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The Best Hotels in Iceland

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Iceland is a place of dramatic natural wonders, from age-old glaciers and black-sand beaches to tumbling waterfalls and geothermally heated lagoons. Fittingly, the country is also home to spectacular hotels where visitors can take in all the beauty. From remote inns in view of the aurora borealis to hipster havens in Reykjavik, these lodgings bridge the gap between comfort and total surrender to your surroundings.
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Hverfisgata 10, 101 Reykjavík, Iceland
On first glance, it would be easy to dismiss the 101 Hotel as merely a functional option. Stepping inside the austere five-story concrete building on Hverfisgata, however, guests discover an ultra-modern boutique lodging with minimal...
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Suðurlandsbraut 2, 108 Reykjavík, Iceland
Despite being located just outside Reykjavik’s main center, the Hilton Nordica maintains its popularity thanks to its superb service and welcoming Scandi-mod interiors. Though working travelers tend to favor the property for its many...
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Laugavegur 105, 105 Reykjavík, Iceland
Nicer than your average hostel, cooler than the typical chain hotel—this buzzy hybrid offers hostel-style dorms and more traditional accommodations in a 1930s Art Deco building on Reykjavik’s main drag. Designed by hotelier-owner Klaus...
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Pósthússtræti 11, 101 Reykjavík, Iceland
Commissioned and built by Icelandic wrestler Johannes Josefsson in the 1920s, Hotel Borg was one of Iceland’s first high-end hotels. Almost a century on—and despite a thoroughly modern refurbishment—it still exudes an...
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356, Íþróttahús Snæfellsbæjar, Engihlíð 1, 355 Ólafsvík, 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 property’s raw natural...
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F 26, 851 Hella, Iceland
Named after the fast-flowing river that runs alongside it and located just an hour from Reykjavik in the middle of an isolated, windswept plain, Hotel Rangá is an immediately homey place. Built in a log-cabin style, the country lodge...
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Vogafjós, 660 Myvatn, Iceland
Built in 1947 on the banks of Lake Mývatn, this intimate, family-run hotel exudes traditional charm despite its nondescript exterior. The nine country house–style rooms are simply furnished, with peach-and-orange walls, wood floors,...
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Nesjavellir 801, 801 Nesjavellir, Iceland
On the slopes of the still-active volcano Mount Hengill, on the edge of Thingvellir National Park, Ion Luxury Adventure Hotel is seriously in harmony with its environment. Energy and hot water is provided by the nearby Nesjavellir Geothermal Power...
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Austurstræti 16, 101 Reykjavík, Iceland
Built in 1907 by the same architect who designed the National Theatre and Hallgrímskirkja church, Apotek is full of historical resonance. The Art Nouveau–style building was once the country’s largest edifice and served as the...
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Laugavegur 66-68, 101 Reykjavík, Iceland
What do amenities mean in the age of the millennial traveler? At the stylish yet understated Alda Hotel, guests receive a complimentary Android phone that’s preloaded with apps to help you explore the city, from the hottest new restaurants...