Luxury in Iceland isn’t about excess—it’s about experience. It’s soaking in a geothermal lagoon with nothing but open sky above, staying in remote lodges where nature is the only neighbor, and dining on the freshest local ingredients with views that steal the show.
This guide takes you to the best of Iceland luxury retreats, from sleek city hotels to secluded countryside escapes. While each can be booked individually, but we can also create a personalized package tailored to your preferences, combining exceptional accommodations and unforgettable experiences. Whether you’re after adventure, relaxation, or a bit of both, these handpicked stays and experiences will make your time in Iceland unforgettable.
The Best Iceland Luxury Retreats: Exclusive Hotels & Upscale Escapes
Tower Suites
Hide in plain sight above the city at the Tower Suites, whose eight penthouses share the 20th floor of the Höfðatorg tower. It’s the highest panoramic view in Iceland, and the outlook over Reykjavik and its surroundings is alone worth the reservation.
But there’s far more to this understated and under the radar place. Opt in for face-to-face concierge services or out for a non-contact stay where those who cater for your every whim do so invisibly. Breakfast is brought to your suite, while an honesty bar means you don’t have to go out in the evening unless you choose to. Privacy is a top priority and every effort has been made to make you feel like this is your own home. But when you’re ready to leave your urban cocoon, everything’s to hand. Staff can book you in to any museum, visitor attraction or restaurant, while a dedicated chauffeur will take you wherever you want to go – you just have to ask.
Hotel Rangá
Exclusivity doesn’t always equate to flashy, and that’s true of the rustic Hotel Rangá. Despite being right on the ring road in South Iceland, when guests gaze out over the bucolic scene behind the hotel, they feel like they’re a world away from their busy everyday lives.
Everything about this place has been designed to focus on nature, from the hot tubs that shelter against the rear flank of the hotel to the uninterrupted views of the river across the meadow that they overlook, ideal for birdwatching or fishing. Each room has a terrace, ideal for making the most of fine weather. Clear skies are rewarded by the presence of an on-site observatory for keen stargazers and first-timers to appreciate the benefits of being in such a dark spot.
The hotel’s at times eccentric décor goes just far enough to feel different, with continental-themed suites and a stuffed polar bear in the lobby. But above all, it’s the impeccably thoughtful service that encourages many visitors to return – nothing is too much trouble.
ION Adventure Hotel
ION Adventure Hotel made quite an impact on the Iceland luxury retreat scene when it first opened and remains one of the country’s top choices. It boasts strong eco-credentials, from its water-saving shower systems and use of recycled materials in its stylish furnishings to the fair trade linens standard throughout its rooms and suites.
The property has an edgy, contemporary design, particularly the concrete pillars which provide the support. It enhances the isolated and rugged terrain of the lava field in which it is situated. Conveniently located at Nesjavellir on the edge of the Þingvellir National Park, this luxury retreat is ideally placed for guests seeking to fill their days with adventurous outdoor pursuits. At the end of the day, it’s a pleasure to retire to this secluded spot to relax and unwind, whether outdoors in the covered, heated plunge pool or inside behind the floor-to-ceiling windows of the Northern Lights bar.
Hotel Jökulsárlón
In recent years, Iceland’s luxury retreats have sprung up close to some of its most iconic attractions. Hotel Jökulsárlón is one of the newest, opened in 2024. The property feels remote, thanks to its unspoilt surroundings, yet guests are only a ten minute drive from the country’s most popular iceberg-strewn lagoon.
This beautiful hotel is a treat for the eyes. Batteríið Architects echoed the shape of the mountains in its turf roof, while the hotel’s communal and private spaces feel indulgent and luxurious while remaining true to the landscape in which the hotel sits.
Hot tubs and tiered decking capitalise on the presence of the hotel’s artificial lake. Wood has been used in abundance but feels modish and elegant. Texture has been added through leather, sheepskin and stone, which keeps the place firmly rooted in its surroundings. Light floods in through the generously proportioned glass, while bedrooms are spacious yet cosy, a tranquil haven when it’s time to shut out the outside world.
Panorama Glass Lodges
Seclusion and privacy are the ultimate luxury for affluent travellers keen to unwind and recharge. At Panorama Glass Lodges, guests are invited to take a break from their busy everyday lives and de-stress. Sustainability is at the heart of its construction, whether from the pure spring water that runs from its taps or the renewable energy used to heat the water in its hot tubs.
The use of glass in the construction of these luxury lodges creates a seamless transition between the indoors and what’s outside. In winter, gaze up at the night sky in the hope of an appearance from the mesmerising and magical Northern Lights. As the nights lighten, it’s the perfect place to gaze at a beautiful, calming landscape under the Midnight Sun. Sunrises and sunsets have never felt so close, and sleeping under the stars has never been so glamorous or comfortable. Two locations are available, one near Hella in South Iceland and the other near Borgarnes in West Iceland.
Glass Cottages
In a similar vein, Glass Cottages also removes the barrier between bed and beyond. Located near Hella, these two luxurious properties look out over a striking lava field, set in 12 hectares of private land. The interior design is carefully curated, taking its inspiration from Icelandic nature.
