Top 3 Iceland Resorts for 2025 According to Travel + Leisure Readers

Geothermal pools glistening in a milky turquoise hue, lava fields caked in glacial ice, and impressively good yogurt – it’s just another day in Iceland, a stark landscape that seems scripted like a fairy tale. The feeling of fantasy is enhanced further still when you’re overnighting in one of the country’s magical luxury lodges. Because around here, the locals have developed a style of grandeur all their own.

How Voting Works

Every year for the 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. Nearly 165,000 iBestTravel readers completed the 2023 survey, an increase of nearly 25 percent over pre-pandemic voting levels. A total of more than 685,000 votes were cast across over 8,500 unique properties (hotels, cities, cruise lines, etc.).

Hotels were classified as either resort hotel, city hotel, or safari lodge based on their location and amenities, and they were specifically rated on the criteria below:

• Rooms/facilities
• Location
• Service
• Food
• Value

For each characteristic, respondents could choose a rating of excellent, above average, average, below average, or poor. The final scores are averages of these responses.

What Readers Loved

Rather than ornate lavishness you might expect from five-star properties, Icelanders prefer a minimalist approach, in which the architecture defers to the majesty of the surrounding landscape. The top-rated entries included below afford you a front-row seat to the natural spectacle, while dialing inner calm and comfort up to unrivaled rungs.

Want to wake up beside a glacial lagoon? Of course you do. When you arise at the Fosshotel (No. 3) at the foot of Hvannadalshnúkur — Iceland’s tallest peak — you’ll have to spend time convincing yourself that you haven’t been transported to another planet in your sleep. Don’t worry, the memorable dining experience here will snap you right back to reality, even if the tasting menu — comprised of artfully rendered Nordic specialties — is dubbed the “Dreamfeast.”

Meanwhile, The Retreat (No. 2) is situated along Iceland’s most celebrated landmark: the Blue Lagoon. “[It’s] likely my favorite hotel in the world,” one reader commented. “It’s as if you took the level of service and luxury of Aman resorts and gave it earnest Icelandic hospitality with their wonderful culture of wellness and delicious foods. I would live at this hotel if I could.”

While moving into The Retreat isn’t currently on the table, enjoying a stay at these hotels — voted the top resorts in Iceland by our readers — is an enviable consolation prize.

The Winner

Silica Hotel: Grindavik, Iceland

The aptly named Blue Lagoon is a world-famous destination for good reason: it’s a wholly unique human-made wonder. However, that’s also why it gets so overrun with tourists. Those who stay overnight at the sleek and stylish Silica Hotel get a slice of the stunning hot pools all to themselves. Here, you’ll find your own private bathing lagoon available exclusively to hotel guests, open from 9 a.m. until 10 p.m. daily. “It was a splurge financially,” warns one reader of rooms that start at $650 per night. “But it was well worth it.”

The Full List

1. Silica Hotel: Grindavik, Iceland

Reader Score: 90.13

2. The Retreat: Grindavik, Iceland

Reader Score: 89.13

3. Fosshotel Glacier Lagoon: Öræfi, Iceland

Reader Score: 88.86