Monday newsletters always feature top 10 travel lists to inspire.
Today: Top 10 best luxury hotels in Iceland
Iceland is a land of surreal contrasts—volcanic terrain meets glacial wonders, midnight sun dances with winter darkness, and raw nature surrounds you at every turn. Its landscapes shift dramatically from bubbling geothermal fields and black sand beaches to towering waterfalls and vast ice caps. While the country is renowned for its rugged beauty and adventurous spirit, it’s also home to a growing selection of world-class luxury accommodations that blend comfort with the wildness of the environment. Whether you’re chasing the Northern Lights, soaking in a geothermal lagoon, or exploring dramatic coastlines, staying somewhere extraordinary can elevate your experience entirely—turning every moment from dawn to dusk into a memory to treasure.
In this curated guide, I reveal the 10 best luxury hotels in Iceland—a mix of modern marvels, remote lodges, and elegant retreats that offer impeccable service, immersive experiences, and stylish comfort. These are the hotels that make coming home after a day of adventure feel just as magical as the sights themselves, where design meets nature, and luxury meets authenticity.
There is more information (with reviews & YouTube videos) below. What’s your favorite luxury hotel in Iceland? Leave a comment!
10. HOTEL GRIMBSORGIR
Located near Selfoss in the heart of the Golden Circle, Hotel Grímsborgir offers a luxurious countryside experience with large suites and villas designed for privacy and relaxation. Each accommodation comes with a private hot tub—ideal after a day spent exploring natural wonders like Thingvellir, Gullfoss, and Geysir. Interiors are traditionally elegant, with ornate furniture and cozy fireplaces. The restaurant is known for its refined take on Icelandic classics, and the staff go out of their way to deliver personalized service. Families and groups will especially appreciate the multi-bedroom villas with full kitchens and spacious living areas. The hotel also offers guided tours and adventure packages, making it easy to customize your Icelandic experience. For those seeking tranquility, the peaceful grounds and nearby walking trails provide a perfect escape into nature.
9. FOSSHOTEL GLACIER LAGOON
Ideally situated between Skaftafell National Park and Jökulsárlón Glacier Lagoon, Fosshotel Glacier Lagoon is a contemporary hotel that caters to travelers exploring Iceland’s southeast coast. Its bold, modern design contrasts beautifully with the raw surroundings of jagged mountains and sweeping valleys. Rooms are spacious with sleek finishes and large windows that frame glacier or ocean views. Many rooms also include cozy seating areas perfect for relaxing after a day outdoors. After a day of hiking or glacier touring, guests can unwind in the sauna or enjoy a three-course dinner at the on-site restaurant, which emphasizes Icelandic flavors with an upscale twist. The hotel also offers guided tours and excursions, making it easy to explore nearby ice caves, black sand beaches, and breathtaking glacier landscapes. This is a perfect stay for those who want immersive nature experiences without giving up on comfort.
8. UMI HOTEL
Perched between Eyjafjallajökull volcano and the North Atlantic, Umi Hotel offers minimalist luxury in one of the most dramatic coastal settings in Iceland. The design is sleek and understated, drawing focus to the breathtaking natural surroundings visible through oversized windows. With only 28 rooms, the hotel feels intimate and peaceful, ideal for travelers seeking serenity and a true connection to nature. Many rooms feature private balconies or terraces, perfect for watching the changing light over the ocean and mountains. The restaurant features modern Nordic cuisine with an emphasis on local seafood, while the lounge and bar offer a relaxed space to unwind after a day of adventure. Located near Skógafoss and Dyrhólaey, Umi is a refined base for exploring Iceland’s iconic south coast, with easy access to black sand beaches, glaciers, and hiking trails. The hotel’s commitment to sustainability ensures a low environmental impact while delivering exceptional comfort and style.
7. TORFHUS RETREAT
Blending traditional Icelandic design with understated luxury, Torfhús Retreat offers a unique stay in handcrafted turf houses modeled after Viking-era dwellings. Located just off the Golden Circle, the retreat offers easy access to top sights like Geysir and Gullfoss while providing a peaceful, private atmosphere far from the tourist crowds. Each stone-and-turf house comes with a basalt hot tub, heated naturally from underground springs, perfect for soaking under the stars. The interiors feature reclaimed wood, sheepskin throws, hand-picked local art, and cozy fireplaces that bring warmth and character to each space. Meals are prepared from organic, farm-grown ingredients and served in the communal lodge, where guests often gather for storytelling, wine pairings, and candlelit dinners. With a focus on sustainability, privacy, and cultural authenticity, Torfhús Retreat offers a quietly luxurious way to experience the Icelandic countryside—ideal for couples, families, or anyone seeking meaningful connection in nature.
6. ION ADVENTURE HOTEL
Just a 45-minute drive from Reykjavik yet worlds away in atmosphere, ION Adventure Hotel is a striking concrete and glass structure nestled near Þingvellir National Park. Known for its sustainable architecture and modern design, the hotel rises dramatically from an ancient lava field and offers spectacular views of Lake Þingvallavatn and surrounding volcanoes. The property features 45 rooms, each designed with organic textures, Icelandic art, and plush beds for maximum comfort, with some offering floor-to-ceiling windows that frame the stark beauty of the highlands. The Northern Lights Bar, with its double-height windows and glowing LED lighting, is the perfect place to sip a craft cocktail while watching the sky come alive, while the Lava Spa includes a heated outdoor pool, sauna, and massage treatments using Icelandic herbs. Adventure is at your doorstep—whether it’s hiking, ice climbing, snowshoeing, or even snorkeling and diving between the Eurasian and North American tectonic plates in nearby Silfra fissure.
