The 16 Best Luxury Hotels in Iceland (2025)

Nestled in the embrace of Iceland's awe-inspiring volcanic landscape, The Retreat at Blue Lagoon offers a sanctuary where luxury and nature harmoniously intertwine. Surrounded by the ethereal blue waters of geothermal lagoons, this elegant oasis invites couples, wellness seekers, and adventurers alike to indulge in an experience steeped in tranquility and refinement.

Spa Retreat - Step into a world of serene indulgence at the subterranean spa, where the soft murmurs of water complement the soothing scents of natural minerals, inviting you to unwind amidst expert massages and rejuvenating treatments that restore both body and soul.

Culinary Delights - Savor the flavors of Icelandic cuisine at our exquisite restaurant, where every dish is crafted with local ingredients. As you enjoy your meal, the warmth of freshly baked bread wafts through the air, mingling with the salt-kissed aroma of nearby sea views, creating an unforgettable dining experience.

Romantic Hideaway - Every room at The Retreat is a cocoon of relaxation, featuring plush textures and breathtaking views that invite you to linger. Enjoy intimate moments soaking in your private hot tub, as the soft glow of sunset reflects on the lagoon’s surface, painting a picturesque backdrop for romance.

Guest Experiences - From the moment you arrive, you're greeted by staff who remember your name and preferences, creating a sense of warmth that feels like home. Guests have marveled at the healing touch of the warm lagoon waters, with one noting how the mist carried the whisper of nature, wrapping them in a peaceful embrace throughout their stay.

Nestled alongside the crystal-clear waters of the Rangá salmon river, Hotel Rangá is a luxurious haven where romance and adventure intertwine. With its breathtaking views of Mount Hekla and the ethereal Northern Lights often illuminating the skies above, this modern retreat offers an intimate escape into Iceland's pristine wilderness.

Stargazing Paradise - At Hotel Rangá, the cosmos feels within reach with dedicated stargazing observatories that enhance your experience under the vast northern sky. Guests are treated to special wake-up calls when the auroras dance overhead, allowing for serene moments filled with wonder and awe.

Culinary Delights - Indulge in exceptional Nordic-inspired cuisine at the hotel’s restaurant, where each dish is crafted from fresh, local ingredients. Savor gourmet flavors while enjoying panoramic views of the Eyjafjallajökull volcano, creating a dining experience that is as visually stunning as it is delicious.

Relaxation Retreat - Rejuvenate in outdoor hot tubs surrounded by nature’s splendor, or sink into individually decorated rooms featuring spa baths and private balconies. The soothing sounds of the river and the crisp mountain air invite you to unwind amidst the tranquil landscape.

Guest Experiences - One guest cherished their arrival with complimentary drinks that sparked lively conversations with the friendly bartender, all while soaking in the stunning river view from their room. Another delighted in the aroma of freshly prepared breakfast wafting through the air, setting the perfect tone for each day spent in this enchanting locale.

Nestled at the foot of the majestic Eyjafjallajökull, Umi Hotel offers an unparalleled blend of modern luxury and Icelandic charm. Surrounded by sweeping fields and whispers of nature, the hotel's intimate atmosphere creates a serene escape for couples and adventurers alike, making each moment feel like a cherished memory waiting to unfold.

Romantic Retreat - With stylish Scandinavian decor and breathtaking views, each room becomes a cozy sanctuary where couples can unwind and connect, enjoying the perfect backdrop for starlit conversations over a warm cup of tea.

Culinary Delights - The on-site restaurant serves as a culinary haven, where guests savor thoughtfully crafted dishes with local ingredients, elevating dining into a memorable experience that lingers long after the last bite.

Nature's Playground - Just a short stroll from the black sands of the beach, guests are invited to explore picturesque landscapes and enjoy tranquil moments, often finding themselves alone with the soothing sounds of waves crashing against the shore.

Guest Experiences - One guest delighted in the unexpected joy of watching friendly horses just outside their window, while another remarked on the warmth of the staff, who treated their young child like family, infusing each interaction with genuine care and friendliness.

