Remote, unspoilt and replete with activities for nature lovers, Iceland is gaining popularity as a superb destination for outdoor explorers. Catering to a growing number of visitors each year, Iceland offers a wide range of accommodation options — from smart city hotels to laid-back B&Bs — fit for a whole array of budgets. Our pick of the best places to stay in Iceland includes chic boutique spots in the heart of Reykjavik, romantic inns for foodies and remote eco-retreats nestled amidst geo-thermal hot springs and striking hiking trails in the island’s vast interior.
Bright, vibrant Reykjavik is a wonderful place to begin any Icelandic journey. Home to fewer than 150,000 people, it has an impressive reputation as one of the cleanest, greenest and safest cities in the world, and is home to a burgeoning cultural scene. Visit the National Museum, as well as several world-class arts and design museums, relax in cosmopolitan cafes and restaurants, and catch live music on long summer evenings.
City hotels range from big business spots to luxurious boutique properties with great onsite restaurants and downtown locations – ideal for strolling past brightly-painted buildings and soaking up the best of Reykjavik’s nightlife. The marina is the city’s most up-and-coming district, and one of our favourite city hotels is situated right in the heart of the action — a top choice for trendy couples on the hunt for great cocktails in a historic location.
The other appealing aspect of such a small capital city is the ease with which visitors can venture into the wilds of rural Iceland, where bright geothermal pools, glittering glaciers and volcanic land formations await exploration. Gaze at geyser-fields and mud-pools, take tours of volcanoes, amble around tiny fishing villages and marvel at the huge expanse of sheer space which Iceland has become so famous for. With sea kayaking, horse riding, hiking and birdwatching all on the agenda, there’s stacks for adventurous couples and families to do.
The standout highlight is, of course, the chance to admire the Northern Lights in all their glory. Most visible between March and April or September and October, the aurora borealis is one of the world’s most striking natural wonders, and well worth venturing to Iceland’s remote rural corners to discover.
Whether you’re dreaming of a helicopter ride to the top a glacier, eager to go puffin-spotting with the kids, or keen to bask in the wonders of a natural spring, Iceland has it all. Many of the best places to stay in Iceland are appealingly remote, offering visitors a brilliant opportunity to reconnect with nature — either in charming traditional inns or in dramatic glass-fronted design hotels. Wherever you decide to stay, there’ll be spectacular views for certain.
The best places to stay in Iceland
For Reykjavik
- The Hotel Borg is an upscale Art Deco hotel with elegant rooms and suites hidden behind an imposing façade on historic Asuturvollur Square. Pick this place for an excellent city centre location, stacks of style, friendly staff and a lovely spa. Perfect for exploring the city!
- Centrehotel Thingholt promises 52 monochrome rooms and suites with free-standing bathtubs and slick minimalist decor. Whilst the bistro and bar are lovely and lively, the real highlight is the award-winning spa. Unwind in style with a 55 minute aromatherapy massage after a day out exploring the city. A a cool, cosmopolitan choice.
- Sand Hotel is a luxurious boutique spot in the heart of Reykjavik. Think slick Icelandic design, muted tones and a superb restaurant. Pick this place for its location, history and cosy, relaxed atmosphere.
- 101 Hotel offers super-slick minimalist decor in 38 rooms and suites. Expect monochrome decor, big bathtubs and balconies, as well as an excellent spa and stylish restaurant. A chic design spot in one of the city’s top postcodes.
- Reykjavík Marina Hotel is a hip property with 147 colourful, contemporary rooms and suites in a landmark building overlooking Reykjavík’s marina. Highlights include the onsite Slippbarinn restaurant, Slipp cinema — seating up to 20 people — and a small fitness suite. The trendy marina location offers an insight into Reykjavik’s fishing history, whilst the buzzing restaurant is a top spot for a cracking cocktail.
- Grand Hotel Reykjavík offers smart, spacious rooms in a quiet area of the city. A great business choice, the hotel also has a gym and a spa, as well as impressive sea views. Interconnecting rooms are a good option for families. An excellent value choice for a modern city stay with all the facilities.
- Hilton Reykjavik Nordica is a smart choice for a professional trip. Just outside downtown Reykjavik, the hotel boasts excellent city views, a five-star gourmet restaurant, a gym and a spa. Choose this spot for its business district location and big hotel facilities.
For the Northern Lights
- Ion Hotel offers simple, ultra-modern rooms, as well as a gourmet restaurant and a revitalising spa just 45 minutes from Reykjavik. The hotel’s architecture is the real sell: this impressive design space boasts floor-to-ceiling glass, perfect for admiring the Northern Lights by night and the rural views by day.
- Hotel Ranga is a cosy resort offering traditional wood-panelled rooms in South Iceland. The gourmet restaurant serves Icelandic specialities, and this is an ideal spot to see the Northern Lights. This is one for outdoor adventurers in nearby nature reserves: think horse riding, off-road driving, dips in hot springs and volcanic hikes, making the most of the unspoilt southern scenery.
