12 of the best hotels in Iceland for a magical stay
It’s no secret by now that Iceland is one of the world’s greatest destinations. First-time visitors drive jaws agape around the ring road, marvelling at the primal landscapes being moulded in front of their eyes, ancient to us but younger than most other countries on Earth. Repeat visitors delve into the hidden corners of the country, immersing themselves in the small towns that cling to precarious coastlines, undertaking epic multi-day treks, and discovering that every fjord, valley, and mountain heath holds something wonderous.
What is universal for everyone visiting this far-flung island in the North Atlantic is the feeling of awe that journeys through the country bring about. With such drama and adventure on the outside, the hotels sprinkled across the country are suitably relaxed and luxurious, offering peaceful refuges from the elements. From cosy country lodges to sophisticated Scandinavian hideaways, these are the best hotels in Iceland according to our editors.
Editor's picks
- For luxury: Eleven Deplar Farm
- For the Northern Lights: Highland Base
- For families: Reykjavik Edition
- For couples: The Retreat at Blue Lagoon
When is the best time to visit Iceland?
The best time to visit Iceland ultimately depends on the type of trip you want to book. To try and see the elusive Northern Lights, the best time to visit is between November and March, when the nights are long and dark. June through August are the warmest months, which coincides with Iceland’s high season. You can expect lots of tourists enjoying the country; however, if you’re looking to go whale watching or enjoy outdoor activities such as hiking and kayaking on those long summer days, this is the right time to visit. For more, see our guide to when to visit Iceland.
How we choose the best hotels in Iceland
Every hotel on this list has been selected independently by our editors and written by a Condé Nast Traveller journalist who knows the destination and has stayed at that property. When choosing hotels, our editors consider both luxury properties and boutique and lesser-known boltholes that offer an authentic and insider experience of a destination. We’re always looking for beautiful design, a great location and warm service – as well as serious sustainability credentials. We update this list regularly as new hotels open and existing ones evolve.
Courtesy Deplar FarmhotelEleven Deplar Farm
This isn’t your typical farm. It’s owned by Eleven Experience, the Colorado-based high-end adventure-travel outfit. It has two helipads, an indoor-outdoor, swim-through geo-thermally heated pool, a bar with a pool table and drumkit, and a dining room with floor-to-ceiling windows, modern art, and sweeping views. In fact, there’s really nothing typical about Deplar, among the mountains on Iceland’s remote Troll Peninsula, a place of severe beauty.
It’s got some of the best heli-skiing and fishing right at its doorstep. You can roll out of bed and chopper up to the top of a snow-covered volcano which, in all likelihood, no one has ever skied before, zipping through fields dotted with tiny horses that look like toys, and finishing your run on the Arctic beach, where, if you do not mind the chill, you can simply kick off your skis and go fishing (then hightail it to the spa to recuperate in a flotation pod). It’s the sort of trip that confers bragging rights back home, from a company that understands such hyper-adventurous yet modern-luxe impulses perfectly. Eleven Experiences has an expanding empire of properties and boats in North America, the Caribbean, and Europe devoted to these fast/slow, winter/summer outdoorsy pursuits. But Deplar Farm is a standout. The air is pure, the snow powdery, and the combination of mountain and ocean scenery is as dramatic as anywhere on the face of the earth. Steve King
Price: Rooms from around £3,520 per night.
