top of page
Travel Inspiration

Best Luxury Hotels in Iceland

Last Updated

August 30, 2023

Iceland offers a variety of luxury hotels that cater to discerning travelers seeking an extraordinary vacation experience. From the capital city of Reykjavik to remote locations surrounded by breathtaking natural landscapes, these hotels provide unparalleled comfort, top-notch service, and opulent amenities. Whether you wish to witness the Northern Lights or indulge in Icelandic cuisine, these luxury hotels in Iceland promise to provide an unforgettable and lavish stay.

Iceland offers a variety of luxury hotels that cater to discerning travelers seeking an extraordinary vacation experience. From the capital city of Reykjavik to remote locations surrounded by breathtaking natural landscapes, these hotels provide unparalleled comfort, top-notch service, and opulent amenities. Whether you wish to witness the Northern Lights or indulge in Icelandic cuisine, these luxury hotels in Iceland promise to provide an unforgettable and lavish stay.

ION Adventure Hotel

The ION Adventure Hotel is undoubtedly one of the most remarkable and breathtaking luxury hotels in Iceland, if not the entire Northern Hemisphere. Its location on rugged cliffs above a field of jet-black lava within the UNESCO-listed Thingvellir National Park is truly awe-inspiring. As you step inside, you are immediately enveloped in an oasis of warmth and tranquility, with beautifully designed interiors that incorporate driftwood and other natural materials from the surrounding landscapes. This seamless blend of high-end luxury and Icelandic sensibilities perfectly complements the stunning beauty of the outside scenery.

One of the standout features of this extraordinary hotel is the Northern Lights Bar. Elevated over the lava field and boasting enormous windows, it offers an unparalleled vantage point for witnessing the mesmerizing dance of the aurora borealis across the night skies. The onsite Silfra Restaurant is another gem, serving up delectable dishes ranging from fresh Arctic Char to succulent glazed lamb shank. Additionally, the hotel's heated plunge pool provides a unique experience, allowing guests to immerse themselves in steamy water while observing the dramatic weather of Iceland unfold around them.

Besides offering luxurious amenities, the ION Adventure Hotel serves as an ideal base for exploring the Golden Circle, thanks to its convenient location. The dedicated reception staff can arrange a plethora of exhilarating activities, including snorkeling between tectonic plates at the nearby Silfra fissure or embarking on super-jeep tours across the glaciers. For those seeking deeper adventures, the hotel even offers expeditions into nearby lava caves, ensuring a truly unforgettable experience. Whether you crave enchanting natural beauty, culinary delights, or thrilling excursions, the ION Adventure Hotel has everything needed to create lasting memories of your Icelandic getaway.

The Retreat at Blue Lagoon

The Retreat at Blue Lagoon is the epitome of luxury and wellness in Iceland. This upscale hotel, connected to the renowned Blue Lagoon hot spring, combines the enchantment of geothermal wonders with the utmost extravagance. The suites exude a sleek and minimalist design that beautifully mimics the mossy-covered lava fields that surround the hotel. With floor-to-ceiling windows, guests are treated to breathtaking views of the ethereal light flooding in from the Reykjanes Peninsula, transforming the interiors into an otherworldly Icelandic realm of stark greys and subdued blacks.

The underground spa is a true masterpiece, captivating visitors as they explore its cavernous space. Here, guests can partake in the exclusive Blue Lagoon Ritual, a rejuvenating wellness cleanse utilizing the silica, algae, and array of minerals found in the geothermal waters. As if that weren't enough, access to a more private section of the Blue Lagoon is also included, granting guests a truly indulgent experience. Moreover, the hotel boasts a world-class restaurant, where exquisite culinary delights await. The Retreat at Blue Lagoon offers a sanctuary of opulence and tranquility, allowing guests to immerse themselves in the natural wonders of Iceland while enjoying the height of luxury.

Deplar Farm

Deplar Farm, one of Europe's most isolated and luxurious mountain lodges, is nestled in a grassy meadow surrounded by the imposing peaks of the Tröllaskagi Peninsula. This remote region in Iceland offers a splendid choice for travellers looking to escape the ring road and immerse themselves in the rugged beauty of the country. The peninsula boasts some of the most dramatic views of the Northern Atlantic Ocean, with a single road tracing the coastline and connecting several fishing towns that are dwarfed by the gargantuan surroundings.

Run by the high-end and exclusive Eleven Experience, Deplar Farm offers adventurous travellers the whole experience. With a team of expert guides, guests can indulge in a range of thrilling activities throughout the year. From heli-skiing in the winter to mountain biking and salmon fishing in the summer, there's an array of adventures to embark on. After an exhilarating day, guests can unwind in the heated pool with a swim-up bar or retreat to their cosy and elegant rooms that overlook the peaceful meadow. To top it off, the hotel's team of star Icelandic chefs prepares world-class food, ensuring a truly unforgettable stay at Deplar Farm.

Hotel Rangá

The Hotel Rangá in Iceland’s south is a luxury haven that exudes both elegance and adventurous spirit. Nestled amidst the stunning landscapes of Iceland’s south coast, this log-style cabin serves as a wonderful refuge in the middle of the country's captivating landscape. As soon as guests step foot inside, they are greeted by the magnificent sight of Hrammur the polar bear, a 10-feet-tall taxidermy that had the unfortunate fate of washing up onto Iceland’s shores on a piece of ice from Greenland. This captivating centerpiece sets the tone for a unique and awe-inspiring stay at Hotel Rangá.

