Best Hotels in Iceland (2025): Expert-Picked Stays for Design & Adventure
Introduction to Icelandic Hospitality
Icelandic hospitality is as memorable as the country’s landscapes—warm, genuine, and deeply rooted in tradition. Whether you’re checking into a cushy country lodge nestled among rolling hills or a sophisticated Scandinavian hideaway with views of the sea, you’ll find that every stay is infused with a sense of welcome. Many hotels feature welcoming rooms inspired by Iceland’s rich sea and fishing industry, with details like weathered wood, nautical touches, and cozy textiles that evoke the spirit of the island.
Nostalgic boutique hotels loaded with character, such as those with mismatched antique furnishings and sunlit reading nooks, invite you to slow down and savor the moment. Even in the most remote island hotel, you’ll be treated like a distant Icelandic relative—offered stories, comfort, and a front-row seat to the country’s legendary warmth.
Best Hotels in Iceland (2025): Reykjavik, Hotel Ranga, Vik & More Design-Forward Stays
Where to Stay in Iceland for Style, Comfort, and Unforgettable Views
Iceland isn’t just a destination—it’s a mood. Stark volcanic landscapes, steamy geothermal pools, and skies that dance with the aurora borealis. Even the hotels feel otherworldly. Whether you’re chasing the Northern Lights, wandering Reykjavik’s city center, or exploring Iceland’s South Coast, where you stay becomes part of the adventure. Experiencing Reykjavik's feisty nightlife is also a must, with its vibrant local music, pubs, and energetic bar scene adding to the city's unique charm.
This guide rounds up the best hotels in Iceland, with a focus on aesthetics, comfort, and design inspiration. The list features luxury properties renowned for their high-end design, excellent service, and commitment to sustainability, ensuring an authentic and exclusive experience. Unlike well trodden tourist attractions such as the Blue Lagoon, these curated hotels offer unique and memorable stays away from the crowds.
Bonus: Iceland is full of Nordic style. Check out my Iceland design guide that includes Amazon finds to help you recreate that dreamy Nordic vibe back home.
Jump to Section
• Reykjavik Hotels
• Hotels for Northern Lights
• South Coast Hotels
• Remote Hotels in Iceland
• Snæfellsnes Boutique Hotels
Best Hotels in Reykjavík
The Reykjavík EDITION
If modern luxury had a Nordic twin, it would be The EDITION. It’s stylish without trying too hard—think slate grays, warm wood, and floor-to-ceiling windows with harbor views. The hotel is ideally located near the city's central pond and City Hall, making it perfect for exploring Reykjavik’s downtown attractions. Bonus: you’re steps from the city’s best restaurants and Hallgrímskirkja.
Check rates for the Reykjavik EDITION on Expedia
Design Inspiration: Sleek black metal accents, soft earth-toned textiles, and ambient lighting.
✨ Planning a full city break? Explore my Reykjavík travel guide
ION City Hotel
Sustainable design meets modern Icelandic cool. Located on Reykjavík’s main shopping street, the rooms blend concrete, wool, and reclaimed wood into something surprisingly cozy. ION City Hotel is a proud member of the Design Hotels group, reflecting its commitment to creative, design-centric accommodations that appeal to artful travelers.
Check rates for the ION City Hotel on Expedia
Design Inspiration: Urban Icelandic chic—concrete textures softened by natural fibers.
Hotel Borg, Reykjavik
Timeless glamour with a Nordic twist. Iceland Hotel Borg is one of the capital’s most historic hotels, but recent renovations have turned it into a five-star gem, featuring renovated interiors that blend classic Art Deco with modern comfort. Expect Art Deco elegance: herringbone floors, leather headboards, and bathrooms worthy of a spa day.
👉 Check rates for Hotel Borg on Expedia
Design Inspiration: Classic meets cool
Best Hotels to See the Northern Lights
ION Adventure Hotel – Thingvellir
Rugged, remote, and incredibly photogenic. ION Adventure Hotel sits on the edge of Thingvellir National Park and is built for aurora watching. Think lava rock walls, massive windows, and a bar that glows like the Northern Lights themselves. The interiors are enhanced by contemporary Icelandic artwork, reflecting the country's modern artistic scene.
The onsite Silfra Restaurant offers a unique dining experience with views of the extraordinary natural surroundings, including glaciers, lava fields, and geothermal landscapes. The onsite Silfra Restaurant serves dishes inspired by local Icelandic cuisine.
Check rates for the ION Adventure Hotel on Expedia
Design Inspiration: Raw, elemental textures. Picture lava rock, wool, and glowing warmth.
Hotel Rangá
If you’re Googling Iceland Hotel Ranga, you’re not alone—it’s one of the most sought-after countryside hotels in the country. Nestled along the River Rangá with minimal light pollution, it stands out as an adventurous country manor that blends rustic charm with outdoor activities like glacier snowmobiling and nature tours. The hotel features an observatory, themed suites, and wake-up calls for the aurora. Guests can also book a private super jeep tour for exclusive exploration of the surrounding landscapes. Rustic luxury, perfected.