Nestled in the heart of Reykjavík, the Black Pearl Apartment Hotel offers an exquisite blend of modern luxury and Icelandic charm. With stunning views of the vibrant cityscape and the distant harbor, this chic sanctuary invites you to unwind in spacious, beautifully-appointed apartments that feel like a home away from home.

City Style - Step outside your door and immerse yourself in the eclectic rhythm of Reykjavík, where bustling cafés and unique shops beckon just moments away, making every stroll an adventure filled with local flavor and culture.

Total Relaxation - Indulge in the serene comfort of your apartment, featuring heated marble floors and plush king-size beds, where you can sip Nespresso amidst contemporary furnishings while basking in the soft glow of Iceland's natural light streaming through large windows.

Romantic Break - Elevate your getaway with intimate balcony views, perfect for sharing a glass of wine as the sun sets over the harbor, creating a backdrop that whispers romance amid the city's artistic allure.

Guest Experiences - Guests have cherished waking up to the tantalizing aroma of fresh pastries wafting from the nearby bakery, DEIG, a hidden gem just steps away, where they found themselves delighting in warm bagels and sweet donuts while savoring the morning chill that lingers in the air.

Nestled in the heart of Reykjavík, where the city’s vibrant pulse meets the serenity of home, the Reykjavík Residence Apartment Hotel invites you to indulge in a uniquely luxurious experience. Each self-catering apartment is thoughtfully designed with modern comforts and touches of romance, making it the perfect haven for couples and explorers alike as they embark on their Icelandic adventure.

Historic Charm - Set within beautifully preserved historic buildings, each apartment brims with character, offering glimpses into Reykjavík's rich past while providing contemporary amenities that blend seamlessly with the vintage allure.

Culinary Delights - Awake to the intoxicating aroma of freshly baked sourdough bread delivered to your door each morning—a delightful touch that enhances your stay, inviting leisurely breakfasts before venturing out to explore local culinary gems.

Prime Location - Positioned just steps away from the bustling Laugarvegur street, guests can quickly immerse themselves in Reykjavík's vibrant shopping scene, exquisite dining options, and lively nightlife, all easily accessible during a scenic stroll through the city's charming streets.

Guest Experiences - As you unwind in your cozy space, take note of the gentle hum of the city outside—it's a soothing soundtrack to your urban retreat. Guests have remarked on how the well-equipped kitchens allow for spontaneous late-night gatherings, where laughter blends with the clinking of mugs filled with warm beverages, echoing the camaraderie shared among friends and family.

Nestled in the heart of Reykjavík, Canopy by Hilton Reykjavik City Centre exudes a sophisticated charm that invites guests to unwind and immerse themselves in the vibrant culture surrounding them. With its chic minimalist design, this urban oasis is the perfect backdrop for romantic getaways or leisurely explorations, all while indulging in local gastronomy and the warmth of Icelandic hospitality.

Outstanding Location - Just steps away from bustling Laugavegur Shopping Street and the serene waterside of Tjörnin Lake, every corner of this hotel offers a chance to discover Reykjavík's unique allure, from cozy cafes to lively bars teeming with life.

Total Relaxation - After a day of adventure, retreat to your spacious room where the luxurious bed envelops you in comfort, and the air carries a hint of freshly brewed coffee, readying you for a restful night.

City Style - The hotel's stylish décor seamlessly blends contemporary aesthetics with traditional Icelandic touches, creating an inviting atmosphere that reflects the spirit of the city and enhances your overall experience.

Guest Experiences - As I walked into the hotel, the delightful aroma of freshly baked pastries wafted through the lobby, instantly making me feel at home. The staff greeted us with genuine smiles, and when I mentioned my love for the shower, they chuckled and assured me it was indeed one of their favorites too—eager to share a quiet moment of joy in this bustling haven.

Nestled in the heart of Reykjavík, Apótek Hotel beckons with an exquisite blend of historic charm and modern sophistication. Once a pharmacy, this boutique gem, designed by the esteemed architect Gudjón Samúelsson, envelops guests in its vibrant decor and warm hospitality, offering a serene retreat just steps away from the city’s most captivating attractions.

