The Best Hotels in Iceland for Every Traveller

Choose a peaceful retreat with sweeping views of the Icelandic landscape
Choose a peaceful retreat with sweeping views of the Icelandic landscape | Courtesy of Hotel Kriunes / Expedia
Photo of Ellie Ross
23 February 2021

Iceland is blessed with a vibrant capital city, glacier-capped mountains and a vast, volcanic landscape. It’s also home to incredible hotels, including former pharmacies, cosy guesthouses and contemporary pads. Explore Reykjavík and beyond from these top places to stay.

Hotel Borg by Keahotels

Chain Hotel, Spa Hotel
Courtesy of Hotel Borg by Keahotels / Expedia

Embrace the 1920s lifestyle at this grand, art deco hotel, overlooking Reykjavík’s Austurvöllur public square. Its 99 rooms and suites nod to this era, with monochrome colour schemes and marble bathrooms. The excellent onsite Borg Spa features a hot tub, sauna, steam bath and treatments, including aromatic massages and a full-body scrub with marine enzymes said to relieve jet lag.

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101 Hotel

Boutique Hotel, Spa Hotel
5/5 (1 Reviews)
Courtesy of 101 Hotel / Expedia
From $281 Per night per room

This boutique hotel in downtown Reykjavík was once an office block. Today, it offers chic rooms, an excellent restaurant and comfort in spades. Expect bathrooms with underfloor heating, balconies with city views (in the larger rooms) and Bang & Olufsen speakers. The restaurant and bar, complete with a glass ceiling, is a local favourite – it features a menu with Icelandic and international cuisine, including hamburgers and pizza.

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Ion Adventure Hotel

Courtesy of Ion Adventure Hotel / Expedia

For fresh air paired with relaxation, this hotel in Nesjavellir is just the ticket. It’s surrounded by mountains and a big sky that fills with stars – and often the Northern Lights – at night. Wellness facilities include a natural spa with a sauna and an outdoor hot pool – the perfect place for watching the Aurora Borealis. The pared-back bedrooms are comfortable, complete with organic products and panoramic views. The hotel also houses a restaurant and bar and can help you organise day trips.

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Hotel Keflavik

Hotel, Luxury
4.2/5 (994 Reviews)
Courtesy of Hotel Keflavik / Expedia
From $156 Per night per room

Approximately 5km (3mi) from Keflavík International Airport, this four-star hotel has 70 well-decorated rooms, a fully equipped fitness centre and a restaurant. The decor is contemporary and elegant, with paintings of Icelandic scenes in the lobby and red carpets in some of the bedrooms. Breakfast is a good spread of cold meats, eggs and a generous selection of bread and pastries. Dinner is more formal – Icelandic cuisine with a fish and meat slant.

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Hotel Jazz

Hotel, Budget Hotel
4.5/5 (660 Reviews)
Courtesy of Hotel Jazz / Expedia
From $153 Per night per room

Hotel Jazz is an ideal place if you’re looking for a bolthole near Keflavík International Airport; it has easy self-check-in, luggage storage and a taxi shuttle service. A self-service breakfast is also available from 4am, perfect before an early flight. Choose from single, double, twin and triple rooms – they all have wooden floors alongside coffee and cream colour schemes.

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Hotel Kriunes

4.6/5 (485 Reviews)
Courtesy of Hotel Kriunes / Expedia
From $262 Per night per room

A 15-minute drive from the centre of Reykjavík, this family-owned hotel has friendly service, a relaxed atmosphere and expansive views of the mountains and Lake Elliðavatn. Look out for freshly caught trout from the lake and homegrown veggies on the hotel menu. Families are well catered for here, with large child-friendly rooms, while couples can enjoy the honeymoon suite with a four-poster bed and bathtub.

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  • Kvosin Downtown Hotel

    Boutique Hotel
    4.8/5 (733 Reviews)
    Courtesy of Kvosin Downtown Hotel / Expedia
    From $206 Per night per room

    There’s a vibrant, boutique feeling to this hotel in the heart of Reykjavík, with its bold feature walls and plush bedding. Rooms range from cosy doubles to family-friendly boltholes that sleep up to six; all come with kitchenettes. Thick blackout curtains are ideal for the midnight sun, while smart bathrooms have organic, local toiletries. The lively downstairs bar, Aldamó, is popular with locals and serves light dishes and quality wines.

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    Eyja Guldsmeden Hotel

    4.7/5 (105 Reviews)
    Courtesy of Eyja Guldsmeden Hotel / Expedia
    From $174 Per night per room

    The atmosphere at this bohemian hotel is cool yet unpretentious. It sits inside a former office building and features exposed brick walls, graffiti art and industrial-style lighting. Each of the single, double and triple rooms comes in standard or superior categories and features a four-poster bed, parquet floors and organic toiletries. As the hotel is in downtown Reykjavík, you’ll be surrounded by cosy cafes, restaurants and shops, and the main sights are within striking distance.

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    Hotel Hilda

    Hotel, Boutique Hotel
    4.1/5 (261 Reviews)
    Courtesy of Hotel Hilda / Expedia

    For a homely, authentic stay in the capital, try the Hotel Hilda, a five-minute walk from the city centre. Host Margret makes you feel welcome from the moment you step inside, where the 15 cosy, ensuite rooms spread over four floors have pops of bright decor and photographs of Icelandic wildlife on the walls. Wake up to the sound of birds in the garden, and start the day with a breakfast buffet.

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    Apotek Hotel by Keahotels

    Boutique Hotel
    4.6/5 (532 Reviews)
    Courtesy of Apotek Hotel by Keahotels / Expedia
    From $201 Per night per room

    This centrally located hotel in Reykjavík has a great backstory – it’s set inside a building that served as the capital’s pharmacy from 1930 until 1999. The restaurant is a local favourite; its former days are visible in the walls stacked with glass medicine bottles and “pharmacist” cocktails. The duck and waffle starter is a highlight. All 45 rooms and suites are smart and include flat-screen TVs, Bluetooth speakers and Nespresso machines.

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    These recommendations were updated on February 23, 2021 to keep your travel plans fresh.

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