hotelHighland Base
Iceland really has been the “land of fire and ice” of late, with the recent eruptions on the Reykjanes Peninsula causing the temporary closure of The Retreat at Blue Lagoon, a 60-suite hotel and subterranean geothermal spa. Luckily the sustainably minded wellness company’s sister venture, a year-round off-grid retreat for adventure extremists, is 110 miles – and another planet – away in Iceland’s vast and mostly frozen interior, which remained unexplored until the 1930s. Highland Base in Kerlingarfjöll – a vast reserve of snowdrift-blanketed peaks, glaciers, lava fields and silence – might as well be on the moon. Getting there is a mission. In winter, after arriving at Skjol Basecamp – 90 minutes on the Golden Circle from Reykjavik – it can take two to five hours of “floating” over virgin snow in adapted Super Jeeps. The angular Highland Base huddles in a valley like a Nordic minimalist space station, a 28-room hotel and six pod-like lodges occupying the abandoned structures of the pioneers who have gone before. The lodges, which have sunken living rooms, Polaroid-like windows and hanging ponchos, were designed with sustainable aged wood and concrete by Icelandic firm Basalt Architects, masterminds of the Blue Lagoon. There’s also a sleeping bag option in A-frame huts left over from a 1960s summer ski school. Activities include cross-country skiing, snowshoeing and hiking, as well jumping in the geothermal baths to see the Northern Lights after dinners of Arctic char and warming shots of Brennivín schnapps. Stephanie Rafanelli
Price: Rooms from around £535 per night.
Courtesy The Retreat at Blue LagoonhotelThe Retreat at Blue Lagoon
Dropped right in the middle of a 755-year-old lava flow, and only 15 minutes from Keflavík International Airport, you feel like you’re a million miles away from civilization at The Retreat. Each suite is centered around the view, best enjoyed from the freestanding soaking tub—a seemingly never-ending horizon line of lava rock, moss, and the ocean not so far beyond. The six-step Ritual at the spa is a must-do, preferably every day of your stay, and incorporates the brand’s skincare.
Don’t miss the chance to book an in-water massage—after getting set up on a floating mat with an optional neck pillow, your masseuse will give you a surprisingly productive massage. The best way to end the day is at the Michelin-starred Moss restaurant, where the tasting menu is a trip in itself and the nonalcoholic pairing rivals its wine counterpart. Erika Owen
Price: Rooms from around £1,011 per night.
Fosshotel Glacier LagoonhotelFosshotel Glacier Lagoon
It’s impossible to miss the Fosshotel Glacier Lagoon — not because it’s the only hotel for miles, but because it’s so perfectly tucked against the moss, trickling waterfalls, and anchoring mountain you’ll have to double-take to make sure you’re not stuck in some sort of Nordic mirage. Every single space throughout the property makes the most of the landscape with massive windows and moody interiors that complement the moss surrounding the hotel in the summertime.
Like most luxe stays in Iceland, the front desk is ready to make dinner reservations, book tours, and accommodate room upgrades and requests whenever possible. But they do go above and beyond in small, unexpected ways. If budget is no concern at the hotel’s restaurant, dig into the Dream Feast, which gives the chef full permission to get creative and craft a seasonal five-course experience. Alternatively, it’s the perfect spot to taste some grilled arctic char. Erika Owen
Price: Rooms from around £150 per night.
Mikael LundbladhotelThe English House
Enska Húsið, or The English House, sits tucked away on nearly 3,500 acres of land along Iceland’s rugged west coast, beside the River Langá, as if waiting patiently for the next catch. This former fishing lodge offers a setting that’s as private as it is picturesque, making it the ideal retreat for groups of friends or family looking to soak up the authentic Icelandic experience.
With the natural beauty of the landscape unfurling right at your doorstep, the possibilities are endless. Spend your days exploring the wonders of Iceland, then return to the warmth of the cosy house, where dinners are cooked together, games are played and the soft golden light of the midnight sun washes over you. Unwind in the outdoor sauna or hot tub, surrounded by nothing but stillness and sky – a perfect backdrop for creating memories that linger long after you've left. Karin Mueller
Price: Rooms from around £655 per night.
Stefan LierbermannHotel Rangá
Upon entering Hotel Rangá in Iceland’s south, guests are greeted with Hrammur the polar bear, a towering 10-feet-tall taxidermy who had the unfortunate fate of washing up onto Iceland’s shores on a piece of ice that floated over from Greenland. It sets the tone for your stay at this south coast hotel, which straddles the line between luxury hunting lodge and adventurous country manor. This log-style cabin is a wonderful refuge in the middle of Iceland’s south coast; all you need do is turn your gaze inland to spy out the twin glaciers Eyjafjallajökull and Mýrdalsjökull and you’ll feel the pull of adventure coaxing you out the front door.
