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© Courtesy of Hotel Búðir
© Courtesy of Hotel Búðir
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11 Best Boutique Hotels in Iceland

Picture of Camille Buckley
Updated: 5 June 2018

Iceland has plenty to offer when it comes to boutique hotel variety. From modern downtown hotels to cozy wilderness lodges, these hotels will give you a great atmosphere to enjoy either as a base setting to explore the surrounding landscape attractions or as a point of destination in itself. With a recurring theme of locally sourced ingredients for their restaurants, rooms with a view, and Scandinavian design, these boutique hotels are worth a visit.

Ion Adventure Hotel
Boutique Hotel
| Courtesy of ION Adventure Hotel

Courtesy of ION Adventure Hotel

This gem of modern design set in the beautiful countryside near Selfoss in Southwest Iceland is an ode to combining architecture with the landscape. Design principles use sustainable practices while encompassing the natural features of the surroundings. locally salvaged driftwood and lava rocks are woven into the earthy yet classy atmosphere. Enjoy the cuisine at Silfra Restaurant, the spectacular views from the Northern Lights Bar, and the relaxing experiences available at Lava Spa. Each room has floor-to-ceiling windows so you can enjoy the incredible views towards Nesjavellir Geothermal Power Plant and the surrounding lava fields.
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About the place:

Adventure, Boutique, Countryside, Design, Fine Dining, Romantic, Stylish
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Hotel Glymur
Boutique Hotel
© Courtesy of Hotel Glymur

© Courtesy of Hotel Glymur

Located in Hvalfjörður (whale fjord) less than an hour’s drive from Reykjavik, this remote hotel offers situated on a hillside offers beautiful views of the fjord. Enjoy the outdoor geothermal hot tub which is a great place for viewing the Northern Lights. The interior is decorated with bright artistic objects from local artists, including carvings and ceramics and rugs. Enjoy the homely restaurant inside. This is a great base for exploring local waterfalls and hiking paths.
Hotel Amenities
Free Wifi
Restaurant
Bar
Hot tub
Business facilities
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About the place:

Arty, Boutique, Countryside, Family Friendly, Remote, Traditional
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Hotel Rangá
Boutique Hotel
Hotel Ranga | © Flickr/Tom Page

Hotel Ranga | © Flickr/Tom Page

This log-built hotel is next to the river Ytri-Rangá, popular with salmon fishing. The only 4-star hotel in Southern Iceland, and only an hour´s drive from Reykjavik. The warm interior exudes the relaxing comfort of an alpine lodge. The rooms are hung with paintings of Icelandic nature and wildlife by local artists. Greeting you at the entrance lobby is the taxidermied polar bear Hrammur. Hotel Rangá has an excellent restaurant next to the river, a lounge, a stargazing observatory, and bar as well as outdoor geothermally heated hot tubs where it is great to catch the Northern Lights which would be very bright because of the remote location.
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About the place:

Adventure, Cosy, Countryside, Relaxed, Remote
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101 Hotel
Boutique Hotel
101 Hotel | © Flickr/Sarah_Ackerman

101 Hotel | © Flickr/Sarah_Ackerman

This boutique hotel located in downtown Reykjavik offers the best of contemporary design and minimalist couture. With stark furniture and color scheme of black, white, and grays, the dimly lit corridors are relaxing and inviting, contrasting with the bright rooms available. Enjoy the restaurant, lounge, and bar on the ground floor and don’t forget to look up at the white baubled wall through the glass ceiling. Other contemporary art fills the hotel gallery, one of the highlights for sure. In the basement, you can find a jacuzzi and geothermally heated steam room.
Hotel Amenities
Free Wifi
Restaurant
Bar
Gym
Hot tub
Business facilities
Crib
Non smoking
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About the place:

Arty, Boutique, City, Design, Modern
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Apotek Hotel
Boutique Hotel
| Courtesy of Apotek Hotel

Courtesy of Apotek Hotel

This iconic, tasteful hotel is housed in one of Reykjavík oldest buildings from 1917. The five story building which used to house the apothecary, from which the hotel takes its name, is located downtown in Austurvöllur square diagonal to the Icelandic parliament. Enjoy the excellent Apotek restaurant and the sleek hotel bar on the ground floor. The luxury rooms offer a modern yet classic design that matches the hotel’s exterior.
Hotel Amenities
Free Wifi
Restaurant
Bar
Business facilities
Crib
Non smoking
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About the place:

Boutique, City, Design, Historic, Fine Dining
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Hotel Borg
Boutique Hotel

