Top Rated Hotels in Iceland for an Unforgettable Stay

Discover the Best Hotels in Iceland

It’s no secret by now that Iceland is one of the world’s greatest destinations. First-time visitors drive jaws agape around the ring road, marveling at the primal landscapes being molded in front of their eyes, ancient to us but younger than most other countries on Earth. Repeat visitors delve into the hidden corners of the country, immersing themselves in the small towns that cling to precarious coastlines, undertaking epic multi-day treks, and discovering that every fjord, valley, and mountain heath holds something wondrous.

What is universal for everyone visiting this far-flung island in the North Atlantic is the feeling of awe that journeys through the country bring about. With such drama and adventure on the outside, the hotels sprinkled across the country are suitably relaxed and luxurious, offering peaceful refuges from the elements. From cushy country lodges to sophisticated Scandinavian hideaways, these are the best hotels in Iceland.

How We Choose the Best Hotels in Iceland

Every hotel on this list has been selected independently by our editors and written by a iBestTravel journalist who knows the destination and has stayed at that property. When choosing hotels, our editors consider both luxury properties and boutique and lesser-known boltholes that offer an authentic and insider experience of a destination. We’re always looking for beautiful design, a great location, and warm service – as well as serious sustainability credentials. This list is updated regularly as new hotels open and existing ones evolve.

Interior at Highland Base Iceland

Highland Base

Featured on our 2024 Hot List of the best new hotels in the world

Iceland really has been the “land of fire and ice” of late, with the recent eruptions on the Reykjanes Peninsula causing the temporary closure of The Retreat at Blue Lagoon, a 60-suite hotel and subterranean geothermal spa. Luckily, the sustainably minded wellness company’s new sister venture, a year-round off-grid retreat for adventure extremists, is 110 miles away in Iceland’s vast and mostly frozen interior, which remained unexplored until the 1930s. Highland Base in Kerlingarfjöll – a vast reserve of snowdrift-blanketed peaks, glaciers, and lava fields – might as well be on the moon.

Getting there is a mission. In winter, after arriving at Skjol Basecamp – 90 minutes on the Golden Circle from Reykjavik – it can take two to five hours of “floating” over virgin snow in adapted Super Jeeps. The angular Highland Base huddles in a valley like a Nordic minimalist space station, a 28-room hotel and six pod-like lodges occupying the abandoned structures of the pioneers who have gone before. The lodges, which have sunken living rooms, Polaroid-like windows, and hanging ponchos, were designed with sustainable aged wood and concrete by Icelandic firm Basalt Architects, masterminds of the Blue Lagoon.

Activities include cross-country skiing, snowshoeing, and hiking, as well as jumping in the geothermal baths to see the Northern Lights after dinners of Arctic char and warming shots of Brennivín schnapps.


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