Iceland’s extraordinary landscapes deserve our attention, but rounding off the day somewhere that’s equally remarkable is the icing on the cake. Luxury accommodation in Iceland comes in myriad forms, from exclusive retreats in the heart of the countryside to upscale hotels at the heart of the action.
In this guide, we’ll take a look at the properties that feature in the vacation packages and that pair well with the tours and activities we offer, highlighting the amenities and features that make them such an attractive proposition. We’ll share photos sourced from the hotels’ Booking.com profiles, giving you a glimpse into the style and distinctive features of each unique accommodation.
How to choose which type of luxury accommodation suits you best
Accommodation in Iceland is as varied as the landscapes in which it sits, and that’s certainly the case with luxury provision. If you’re looking to base yourself in one place, then realistically it needs to be convenient for tour pickups. This makes booking a longer stay in Reykjavik a smart move, not only because the capital has a slew of high-end hotels but also because it offers the greatest choice when it comes to tours and activities.
Upscale properties in Reykjavik typically have a contemporary elegance yet pull off a cosy vibe that cocoons you from the bustle of the city. Yet Nordic style details root such hotels firmly in place, so expect plenty of wood to accentuate their neutral colour palettes and décor pieces that add texture and sophistication. You can expect exceptional customer service, gourmet dining, chic bars and spa services.
In rural areas, the views take centre stage. Here, floor to ceiling windows maximise light and ensure that guests remain immersed in their breathtaking surroundings. Lofty interior spaces add to the wow factor, while outdoor facilities such as hot tubs provide further reason to step beyond the confines of your room.
As in the city, luxury here translates to impeccable service, whether that be take the form of a wakeup call that ensures you won’t miss the Northern Lights should they show up late at night or a helpful concierge that can advise on how to make the most of your location. Staying in the countryside can mean that you are closer to the scenic landscapes that will form the backdrop to your sightseeing plans and adrenaline-fuelled activities.
Photos are sources from the hotels Booking.com profiles.
The best of Iceland’s luxury hotels and exclusive lodges
In the capital
The Reykjavik EDITION
Five-star hotels are a rare thing in Iceland but the Reykjavik EDITION demonstrates why such properties should be lauded. The EDITION brand is the result of a collaboration between eminent hotelier Ian Schrager and the Marriott chain to create this top Iceland luxury hotel. Using materials such as basalt, lava, concrete and oak, Schrager successfully captures the essence of Icelandic landscapes, creating warm and inviting spaces with a Nordic flavour.
The hotel is located close to the Old harbour; rooms overlook the city or fjord, the view framed by floor to ceiling windows. After dark, the hotel’s restaurant and speakeasy entice guests to stay in, while the rooftop terrace is the ideal place to observe the Northern Lights as they dance over Mount Esja.
Tower Suites
Tower Suites occupies the 20th floor of the Höfðatorg tower, making this the highest panoramic view in Reykjavik. It’s designed to be a luxurious home from home. There are just eight penthouses in this exclusive property, making it an attractive proposition for A-listers such as Gwyneth Paltrow. Tower Suites offers a full concierge service but there’s also the option of going invisible for those who prefer a non-contact stay.
This is a place where privacy is prioritised and attentive staff members are on hand to attend to any needs, including delivering an in-suite breakfast if required. Guests can also take advantage of having their own private chauffeur and enjoy personalised hospitality with touches like an honesty bar in the Sky Lounge and a yoga mat for those who want one.
Kvosin Hotel
Kvosin Hotel occupies the Kirkjuhvoll building which dates from 1901. Close to Reykjavik’s cathedral and City Hall, it’s conveniently located in the heart of downtown. Once an apartment building, following an extensive renovation a decade ago it became a luxurious boutique hotel.
The character and charm of the original building has been preserved, but it now has a modern twist thanks to the modish Nordic design and amenities such as in-room Nespresso machines. Some rooms feature a patio or balcony; each also has a kitchenette. The hotel’s public spaces are equally inviting, not least the Aldamót bar, whose name translates as “the meeting of centuries”.
101 Hotel
A former office building has been successfully converted into this stylish boutique hotel in downtown Reykjavik – the name comes from the capital’s oldest postcode. Part of the Design Hotels portfolio, it’s exquisitely fitted out. Rooms have upscale touches such as underfloor heating, Quagliotti bed linen, Bang and Olufsen speakers and Aveda toiletries.
