Best 5-Star Hotels in Iceland — Biggest Selection & Lowest Prices Guaranteed

The best 5-star hotels in Iceland offer the highest level of comfort, service, and design. You can expect premium amenities such as luxury spas, fine dining, personalized concierge services, and stylish rooms with scenic views.

However, there are only a few 5-star hotels in the country. Rather than large international chains, you'll find boutique luxury hotels that prioritize attention to detail and deliver a more intimate experience. This limited number of 5-star hotels means each property is carefully curated to meet the highest standards.

What truly distinguishes these properties is how they incorporate their surroundings. Many properties feature geothermal spa access, modern Nordic design, and exclusive experiences that reflect the country’s landscape.

Staying in a 5-star hotel in Iceland is less about size and more about quality, privacy, and a refined experience connected to nature.

The Reykjavik EDITION

The Reykjavik EDITION is a modern stay set on Reykjavik's waterfront, combining sleek design with a prime location in the city's cultural and social hub. It's the best choice if you want 5-star luxury with easy access to dining, nightlife, and attractions.

• Location: Central Reykjavik, next to Harpa Concert Hall and close to Laugavegur Street.

• Best for: Travelers who want a high-end city stay with everything within walking distance.

• Main features: Harbor-view rooms, luxury spa with sauna and hammam, fitness center, fine dining restaurant, and cocktail bar.

• What to expect: Contemporary design, premium service, and a lively city setting. Northern lights viewing is limited due to city lights, but tours are easily accessible.

The Retreat at Blue Lagoon Iceland

The Retreat at Blue Lagoon Iceland is a luxury 5-star resort set in a volcanic landscape, offering a secluded stay with direct access to Iceland’s most famous geothermal spa. It’s the best choice for travelers seeking privacy, wellness, a unique Icelandic experience, and the chance to see the northern lights in winter.

• Location: Reykjanes Peninsula, 20 minutes from Keflavik Airport and 50 minutes from Reykjavik.

• Best for: Couples and travelers looking for a relaxing, spa-focused luxury stay.

• Main features: Private geothermal lagoon, subterranean spa, Michelin-starred dining, hotel with terraces and lava views.

• What to expect: Exclusive access to the Blue Lagoon, in-water treatments, quiet surroundings, and one of the most expensive stays in Iceland. Darker skies increase northern lights visibility.

Diamond Suites

Diamond Suites is Iceland’s first 5-star hotel, offering an ultra-luxury stay with a focus on privacy, design, and personalized comfort. It’s the best choice for travelers looking for exclusive and indulgent hotels near Keflavik Airport.

• Location: Reykjanesbaer, near Keflavik Airport and 20 minutes from the Blue Lagoon.

• Best for: Travelers seeking privacy, unique suite designs, and a high-end boutique experience.

• Main features: Individually designed suites, private terraces with hot tubs, luxury bathrooms, premium in-room technology, Diamond Lounge, and Wine Bar.

• What to expect: Spacious suites with private hot tubs, personalized service, and easy access to geothermal sites and the airport. Northern lights may be visible in winter, depending on conditions.

Why Choose 5-Star Hotels in Iceland

Choosing a 5-star hotel in Iceland comes down to the kind of trip you want. The Retreat at Blue Lagoon Iceland suits travelers focused on wellness and privacy. The Reykjavik EDITION fits those who want a stylish city stay, and Diamond Suites is ideal for an ultra-exclusive experience.

Book 3 to 6 months ahead for the best availability, especially in summer and the northern lights season. For better rates, consider shoulder months while still enjoying a high-end stay.