Check rates at the Hotel Ranga on Expedia
Design Inspiration: Cabin comfort meets countryside luxury.
Best Hotels in Vik and the South Coast
Hotel Kría
One of the best Iceland hotels in Vik, Hotel Kría is sleek, calm, and perfectly positioned for South Coast adventures. The rooms feel modern yet warm, with gray linens, matte ceramics, and views that do all the talking.
Check rates for Hotel Kria on Expedia
Design Inspiration: Modern Nordic calm.
Fosshotel Glacier Lagoon
If your idea of paradise is total isolation with cinematic views, Fosshotel Glacier Lagoon delivers. Set in one of Iceland’s remote regions, between Skaftafell and Jökulsárlón, this bold and broody hotel pairs black walls and moody lighting with massive windows and jaw-dropping nature. Located in Iceland's remote regions, the hotel offers an experience reminiscent of luxurious mountain lodges, featuring high-end amenities and breathtaking views in a secluded, mountainous landscape.
Check rates for Fosshotel Glacier Lagoon on Expedia
Design Inspiration: Bold contrasts—dark interiors that highlight the light outside.
Best Off-the-Grid & Remote Hotels in Iceland
Highland Base – Kerlingarfjöll
Deep in the Highlands and built for serious escape, Highland Base feels like a futuristic outpost disguised as a design hotel. Designed by Icelandic firm Basalt Architects, known for their sustainable architecture, the hotel resembles a nordic minimalist space station with its angular design and remote setting. The minimalist wood-and-concrete structure blends into the snowy mountains of Kerlingarfjöll, with geothermal baths and aurora-viewing soaking tubs just steps away. Some accommodations feature unique sunken living rooms, enhancing the rustic, adventurous experience.
Design Vibe: Raw, elemental architecture softened by cozy textures.
Fosshotel Eastfjords – Fáskrúðsfjörður
Tucked in a historic French hospital, a typical Icelandic building with over 100 years of history, along the remote Eastfjords, this hotel brings unexpected elegance to one of Iceland’s least-traveled areas. The fjord views, soft lighting, and wood-paneled interiors give it a serene, almost cinematic feel. The nearby town is lined with prim antique houses, adding to the area's traditional charm.
Design Vibe: Restored Nordic charm meets quiet seafront simplicity.
Best Boutique Hotels - Snæfellsnes Peninsula
Hotel Búðir – Búðir
This iconic countryside hotel is perched beside the black church and surrounded by lava fields and glacier views. As one of Iceland’s most sophisticated Scandinavian hideaways, Hotel Búðir offers candlelit dining, antique details, and a calm, romantic atmosphere that makes it one of the most beloved stays in Iceland. Experience the magic of an Icelandic summer here, with long days, golden light, and serene landscapes that create an enchanting retreat. In the evenings, a hazy golden light falls over the surroundings, casting a dreamy, tranquil mood that enhances the hotel's allure.
Design Vibe: Timeless countryside romance with Nordic bones.
Hótel Egilsen – Stykkishólmur
In the colorful harbor town of Stykkishólmur, this nostalgic boutique hotel loaded with character offers a unique stay in a charming 10-room property that blends maritime history with thoughtful design. Originally commissioned by a wealthy Icelandic businessman, the building reflects the region's rich trading history and local architecture. Guests can expect mismatched antique furnishings that add to the hotel's vintage charm and historical ambiance, immersing them in a sense of traditional Scandinavian and Icelandic heritage. The hotel feels more like a cozy literary retreat than a hotel—complete with bookshelves, wool throws, and bay views. Its library and decor are inspired by Nordic folk tales and old Nordic folk tales, creating an evocative atmosphere rooted in Scandinavian folklore and storytelling traditions.
Design Vibe: Minimalist cottagecore with a seafaring soul.
Sustainable Tourism: Iceland’s Eco-Conscious Stays
Iceland’s wild beauty isn’t just a backdrop; it’s a way of life, and the country’s hotels are leading the charge in sustainable tourism. Across the island in the North Atlantic, you’ll find eco-conscious stays that blend cutting-edge design with a deep respect for the environment, making it easy to travel responsibly without sacrificing comfort or style.
Start your journey at the legendary Retreat at Blue Lagoon, where sleek and minimalist suites mirror the surrounding Icelandic landscape and are carved into the lava fields. Here, geothermal energy powers an uber-luxurious wellness establishment, including an exclusive underground spa—a cavern-like wellness space integrated into the geothermal setting. Interiors feature splashes of Icelandic stone and wood. The patented Blue Lagoon ritual and the retreat spa offer all the geothermal wonder you could dream of, while the hotel’s commitment to sustainability sets a new standard for luxury hotels in Iceland.
On Iceland’s south coast, Hotel Rangá is a luxury hunting lodge that feels both rustic and refined. Its warm and inviting rooms, many with floor-to-ceiling windows, frame the dramatic northern Atlantic Ocean and rolling countryside. The hotel restaurant serves up traditional Icelandic cuisine, using locally sourced ingredients to minimize its environmental impact—so you can savor the flavors of Iceland with a clear conscience.