Outstanding Location - Perfectly positioned for urban explorers, the hotel is mere moments from Laugavegur shopping street and a leisurely stroll to iconic sites like Hallgrímskirkja Church, making it an ideal base for both adventure and relaxation.

Culinary Treats - Experience Icelandic cuisine at its best in the hotel’s stylish restaurant, where breakfast bursts with local flavors and dinner introduces you to inventive tasting menus that celebrate the essence of Iceland’s culinary heritage.

Chic & Boutique - With meticulously designed rooms featuring bright accents and plush furnishings, each space tells a story of refined elegance—ideal for couples seeking romance or solo travelers yearning for a rejuvenating escape.

Guest Experiences - As evening approached, the soft hum of laughter wafted through the air from nearby bars, while the rich aroma of fresh-baked pastries lured guests to gather for breakfast—a delightful start to the day amidst laughter and shared tales of their adventures.

Nestled along the vibrant Laugavegur shopping street, Sand Hotel by Keahotels is a chic sanctuary where modern elegance meets Icelandic charm. With its carefully curated decor and intimate atmosphere, this boutique hotel offers a serene escape for couples and adventurers alike, enveloped in the enchanting pulse of Reykjavík.

Outstanding Location - Just a leisurely stroll from iconic landmarks like Hallgrímskirkja Church and Harpa Concert Hall, guests are perfectly positioned to explore the city's rich cultural tapestry while indulging in local cuisine and charming shops right at their doorstep.

Romantic Break - Imagine sipping artisanal coffee on the sun-drenched terrace with panoramic city views, or relishing a candlelit dinner at the hotel's restaurant—where each dish evokes the flavors of Iceland, creating unforgettable moments for lovebirds.

Total Relaxation - Each room is a haven of comfort, adorned with soft textures and soothing colors, inviting you to unwind after a day of exploration. Enjoy the plush bathrobes that wrap you in warmth as you savor your morning tea, surrounded by elegant touches that enhance your stay.

Guest Experiences - One guest fondly recalled the delightful aroma wafting from the breakfast area—a medley of freshly baked bread and brewing coffee—that beckoned them each morning. The attentive staff, always ready with a smile, made arrangements seamlessly, instantly transforming any travel hiccup into a smooth experience.

Nestled amidst the dramatic landscapes of Húsafell, Hótel Húsafell offers an enchanting escape where luxury meets nature's raw beauty. With whispers of geothermal springs and lush greenery filling the air, each moment invites you to unwind and discover the sublime artistry of Icelandic hospitality.

Total relaxation - Immerse yourself in our geothermal pools, where the soothing warmth washes over you while the crisp mountain air invigorates your spirit—a perfect blend of tranquility and adventure.

Gastronomic delight - Indulge in world-class cuisine crafted by our talented chef, where every meal transforms into a culinary journey—each bite bursting with local flavors and elegantly presented like a work of art.

Active Holiday - Explore the breathtaking trails surrounding the hotel, breathing in the earthy scent of moss and volcanic rock as you hike or cycle through enchanting lava fields and serene landscapes, making every step an adventure.

Guest Experiences - Imagine wrapping up a day of exploration, savoring a cocktail that is both vibrant and refreshingly unique, while the laughter of fellow guests dances in the air, creating a warm, inviting atmosphere that feels like a gathering among friends.

Nestled in the picturesque village of Siglufjörður, Siglo Hotel by Keahotels exudes an intimate charm that beckons couples and adventure seekers alike. With its elegant design and breathtaking views of the harbor, this boutique hotel serves as a luxurious haven where romance intertwines with the rugged beauty of Icelandic nature.

Romantic Retreat - Immerse yourself in the serene ambiance of the hotel, where each room boasts plush beds and cozy window seats, perfect for sipping coffee while gazing out over tranquil waters, creating a romantic escape that's entirely your own.

Wellness Oasis - Unwind in the soothing warmth of the infrared sauna before taking a blissful dip in the outdoor hot tub, where the crisp mountain air mingles with the gentle sounds of water—an idyllic setting to rejuvenate after a day of exploration.