Hotel Borg lobby | Courtesy of Keahotels

Hotel Borg is located downtown overlooking Austurvöllur square. The building was built by Jóhannes Jósefsson, who, after competing in the 1908 Olympics and traveling with Barnum and Baileys circus as a strongman in America, returned to Iceland in 1927 with the dream to build a luxury hotel, which would be the first of its kind at the time in Reykjavik. The hotel still maintains its original Art Deco ambiance, especially in the lounge area. Enjoy excellent cocktails at the bar or the vintage yet modern Borg restaurant operated by the award-winning local chef, Volundur Volundarson.
Hotel Amenities
Free Wifi
Restaurant
Bar
Spa
Gym
Business facilities
Childcare
Connecting rooms available
Non smoking
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About the place:

Arty, Boutique, City, Design, Historic
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Sigló Hotel
Boutique Hotel
| Courtesy of Sigló Hotel

Courtesy of Sigló Hotel

Sigló Hotel is located in the fishing village of Siglufjörður in Northern Iceland which was once dubbed the Herring capital of the world. Once a very isolated place as the mountain pass reaching the village was not opened until 1967, people used to arrive and depart by boat. Recently opened, this picturesque village hotel has a dock entrance right next to the harbor. With a small fishing village charm, the hotel is quite modern and spacious. Enjoy the ocean and mountain views offered from every hotel room. The lobby and rooms are decorated with historical pictures from Siglufjords Photo Museum.
Hotel Amenities
Free Wifi
Restaurant
Bar
Spa
Hot tub
Airport transfers
Crib
Non smoking
Ski -Ski Out
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About the place:

Cosy, Historic, Modern, Remote, Traditional
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Kvosin Downtown Hotel
Boutique Hotel
© Courtesy of Kvosin Downtown Hotel

© Courtesy of Kvosin Downtown Hotel

Kvosin Downtown Hotel is situated next to landmarks in Reykjavik including the Icelandic Parliament, Dómkirkja Church, and City Hall. The 1900s building in which it is set features contemporary decor with minimalist features. Enjoy the breakfast which is served in an adjacent restaurant, Bergson Mathús, an excellent ambient lit eatery. The Klaustur bar on the ground floor is noteworthy for its experimental cocktails and ‘cloister’ theme.
Hotel Amenities
Free Wifi
Restaurant
Bar
Kitchen
Crib
Non smoking
More Info

About the place:

Boutique, City, Design, Stylish, Traditional
Book with our partner Hotels.com
Book Now

Hotel Flatey
Boutique Hotel
Flatey | © Flickr/Ingunn H Nielsen

Flatey | © Flickr/Ingunn H Nielsen

This adorable hotel located on the island of Flatey in Breiðafjörður bay north of Snæfellsnes in West Iceland is only open approximately from June to August. This is the only hotel in the sparsely populated island of Flatey which is known for its tranquility and excellent bird watching. The rooms of the hotel, which has a maximum capacity of 27 people, are simple and inspired by the best of Nordic design. The restaurant, Samkomuhúsið, serves delicious freshly caught seafood. To get to the island, take the ferry from Stykkishólmur.
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About the place:

Countryside, Remote

Hótel Búðir
Boutique Hotel
© Courtesy of Hotel Búðir

© Courtesy of Hotel Búðir

Located on the Snæfelsness peninsula in West Iceland about two hours drive from Reykjavik, this remote luxury hotel in a beautiful landscape offers an atmosphere of relaxed elegance and is definitely Iceland’s most iconic country hotel. The hotel restaurant is one of Iceland’s best, with ingredients sourced from local farms and fishermen. This is also the perfect place from which to catch a glimpse of the Northern Lights as its remote location means there is less light pollution. Each room has a view of the varied surrounding landscape of ocean, Snaefellsjokull glacier, the mountains, the lava field, the iconic black church in the field nearby. The hotel lounge has a beautiful visual display of the hotel’s history and artist’s renderings of Icelandic fairytales.
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About the place:

Boutique, Countryside, Fine Dining, Historic, Romantic

Hotel Egilsen
Boutique Hotel
| Courtesy of Hotel Egilsen

Courtesy of Hotel Egilsen

Next to the harbor in the fishing village of Stykkishólmur on the Snæfellsnes peninsula in West Iceland sits this iconic red building originally built in 1867. Conveniently located next door to three small museums, as well as restaurants and galleries, this distinctive hotel is also a great base from which to explore the beautiful islands which dot the surrounding bay. There is a small library in the lounge where guests are encouraged to write stories for future guests.
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About the place:

Boutique, Casual, Cosy, Countryside