Our Iceland Accommodation Guide – The Best Hotels To Stay In

Saturday, 11th April 2020

Eric Shadbolt

west hotel husafell exterior summer lake

Whether you plan to stay within easy reach of Reykjavik or want to escape to the far north, Iceland has plenty to offer when it comes to unique, boutique and luxury hotels.

Here’s our guide to the top hotels you must visit when planning any trip to Iceland.

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 Reykjavík. Hotel Ranga sits right on a river between the small towns of Hella and Hvolsvöllur.

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: Summer Nights At Ranga


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 Jökulsárlón Glacier Lagoon.

Why we love it: 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 Jökulsárlónshort, a must add to any Icelandic road trip.

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 

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 Eyjaforour 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

hotel glymur villa hot tub overlooking hvalfjordur2

Hotel Glymur

Stay here if you want a great base for exploring the local waterfalls and jiking paths.

Location: Located in Hvalfjörður less than an hour’s drive from Reykjavik

Why we love it: Overlooking Hvalfjordur (whale fjord), the elegant Hotel Glymur fuses a peaceful countryside setting with the convenience of being a stone’s throw from Reykjavik. Indulge in an outdoor hot tub under a glittering night sky, explore the Snaefellsnes Peninsula on foot and savour local cuisine in the hotel restaurant.

Experience it yourself: Northern Lights at Glymur

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

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

Popular blog posts

How to choose your perfect winter hideaway in the Nordics

With so many exceptional properties across Iceland, Sweden, Finland and Norway, it can be tricky to choose between them. We've compiled this guide to help you select your ideal bolthole for winter.
  • Where to Stay

Monday, 6th September 2021

Pam Forrest

The Coolest Things to Do in the Nordics in Winter

Witnessing the northern lights tops the wish list of many who plan a visit to the Nordics in the winter, and rightly so, but there's so much more to an Arctic experience than aurora hunting!
  • Inspire Me

Tuesday, 28th September 2021

Pam Forrest

Where will you spend Easter 2022?

In 2022 the Easter weekend is 15-18 April making it not only a great time to experience the transition from season to season, but its close proximity to the May Day bank holiday means you can effectively double your time off.
  • Inspire Me

Thursday, 1st April 2021

Pam Forrest