Where to Stay in Iceland

For private Blue Lagoon access, choose a sanctuary on the waters edge
For private Blue Lagoon access, choose a sanctuary on the waters edge | Courtesy of The Retreat at Blue Lagoon / Expedia.com
Photo of Ellie Ross
17 February 2021

Iceland is teeming with hotels that are ideal for millennial travellers or returnees who want to see a different side to the country. Maybe you’re after a sumptuous spa retreat, or a hotel with a local hangout bar. Whether you’re staying in the capital or heading further afield, here’s our pick of the best places to stay.

The Retreat at Blue Lagoon Iceland

Spa Hotel
Map View
The Retreat at Blue Lagoon
Courtesy of The Retreat at Blue Lagoon / Expedia.com
The healing, geothermal waters of the Blue Lagoon make this one of Iceland’s top attractions. But you don’t have to join the day trippers if you book into The Retreat, a hotel sanctuary located right on its edge. Many of its luxurious, minimalist rooms have private lagoon access, and terraces with views of the water. There’s also a spa with rejuvenating treatments including massages, algae scrubs and morning flotations.
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Hotel Holt

Boutique Hotel
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Hotel Holt
Courtesy of Hotel Holt / Expedia.com
For art lovers, what could be better than your own gallery? Hotel Holt has the largest private collection of Icelandic art, and offers twice-weekly art walks so you can learn all about it. There are hundreds of works on display, including seascapes, stoneware reliefs and bronze sculptures. Each of the 42 rooms are classically styled and, of course, feature original paintings. The smart Holt restaurant serves excellent food, paired with organic wines.
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Kvosin Downtown Hotel

Boutique Hotel
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Kvosin Downtown Hotel
Courtesy of Kvosin Downtown Hotel / Expedia.com
Join the Icelanders downstairs in the lively Aldamót bar, which serves light dishes and quality wines. Happy hour is from 4pm to 7pm, prime time to sample signature cocktails and seasonal beers without breaking the bank. Rooms have plush bedding, thick blackout curtains and smart bathrooms with organic, local toiletries. Choose from four categories, ranging from cosy doubles to family-friendly boltholes with kitchenettes that sleep up to six.
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101 Hotel

Boutique Hotel, Spa Hotel
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101 Hotel
Courtesy of 101 Hotel / Expedia.com
It’s hard to believe that this boutique hotel was once an office block in downtown Reykjavik. Now 101 Hotel is complete with sleek design, minimalist rooms and comfort galore. Expect bathrooms with underfloor heating, balconies with city views (in the larger rooms) and high-tech Bang & Olufsen speakers. The restaurant and bar is a favourite with locals – dine on everything from hamburgers to fine cuisine beneath its glass ceiling.
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Hotel Odinsve

Hotel
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Hotel Odinsve
Courtesy of Hotel Odinsve / Expedia.com
Brunch like a local at this 50-room hotel, located right off the city’s shopping and nightlife hub, Laugavegur. Its restaurant, Snaps, has a bistro vibe, with cosy booths, large windows and excellent pancakes with Icelandic blueberries. Upstairs, rooms are individually designed and vary in size, from single boltholes to two-bedroom family suites and more luxurious junior suites split over two floors.
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Hotel Borg by Keahotels

Chain Hotel, Spa Hotel
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Hotel Borg by Keahotels
Courtesy of Hotel Borg by Keahotels / Expedia.com
This grand, art deco hotel has become something of a Reykjavik landmark. It has views out towards Austurvöllur square. 99 rooms and suites feature monochrome colour schemes, geometric cushions and marble bathrooms. There’s also an excellent spa with a hot tub, sauna, steam bath and range of treatments including a full-body marine enzyme conditioning that’s said to help relieve jet lag.

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  • Hilton Reykjavik Nordica

    Spa Hotel, Chain Hotel
    Map View
    Hilton Reykjavik Nordica
    Courtesy of Hilton Reykjavik Nordica / Expedia.com
    This hotel has a prime position in Reykjavik, as well as varied eating options and wellness on tap. Inside, you’ll find a spa and fitness room, plus vast windows with majestic mountain views. Rooms are decorated in tranquil shades of cream and white, and the suites are spacious, with walk-in showers and baths. Unwind in the lobby bar, or indulge in modern Nordic cuisine at the Vox restaurant.

    Canopy by Hilton Reykjavik

    Budget Hotel, Chain Hotel
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    Canopy by Hilton Reykjavik
    Courtesy of Canopy by Hilton Reykjavik / Expedia.com
    There’s a fun, music vibe to this hotel, which spans six connected buildings. The decor nods to its eclectic past as a furniture factory, music venue and arts hub. Rooms vary in style and size, with features including parquet flooring, window seats and four-poster beds. Choose from the vinyl collection and grab a portable record player for some in-room listening. The dining room has electric blue chairs, industrial lighting and a varied menu.

    Sigló Hotel

    Boutique Hotel
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    Sigló Hotel
    Courtesy of Siglo Hotel / Expedia.com
    Surrounded by mountains and fjord, this 68-room hotel in Siglufjörður has expansive vistas, fresh air and luxurious accommodation. All rooms have views of the water, and a terrace or cosy window seat where you can drink them in. The decor is elegant, with polished wood floors, pastel colour schemes and suites with velvet sofas and chandeliers. The Sunna restaurant overlooks the marina and serves delicacies such as lamb tartare and oven baked cod.
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    Eyja Guldsmeden Hotel

    Hotel
    Map View
    Eyja Guldsmeden Hotel
    Courtesy of Eyja Guldsmeden Hotel / Expedia.com
    Check out Reykjavik’s boho-chic vibe at this quirky hotel, located in what was once an office building. The atmosphere is cool yet unpretentious – exposed brick walls here, graffiti-style art and industrial-style lighting there. Choose from single, double and triple rooms, in standard or superior categories. The four-poster beds, parquet floors and organic toiletries are a welcome touch.
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    These recommendations were updated on February 17, 2021 to keep your travel plans fresh.

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