Culinary Delights - Start your day with an inviting breakfast spread, featuring local delicacies that awaken the senses, all enjoyed while seated at sunlit tables overlooking stunning seascapes; the friendly staff is always eager to share recommendations or ensure your glass is never empty.

Guest Experiences - One guest described the enchanting feeling of coziness upon entering the common area, where a crackling fireplace invites couples to snuggle up with a book or engage in friendly chess matches, bringing a touch of homey charm to their getaway.

Nestled in the vibrant heart of Reykjavík, ION City Hotel offers an exquisite blend of modern design and warm Icelandic hospitality. With its chic ambiance and stunning views of both the cityscape and distant sea, this boutique haven is the perfect retreat for romantic escapes and adventurous explorations alike.

Outstanding Location - Just a stone’s throw from Laugavegur’s lively shopping district, guests can effortlessly immerse themselves in Reykjavík's rich culture, wandering past eclectic shops, inviting cafés, and captivating street art that tell stories of the city's vibrant spirit.

Romantic Retreat - With thoughtfully designed rooms featuring plush furnishings and elegant touches, the hotel provides a serene atmosphere where couples can unwind together, perhaps enjoying a glass of wine as they gaze out at the twinkling city lights or the serene waves of the nearby sea.

Spa & Relaxation - Enhance your stay with rejuvenating wellness offerings, whether it’s a refreshing workout in the fitness center or a moment of tranquility in your room, where soft linens and calming hues invite you to relax after a day of exploration.

Guest Experiences - Guests have shared the delight of returning early from their adventures to find their room ready ahead of schedule, coupled with the gentle hum of the city below filtering through the window—an invitation to step back out and savor the local nightlife or simply indulge in the comfort of their stylish surroundings.

Nestled in the heart of Reykjavík, Thingholt by Center Hotels exudes an inviting blend of contemporary design and intimate charm. As you step inside, the warm glow of modern lighting mingles with the rich scents of locally inspired cuisine, creating a sanctuary that feels both chic and comfortably familiar—a perfect retreat for couples and adventure seekers alike.

Outstanding Location - Just steps from the vibrant Laugavegur, guests find themselves enveloped in the bustling spirit of Reykjavik, where the iconic rainbow road beckons exploration and discovery around every corner.

Boutique Spa Retreat - Recharge your senses in a haven of tranquility with spa services designed to pamper and rejuvenate. The soothing ambiance invites relaxation, offering treatments that reflect the natural beauty of Iceland's unique landscapes.

Culinary Delights - Indulge in a fusion of traditional Icelandic flavors and international flair at the Ísafold Restaurant, where each meal is a celebration of taste, crafted with care and served in a lively atmosphere that lingers long after your last sip.

Guest Experiences - The aroma of freshly brewed coffee wafts through the lobby as one guest reminisces about the delightful morning ritual of savoring breakfast alongside friendly staff, whose warm smiles and helpful tips felt like a welcoming embrace in this charming retreat.

Nestled just moments from the vibrant heart of Reykjavík, Eyja Guldsmeden Hotel offers a serene retreat where chic design meets the charm of Icelandic hospitality. With its Balinese-inspired furnishings and breathtaking views of the Esja Mountain and city skyline, every corner of this boutique haven entices guests to unwind in style and comfort.

Chic Accommodations - Each room is a sanctuary adorned with 4-poster beds and organic toiletries, creating an atmosphere that whispers luxury while embracing eco-conscious values. Wake up to the gentle light filtering through large windows, inviting you to start your day immersed in beauty.

Culinary Delights - Indulge in a culinary journey at the on-site restaurant, where local flavors dance on your palate. The breakfast buffet, featuring fresh dairy and vegan delights, fills the air with tantalizing aromas that linger as you sip organic coffee in the cozy lounge.

Outstanding Location - With the bustling Laugavegur shopping street just a stroll away, the hotel serves as a perfect base for cultural explorers. Enjoy leisurely walks to nearby attractions, or embark on cycling adventures through the city and beyond, all while returning to your peaceful oasis.