The décor in Blár is inspired by the soft colours of the country’s glaciers and lagoons. Meanwhile, that of Grænn evokes images of moss-covered canyons and tumbling waterfalls. Each cottage also has access to its private hot tub, where the water temperature is maintained at a soothing 40°C.
Each glass cottage promises a cosy and intimate retreat experience for up to two people, ideal for a peaceful solo getaway or a romantic sojourn with a special someone. Walls of glass bring the outside in, making this a fantastic spot to immerse yourself in the drama of Iceland’s remarkable landscapes. From autumn until spring, it’s ideal to hole up and wait for the aurora borealis to dance across the heavens.
Deplar Farm
Deplar Farm is part of the Eleven portfolio, whose luxurious properties can be found as far afield as Colorado, Patagonia and the Bahamas. Their sole Icelandic location, a converted 15th century sheep farm, capitalises on its position within the Tröllaskagi peninsula to cater for intrepid adventurers.
If your idea of a reset involves getting outside and being active, then this is the retreat for you. Winter or summer, the team can arrange a plethora of guided activities. If there’s snow on the ground, try cross country skiing, fat biking, ice fishing, snow shoeing, snowmobiling or sledding. Heliskiing is another possibility for those keen to experience the best of North Iceland’s pristine powder. As the temperatures warm up, attention turns to other pursuits such as hiking, horseback riding, group whale watching, sea kayaking, surfing and stand up paddleboarding. Spacious suites, coupled with an outdoor Viking sauna, hot tubs, gym and games room entice travellers back to base. There’s even a recording studio for those with a musical bent.
Torfhús Retreat
Torfhús Retreat has elevated relaxed, pared-back living to an art form. Here, in the heart of the Golden Circle region, there’s an emphasis on traditions and customs that are a nod to Iceland’s past. In fact, the place draws its inspiration from the centuries-old farm at nearby Stöng.
The hotel centres on a cluster of well-appointed individual turf houses, though their construction has come a long way from the past’s damp and draughty turf homes. The Torfbær suites have an uncomplicated elegance to their reclaimed interiors, equipped with en-suite bathrooms, their own living area, private veranda and access to a shared geothermal basalt stone hot pool.
Dine by candlelight in a replica Viking longhouse where the dishes on the menu represent the best local ingredients and their transformation in creative, skilled hands. If you’re keen to find seclusion and simplicity without having to sacrifice too many home comforts, this is a strong contender.
The Retreat at Blue Lagoon
Iceland spa retreats don’t get any better than this. The Retreat at the Blue Lagoon capitalises on Iceland’s most iconic geothermal spas – there’s a reason why so many visitors include it on their itineraries. Enjoy the mineral-rich milky blue water in seclusion by staying overnight at one of the 60 incredible suites at The Retreat.
The ultimate indulgence is the Lagoon Suite, which boasts a private walk-in lagoon. Nourish your soul and your skin as you embrace the holistic wellbeing approach offered by this world-class hotel. Guests enjoy access to the subterranean Retreat Spa and the chance to dine at Moss, one of the country’s most sought-after restaurants, a worthy recipient of its Michelin star.
Note that due to the ongoing volcanic activity in the Reykjanes peninsula, the Blue Lagoon is working closely with the Icelandic authorities to ensure guests remain safe at all times. Check their website for updates and to stay abreast of any temporary closures.
Why Choose an Iceland Luxury Retreat?
What sets these high-end retreats apart is their unmatched attention to detail. Every aspect of your stay is carefully curated to provide the ultimate in comfort and exclusivity. The locations are thoughtfully selected to showcase Iceland’s diverse landscapes, from dramatic coastlines to serene countryside escapes.
Luxury retreats in Iceland are designed to bring nature inside—either through oversized windows that perfectly frame the views, carefully curated interior design or by capitalising on Iceland’s extraordinary landscapes in terms of the activities and services offered. The impact such places will have on your health and wellbeing shouldn’t be underestimated.
When to Visit: Choosing the Perfect Season
The time of year shapes your luxury experience in Iceland. In summer, long days and mild weather make outdoor adventures irresistible. Luxury retreats in remote locations offer direct access to Iceland’s iconic landscapes, while private tours unlock the country’s most stunning sights. High demand means early booking is essential, especially for boutique properties with limited rooms. With our strong connections and insider access, we can secure exclusive stays and tailor the perfect itinerary, ensuring you experience Iceland’s finest luxury retreats without the stress of planning.
Winter brings an entirely different kind of magic. Expansive windows become the perfect vantage point for the northern lights, while cozy interiors keep you warm as you watch the snow fall. For a balance between daylight hours and aurora viewing, consider the shoulder seasons of spring and autumn—offering quieter stays, striking scenery, and a mix of winter and summer perks.
Luxury Beyond Accommodation
Our tailor-made luxury packages combine Iceland’s most exclusive hotels with unforgettable experiences. Indulge in world-class spas, savor fine dining, and retreat to a peaceful sanctuary after days filled with adventure. However you choose to experience Iceland, these high-end stays ensure every moment is extraordinary.