For a dose of nostalgia, head to the Snæfellsnes Peninsula and check into Hotel Egilsen. This boutique hotel is loaded with homey Nordic comforts, from mismatched antique furnishings to welcoming rooms inspired by the sea and fishing industry. The hotel restaurant serves classic Icelandic dishes, and the location is perfect for exploring the dramatic northern Atlantic coastline.
In downtown Reykjavik, the Kvosin Downtown Hotel is a charismatic boutique property that puts eco-conscious accommodation at the heart of the city. Expect fantastic apartment suites, refined and sophisticated interiors with touches of Italian furnishings that highlight the elegance and comfort of the space, and a fantastic central location just steps from the city’s best sights. The hotel’s urban and Nordic style is matched by its commitment to sustainability, with energy-efficient systems and locally sourced materials throughout.
If you’re craving adventure, Iceland’s remote regions offer some of the world’s most unique and sustainable accommodation. Deplar Farm, a luxurious mountain lodge on the Tröllaskagi Peninsula, is a haven for design lovers and thrill-seekers alike. Elegant rooms, world-class food prepared by star Icelandic chefs, and private super jeep tours through arresting Icelandic landscapes capture the spirit of the wild north.
For a truly unforgettable night, book a stay at the Bubble Hotel in South Iceland. These transparent bubbles let you sleep under the Northern Lights, surrounded by nature in a one-of-a-kind, sustainable setting. Or, for a cozy, home-like retreat, try an Icelandic summer house nestled amid natural Icelandic landscapes. Just an evening at one of these unique hotels can create a memorable experience, immersing you in the authentic rhythm of Icelandic summer. It’s the ultimate unique accommodation for stargazers and dreamers.
From luxury hotels and cushy country lodges to innovative eco-retreats, Iceland’s hotel scene proves that responsible travel and high design go hand in hand. Whether you’re after warm and inviting rooms, fantastic apartment suites, or a front-row seat to the northern lights, Iceland’s eco-conscious stays make it easy to explore with care—and in style.
Hotel Amenities and Services: What to Expect in Iceland
When it comes to amenities and services, Icelandic hotels set a high bar for comfort and style. Many properties, like the renowned Retreat at Blue Lagoon, are home to uber-luxurious wellness establishments, complete with retreat spas and signature rituals that harness the healing power of geothermal waters. Expect elegant rooms with floor-to-ceiling windows that frame breathtaking views, as well as sleek and minimalist suites that mirror the surrounding landscapes. In the heart of Reykjavik, fantastic apartment suites blend urban and Nordic style, offering both space and sophistication for longer stays.
Dining is a highlight at many hotels, where onsite restaurants serve world-class food prepared by star Icelandic chefs. Menus often showcase local specialties—think fresh Arctic char, seafood soup, and inventive takes on traditional fare—all enjoyed in refined and sophisticated interiors adorned with contemporary Icelandic artwork. Some hotels surprise with adventurous country manor vibes, complete with sunken living rooms and inviting spaces perfect for unwinding after a day of exploration. Whether you’re seeking a minimalist retreat or a homey suite, Icelandic hotels deliver an atmosphere that’s both inspiring and deeply relaxing.
Planning Your Iceland Hotel Adventure
Crafting your perfect Iceland hotel adventure means embracing the country’s dramatic contrasts and endless possibilities. If you crave the energy of the city, choose a hotel with a fantastic central location in downtown Reykjavik—steps from the city’s central pond, buzzing local craft beer bars, and live music venues. For those drawn to the wild, western Iceland offers luxurious lodges set against arresting Icelandic landscapes, where you can book a private super jeep tour or venture into nearby lava caves for a taste of true adventure.
The dramatic northern Atlantic ocean provides a stunning backdrop for many coastal stays, while the remote reaches of Iceland’s least visited regions promise tranquility and awe-inspiring scenery. Whether you opt for a luxury hunting lodge with panoramic views or the humble charm of Hotel Flatey, you’ll find that every property is designed to be a welcoming base for your explorations. With thoughtful amenities, warm hospitality, and access to some of the world’s most breathtaking sights, Icelandic hotels make every journey unforgettable.
How I Curated These Iceland Hotels
As a design-focused traveler, I don’t just look for great locations—I look for hotels that feel as good as they look. Every property on this list brings something special to the table, whether it’s architectural drama, cozy textures, or serious view potential, and all feature rooms welcoming to travelers seeking comfort and style. Each one is bookable through Expedia or Booking.com, and I’ve included Amazon finds to help you recreate that clean, Nordic look at home.
Design Your Stay—or Your Space
Whether you’re booking a five-star suite or dreaming from your couch, Iceland’s hotels deliver atmosphere and inspiration. White interiors play backdrop to artful furnishings and decor, inspiring you to recreate the look at home. Use the Amazon decor links throughout the post to get the look—think charcoal linens, natural wood, and ambient lighting.
🧭 Planning your full itinerary? Reykjavik Travel Guide for ideas. Craving more hotel design inspo? Check out where to stay in Florence
