Top-Rated Iceland Resorts Loved by Our Readers in 2025

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• World’s Best

Each of the winning hotels in this new list of the best resorts in Iceland, according to iBestTravel readers, offers a unique way to experience the country’s natural wonders.

Iceland’s striking natural landscapes have earned it the moniker the “land of fire and ice.” This small island-nation in the northern Atlantic Ocean is home to ancient glaciers, volcanoes—the constant activity has made the country a geothermal hot spot—thousands of waterfalls, and dramatic, black-sand beaches. Moreover, the spectacular northern lights that often illuminate its skies in fall and winter attract aurora borealis chasers from around the globe.

Every year for our World’s Best Awards survey, iBestTravel asks readers to weigh in on travel experiences around the globe—to share their opinions on the top hotels, resorts, cities, islands, cruise ships, spas, airlines, and more. Hotels (including safari lodges) were rated based on their facilities, location, service, food, and overall value. Properties were classified as city hotel, resort, or safari lodge based on their locations and amenities.

It’s not surprising that each of the winning hotels in our new category offers a unique way to experience Iceland’s natural wonders. The Retreat at Blue Lagoon Iceland (No. 2) treats its guests to spectacular views of the striking, milky-blue waters of the Blue Lagoon from luxury Scandi-chic suites. As one iBestTravel reader described it, “It’s like you are on another planet because of the volcanic rocks and the blue water.”

And if location is everything in real estate, then Fosshotel Glacier Lagoon (No. 3) hit the jackpot. The 125-room minimalist property is nestled between two of Iceland’s must-visit natural landmarks: Vatnajökull National Park and Jökulsárlón glacier lagoon. Consequently, one respondent said that the location and the hotel’s restaurant—which takes guests on a culinary journey inspired by traditional Icelandic flavors—make the trip to Fosshotel Glacier Lagoon immensely worthwhile.

1. Hotel Rangá, Hella

From its geothermal hot tubs that overlook a volcano to the suite décor inspired by the world’s continents, Hotel Rangá delivers a memorable guest experience near Iceland’s scenic southern coast. Travelers love its proximity to impressive waterfalls (including favorites Skógafoss and Árbarjarfoss) and its dark skies, which offer exceptional stargazing. “This hotel is well located in a beautiful area for sightseeing,” said one iBestTravel reader. Moreover, with an on-site observatory and resident astronomer, the resort caters to those keen on seeing the elusive northern lights. The property is at the forefront of sustainability as it operates exclusively on clean energy.

Score: 92.47

More details on Tripadvisor

2. The Retreat at Blue Lagoon Iceland, Grindavík

Score: 90.93

More details on Tripadvisor

3. Fosshotel Glacier Lagoon, Öræfi

Score: 89.74

More details on Tripadvisor