The Best Resorts in Iceland

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.

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.

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.

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.

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.

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.

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.