- Hotel Grimsborgir lies in Iceland's famed Golden Circle, offering five-star luxury in stunning surroundings. Rooms, suites and apartments are classically elegant, there are 29 geothermal hot tubs on-site, and a lively restaurant offering international cuisine. Pick this place for beautiful accommodation, live entertainment each weekend, and lots of outdoor activities — as well as a great chance of seeing the Northern Lights.
For a B&B
- Hótel Aldan is a historic riverside B&B with cosy rooms kitted out in soothing shades, hardwood floors and lovely views. The self-catering Old School apartments on a second site in Seydisfjordur town centre are great for groups or families. Pick this place for a relaxed guesthouse feel, traditional charm and stacks of nearby activities — including sightings of the Northern Lights.
For foodies
- Hotel Budir offers 28 elegant rooms and suites in a remote location on the Icelandic coast. Book a room here for plenty of charm, outdoor activities galore — from bird watching to horse riding — and a wonderful view of the Northern Lights if visiting in March. The real highlight is the gourmet restaurant, serving exquisite eastern Icelandic cuisine.
- Hotel Husafell is a luxurious contemporary hotel occupying a fabulous rural location. Minimalist rooms make the most of the wonderful views and there’s a lovely heated pool.Visit geothermal pools, lava fields and waterfalls, before returning to dine at the striking restaurant. Dishes fuse Icelandic flavours with international influences, and the views from the restaurant are spectacular. Kids’ menus are also available, and interconnecting rooms or sofa beds make this a great family choice.
- Hotel Flatey is an idyllic summer guesthouse offering 11 pretty rooms on the island of Flatey. Set in a quiet village, the best of the bright, cosy rooms have breathtaking sea views, and the onsite restaurant serves delicious fresh seafood. An intimate hotel ideal for a remote, romantic stay — and fresh, foodie delights which draw Icelanders from the mainland.
For Families
- Hotel Glymur is a collection of 25 cosy wooden rooms and villas nestled near a remote fjord. The onsite restaurant serves fabulous Icelandic food, there are geothermal baths and all the mod. cons, as well as wonderful views of the Northern Lights — if you time your stay correctly. Self-catering villas with hot tubs sleep 4 - 6 guests, and are ideal for families!
- Siglo Hotel offers chic Icelandic style in a gorgeous harbour-front location. Grown-ups will love the indulgent outdoor hot spring bath, hot tub and steam room, whilst kids can play volleyball or mini-golf in the adjacent Marina Village. The onsite restaurant and bar are top-notch, too. Choose this hotel for a picturesque northern location, classic style and family-friendly feel — including additional kids’ beds on request.
- Blabjorg Hotel is a magical guesthouse in a little fishing village on Iceland’s eastern coast. There’s a cool industrial-chic vibe, with a hot tub, infrared sauna and steam room, as well as a relaxed restaurant and bar focusing on local, seasonal fare. Two or three-bedroom self-catering apartments are ideal for families, and kids will adore spotting puffins just a couple of metres away! This is a peaceful haven for trekking, birdwatching or fishing.
- Heydalur is a rural guesthouse and campsite in a beautifully remote north-west setting. Farmhouse rooms are simple and bright, whilst summer houses offer family or group accommodation in pretty pine cabins. This is a real retreat to nature: think hiking, sea kayaking, birdwatching and horse riding with expert guides. A low-key base for lovers of the great outdoors!
For an eco-stay
- Magma Hotel is an intimate eco-retreat in a striking part of southern Iceland. Spacious, contemporary rooms are housed in individual moss-topped cabins, with glass doors offering impressive lakeside views. There’s also a lovely onsite bistro. With spectacular volcanic scenery to explore, this is a great pick for nature lovers.
- Frost & Fire Hotel promises smart, modern boutique rooms set amidst bubbling springs. A contemporary eco-choice with seasonal produce served in the restaurant and impressive spa-style facilities. Think two hot tubs, an outdoor pool and a black stone sauna, as well as a warm river for swimming and hiking trails aplenty. An outdoorsy hot spring experience.
For an apartment
- If you'd prefer a self-catering option, we suggest that you visit our online partner Booking.com.
Travel Information
- Fly to Keflavik International Airport, 40kms outside Reykjavik, and hop aboard a bus or taxi into town. Reykjavik Airport offers domestic flights — perfect for remote Icelandic stays!
- If you would like to hire a car, we suggest that you contact our online partner Rentalcars.
- Visit during the summer months (May to August) for warmer weather and the impressive midnight sun. If you’re eager to spot the Northern Lights, time your trip for February - March, or September - October. With darkness lasting almost 20 hours in December, and the sun setting so briefly during the summer months that the sky has barely any chance to really darken, the light (or lack thereof!) plays a huge part in many travellers’ memories of Iceland, and it’s worth timing your trip accordingly.
Still not sure?