Hotel Rangá effortlessly combines the ambiance of a luxury hunting lodge with the charm of an inviting country manor. It straddles the line between adventure and comfort, making it the perfect base for exploring the wonders of Iceland's south coast. Turn your gaze inland, and you'll be treated to breathtaking views of the twin glaciers Eyjafjallajökull and Mýrdalsjökull, enticing you to embark on thrilling adventures just beyond the front door.

After a day filled with exploration, Hotel Rangá warmly welcomes weary adventurers back to its cozy embrace. The rooms exude a sense of homey comfort, adorned with local artworks and Icelandic quilts that add a touch of authenticity. A true highlight of the hotel is its collection of seven high-end suites, each paying homage to one of the world’s seven continents, from the vibrant Americas to the icy Antarctica. And for those seeking relaxation, the prerequisite hot pot awaits, beckoning guests to unwind and soak away their cares. To top it all off, the hotel boasts an exceptional observatory, complete with a local astronomer and northern lights photographer who are experts in guiding guests through the mesmerizing skies and capturing the enchanting dance of the aurora borealis. At Hotel Rangá, every aspect of your stay is designed to provide an extraordinary and unforgettable experience in the heart of Iceland’s captivating landscape.

Hotel Búðir

The Hotel Búðir, a premier luxury hotel in Iceland, is renowned for its ability to embrace the natural surroundings and let them shine without overpowering them with unnecessary extravagance. Nestled on a remote beach on the southern shores of the Snæfellsnes Peninsula, this hidden gem offers an unparalleled experience of isolation and grandeur. As you gaze out across the bay and take in the captivating views of the moody glacier at the heart of Snæfellsnes National Park, you can't help but feel overwhelmed by the sheer beauty of it all.

What sets Hotel Búðir apart is its timeless elegance and cozy atmosphere. The vintage-style furnishings add a touch of sophistication to the entire property, perfectly complementing the rugged beauty of the outside world. The dreamy interiors match the mood of the surrounding landscapes, creating a soothing and inviting ambiance. Moreover, the hotel's renowned restaurant is a favorite among locals, further solidifying Hotel Búðir's status as a top choice for luxury accommodation in Iceland. With its elegant backdrops and emphasis on the natural environment, Hotel Búðir allows guests to truly immerse themselves in the awe-inspiring nature that Iceland has to offer.

Hotel Egilsen

The Hotel Egilsen is a relic of the richest era of trade in Scandinavia, located in the picturesque town of Stykkishólmur on the Snæfellsnes Peninsula. This historic boutique hotel, housed inside a beautiful home dating back to 1867, offers a unique and luxurious experience for travelers seeking a taste of Iceland's rich history.

As you step inside the cheery red exteriors of Hotel Egilsen, you'll be transported to a bygone era filled with Nordic charm. The interiors are adorned with mismatched antique furnishings, creating an atmosphere that is both welcoming and nostalgic. Inspired by the town's fishing industry and maritime heritage, the rooms offer a cozy retreat where you can unwind and immerse yourself in the local culture.

One of the highlights of Hotel Egilsen is its impressive library, which houses a collection of old Nordic folk tales and Icelandic poetry. This emphasis on literature adds a touch of sophistication to your stay, inviting you to explore the rich literary traditions of the region. Additionally, guests are encouraged to share their own tales during their visit, which are then published on the hotel's website. This interactive feature allows you to become a part of the hotel's story and contribute to the collective narrative of the breathtaking Snæfellsnes Peninsula.

With its perfect blend of luxury, history, and natural beauty, Hotel Egilsen promises an unforgettable experience for those seeking a truly unique stay in Iceland. Whether you're exploring the charming town of Stykkishólmur or immersing yourself in the captivating stories of the region, this boutique hotel will leave you with cherished memories that will last a lifetime.

101 Hotel

The 101 Hotel in Reykjavik is a luxurious establishment that comes highly recommended for artful travelers seeking the height of Iceland's design scene. As an exalted member of the Design Hotels group, it offers refined and sophisticated interiors that are unabashedly fashionable and self-assured. The striking black and white color scheme serves as a backdrop to a collection of contemporary Icelandic artwork, creating an ambiance that effortlessly exudes modernity and style.

The warm and personable rooms at 101 Hotel feature wooden floors adorned with cozy rugs, heavenly beds, and picturesque views of Mt. Esja across the water. Guests can expect comfort and tranquility in abundance. Additionally, the hotel boasts an on-site restaurant with a devout local following, serving delectable cuisine that tantalizes the taste buds. After a day of wandering around Reykjavik, visitors can unwind in the chic bar, where they can enjoy expertly crafted cocktails amidst a cozy atmosphere complete with tree-trunk tables and a welcoming fireplace. Nestled just a short walk from Laugavegur, the city's main thoroughfare, the 101 Hotel offers a prime location for guests to fully immerse themselves in the vibrant cultural scene of Reykjavik.

Related Articles

Unlocking Tokyo: A Comprehensive Guide for the Modern Traveler
Forbes Five-Star Hotels in Hawaii
Best All-Inclusives in Cancun for Families

LuxRally Travel, the Ultimate Upgrade

Need more information? Check out our New Client FAQs


Your dedicated agent will reach out shortly.

bottom of page