But it’s the shared spaces that set this place apart, particularly the artwork from modern and contemporary Icelandic creators which is on loan from the owner’s private collection. Wellness is also important here; the hotel features a gym, sauna, steam bath and Jacuzzi, while in-room treatments are also possible.
ION City Hotel
ION City Hotel , like its sister property ION Adventure Hotel, was designed by talented Icelandic architect duo Minarc. There are plenty of references to the Icelandic countryside within this Reykjavik gem, not least the birch tree that flourishes behind reception and an eye-catching bird’s nest light overhead. Even the colours reflect the outdoors, such as its charcoal grey palette and liberal use of natural wood.
Yet, great care has been taken to ensure that the building’s original architecture hasn’t been lost and this nod to Icelandic heritage extends to décor highlights such as wall designs inspired by traditional weaving patterns. Dine in at Sümac, where Icelandic cuisine is fused with the flavours of North Africa and Lebanon.
Apotek Hotel by Keahotels
A former apothecary has undergone an extensive makeover to create the beautiful Apotek Hotel. Owned by the Keahotels group, it has a chic contemporary vibe yet still manages to evoke the building’s past function. Rooms are luxurious; each is equipped with a minibar, Nespresso coffee machine and Molton Brown bath products.
Splurge if you can on one of the Junior Suites which overlook Austurvöllur square or Austurstræti. Better still reserve the Tower Suite, spread over three magnificent floors. Though the hotel’s central location is ideal for those who wish to take advantage of Reykjavik’s lively nightlife scene, it also has its own stylish bar.
Konsúlat, Curio Collection by Hilton
Konsúlat is another Reykjavik hotel that values history. This building once housed a sprawling department store but was transformed in 2018 into a splendid hotel. The property’s abundance of vintage décor and old photographs helps set it in context and provides a tangible connection to its storied past.
Yet this elegant hotel functions well as a modern hotel, creating a soothing sanctuary when it’s time to shut out the outside world. Cosy up in the Konsúlat Wine Room, where the bottles are paired with fine food. Relax in the hotel’s bathhouse, boasting a hot tub and sauna against the original 19th century stone wall. There’s also a fitness centre available 24/7.
Beyond the city
The Retreat at Blue Lagoon
Blue Lagoon is Iceland’s most iconic geothermal baths, a fixture on the Reykjanes landscape for more than three decades. The more recent addition of a luxurious hotel transforms the baths into a wellness destination. Suites with soaker tubs and outdoor terraces overlook the rugged lava or the blue waters of the pool, their minimalist design aesthetic the perfect complement to the scene playing out on the other side of the window. Exclusivity is key.
Guests are invited into the Retreat Lagoon, its lava canyons reserved solely for those who stay here. At the delightful underground spa, indulge in the Blue Lagoon Ritual which cleanses and replenishes the skin through the area’s naturally-occurring silica and algae. Guided flotation, yoga classes and hikes are also available.
Eleven Deplar Farm
The Eleven brand has made its name with exclusive and intimate lodges in some of the world’s most remote and striking locations. In the Fljót Valley, a sheep farm dating back to the 15th century has been sympathetically converted into a gorgeous retreat comprising just thirteen rooms and suites. To the casual observer, Eleven Deplar Farm on the remarkable Tröllaskagi Peninsula looks like a regular turf-covered farmhouse, but in fact, it’s one of the country’s top high-end hotels.
Well-heeled yet intrepid travellers looking to reconnect with nature can work their way through an extensive menu of adventurous activities including heli-skiing, snow-shoeing, mountain biking, sea kayaking and salmon fishing. A heated pool with swim-up bar, hot tubs, games room, band loft, gym and a stellar restaurant ensure there’s never a dull moment.
Hotel Rangá
Celeb favourite Hotel Rangá is an upscale log cabin style lodge that has hosted the likes of Gwyneth Paltrow, Kim Kardashian, Justin Bieber and Charlize Theron. It’s as tranquil a spot as you could imagine, yet it sits conveniently beside the ring road in South Iceland a stone’s throw from popular attractions such as Seljalandsfoss waterfall. The River Rangá runs behind the hotel; guests can enjoy fishing or birdwatching nearby.
Hot tubs overlook this bucolic scene, while the secluded spot is ideal for viewing the Northern Lights – the hotel even boasts its own observatory. A convivial welcome and thoughtfully attentive service elevates this place to something exceptional, while quirky touches such as the stuffed polar bear in the lobby are a reminder that this refuge places great store in breaking the mould.
