Best Luxury Hotels in Iceland

Top Luxury Hotels in Reykjavik

As the bustling capital of Iceland, Reykjavik is one of the most popular places to stay for international visitors. You can easily do day tours from the city to the popular South Coast or to other locations such as the Golden Circle, the Snaefellsnes peninsula, and the Blue Lagoon. You'll also only be an hour's drive from Keflavik International Airport, with easy access to airport transfers.

You can find many fantastic hotels in Reykjavik, though some are better than others. For the best experience, here are the top luxury hotels for your stay in the city.

Exeter Hotel

Exeter Hotel is located in downtown Reykjavik by the Old Harbour. At this luxury hotel, visitors will feel welcomed from the moment they step into the sophisticated lobby. The helpful front desk staff can book tours, provide wake-up calls, and answer questions to ensure guests enjoy comfort.

Along with beautifully designed rooms, guests have access to amenities like a weight room, sauna and wellness center, and a rooftop patio. Additionally, the hotel is connected to the Deig bakery, where you can find some of the best bagels and doughnuts in Reykjavik.

In the same space, you'll find the Le Kock restaurant, which offers deliciously sinful burgers, and the Tail bar. There is also a car park just 5 minutes away where you can leave your Reykjavik rental car.

The Exeter Hotel is perfect for those who want to stay close to Reykjavik attractions, like the Laugavegur shopping street, top-rated restaurants, and many Reykjavik museums. You'll only be a 10-minute walk from the Tjornin pond and a 15-minute walk from Hallgrimskirkja church, so the location couldn't be better.

Its excellent amenities and great location make the Exeter Hotel one of the best choices for your trip to Iceland. With an average rating of 4.6 out of 5 stars from over 440 guests, you will surely have a pleasant experience.

• See more: Top 10 Things to Do in Reykjavik
• See also: Parking in Reykjavik - Everything You Need to Know

Sand Hotel by KeaHotels

The Sand Hotel by KeaHotels is an excellent boutique hotel located on Laugavegur, the main shopping street of Reykjavik, providing easy access to the city's most famous attractions. It has an average rating of 4.6 out of 5 stars from over 390 visitors.

The four-star hotel shares a building with the historic Sandholt bakery, where you can find amazing artisan bread and pastries, some of which are included in the hotel's complimentary breakfast. Along with enjoying a comfortable stay, all guests also enjoy access to a small fitness center.

While it's not possible to park by the hotel, you can find a car park just a 4-minute walk away. You'll also be within walking distance of fantastic restaurants, stores, and fun activities.

The famous Hallgrimskirkja church is just a 5-minute walk away, and the Harpa Concert Hall is a 10-minute walk away. Staying at the Sand Hotel will make it easy to enjoy all that Reykjavik has to offer, including the city's famous nightlife, with many bars and clubs within walking distance.

The Sand Hotel's convenient location, comfort, and charm make it an excellent luxury choice for visiting Iceland. If you want to include it on your itinerary, it's best to book well ahead of time so you don't miss out on an enjoyable stay.

• See more with the Reykjavik Nightlife Guide

Black Pearl Reykjavik Hotel

If you want to enjoy a luxury experience while traveling with family or a large group, staying at the Black Pearl Reykjavik Hotel is the perfect option. This four-star apartment hotel provides the perfect home-away-from-home, with the option of connectable suites. It's a great base for your Iceland adventure.

The hotel offers complimentary breakfast and the benefit of a private parking space in the city center, specifically for your accommodation. As the hotel could not have a better location, by the Old Harbor in central Reykjavik, you can remove the stress of looking for a parking space during your stay.

You'll also be within walking distance of Reykjavik's great restaurants, shops, and cultural attractions, like the Reykjavik Art Museum, which is just a minute's walk away. By the Grandi harbor, a 15-minute walk away, you can also find experiences like FlyOver Iceland and the Whales of Iceland exhibition, the perfect companion experience to a whale-watching tour from the Reykjavik harbor.

Enjoy all that Reykjavik has to offer while staying in a comfortable and private apartment hotel. With a 4.6 out of 5-star rating from over 110 guests, book your stay in advance while planning your trip.

Apotek Hotel

Those searching for classic elegance during their time in Iceland will find it at the Apotek Hotel Reykjavik. This four-star boutique hotel is located in one of the oldest buildings in Reykjavik and features beautiful and timeless rooms, all providing optimal comfort.

It's located on the bustling Austurgata street, filled with restaurants and stores, and just a throw away from the Austurvollur square, the Althingi parliament building, and the charming Domkirkjan cathedral. In the same building, you can book a table at Apotek Kitchen and Bar, one of the best restaurants in Reykjavik.

The name of the hotel references the history of the building, as it used to house a pharmacy. It was built in 1917 and designed by renowned architect Gudjon Samuelsson, who drew inspiration from the Pohjola building in Helsinki. As one of the first large buildings in Reykjavik, it has become an iconic landmark of the city center.

