Home Blog Our Iceland Accommodation Guide – The Best Hotels To Stay In

Our Iceland Accommodation Guide – The Best Hotels To Stay In

Monday, 28th February 2022

west hotel husafell exterior summer lake

Whether you plan to stay within easy reach of Reykjavik and the well-known natural highlights of the south west or escape to the north east for an off-the-beaten-track adventure, Iceland has plenty to offer when it comes to unique, boutique and stylish hotels.

Here’s a guide to some of our favourite properties around Iceland that can add that little something extra to your holiday experience.

Updated 28 February 2022

iceland south west northern lights hotel ranga

Hotel Ranga

Stay here if you want to unwind in an outdoor heated hot tub as you try to catch a glimpse of the shimmering northern lights

Location: About an hour’s drive from Reykjavik. Hotel Ranga sits right on a river between the small towns of Hella and Hvolsvollur.

Why we love it: This luxury hotel overlooks the East Ranga River and features a variety of world-class facilities including the critically acclaimed Restaurant 4 and a roll-off roof observatory, designed specifically for aurora hunting – a feature unique to Hotel Ranga.

Experience it yourself: Aurora Nights Fly Drive

fosshotel vatnajokull exterior

Fosshotel Glacier Lagoon

Perfect for nature lovers, stay here if you want easy access to two of Iceland’s most spectacular natural attractions.

Location: Fosshotel Glacier Lagoon is located right between Skaftafell National Park and Jokulsarlon Glacier Lagoon.

Why we love it: A contemporary hotel with high ceilings and huge windows looking out onto local wilderness. The obvious highlight of this property is its proximity to Skaftafell and Jokulsarlon, a must add to any Icelandic road trip of the south coast.

Experience it yourself: Speak to our team about tailor making an itinerary

iceland west geothermal pools winter hotel husafell

Hotel Husafell

Stay here if want to stay at a luxurious and quiet oasis on the  doorstep of Iceland’s iconic natural wonders

Location: The hotel is a 90-minute drive from Reykjavik and is centred around all the main attractions in the middle of Iceland’s Western Region.

Why we love it: Commanding a popular, yet peaceful spot in Borgarfjordur, at Hotel Husafell you’re a stone’s throw away from a number of natural wonders including the Hraunfossar waterfall and Langjokull Icecap (where you can go Into the Glacier). You’re also a short journey from the famous Golden Circle and only 90 minutes away from Reykjavik by car. The food at Hotel Husafell is delectable – expect Icelandic ingredients accompanied by fine wines and fantastic service.

Experience it yourself: West Iceland Escape 

lake hotel exterior egilsstadir view

Lake Hotel

Stay here if you want a peaceful, rural retreat with the prospect of adventure in every direction.

Location: On the outskirts of Egilsstadir, overlooking Lake Lagarfljot, Lake Hotel is close to one of Iceland’s most tantalising crossroads. Head east for the glorious East Fjords, west into the Highlands and north or south for coastal fishing villages.

Why we love it: Lake Hotel offers all the amenities of a modern hotel with the charm and ambience of family-run guesthouse. Recently renovated, choose from romantic, antique-furnished rooms or something with a contemporary twist. Dine on sophisticated dishes using fresh local produce in the atmospheric restaurant and choose to relax in the indoor spa.

Experience it for yourself: Arctic Coast Way – North Coast Highlights

hotel budir aerial

Hotel Budir

Stay here if you want to soak up the stunning views of the Snaefellsnes Peninsula.

Location: The hotel takes its name from the nearby Budir estuary, and its setting is as remote as it is completely natural.  Reykjavik is two hours away by car.

Why we love it: The perfect choice for a secluded getaway, Hotel Budir is nestled on the Snaefellsnes Peninsula, cocooned by a moss-clad lava bed. Aside from rugged lava fields and the choppy Atlantic, the only thing to do here is enjoy your surroundings, keep your eyes out for whales and puffins and head to the Snaefellsjokull National Park to truly understand the natural beauty of the region.

Experience it yourself: Speak to our team about tailor making an itinerary


iceland north hotel siglo view gt

Hotel Siglo

Stay here if you want to relax in stylish surrounds before seeking the aurora on your private balcony.

Location: You can find this hotel on the remote northern coast of Iceland, tucked into the harbour of a former fishing town, which was once known as the ‘herring capital of the world’.

Why we love it: Stylish decor and historic surrounds make the beautiful Hotel Siglo a fantastic base in which to explore sleepy Siglufjordur. Facilities include a charming restaurant overlooking the marina, where you can spot fresh fish being caught and taken straight to the hotel kitchen.

Experience it yourself: Iceland in Style

the greenhouse hotel bar

The Greenhouse Hotel

Stay here is you want a sustainable and quirky base from which to explore Iceland’s geothermal heartland.

Location: Surrounded by the hot springs and mountains of Hveragerdi – the greenhouse village – the hotel is only 45 minutes from Reykjavik and offers easy access to natural wonders such as the Golden Circle and abundant activities.

Why we love it: Opened in 2021, this hotel brings a fresh and imaginative offering to the popular south west region. With sustainability at its core, the furniture in the 49 rooms is locally made or recycled, and waste throughout the hotel is kept to a minimum. The stylish Colonial Bar provides a bright, green space to enjoy a drink and live music.

Experience it yourself: Speak to our team about tailor making an itinerary

deplar farm low light view

Deplar Farm

Stay here if you want to experience one of the most isolated, yet luxurious hotels in Europe.

Location: Deplar Farm is about 5 hours from Keflavik Airport, in the mountain of the Troll Peninsula, between the fjords of Skagafjodur and Eyjafordur in northern Iceland.

Why we love it: Situated in a remote valley, this all inclusive lodge offers something for everyone. In the middle of nowhere, with only a handful of other rooms around, you feel like you are one of they only people left on the planet. The property offers an exclusive spa experience with indoor and outdoor hot tubs, geothermal swimming pools and saunas – a perfect way to relax and eagerly await the aurora borealis at night.

Experience it yourself: North Iceland Luxury Adventure

Start planning your trip

Consider the following itineraries or contact our Nordic Travel Specialists to plan a tailor-made itinerary including a stay in any of these hotels.

See all Iceland holidays