The Best Resorts in Iceland

Some suites at the Retreat Hotel come with a private lagoon
Some suites at the Retreat Hotel come with a private lagoon | Courtesy of The Retreat Hotel at Blue Lagoon Iceland / Expedia
Nammie Matthews


Escape to a luxury resort in Iceland’s most remote locations. Soak in the geothermal Blue Lagoon, hike through the Kerlingarfjöll mountain range or catch the Northern Lights from your hotel window, just an hour from Reykjavík. Here’s our pick of the best resorts – bookable with Culture Trip.

The nature-fringed resorts in Iceland are destinations in themselves, ready to spoil you with geothermal spas, culinary experiences and oodles of outdoor activities – plus unimpeded views of the Aurora Borealis at nightfall. With such magical settings as these, you’ll build lasting memories in any one of these resorts.

1. 360° Hotel

Resort, Spa Hotel

360° Boutique Hotel & Spa. Smart hotel room with seating area alongside a couple of floor-to-ceiling windows.
Courtesy of 360° Hotel / Expedia

Just a 15-minute drive outside the river town of Selfoss, the 360° Hotel offers a pretty, remote setting in the southern Icelandic countryside. Here, you’ll have heightened odds of catching the Northern Lights dancing amid the starry night sky. Room rates include breakfast and access to the hotel’s indoor and outdoor thermal pools – providing more than enough reasons for you to stay.

2. Kerlingarfjöll Mountain Resort


Kerlingarfjöll Mountain Resort. Valley with some snow-capped peaks in the background and a couple of traditional-style buildings on the left.
Courtesy of Kerlingarfjöll Mountain Resort / Expedia
Hikers, amblers and photography fans will fall in love with the Kerlingarfjöll Mountain Resort in central Iceland, featuring some of the best untouched scenery in the country. Adventurous types can take on the three-day circular route around the mountain, sleeping in huts. Gaze out across the island’s three main glaciers and wander past geothermal pools. The resort itself offers chalets, a hotel building and a campsite, so there’s plenty of accommodation to suit all tastes and budgets.

3. The Retreat Hotel at Blue Lagoon Iceland

Spa Hotel

The Retreat at Blue Lagoon Iceland. Trendy Scandinavian-style hotel room with large floor-to-ceiling windows overlooking a field.
Courtesy of The Retreat Hotel at Blue Lagoon Iceland / Expedia

Sleep on a bed of clouds at one of the most famous attractions in Iceland. The Blue Lagoon’s award-winning Retreat Hotel will welcome you into a world of peace and tranquillity. Here, experience all the geothermal activity the country has to offer, with beautiful grounds, a mineral-rich spa and natural treatments all part of the package. All suites come with à la carte breakfast. With three on-site restaurants and a cafe, there is little need for anything else at this Icelandic resort.

4. Diamond Suites

Luxury, Spa Hotel, Boutique Hotel

Diamond Suites. Opulent sitting room with leather armchairs, an oil painting and a fireplace.
Courtesy of Diamond Suites / Expedia

The five-star Diamond Suites will delight even the most discerning of travellers. Five themed, luxurious suites, which can be combined to create three larger spaces, star alongside an outdoor jacuzzi, a highly rated restaurant and the Diamond Lounge, decked out with a chesterfield sofa next to a grand fireplace. At breakfast, enjoy Danish smørrebrød (open-faced sandwiches), and come nightfall, a glass of wine before dinner.

5. Sigló Hótel

Boutique Hotel

The green-and-white Sigló Hótel in Siglufjörður overlooks the sea and is backed by lush green mountains.
© Sigló Hótel / Expedia

Wake up to mountain or tranquil water views from your room at the Sigló Hótel. Built into a fisherman’s marina at the northeastern border of Iceland, an hour from Akureyri, Sigló is your ticket to the unknown, where little else matters beyond this little marina village. Enjoy concerts, events and meals at Kaffi Rauðka, watch fishers land their catch or enjoy a game of giant chess – everyone will find something to do at this resort.

6. Hótel Grímsborgir


Hótel Grímsborgir. Small hotel building below the Northern Lights, with some snow-capped hills towards the right.
Courtesy of Hótel Grímsborgir / Expedia

Afraid you’ll miss the Northern Lights on your trip to Iceland? At Hótel Grímsborgir, the risk is minimal, thanks to its remote location within the Golden Circle – the hotel even has an optional wake-up call if the aurora is visible from your room. The resort has superior rooms, suites, apartments and a cottage, each with a balcony or terrace, and you’ll also have access to some of the 29 geothermal hot tubs on-site. There’s also an Icelandic à la carte restaurant, serving up local fish and mountain lamb, as well as excellent vegan options.

7. Umi Hotel


Umi Hotel. Modern, Scandinavian-style hotel exterior across the photo, with a hill in the distant background.
Courtesy of Umi Hotel / Expedia

Join owners Siggi and Frida, plus their friendly dog Breki, at Umi Hotel on the southern Icelandic coast. Rooms feature a view of the subglacial volcano Eyjafjallajökull or the Atlantic Ocean. All have luxury bath products from organic skincare brand Sóley, and some even come with a Nespresso coffee machine and a Marshall speaker. Dine beside magnificent views of the Westman Islands at the hotel restaurant, or step outside to appreciate the unspoilt natural surroundings, including the River Svaðbælisá.

8. Frost and Fire Boutique Hotel

Boutique Hotel, Spa Hotel

Frost and Fire hot tub dramatically perched over river and surrounding hills
Courtesy of Frost and Fire Boutique Hotel / Expedia

Surrounded by hot springs and steaming foothills on the banks of the River Varmá, Frost and Fire Boutique Hotel sits in an idyllic setting for exploring Iceland’s geothermal activity. The hotel is decorated in true Nordic style, setting the tone for a cosy stay away from the city, complete with a 12m swimming pool and hot tubs mere steps from your room. In the evenings, indulge at the Reykr restaurant as the Northern Lights dance overhead, and allow yourself to relax fully amid the surrounding natural beauty.

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