Hotels in South Iceland

Finding the best hotels in South Iceland is essential for making the most of your trip to this breathtaking region.

Home to iconic attractions like Seljalandsfoss and Skogafoss waterfalls, Reynisfjara black sand beach, and the stunning Jokulsarlon glacier lagoon, South Iceland offers endless opportunities for adventure, including glacier hikes and exploring ice caves.

A single-day trip from Reykjavik won’t be enough to truly experience everything the South Coast has to offer. Staying overnight in one of the region’s hotels gives you the chance to relax and recharge while allowing you to explore at a more comfortable pace. Read on to learn about the best hotels in South Iceland.

Top 8 Best Hotels in South Iceland

When it comes to finding the best hotels in South Iceland, travelers have a variety of exceptional options. From luxury stays near glaciers to cozy countryside retreats, South Iceland offers accommodations to suit every type of traveler. Here are the top eight hotels you should consider for your stay in this remarkable region.

1. Torfhus Retreat – The Best Hotel in South Iceland

As the best hotel in South Iceland, Torfhus Retreat offers an exclusive luxury experience. Situated near Selfoss within the Golden Circle, this eco-luxury hotel combines Viking-inspired architecture with modern amenities.

Guests enjoy geothermal baths, gourmet dining using local ingredients, and accommodations that beautifully blend rustic charm with contemporary luxury.

With nearby attractions like Gullfoss waterfall, Geysir hot spring, and Thingvellir National Park, Torfhus Retreat offers easy access to some of Iceland’s most stunning natural wonders. Perfect for those who appreciate a unique, high-end stay in a breathtaking landscape.

2. Black Beach Suites

For travelers seeking unparalleled ocean views, Black Beach Suites in Vik is a perfect choice. Located near Reynisfjara black sand beach, this hotel offers modern, self-catering suites with floor-to-ceiling windows, allowing guests to take in Iceland’s breathtaking coastal scenery. 

The suites include kitchenettes, private balconies, and contemporary furnishings, providing both comfort and convenience. Its close proximity to Dyrholaey and Reynisdrangar sea stacks makes it ideal for nature lovers and photographers.

3. Blue Hotel Fagrilundur

As one of the best hotels on the Golden Circle route, Blue Hotel Fagrilundur offers a modern, welcoming retreat near Iceland’s most iconic attractions. Located in the quiet hamlet of Reykholt, this 3-star hotel is perfectly situated for guests eager to explore the Geysir geothermal area, Gullfoss waterfall, and Thingvellir National Park, all within easy driving distance.

The hotel features outdoor hot tubs where guests can relax after sightseeing. Each of the 40 rooms includes private bathrooms, fridges with freezers, and stylish modern decor for a comfortable stay. Guests also enjoy complimentary high-speed WiFi and a delicious breakfast each morning.

Nearby, hidden gems like Kerid crater, the Fontana Spa, the Secret Lagoon, and Faxi waterfall await. With its proximity to both the Golden Circle and South Coast sightseeing routes, Blue Hotel Fagrilundur is ideal for those looking to experience southeast Iceland’s natural beauty in stylish comfort.

4. Hotel Ranga

For the ultimate luxury stay in South Iceland, Hotel Ranga stands out as the top choice and best hotel in South Iceland. This renowned countryside hotel, located near Hella, offers a tranquil escape with world-class service and breathtaking views.

Guests can relax in outdoor geothermal hot tubs, dine at the award-winning restaurant specializing in gourmet Icelandic cuisine, and enjoy the Northern Lights wake-up service in the winter. Hotel Ranga is famous for its beautifully themed suites, inspired by continents around the world, providing a unique and luxurious stay.

With easy access to the Golden Circle, South Coast, and Highland adventures, this boutique hotel is perfect for honeymooners, nature lovers, and those seeking an upscale, unforgettable experience in Iceland.

5. Hotel Kria

Situated in the heart of Vik i Myrdal, Hotel Kria is one of the most stylish and modern accommodations in South Iceland. This contemporary hotel offers spacious rooms with stunning mountain and ocean views, a sleek design, and an on-site restaurant serving fresh Icelandic cuisine. 

Guests will appreciate its prime location near Reynisfjara beach, Katla Ice Cave, and the South Coast’s top attractions. With its cozy atmosphere, excellent dining, and convenient access to adventure tours, Hotel Kria is a fantastic base for exploring the region.

6. Fosshotel Glacier Lagoon

For those looking to stay near Vatnajokull National Park, Fosshotel Glacier Lagoon is a top choice. Located between Skaftafell Nature Reserve and Jokulsarlon glacier lagoon, this hotel offers a luxurious, modern design surrounded by breathtaking landscapes.

Here, you'll be able to enjoy high-end dining at the on-site restaurant, stylish accommodations, and panoramic views of the glacier and mountains.

