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The 13 Best Hotels in Iceland 2023

Finding the best hotels in Iceland is hard, but if you know what you want, it’s going to be an easy task for you. Many cool hotels are found inside Reykjavík, while the calm and collected spa hotels are found in the countryside.


When going abroad, it’s hard to know if you really found a good hotel or not. Often, it has a lot to do with how you are as a person and what you enjoy doing. Check out this article to see which hotels we think are the best and why.


Best hotels in Iceland


The Retreat Hotel


When talking about the top hotels in Iceland, we are going to open strong with one of the best hotels in Iceland near the Blue Lagoon. Actually, it’s in the blue lagoon, so it’s not really a fair match to the other hotels. And with the many awards this establishment has gotten, it is arguably one of the best 5-star hotels in Iceland.


The Retreat Hotel offers patrons unrestricted access to the (secret) Retreat Lagoon, which only spa and hotel guests are allowed to use. It’s a secluded and remarkable setting. You can see the rejuvenating lagoon flowing through breathtaking corridors of lava rock. You will also have access to the Retreat Spa for when you really want to slip into a holiday coma.


In addition to this, you will also get an amazing gourmet breakfast, some morning yoga, and can enjoy afternoon tea in the exquisite hotel lobby. For most, having afternoon tea in a lobby doesn’t sit right, but trust us, in Retreat hotel, it’s a treat (pun intended).




Location: Blue Lagoon.

Recommended for: Adults and couples.

Description: Relaxing, luxurious, and extravagant.

Book your room at the Retreat Hotel’s own site.


The Silica Hotel


If you rather work in a more modest fashion, then the Silica hotel will be a good choice for you. This is one of the nicest hotels in Iceland, where you don’t get the all-inclusive, but rather pick and choose what you want to include in your stay. You will pay for a basic room, and add on the service of your choice, like:

  • Retreat Spa

  • In-water massage

  • Lava Restaurant

  • Moss Restaurant

This might feel like a step-down from Retreat Hotel for many. Still, It will be the perfect stay for anyone who isn’t that into the spa experience but still wants to feel completely relaxed. This is the choice to make if you are looking for a quiet and secluded place with excellent service.


Due to the remoteness, this area contains two of the best Iceland hotels for seeing the Northern Lights. The lights only show in the winter half of the year, which, incidentally, is the best time of the year to be soaking in hot springs in the chill winter air. This is often visited at the beginning or at the end of a trip, since it’s one of the hotels close to Keflavik Airport.





Location: Blue Lagoon.

Recommended for: Adults and couples.

Description: Modest, relaxing, and otherworldly.

Book your room at the Silica Hotel website.


Hotel Kria


There are more things than just service and extravagance that make a good hotel. One of the best hotels in Iceland can be found just off Ring Road 1 close to the small town of Vík (or Vík i Myrdal as it is officially named). This is the perfect stop for anyone who is either driving around Iceland on Ring Road 1 or taking a tour along the south coast.


Hotel Kria offers three kinds of rooms:

  • Standard Double Room

  • Mountain View Room

  • Suite

If you want the suite, you better book in advance, as there is only one of those at the hotel. The first two are 34, and 36 rooms, respectively.


Breakfast is always included in the room price. However, the Drangar restaurant (which serves traditional Icelandic cuisine) is not. Luckily, they have daily happy hours between 4 and 7 in the afternoon if you’d like to get yourself a drink.




Location: Vík i Myrdal.

Recommended for: Adults and couples.

Description: Elegant, simple, and traditional.

Book your room on Kria’s website.


ION City Hotel


Crème de la crème is what we refer ION City Hotel as. You find this futuristic and stylish hotel in the heart of the northern parts of Reykjavík. It has a peculiar restaurant that offers excellent Middle Eastern cuisine. You will be able to book the following types of rooms at ION City Hotel:

  • Classic Room

  • Standard Room

  • Deluxe Room

  • Junior Suite

  • City Suite

  • Panorama Suite

The further down the list you get, the fancier the rooms get with added balconies, saunas, extra living room, and even an extra spare bedroom. If you book your stay in advance and stay for longer, you can save a lot on the price. Keep that in mind if you want to experience one of the nicest hotels in Iceland.





Location: Reykjavík.

Recommended for: Adults, couples, and families with older children.

Description: Stylish, futuristic, and luxurious.

Book your room at the ION City Hotel website.


Torfhus


We are now moving away from being pampered and having a panoramic view of the city to experiencing getting closer to nature and the earth. Sustainable living can look different depending on where you are. And it comes as no surprise that one of the best hotels outside Reykjavík is all about getting back to the Viking roots of living. One of the best hotels in Iceland is located in the northeastern part of the Golden Circle.