Sigló Hótel
If you watched the Netflix thriller Trapped, then you’ll recognise Sigló Hótel which had a pivotal role in the first series. You’ll find it in the North Iceland town of Siglufjörður where it occupies a prime location right on the water. Winter or summer, this upmarket hotel is ideal for Iceland private tours to the northern region’s most isolated and beautiful spots.
It’s also suited to those seeking to relax, boasting a cosy fireplace, outdoor hot tub and sauna overlooking the fjord. Rooms are spacious and well-appointed, with breathtaking views of the harbour or surrounding mountains. The property is also steps away from Siglufjörður’s heritage attractions such as the Herring Era Museum.
ION Adventure Hotel
For a true gem in the countryside, it’s as much about the setting as it is the fabric of the hotel itself. That’s certainly the case at the ION Adventure Hotel. It’s located in an isolated spot in Nesjavellir on the edge of the Þingvellir National Park. Surrounded by a moss-covered lava field and tucked right up against the hillside, its stark form seems utterly perfect for the raw and untamed landscape of which it’s now a part.
Interiors are modish, with furniture that encourages you to linger and views that you won’t want to take your eyes off. Meanwhile a heated plunge pool will make you want to venture outside no matter what the weather. Silfra Restaurant is a triumph for slow food, its dishes relying on fresh local produce. Afterwards, retreat to the Northern Lights Bar and wait for the aurora to show up as you sip a drink or two.
Hotel Geysir
The Golden Circle is a popular day trip from Reykjavik but it’s even more special to those who make an overnight stop. One of the best places to do so is at the family-run Hotel Geysir, close to the hot springs, geysers and mud pools of the Haukadalur Valley. It’s close enough to be able to pop over to watch Strokkur erupt after the tour buses have departed.
In fact, some rooms at the Hotel Geysir have been thoughtfully designed with window seats and balconies to capitalise on those extraordinary views. Elegant rooms are decorated in a calming muted colour palette, while rain showers and tubs in the bathrooms are a place to luxuriate at the beginning or end of the day. Icelandic cuisine shines in the hotel restaurant but for a real gourmet treat, a private dinner on the rooftop terrace can be arranged.
Fosshotel Jökulsárlón
Travellers are drawn to the magnificent Hotel Jökulsárlón for similar reasons. This architect-designed property, the work of Batteríið Architects, opened in 2024 and is the harmonious juxtaposition of both nature and luxury. Sustainable construction gives the place enviable eco-credentials while also creating spaces with a timeless elegance. Leather and sheepskin soften the wood and stone that forms the skeleton of the building.
Light floods the cavernous shared spaces while bedrooms are designed to be cosy and restful. The colours used in the interior complement those in the surrounding countryside and this, coupled with features such as a green roof and artificial pond, anchor the hotel to its locale. Perhaps best of all, Jökulsárlón Glacier Lagoon is just ten minutes away.
Hotel Húsafell
This Iceland luxury hotel gives travellers the opportunity to be immersed in the heart of the countryside yet remain within striking distance of the capital. A diverse array of landscapes, including glaciers, waterfalls, lava fields and geothermal valleys are easily reached from Hotel Húsafell, making it an ideal base for Iceland luxury tours.
The property’s wooden exterior makes perfect sense within its wilderness setting, while inside, artwork by local artist Páll Guðmundsson enhances the sense of place. A key draw is the Húsafell Canyon Baths, a pair of geothermal pools which look out over a spectacular panorama of mountains and glaciers. This is laidback luxury at its finest, particularly if you opt for a suite.
Torfhús Retreat
Iceland luxury lodges don’t get any better than this: an isolated collection of individual turf houses set in an incredible, secluded location. Proving that sometimes you simply have to pare things back to the beautiful basics, Torfhús Retreat is a one-off. Located within the Golden Circle region, guests at this property have a wealth of activities and sights at hand yet remain a world away from the crowds that throng this area’s most popular sights.
Gourmands will adore this place. The food served takes its cue from Icelandic tradition and is served in a Viking-style longhouse. Dine by candlelight on creative, confident dishes that showcase local ingredients, many grown or reared nearby.
No matter which of these you opt for, luxury travel in Iceland will leave a lasting impression. High quality accommodation such as this enhances the overall experience of exploring the country’s rugged landscapes in style. Spending the night in properties like these elevates your holiday and makes it truly memorable. We can even help make that decision easier if you book one of Activity Iceland’s luxury tour packages. Why not turn your next vacation into something extra special?