After a day of exploring – perhaps snowmobiling on the glacier, or a private super jeep tour into the secretive Thórsmörk Nature Reserve – Hotel Ranga is warm, inviting, and convivial. Evoking the feeling of an Icelandic summer house, there’s a real homey feel to the rooms here, while shared spaces are adorned with local artworks and Icelandic quilts. A highlight are the seven high-end suites, each paying homage to one of the world’s seven continents from America to Antarctica. There’s of course the prerequisite hot pot for an evening soak, and an outstanding observatory, complete with a local astronomer and northern lights photographer to guide you through the skies and how best to capture the dancing aurora borealis.
Price: Rooms from around £630 per night.
ION Adventure Hotel
ION Adventure Hotel might have one of the most picturesque and otherworldly settings not just Iceland, but the entire Northern Hemisphere. Jutting out from a set of rugged cliffs above a field of jet-black lava, this hotel sits amid swirling sulphurous steam inside the UNESCO-listed Thingvellir National Park. If the setting is a tad dramatic, the interiors are by contrast an oasis of warmth and tranquillity. The elegant design incorporates driftwood and other natural materials from the surrounding landscapes, creating a blend of high-end luxury with low-key Icelandic sensibilities, an homage to the beauty of the scenery outside.
A highlight is the Northern Lights Bar, elevated over the lava field with huge windows for watching the shimmering aurora unfolding across the night skies. The onsite Silfra Restaurant serves up fantastic dishes, from fresh Arctic Char to glazed lamb shank, while a heated plunge pool is artfully exposed to the elements, letting you experience the drama of Iceland’s weather from the warmth of the steamy water. The hotel also acts as a great base for deeper explorations of the Golden Circle. Reception can organise everything from snorkelling between tectonic plates at the nearby Silfra fissure to super-jeep tours on the glaciers and expeditions into nearby lava caves.
Price: Rooms from around £290 per night.
Gunnar BjarkiThe Exeter Hotel
This Reykjavík bolthole offers something a little different in a slightly less densely visited spot – a muse on the Manhattan loft apartment over in the waterfront Old Harbor district. The converted warehouse feel is carried throughout via polished concrete floors, dark metal and wood, while the low beds offer delicious comfort and laidback; popular restaurant LeKock serves up smash burgers and other street food to locals and guests alike.
Chase it with Icelandic craft beers at the snappily named Tail bar, followed by nourishing pastries made in hotel bakery Deig come morning. With views of Mount Esja and Snæfellsnes Peninsula from some of its best rooms, The Exeter makes for a good starting point for any countryside adventures, too. Becky Lucas
Price: Rooms from around £450 per night.