If this isn’t one of the best ways to truly experience the Icelandic spirit, then we don’t know what is. Here you can stay in traditional turf houses that accommodate 2 or 4 people. You can also bathe in geothermal pools, go fishing, and do many other activities. Likewise, you can experience traditional Icelandic cuisine. This is built as a retreat, so getting away from your everyday life is more than appreciated here.





Recommended for: Adults, couples, and families.

Description: Down-to-earth, traditional, and calm.

Book your room at the Torfhus website.


Hotel Grimsborgir


Nestled into the Golden Circle route, just north of Selfoss, we find one of the best 5-star hotels in Iceland. Hotel Grimsborgir offers the option of either staying in a hotel room or getting your own apartment. A breakfast buffet is included in the price for the hotel rooms, while the apartments come with fully equipped kitchens.


Hotel Grimsborgir is one of the most sustainable hotels in the country, which is only one of many reasons why it’s one of the best places to stay in Iceland. This is a pristine base camp to have if you are doing the Golden Circle. The hotel offers tours of the Golden Circle, the South coast, the Reykjanes Peninsula, and a sightseeing tour in Reykjavík. Apart from that, they also offer transfers from Reykjavík, Keflavik, Selfoss, and the Blue Lagoon.


On-site, they have an amazing restaurant and multiple hot springs for you to enjoy.





Recommended for: Adults, couples, and families

Description: Luxurious, sustainable, and even more luxurious.


Hotel Viking


Vikings and Iceland are more or less synonymous, and there are plenty of good reasons for it. Hotel Viking is definitely one.


This is one of the most amazing hotels in Iceland when it comes to getting the full Viking experience. The rooms at Hotel Viking have a Viking theme decoration, while the incredibly eye-catching restaurant is decorated with anything but a subtle style. The restaurants are made to look like medieval Viking halls and even have scheduled kidnappings if you’d like to book one. Nothing says holiday in Iceland like having your friends or loved ones kidnapped by Vikings.


The accommodation available is:

  • Single room

  • Standard room

  • Standard Twin

  • Superior

  • Triple

  • Cottage

Deemed one of the best hotels in Iceland due to the experience alone, this hotel can be found in the southwestern parts of Reykjavík.





Location: Reykjavík

Recommended for: Singles, couples, and families

Description: Amazing experience, traditional food, and cool theme.

Book your room at this Hotel Viking booking site.


Deplar Farm


Situated in the north, Deplar Farm is by far one of the best resorts in Iceland. On the Troll peninsula, you’ll be met by a large, dark wooden house with a turf roof that makes it blend into Icelandic nature. Inside you’ll find:

  • 13 en suite bedrooms in various sizes

  • Premium spa facilities

  • Gym/yoga room

  • Steam room and sauna next to the inside and outside pool (both cold and warm)

  • Media room

  • Game room with Billiards, Foosball, and Ping-Pong

If you are in the mood, Deplar Farm also offers skiing from a helicopter, so they naturally have two helipads on the property too. Honestly, this is a hotel you stay at for your entire holiday. There are so many things to do here that we don’t have space to go through it all, but trust us when we say that you can keep yourself occupied here for weeks. This is undoubtedly one of the best luxury hotels in Iceland.





Location: Troll Peninsula

Recommended for: Couples and families

Description: All-inclusive, close to nature, and luxurious.

Book your room at the Deplar Farm website.


The Wilderness Center


Taking things one step further than Torfhus, the Wilderness Center offers visitors an even closer experience to what was the lifestyle in Iceland back in the day. This place is more than just one of the best hotels in Iceland as they focus on educating about history through experience. Guests can choose to book everything from the large Landowner’s suite to a literal hole in the wall, just like many did way back then.


The sheer cultural and historical experience of staying here is enough to make the Wilderness center one of the best hotels in Iceland. Adding on the spa with a geothermal hot pool, sauna, and relaxation room only makes it better. This isn’t as old as Tindastoll Hotel, but the history is still there.


They also offer a myriad of tours, with or without escort, to the many exciting spots in the nearby area. From this hotel, you can choose to walk, ride a horse, bike, or go on a super jeep on your excursions.





Location: Egilsstadir

Recommended for: Families, couples, people who like culture and history.

Description: Historical, down-to-earth, and perfect for hikers.


Siglo Hotel


When you’re in the north, you can always go a little further north. Siglufjördur offers a literal seaside hotel with a modern countryside touch. At the best hotel in Iceland in the north, you can choose to get a room with either a Mountain View or an ocean view.