With its proximity to glacier hiking, ice caving, and snowmobiling tours, Fosshotel Glacier Lagoon is perfect for travelers looking for both comfort and adventure.

7. Efstidalur

For a unique countryside stay, Efstidalur offers a cozy farm-hotel experience near the Golden Circle. This charming, family-run accommodation provides rustic yet comfortable rooms with spectacular views of the Icelandic countryside. 

The hotel is best known for its on-site restaurant and dairy farm, where guests can enjoy homemade ice cream, fresh dairy products, and farm-to-table Icelandic cuisine. Located close to Thingvellir National Park, Gullfoss, and Geysir, Efstidalur is ideal for travelers wanting a peaceful rural escape with easy access to Iceland’s most famous natural wonders.

8. Hotel Jokulsarlon

Located near one of Iceland’s most famous attractions, Hotel Jokulsarlon is a luxurious retreat near Jokulsarlon glacier lagoon. Featuring elegant Scandinavian-inspired interiors, modern amenities, and breathtaking glacier views, this hotel provides an unforgettable stay for travelers exploring the South Coast. 

It is a great place to stay where you can relax in spacious, beautifully designed rooms, enjoy an on-site restaurant offering gourmet Icelandic dishes, and take advantage of nearby glacier tours, ice cave excursions, and boat trips on the lagoon.

With its stunning location and upscale comforts, Hotel Jokulsarlon is perfect for those wanting a premium stay in South Iceland.

Where to Stay in South Iceland During Summer

Summer in South Iceland is perfect for exploring hiking trails, puffin colonies, and stunning landscapes under the midnight sun. Here are two excellent hotels to enhance your summer experience:

1. Fosshotel Glacier Lagoon
   Located near Jokulsarlon Glacier Lagoon and Skaftafell National Park, Fosshotel Glacier Lagoon is a modern hotel that offers stunning views and easy access to summer attractions like glacier hikes and boat tours on the lagoon. Enjoy their on-site restaurant, which features locally sourced dishes, perfect after a day of exploration.

2. Hotel Skogar
   Nestled close to Skogafoss waterfall and the Fimmvorduhals hiking trail, Hotel Skogar is a charming boutique hotel that is a great choice for summer travelers. It offers cozy rooms and outdoor terraces where you can relax and take in the views after a hike.

Where to Stay in South Iceland During Winter

Winter in south Iceland offers opportunities for northern lights viewing, exploring ice caves, and experiencing the beauty of frozen landscapes. These hotels will keep you warm and comfortable during your adventure:

1. Hotel Ranga
   Famous for its luxury accommodations and northern lights wake-up service, Hotel Ranga offers a cozy retreat with geothermal hot tubs and an on-site observatory, making it an ideal spot for stargazing. Located in a remote and peaceful area, this hotel allows guests to witness the auroras without light pollution while enjoying top-tier service and Icelandic hospitality.

2. Hotel Kria
   Located in the charming village of Vík, Hotel Kria is a modern and stylish hotel that provides easy access to Reynisfjara’s black sand beach and thrilling ice cave tours. Guests can unwind in contemporary rooms with stunning views, dine at the on-site restaurant featuring Icelandic cuisine, and enjoy a comfortable base for winter adventures along the South Coast.

These hotels ensure a warm and unforgettable winter stay while giving you the best access to Iceland’s iconic winter landscapes.

When To Book A Hotel in South Iceland 

South Iceland is a popular destination, so booking your hotel in advance ensures the best availability and prices. For summer (June–August), when crowds peak, reserve 3 to 6 months ahead, especially in Vik, Hella, and the Golden Circle. 

In winter (December–March), 1 to 3 months in advance is ideal, particularly for northern lights viewing spots. Spring and autumn (April–May, September–October) offer fewer crowds, so 2 to 4 months ahead is usually sufficient. 

Luxury hotels and boutique stays should always be booked early, while budget travelers may find off-season deals. Since Icelandic weather is unpredictable, check cancellation policies for flexibility. Planning ahead guarantees a smooth and enjoyable stay in this stunning region.

Summary

Finding the perfect hotel in South Iceland can make all the difference in your travel experience. Whether you're chasing waterfalls, exploring glaciers, or admiring the northern lights, where you stay matters. From the luxury of Hotel Ranga, perfect for stargazing, to the modern elegance of Fosshotel Glacier Lagoon near the Vatnajokull glacier, South Iceland offers accommodations for every traveler.

Summer visitors will enjoy long daylight hours at Hotel Skogar, while winter travelers can cozy up at Hotel Kria with easy access to ice caves and black sand beaches. Booking in advance is crucial, especially during peak seasons. Choose a hotel that matches your adventure style, plan ahead, and enjoy an unforgettable stay in South Iceland!