needing more space for a longer stay.
Located near Reykjavík’s top attractions, like Laugavegur shopping street, you’ll be within walking distance of everything you need.
Plus, the hotel offers personalized service to help you plan your adventures, making it a home away from home for anyone visiting Iceland for a longer period.
Whether you’re here for business or leisure, Black Pearl offers all the comforts and conveniences you could ask for, making it a fantastic choice for those seeking a mix of privacy and luxury.
7. Skuggi Hotel by Keahotels – Best for Budget Travelers
You don’t have to break the bank to enjoy a comfortable stay in Reykjavík. Skuggi Hotel proves that you can have a stylish and comfortable stay at a budget-friendly price. Located in the heart of the city, it’s within walking distance of the downtown area, shops, and restaurants. So, you can enjoy all the excitement of Reykjavík without worrying about your accommodation budget.
Despite its affordable price, the rooms at Skuggi Hotel don’t skimp on comfort. With modern designs, cozy bedding, and all the essential amenities, you’ll feel right at home. The friendly atmosphere and helpful staff make the experience even more enjoyable, ensuring that your stay in Iceland is as pleasant as it is affordable.
8. Hotel Grimsborgir – Best for Luxury in Nature
Hotel Grimsborgir offers a luxurious base for exploring Iceland’s iconic Golden Circle. Located in South Iceland, this hotel is just a short drive away from Gullfoss, Geysir, and Þingvellir National Park, so you’ll be perfectly positioned to explore some of the country’s most famous natural wonders.
The hotel’s spacious suites provide a tranquil and luxurious atmosphere, with some rooms even featuring private hot tubs for ultimate relaxation. Surrounded by serene landscapes and peaceful rivers, Hotel Grimsborgir is a great choice for anyone looking to combine the luxury of a high-end hotel with the beauty of Iceland’s nature. If you’re planning to explore the Golden Circle in style, this is the place to stay.
9. Húsafell Hotel – Best for Eco-Conscious Travelers
For those who care about sustainability and want to minimize their environmental footprint, Húsafell Hotel in West Iceland is the perfect choice. This eco-conscious hotel is powered by renewable energy and built using local materials, ensuring that your stay has as little impact on the environment as possible.
Located near Húsafell Canyon Baths and Langjökull Glacier, this hotel offers easy access to some of Iceland’s most breathtaking natural attractions. The hotel also features works by Icelandic artist Páll Guðmundsson, adding a touch of local culture to your stay. Whether you’re soaking in the canyon baths or enjoying the quiet surroundings, Húsafell Hotel provides a luxurious and sustainable retreat for eco-conscious travelers.
10. Northern Light Inn – Best for Stargazers
If you’re hoping to catch the Northern Lights during your stay in Iceland, Northern Light Inn near the Blue Lagoon should be on your list. This charming inn offers guided tours and wake-up calls for optimal Northern Lights viewing, making it one of the best spots for stargazers and nature enthusiasts.
The cozy atmosphere at Northern Light Inn includes a warm lounge with a fireplace and a library—perfect for relaxing after a night of aurora chasing. Plus, it’s conveniently located near Keflavík Airport and the Blue Lagoon, so you can easily explore the area while enjoying a peaceful, memorable stay.
Conclusion
Choosing the right hotel in Iceland can elevate your travel experience, turning an ordinary vacation into an unforgettable adventure. Whether you’re into wellness, nature, or city life, Iceland offers a variety of accommodations that cater to different tastes and preferences. From the serene luxury of The Retreat at Blue Lagoon to the cozy charm of Skuggi Hotel, there’s a perfect spot for everyone.
So, what are you waiting for? Start planning your Iceland trip today and choose one of these amazing hotels for an unforgettable stay. Let Iceland’s stunning landscapes and warm hospitality leave you with memories that will last a lifetime!