5. HIGHLAND BASE AT KERLINGARFJÖLL
Located deep in Iceland’s central highlands, Highland Base at Kerlingarfjöll is a new luxury lodge designed for those who crave remote, high-end adventure. Nestled in the heart of the Kerlingarfjöll mountain range, this basecamp blends rugged wilderness with sophisticated design. The lodge offers a variety of accommodations, from cozy private cabins to deluxe suites with sweeping views of the highland landscapes and minimalist interiors inspired by the surrounding geology. The area is a geothermal wonderland, perfect for hiking among steaming vents, colorful rhyolite peaks, glacial rivers, and hidden hot springs. Guests can unwind in the wood-fired sauna after a day of exploring, or gather around the fire in the lodge’s warm, Scandinavian-style lounge. The on-site restaurant serves locally inspired cuisine with a refined touch, and the communal spaces are designed for comfort, reflection, and connection to nature. Accessible only during the summer months via rugged highland roads, Highland Base is ideal for travelers looking to explore Iceland off the beaten path—without giving up on style or service.
4. HOTEL RANGA
Hotel Rangá is a log-style luxury lodge renowned for its romantic atmosphere, warm hospitality, and exceptional visibility of the Northern Lights. Surrounded by open fields, rivers, and distant volcanoes, the hotel offers an immersive natural experience without sacrificing comfort. Its themed suites—each inspired by a different continent—are individually decorated with authentic artifacts, custom furniture, and artistic touches that reflect global cultures. The hotel’s remote location provides ideal conditions for stargazing, enhanced by its on-site observatory, which is equipped with high-powered telescopes and guided by expert astronomers. Guests can soak in outdoor riverside hot tubs under the stars, dine on refined Icelandic cuisine made from seasonal local ingredients, or enjoy tailored excursions to nearby attractions such as Seljalandsfoss, Skógafoss, and the black sands of Vik. Whether you’re seeking a cozy winter retreat or a summer base to explore waterfalls and glaciers, Rangá delivers both intimacy and indulgence.
- Hotel website: Hotel Rangá
- Tip: get complimentary VIP perks when booking Hotel Rangá through Classic Travel (e.g. room upgrade on arrival, daily breakfast, early check-in, late check-out, and a $50 USD food & beverage credit).
3. THE REYKJAVIK EDITION
Located on the scenic Old Harbour and just steps from the striking glass facade of Harpa Concert Hall, The Reykjavik EDITION is Iceland’s most stylish and luxurious city hotel. Designed by hospitality visionary Ian Schrager in partnership with Marriott International, this sleek five-star property masterfully blends cosmopolitan sophistication with subtle Icelandic character. The 253 rooms and suites feature warm oak floors, locally sourced volcanic stone, Icelandic wool blankets, and panoramic views of Mount Esja, Faxaflói Bay, or the city skyline. Amenities include a world-class spa with a hammam and hydrotherapy pool, a vibrant rooftop bar with panoramic views, and multiple dining venues—most notably Tides, the signature restaurant helmed by Michelin-starred chef Gunnar Karl Gíslason, showcasing seasonal Nordic cuisine. With its unbeatable location, discreet service, and effortlessly chic atmosphere, The Reykjavik EDITION is the ideal base for exploring Reykjavik’s art, food, and nightlife.
- Hotel website: The Reykjavik EDITION
- Tip: get complimentary VIP perks when booking The Reykjavik EDITION through Virtuoso (e.g. room upgrade on arrival, daily breakfast, early check-in, late check-out, and a $100 USD food & beverage credit).
- Review: coming soon
2. THE RETREAT AT BLUE LAGOON
Arguably the most expensive luxury hotel in Iceland, The Retreat at Blue Lagoon offers an experience unlike any other. Built into a centuries-old lava flow, the hotel surrounds you with ethereal landscapes and warm, mineral-rich waters. Each suite has floor-to-ceiling windows, calming minimalist design, and exclusive access to the Retreat Lagoon—a private section of the Blue Lagoon. Guests can indulge in the subterranean spa’s signature Ritual or dine at the Michelin-recommended Moss Restaurant, perched atop a lava cliff with stunning views. This property is a sanctuary of peace and wellness, ideal for honeymooners, wellness travelers, or anyone needing a full reset in one of the world’s most extraordinary natural settings. That said, it’s worth noting that the Blue Lagoon is often considered a tourist trap, and occasional closures have occurred due to nearby volcanic activity. If you’re booking a stay, be aware that some risk of room cancellation is involved, and it’s wise to monitor local travel advisories.
1. ELEVEN DEPLAR FARM
Tucked into the remote Troll Peninsula, Eleven Deplar Farm is a converted sheep farm turned ultra-luxury lodge that redefines adventure travel. Operated by Eleven Experience, this all-inclusive property is favored by high-net-worth travelers for its exclusivity, bespoke excursions, and first-class service. In summer, take advantage of the midnight sun with unforgettable adventures like hiking, fly fishing, sea kayaking, and horseback riding through Iceland’s dramatic terrain. In winter, the pace shifts to adrenaline-fueled pursuits—think snowmobiling, cold-water surfing, or heli-skiing directly from the lodge Each of the 13 rooms is luxuriously outfitted, and the on-site chef prepares gourmet Icelandic fare using seasonal, local ingredients. Eleven Deplar Farm is for those who seek raw nature and uncompromised comfort in equal measure.
- Hotel website: Eleven Deplar Farm
- Tip: get complimentary VIP perks when booking Eleven Deplar Farm through Virtuoso (e.g. room upgrade on arrival, daily breakfast, early check-in, late check-out, and a $200 USD hotel credit).
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