The Best Hotels in Iceland, From Rural Lodges to Reykjavik Boutiques
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, marveling 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 wondrous.
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 cushy country lodges to sophisticated Scandinavian hideaways, these are the best hotels in 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 Traveler 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.
All products and listings featured on Condé Nast Traveler are independently selected by our editors. If you purchase something through our links, we may earn an affiliate commission.
Highland Base KerlingarfjöllhotelHighland Base Kerlingarfjöll
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Hot List 2024Iceland really has been the “land of fire and ice” lately, 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 new 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 podlike lodges occupying the abandoned structures of the pioneers who have gone before. The pods, 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 as jumping in the geothermal baths to see the northern lights after dinners of Arctic char and warming shots of Brennivín schnapps. —Stephanie Rafanelli
- Stefan Lierbermann/Hotel Rangáhotel
Hotel Rangá
Readers' Choice Awards 2020, 2021Upon entering Hotel Rangá in Iceland’s south, guests are greeted with Hrammur, a towering 10-feet-tall taxidermy polar bear 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 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 Rangá 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 Africa to Antarctica. Of course, there’s the prerequisite hot tub 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.
- Courtesy The Retreat at Blue Lagoonhotel
The Retreat at Blue Lagoon
Readers' Choice Awards 2019, 2021The Blue Lagoon is one of Iceland’s most illustrious attractions, with a constant stream of visitors enjoying a dip in the steamy blue water bordered by black lava on Reykjanes Peninsula. Its popularity also splits Iceland travelers firmly into two camps: those who want to stay away from the well-trodden tourist attractions, and those who embrace them wholeheartedly. Should you visit the Blue Lagoon, or give it a miss? That is the question.
Perhaps an easier question to answer is whether to stay at the upscale new hotel attached to Iceland’s famed hot spring. Enigmatically named The Retreat, this hotel takes all the geothermal wonder of the Blue Lagoon and instils it into an uber-luxurious wellness establishment. The sleek and minimalist suites mirror the mossy-covered lava fields outside, while floor-to-ceiling windows welcome in the ethereal light of the Reykjanes Peninsula, inciting the stark grey and subdued black interiors into a heady and otherworldly Icelandic spectrum. Inside, all roads lead to the underground spa, a cavernous space offering the patented Blue Lagoon Ritual, a wellness cleanse using the silica, algae, and array of minerals all found in the geothermal waters. Access to a more exclusive section of the Blue Lagoon is also included, and there’s a world-class restaurant to boot.
- Nikolas Koenighotel
The Reykjavík Edition
$$ | Hot List 2022The newest arrival to the hotel scene in downtown Reykjavik, the Reykjavik Edition is a breath of cool, fresh air in a city which lives and breathes style and creativity. As a part of the coveted Edition brand of hotels designed by Ian Schrager and Marriott, this establishment puts Reykjavik in the same league as destinations like Manhattan, Barcelona, Tokyo, and Shanghai.
Each hotel in the group is unique to its destination, and Reykjavik’s Edition is no different. The interiors feature splashes of Nordic creativity in the décor tempered by a clean and effortless design, with materials like basalt, lava, warm oak, and concrete capturing the youthful and vibrant feel of Reykjavik perfectly. This all gives way to the warm and inviting rooms, with Italian furnishings made from ash wood and floor-to-ceiling windows that either frame the fjord and Mt. Esja or views of downtown Reykjavik. Gracefully wedged between the Harpa Concert Hall and Reykjavik’s Old Harbour, the location couldn’t be better. Add in a rooftop terrace for viewing the northern lights, a restaurant run by Iceland’s first Michelin Star chef Gunnar Karl Gíslason, and a cushy speakeasy-style bar, and this is the hotel to beat.
- Courtesy Deplar Farmhotel
Deplar Farm
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Gold List 2019, 2023 Readers' Choice Awards 2019, 2021Those travelers looking to escape the Ring Road into Iceland’s remote regions, the Tröllaskagi Peninsula is a splendid choice. One of the most mountainous places in the country, a single road traces the rugged coastline, taking in views of the dramatic Northern Atlantic Ocean and connecting several fishing towns dwarfed by the gargantuan surroundings. Inland, the fog-kissed mountains are cut with several valleys, one of which is home to Deplar Farm. Sitting in a grassy meadow surrounded by the imposing peaks, this turf-covered farmhouse is so quiet and unassuming that the odd traveler who does pass by wouldn’t have a clue that it is in fact one of Europe’s most isolated and luxurious mountain lodges.
Run by the high-end and exclusive Eleven Experience, Deplar Farm offers adventurous travelers the whole experience. From heli-skiing in the winter to mountain biking and salmon fishing in the summer, there’s a gamut of adventures to enjoy with the hotel’s team of expert guides. Waiting for you when you return is world-class food prepared by a team of star Icelandic chefs, a heated pool with a swim-up bar, and cozy, elegant rooms that overlook the peaceful meadow.
- Courtesy Hotel Borghotel
Hotel Borg
$$ | Readers' Choice Awards 2022Although Reykjavik is currently in the middle of a hotel boom, the Hotel Borg was the city’s first luxury hotel—and it’s still the most beloved. Jóhannes Jósefsson, a native Icelander who worked in the United States as a circus strongman, returned to his native country with dreams of building Iceland’s first four-star property. The elegant hotel, which opened in 1930, hews to a black, white, and silver palette, an Art Deco gem in the very center of the city. It’s still the hotel of choice for Iceland’s celebrities and elites, whom you’re likely to chat with over warm brown bread and strong coffee at the Borg’s guests-only breakfast. And because this is Scandinavia, don’t look for over-the-top glitz: here, the glamour is in the details, like the sleek silver door handles and the dainty chime the elevator makes instead of a beep.