The hotel offers the following types of rooms:

  • Standard room

  • Triple room

  • Superior room

  • Deluxe room

  • Junior suite

  • Suite

The hotel offers three different restaurants. One of them is the most ambitious restaurant in northern Iceland. You can also enjoy the sauna, or simply soak in the hot tub with a stunning view of the harbor, mountains, and the beautiful fjord.

The hotel is located in the former herring capital of the world, so you won’t be surprised to learn that there are a lot of things about herring in this area. The Herring Museum of Iceland is not far from the hotel and is surprisingly not boring, so we recommend it.





Location: Siglufjördur.

Recommended for: Anyone.

Description: Homely, calm, and relaxing.

Book your room at the Siglo Hotel room portal.


Alda Hotel


This is one of the best hotels to stay in Iceland if you are looking for a spot that is in the middle of the city, but away from all the noise and liveliness. This hotel has 88 rooms available and offers top-of-the-line restaurants and the best barbers in Reykjavík.


A good indicator that this is one of the top luxury hotels in Iceland is that they will lend you a smartphone. It includes 4G and domestic calls, fitted with some apps to make your stay in the city a little bit easier. You can take this phone with you outside the hotel as you want, just return it when you check out!


The inside of the hotel is fitted with the amazing Brass Kitchen & Bar, as well as a large hot tub and a gym with a sauna.





Location: Reykjavík

Recommended for: Singles, couples, and families.

Description: Stylish, Scandinavian décor, and high-class.

Book your room at the Alda Hotel website.


Reykjavík Residence Hotel


Another star hotel in Reykjavík is the Reykjavík Residence Hotel. If you are looking for an autonomous stay where you take care of yourself, this is probably one of the best hotels in Iceland.


This apartment-style hotel gives you the option of having a breakfast basket delivered to your door every morning. Obviously, this comes with a fee if it isn’t included in your room price. You will have daily housekeeping and have the option of using the business corner. Or the quiet one if you need to get some work done or want to enjoy a book outside your apartment.


The hotels offer the following rooms:

  • Economy studio

  • Studio

  • Superior studio

  • Family studio

  • Junior suite

  • Family suite

  • Royal suite

  • One bedroom apartment

  • Two bedroom apartment

  • Three bedroom apartment



Location: Reykjavík

Recommended for: Anyone

Description: Stylish, autonomous, and modern

Book your room at the Residence Hotel website.


Frost and Fire Boutique Hotel


If you drive a mere 40 minutes outside of Reykjavík, you’ll find one of the best spa hotels in Iceland. It also happens to be a bit of a hidden gem in southern Iceland.


Located in northern Hveragerdi, this hotel offers a unique experience of warmth from the active geothermal area right next to it. You can enjoy a dip in a geothermal river, outdoor warm pool, and riverside hot tubs.


You will enjoy pristine restaurant services here that will blow any foodie away. The breakfast is made for the guests of the hotel with a lot of love and care, every day between 8-10 in the morning. If you feel like you want to work on the delicious food, there are a few hiking trails you can try out in the area.





Location: Hveragerdi.

Recommended for: Singles, couples, and families.

Description: Cozy, stylish, and secluded


Must-Have Information to Find the Best Hotel in Iceland for You


How Much are Hotels in Iceland?


Prices for hotels in Iceland vary greatly depending on location, season, and standards.

Low season

High season

Cheap hotels

Approx. 60 USD

Approx. 80 USD

Average hotels

Approx. 85 USD

Approx. 120 USD

Expensive hotels

Approx. 100 USD

Approx. 130 USD

How Easy is it to Find Hotels in Iceland?


If you follow our tips, it’s super easy. Check our list and pick the one you like the best. We don’t have any deals with the hotels we included in this list, so the info reported is based on our own experiences.


And, if you still can’t find what you were looking for, check sites like Booking.com, TripAdvisor and Hotels.com. You’ll be able to compare all the best hotels in Iceland in just a few clicks.


How far Ahead to Book Hotels in Iceland?


As far as you can. Many hotels will give you a discount for booking in advance.


Can I Book Hotels in Iceland when I Get There?


You often can, but we recommend booking in advance, especially during the busy summer months.


Which Hotels in Iceland do you Recommend to See the Northern Lights?


Any hotel that is outside the cities and away from light pollution. Like Deplar Farm and the Wilderness Center.


Visit the Best Hotels in Iceland & Explore


These are the best hotels you can find in Iceland for various reasons and purposes. Obviously, you don’t want to stay stuck in a hotel all the time (unless you’re at Deplar Farm). So make sure to rent a car in Iceland to explore this amazing country and all it has to offer.

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