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
Photo of Nammie Matthews
Writer19 April 2021

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.

360° Hotel

Resort, Spa Hotel
Map View
360° Boutique Hotel & Spa_26785430
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.


Kerlingarfjöll Mountain Resort

Map View
Kerlingarfjöll Mountain Resort_862a0dcb
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.

The Retreat Hotel at Blue Lagoon Iceland

Spa Hotel
Map View
The Retreat at Blue Lagoon Iceland_c8e87442
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.


Diamond Suites

Luxury, Spa Hotel, Boutique Hotel
Map View
Diamond Suites_1f185ce4
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.


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  • Sigló Hótel

    Boutique Hotel
    Map View
    Sigló Hotel
    Courtesy of 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.


    Hótel Grímsborgir

    Map View
    Hotel Grimsborgir
    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.


    Umi Hotel

    Map View
    Umi Hotel_819aa718
    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.

    Frost and Fire Boutique Hotel

    Boutique Hotel, Spa Hotel
    Map View
    Frost & Fire
    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.

    These recommendations were updated on April 19, 2021 to keep your travel plans fresh.

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