Guest Experiences - As one guest marveled, they awoke to the enchanting spectacle of the aurora borealis visible from their room, a moment that felt like nature's own embrace. The welcoming staff, always ready to assist, created an ambiance so warm that even the soft leather of the lobby chairs seemed to invite lingering conversations over complimentary tea.

Nestled within the enchanting landscapes of Ásborgir, Hotel Grimsborgir by Keahotels invites couples and discerning travelers to experience a realm of tranquility and luxury. Here, romance intertwines with modern elegance; each moment unfolds against a backdrop of breathtaking mountain views and celestial night skies, perfect for soaking in the alluring northern lights.

Romantic Retreat - Discover a sanctuary of intimacy where every room boasts a private balcony or terrace, allowing whispering breezes and the soft glow of twilight to enhance your romantic escape.

Total Relaxation - Indulge in blissful serenity with access to 29 geothermal outdoor hot tubs. The soothing embrace of warm water beneath a starlit sky transforms evenings into unforgettable experiences.

Culinary Delights - Savor the artistry of local flavors through expertly crafted dishes at our restaurant. Each meal, from sumptuous breakfasts to exquisite dinners, reflects the essence of Icelandic cuisine, making dining a cherished event.

Guest Experiences - Imagine waking up to the scent of freshly baked brioches wafting through the air during breakfast, or finding comfort in plush bathrobes after a rejuvenating soak in your outdoor hot tub as the sun sets behind the mountains.

Nestled by the serene marina of Keflavík, Hotel Berg offers a chic retreat where modern design harmonizes with the breathtaking Icelandic landscape. With its stylish interiors bathed in natural light and a rooftop pool that invites you to soak up the tranquil surroundings, this boutique hotel is perfect for those seeking both adventure and relaxation as they embark on their journey through this enchanting country.

Outstanding Location - Just moments from the shimmering waters of the marina and a short drive to iconic sights like the Blue Lagoon, the hotel's location is a gateway to Iceland's natural wonders, making it an ideal base for explorers.

Total Relaxation - Unwind in the inviting rooftop sitting pool, where the gentle sounds of water blend with the fresh, crisp air, creating a peaceful oasis for couples and solo travelers alike to recharge after a day of adventure.

Romantic Break - With individually styled rooms offering views of the marina or rolling hills, Hotel Berg sets the perfect backdrop for romance, enhanced by a cozy lounge area featuring a crackling fireplace, where you can sip complimentary tea while planning your next escapade.

Guest Experiences - Guests often reminisce about the delightful encounter with the friendly staff, who not only provided a seamless airport shuttle experience but also offered personal recommendations for nearby restaurants, making each visitor feel like a cherished local.

Nestled along the serene banks of the Ölfus River, Hotel Selfoss is a sanctuary where elegance meets Icelandic charm. With its sophisticated ambiance and intimate luxury, this retreat invites couples and wellness enthusiasts alike to immerse themselves in the tranquil beauty of nature, providing an idyllic escape for those seeking romance or relaxation amidst breathtaking landscapes.

Romantic Break - Indulge in the soft glow of candlelight as you savor exquisite cuisine crafted from local ingredients, perfect for a romantic dinner by the crackling fireplace. The atmosphere enchants every moment, ensuring that each meal becomes a cherished memory.

Spa - Unwind in the luxurious spa area, where the soothing warmth of the sauna and steam room envelops you, while the hot water tub beckons with whispers of relaxation after a day of exploration. It's a haven designed to rejuvenate both body and spirit.

Outstanding Location - With the majestic backdrop of Iceland’s stunning landscapes, every glance from your window offers a picturesque view. Just a leisurely stroll away, the charming town reveals local markets and enchanting sights waiting to be discovered.

Guest Experiences - Guests have shared delightful anecdotes about waking up to the gentle sound of flowing water, enjoying breakfast infused with the rich aroma of freshly brewed coffee, and being greeted by the warm smiles of staff who genuinely seem to care about making every stay memorable.