The Best Luxury Hotels in Iceland

From volcanic springs to rugged glaciers, Iceland provides an array of beautiful backdrops for your holiday
From volcanic springs to rugged glaciers, Iceland provides an array of beautiful backdrops for your holiday | Courtesy of Umi Hotel / Expedia
Photo of Ellie Ross
18 February 2021

Private lagoons, glacier views and gourmet cuisine are among the five-star offerings at these Icelandic retreats.

Iceland is awash with opulent accommodation – from the buzzy capital of Reykjavik to the rugged, wild south coast. Sample fresh fish caught from the north Atlantic, hike up an active volcano and embrace the Scandinavian spa rituals while staying at Iceland’s finest hotels.

Diamond Suites

Luxury, Spa Hotel, Boutique Hotel
4.4/5 (35 Reviews)
Courtesy of Hotel Keflavik / Expedia
Located on the top floor of the Hotel Keflavik, a couple of miles from Keflavik International Airport, these seven suites provide five-star accommodation. Six are named after a gem stone, the seventh after the hotel’s late founder, and all are decorated in a unique style – Ruby has a bespoke headboard and Versace bathroom tiles, while Pearl has a king-size bed, made from white leather and decorated with Swarovski crystals. Expect personal service and breakfast served in a private lounge.
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Hotel Grimsborgir

Luxury
4.6/5 (168 Reviews)
Courtesy of Hotel Grimsborgir / Expedia
Stay in the heart of the Golden Circle at Hotel Grimsborgir. It has 89 luxurious rooms, suites and apartments spread across 15 buildings on the banks of the river Sogrid. All come with a balcony or terrace to soak up the wild landscape. Lounge in one of the 29 geothermal hot tubs, eat Icelandic lamb in the à la carte restaurant or book a geyser tour.
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Silica Hotel

Spa Hotel, Boutique Hotel
Map View
Courtesy of Silica Hotel / Booking.com
There’s an exclusive feel to this hotel, which is set just above Reykjavik’s famous Blue Lagoon. It offers plush accommodation and a private lagoon, so you can get the same rejuvenating pleasures with none of the crowds. The mineral-rich water is a serene backdrop, surrounded by verdant mountains and big blue skies. Finish the day with a four-course tasting menu at Lava, the hotel’s award-winning restaurant.

360 Hotel & Thermal Baths

Resort, Spa Hotel
4.8/5 (71 Reviews)
Courtesy of 360 Hotel & Thermal Baths / Expedia
This hotel in Selfoss has all the trimmings needed for a luxurious escape. Its geothermal pool is filled with mineral-rich water channelled from 300 meters underground and heated by lava. Chic rooms open onto terraces with views of the rolling landscape. Adventurers are spoilt for choice with volcano hiking, ice climbing and dog-sledding on offer.
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Sigló Hotel

Boutique Hotel
4.9/5 (179 Reviews)
Courtesy of Sigló Hotel / Expedia
Fresh air is on tap at this hotel in Siglufjörður. Surrounded by mountains and a fjord, all guest rooms have a view of the water from a cosy window seat. The decor is elegant, with polished wood floors, pastel colour schemes and chandeliers in the suites. The Sunna restaurant offers views of the marina and has a broad menu, from cured goose to lamb fillet.
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  • Tower Suites Reykjavik

    Luxury, Chain Hotel
    4.7/5 (112 Reviews)
    Courtesy of Tower Suites Reykjavik / Expedia
    The eight luxurious suites here are positioned on the 20th floor, the highest viewpoint in Reykjavik, and there can surely be few hotels offering a better view. Each has its own distinctive character, with wooden floors, open-plan spaces and sumptuous bedding. Make use of your in-room binoculars or telescope to glimpse the best of the full panoramic vistas.
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    Umi Hotel

    Luxury
    4.7/5 (280 Reviews)
    Courtesy of Umi Hotel / Expedia
    With unspoilt nature all around, you’ll feel a world away from urban life at this fabulously modern hotel on the south coast. 28 elegant rooms feature crisp linen, Marshall bluetooth speakers and bathrooms with organic toiletries. Tuck into locally-caught grilled langoustine in the chic restaurant overlooking the Westman islands.
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    Sand Hotel by Keahotels

    Luxury
    4.7/5 (642 Reviews)
    Courtesy of Sand Hotel by Keahotels / Expedia
    There’s a fascinating history to this Reykjavik hotel, which has a century-old bakery and haberdashery on its ground floor. Try the bakery’s delicious breads, pastries and cakes at breakfast. Upstairs, the 78 rooms are classically styled with high-end furniture and contemporary art, alongside modern touches like flatscreen TVs and Nespresso coffee machines. For added luxe, the suite has a kitchen, dining room and living room.
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    Eyja Guldsmeden

    Hotel
    4.7/5 (105 Reviews)
    Courtesy of Eyja Guldsmeden Hotel / Expedia
    This quirky hotel is set inside a former office building in Reykjavik’s quaint Holt area. It has a boho-chic feel with exposed brick walls and graffiti-style art. Rooms are cool yet unpretentious with four-poster beds and organic toiletries. Enjoy gazing out of the windows to Esja mountain.
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    Hotel South Coast

    Luxury, Spa Hotel
    4.7/5 (66 Reviews)
    Courtesy of Hotel South Coast / Expedia
    Located in Selfoss, this hotel is surrounded by spectacular nature and known for its wellness offering. Warm up during the winter months in the spa, complete with a Finnish sauna, two hot tubs, a cold tub and a relaxation room to chill out in between sessions. It occupies a prime location for hunting the Northern Lights from October to February. The restaurant serves up fine Icelandic cuisine, along with great vegan options (try the coconut panna cotta).
    More info
    These recommendations were updated on February 18, 2021 to keep your travel plans fresh.

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