- Denmark, <a href=https://www.cntraveller.com/"https://www.cntraveller.com/bc/article/most-beautiful-places-sweden/">Sweden, and <a href=https://www.cntraveller.com/"https://www.cntraveller.com/article/svalbard-norway-cecilia-blomdahl-locals-guide/">Norway sailing into the harbour; this town was, after all, one of the country’s most important harbours during the richest era of trade in Scandinavia, from the 17<sup>th</sup> until the 19<sup>th</sup> century.\nHotel Egilsen is a relic of that time, located inside a historic home dating to 1867, the work of a wealthy Icelandic businessman and merchant. The cheery red exteriors are easy to spot, holding inside a beautiful and nostalgic boutique hotel loaded with homey Nordic comforts. Expect mismatched antique furnishings, welcoming rooms inspired by the sea and fishing industry, and a warm and fuzzy feeling to descend during your stay. The hotel is also big on literature, with an alluring library of old Nordic folk tales and Icelandic poetry. Guests are encouraged to jot down their own tales during their stay (published on the hotel’s website), most of which will be inspired by the mind-bogglingly beautiful Snæfellsnes Peninsula.\n<strong>Price:</strong> Rooms from around £160 per night.","contentType":"photo","credit":"","segmentedSources":{"sm":[{"height":213,"width":320,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_320,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"},{"height":427,"width":640,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_640,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"}],"md":[{"height":427,"width":640,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_640,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"},{"height":853,"width":1280,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_1280,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"}],"lg":[{"height":683,"width":1024,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_1024,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"},{"height":1365,"width":2048,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_2048,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"}],"xl":[{"height":853,"width":1280,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_1280,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"}],"xxl":[{"height":853,"width":1280,"url":"https://media.cntraveller.com/photos/626a69b366738a6c78959a1a/master/w_1280,c_limit/Hotel%20Egilsen-iceland-apr22-pr.JPG"}]}}}" data-testid="GallerySlideWrapper">
Hotel Egilsen
The town of Stykkishólmur on the Snæfellsnes Peninsula might just be one of Iceland’s most picturesque; a shimmering harbour surrounded by rocky cliffs, prim antique houses each painted a different colour, and mountains rising in the background dusted with snow. Strolling around town, it’s easy to imagine the trading ships of Denmark, Sweden, and Norway sailing into the harbour; this town was, after all, one of the country’s most important harbours during the richest era of trade in Scandinavia, from the 17th until the 19th century.
Hotel Egilsen is a relic of that time, located inside a historic home dating to 1867, the work of a wealthy Icelandic businessman and merchant. The cheery red exteriors are easy to spot, holding inside a beautiful and nostalgic boutique hotel loaded with homey Nordic comforts. Expect mismatched antique furnishings, welcoming rooms inspired by the sea and fishing industry, and a warm and fuzzy feeling to descend during your stay. The hotel is also big on literature, with an alluring library of old Nordic folk tales and Icelandic poetry. Guests are encouraged to jot down their own tales during their stay (published on the hotel’s website), most of which will be inspired by the mind-bogglingly beautiful Snæfellsnes Peninsula.
Price: Rooms from around £160 per night.
101 Hotel
Reykjavik has creativity running through its soul, and for the artful travellers looking to experience the height of the country’s design scene, a stay at 101 Hotel in Reykjavik comes highly recommended. An exalted member of the Design Hotels group, 101 Hotel offers refined and sophisticated interiors that are unabashedly fashionable and self-assured. The striking black and white interiors play backdrop to a collection of contemporary Icelandic artwork, with tasteful furnishings selected to bring about that effortless designer style.
Rooms are quite warm and personable, with rugs thrown across wooden floors, heavenly beds, and a picturesque view of Mt. Esja across the water. There’s a restaurant on-site with a devout local following, and a chic bar for cocktails after a day of wandering around Reykjavik, with chairs gathered around tree-trunk tables and a cosy fireplace. All this is nestled a short walk from Laugavegur, the city’s main thoroughfare.
Price: Rooms from around £355 per night.
Bragi Þór JósefssonHotel Búðir
One of Iceland’s greatest draws is the isolation you can find, the feeling of being alone in the middle of an incredible landscape, intimidated, insignificant. The soul-stirring nature so often leaves us shaking in our hiking boots, in awe at the overwhelming beauty of it all. It’s the reason why Iceland is now one of the most popular destinations in the world; it makes us feel things we don’t often get to feel.
The best hotels in Iceland embrace that quality, elegant backdrops that let the location do all the talking. Hotel Búðir is one such place, marooned on a remote beach on the southern shores of the Snæfellsnes Peninsula. Originally a Danish trading outpost, on all sides the arresting Icelandic landscapes capture your gaze, from the views across the bay to the moody glacier at the centre of Snæfellsnes National Park. A dreamy place, the interiors match the mood of the outside perfectly, nothing overdone, everything cosy, soothing, and sophisticated. The vintage-style furnishings add a timeless appeal to the entire property, while the restaurant is famous with Icelanders around the country.
Price: Rooms from around £200 per night.
