The Best Hotels in Iceland

Iceland is a country of dramatic natural spectacles and fittingly, it has some pretty dramatic hotels from which visitors can take in the beauty. Ion Luxury Adventure Hotel's location in Nesjavellir was selected specifically to showcase the Northern Lights. Hotel Rangá in South Iceland, is the perfect base for exploring volcanoes, waterfalls, and black sand beaches. Iceland's capital, Reykjavik, offers unrivaled nightlife, edgy food, plus design-centric hotels such as Hotel Berg and Hotel 101.
Collected by Afar Magazine
Photo 101 Hotel
Hverfisgata 10, 101 Reykjavík, Iceland
Set in a fairly austere five-story concrete building on Hverfisgata, it would be easy to dismiss the 101 Hotel as merely a functional hotel option. Stepping inside, however, guests discover an ultra-modern boutique hotel whose minimal...
Photo Hilton Reykjavik Nordica
Hverfisgata 10, 101 Reykjavík, Iceland
Despite a location slightly outside Reykjavik’s center, the Hilton Nordica is one of the city’s most popular hotels. Much of this is thanks to the high levels of service and comfort and the modern, Scandinavian-style interior. The...
Photo Hotel Borg
Hverfisgata 10, 101 Reykjavík, Iceland
Hotel Borg, commissioned and built by Icelandic wrestler Johannes Josefsson in the 1920s, was one of Iceland’s first high-end hotels. Almost a century on—and despite a thoroughly modern refurbishment—it still exudes an...
Photo Hotel Budir
Hverfisgata 10, 101 Reykjavík, Iceland
About a two-hour drive from Reykjavik, Hotel Budir's remote location makes it popular with visitors hoping to spot the Northern Lights. Situated near a windswept beach beside the mighty Snaefellsness glacier, the hotel’s raw natural...
Photo Hotel Reykjahlid
Hverfisgata 10, 101 Reykjavík, Iceland
Built in 1947, this intimate, family-run hotel has an enviable location right on the banks of the striking Lake Mývatn in the northeast of Iceland. Despite looking fairly nondescript from the outside, Hotel Reykjahlid exudes a traditional...
Photo courtesy of Ion Hotel
Hverfisgata 10, 101 Reykjavík, Iceland
Protruding from a landscape of moss and lava less than an hour from Reykjavik lies one of the very few true luxury hotels outside of the island-nation’s capital, the Ion Adventure Hotel. What was once a no-frills barracks for workers at a...
Photo Hlemmur Square
Hverfisgata 10, 101 Reykjavík, Iceland
This buzzy hybrid offers both hostel dorms and hotel rooms in a five-story building on Reykjavik’s main drag, Laugavegur. The lower floors contain the hostel, while the top floor has hotel-style rooms, all of which were designed by...
Photo Hotel Rangá
Hverfisgata 10, 101 Reykjavík, Iceland
Named after the fast-flowing river that runs alongside it, this country lodge—located just an hour from Reykjavik in the middle of an isolated, windswept plain—is an extraordinary retreat. Built in a log cabin style, Hotel Rangá...
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