Best Unique Hotels & Accommodations in Iceland — Biggest Selection & Lowest Prices Guaranteed

The most unique places to stay in Iceland are often as memorable as the landscapes around them. From bubble hotels surrounded by lava fields to turf-roofed retreats and converted factories, Iceland's accommodation scene goes far beyond standard hotel rooms.

What makes these stays distinctive is that they are shaped by the same forces that define the country itself: volcanic geology, extreme seasons, creative resourcefulness, and a tradition of turning isolation into something inviting.

Here are some of the coolest and most unique accommodations in Iceland. Many of these options are Icelandic countryside stays that sit in isolated locations with minimal light pollution, which makes them particularly appealing during aurora season.

Glass Cabins, Igloos, and Bubble Hotels in Iceland

Glass cabins, transparent igloos, and bubble pods are built for unobstructed views of the sky. In winter, these stays are among Iceland's most sought-after northern lights hotels. The same structures are just as popular as midnight sun hotels in summer.

These unique stays are mostly found in rural South Iceland, where minimal light pollution and open skies make for optimal viewing conditions.

• Buubble Hrosshagi and Buubble Olvisholt — Often called the "5 Million Star Hotel," these pods are available at two South Iceland locations and are among the country's most in-demand bookings
• Glass Cottages — Situated in Hella with direct views of the Hekla Volcano, one of Iceland's most active and iconic stratovolcanoes
• 360 Hotel — A striking architectural property right outside of Selfoss, offering sweeping panoramic views of the southern horizon
• Aurora Igloo — Dome structures in a secluded rural setting near Hella, designed specifically for aurora viewing
• Tiny Glass Lodge — An intimate countryside retreat for two in South Iceland, with a private hot tub and sauna included

Glamping Domes, Yurts, Pods, and Capsule Stays in Iceland

Iceland's glamping stays combine the freedom of being close to nature with comforts that go well beyond a standard campsite.

Domes, yurts, and wooden pods are found across the country, from the outskirts of Reykjavik to geothermal valleys and remote fjords. Many double as self-contained cottages with kitchenettes and private hot tubs, making them practical for longer stays or families.

• Reykjavik Domes — Luxury domes just outside the capital with wood-burning stoves and views of Mount Esja
• Nattura Yurtel — Custom-designed yurts situated right in the Geysir Geothermal Area on the Golden Circle
• Fossatun Camping Pods — Barrel-shaped wooden pods in West Iceland, with hot tubs and a troll-themed walking trail
• Helja Stay Glamping Domes — Large, mirrored-architecture domes in a remote setting near Hella, designed for stargazing and solitude
• Puffin Nest Capsule Hostel — Iceland's take on the Japanese capsule hotel, with modular sleeping pods in central Reykjavik

Converted Buildings and Repurposed Stays in Iceland

Some of Iceland's coolest accommodations started as something else entirely. Across the country, former factories, warehouses, barns, and farm buildings have been repurposed into places to stay, preserving the character of the original structure while adding modern comforts.

These stays appeal to travelers who value history, design, and the story behind where they sleep.

• KEX Hostel — A 1930s biscuit factory turned cultural hub on Reykjavik's waterfront, with an in-house barbershop, gastropub, and live music venue
• The Freezer Hostel — A former fish packing plant on the Snaefellsnes Peninsula, now housing a hostel with an in-house theater and massive murals
• The Potato Storage — A former industrial potato warehouse in Svinafell turned into chic apartments with views of Vatnajokull Glacier
• Converted Water Tower — A repurposed industrial water tower on the Reykjanes Peninsula offering three floors of vertical living with coastal views
• Milk Factory — An old dairy factory in Hofn converted into a minimalist, high-ceilinged retreat in southeast Iceland

Turf Houses and Historic Hotels in Iceland

Iceland has a rich architectural history that stretches from Viking-era longhouses and turf houses to modern landmarks like Harpa. Some of the country's most distinctive accommodations draw directly from that heritage. Turf-roofed retreats, centuries-old hotels, and restored heritage buildings offer a real connection to Iceland's past.

• Torfhus Retreat — Luxury eco-suites near the Golden Circle built in the style of traditional turf farmhouses, with sod roofs, stone walls, and private basalt hot tubs
• Hotel Tindastoll — One of Iceland's oldest hotel, dating back to 1884, with a legendary natural stone hot tub
• Hotel Djupavik — Set in a remote Westfjords village beside an abandoned herring factory, offering one of Iceland's most hauntingly atmospheric stays
• Heradsskolinn Historic Guesthouse — A former school designed by Gudjon Samuelsson, the architect behind Hallgrimskirkja Church
• Guesthouse 1x6 — A boutique guesthouse in Keflavik hand-built by a local artist using driftwood and recycled materials

Themed and One-of-a-Kind Hotels in Iceland

A number of unique hotels in Iceland are defined by a single bold concept, a striking piece of architecture, or an experience that cannot be replicated anywhere else. These properties span everything from lava-field hotels to farm accommodations with glass-walled dining rooms.

• ION Adventure Hotel — A hotel built over a mossy lava field near Thingvellir National Park, with a floor-to-ceiling glass Northern Lights bar
• Hotel Ranga — A luxury log cabin-style hotel with continent-themed suites and a private stargazing observatory on the South Coast
• Hotel Viking — A fully themed Viking hotel in Hafnarfjordur featuring Norse decor, costumed staff, and traditional feasting halls
• Vogafjos Farm Resort — A farm hotel near Myvatn where guests watch cows being milked through a glass wall in the restaurant while eating farm-to-table food
• The Wilderness Center — A living museum in the Eastfjords, where guests sleep in preserved old farmhouse buildings, from cozy bed closets to a communal attic dorm

Where to Find Unique Hotels in Iceland

Unique hotels and accommodations in Iceland are found across the country, and these are just some of the highlights from a much larger selection. Travelers deciding where to stay in Iceland will find that each region offers a different flavor of unique stay.

The most unique accommodations in Reykjavik lean toward converted heritage buildings, capsule concepts, and design-forward hotels, while South Iceland lodges include most of the country's glass cabins, bubble pods, and glamping stays.

Snaefellsnes accommodations feature dramatic coastal cabins and cottages set against lava fields and glacier-capped peaks. Places to stay in the Westfjords tend toward remote, character-filled guesthouses in historic fishing villages.

North Iceland stays offer farm accommodations, yurts, and lodges near whale watching towns and geothermal areas, while the places to stay in East Iceland include converted barns, heritage houses, and fjord-front retreats in some of the country's quietest corners.

Browse the full selection above, filter by location and property type, and compare availability at the best prices.