While staying at the Apotek Hotel, you'll enjoy the most convenient location in Reykjavik, especially if you want to experience the city's nightlife. Over 240 guests have given their stay an average rating of 4.6 out of 5 stars, so book your room now for a wonderful hotel experience in Reykjavik.

• See also: The Best Restaurants in Reykjavik

Hotel Reykjavik Saga

The recently opened Hotel Reykjavik Saga is a great choice for a luxury experience in Reykjavik. While staying in your beautifully designed room, you'll have access to a fitness center, along with a rooftop terrace where you can enjoy the midnight sun or starry night sky. You may even be able to spot the northern lights during the darker months.

After a day of exploring, you can unwind at the hotel spa, which features a steam bath and a sauna. You can enjoy a delicious breakfast and treat yourself to dinner at the fantastic on-site restaurant, Fröken Reykjavik Kitchen and Bar. If you plan to enjoy a meal there, remember to book a table at Fröken Reykjavik beforehand!

The hotel is located on Laekjargata street, one of the main streets of Reykjavik, and just a few minutes from major attractions like the Hallgrimskirkja church, Harpa Concert Hall, and the Sun Voyager sculpture.

If you have a rental car, you can park in one of the nearby car parks, just a few minutes walk away. The location also makes it easy to access multiple city bus lines, bringing you to further locations like the Grotta nature reserve, Perlan, the Sky Lagoon, and much more.

With an average rating of 4.7 out of 5 stars from over 70 guests, the Hotel Reykjavik Saga is a fantastic luxury option for those seeking the best experience in Reykjavik.

Tower Suites Reykjavik

If you're looking for a hotel that offers a unique experience in Iceland, the Tower Suites Reykjavik luxury hotel has the highest panoramic city views in all of Reykjavik. This four-star suite hotel in Iceland offers guests convenient access to downtown Reykjavik and all its must-see attractions, and it has an average rating of 4.7 out of 5 stars from over 70 reviews.

Tower Suites Reykjavik comprises eight penthouses on the 20th floor of a skyscraper in the heart of downtown Reykjavik. It's one of the highest buildings in Iceland, and it has floor-to-ceiling windows, ensuring amazing views!

This hotel is perfect for independent travelers who appreciate a sophisticated atmosphere with panoramic city views. At this luxury Reykjavik accommodation, guests can choose the kind of service they prefer, with a full concierge or invisible service for an independent, no-contact stay. You can even request a transfer from Keflavik International Airport.

Enjoy a complimentary breakfast that's delivered to your room, or head out to the nearby city center to visit cafés, restaurants, and local shops. You can easily reach attractions like the Harpa Concert Hall, Hallgrimskirkja church, and the Laugarvegur shopping street. With limited suites available, make sure to book well ahead of time!

Kvosin Downtown Hotel

Nestled in the heart of Reykjavik's historic city center, the Kvosin Downtown Hotel exudes a charm that perfectly marries the old with the new. It's located in a refurbished early 20th-century building just next to the Domkirkjan cathedral, the Althingi parliament building, and the Reykjavik City Hall.

The comfortable suites feature beautiful Scandinavian designs, each equipped with a kitchenette or a full kitchen, a Nespresso machine, and even a patio or balcony. There's also a 24-hour concierge service, and you can relax at the comfortable lounge or at the Aldamot hotel bar.

Enjoy the complimentary breakfast before heading out to explore all that Reykjavik has to offer, as it's right in the city center. Enjoy a stroll along the old houses or along the nearby Tjornin pond. Visit stores, cafés, and restaurants or check out the local bars and clubs.

The Kvosin Downtown Hotel is a great option for those who want to enjoy optimal comfort and the freedom of fully equipped accommodation.

Best Hotels on the Reykjanes Peninsula

The volcanic Reykjanes peninsula is home to some truly stunning natural features just outside the Capital Region. From its dramatic rocky coastline and tall mountains to the geothermal activity underneath the surface, this area is not to be missed.

Explore the mystical Kleifarvatn lake, the Gunnuhver geothermal area, and walk on the Bridge Between Continents. Hike to the volcanic eruption sites of Fagradalsfjall and Litli-Hrutur before enjoying a relaxing visit to the Blue Lagoon.

With stunning nature and exciting activities, you'll find much to discover on the Reykjanes peninsula before returning to your luxury accommodation of choice to unwind in comfort.

Hotel Keflavik

To make the most of your visit to the Reykjanes peninsula, you can enjoy a luxurious stay at the four-star Hotel Keflavik. It is just a 10-minute drive from Keflavik International Airport and a 50-minute drive from central Reykjavik, making it an optimal choice during a stopover in Iceland.

It has an average rating of 4.2 out of 5 stars from over 670 guests, and during your stay, you'll enjoy access to a gym, spa, and sauna. You can also treat yourself at the on-site hotel restaurant. Additionally, the hotel offers a currency exchange, a very convenient service for your first or last night in Iceland, and you can order transport to and from Keflavik Airport.

The hotel is located in the municipality of Reykjanesbaer, which is also often referred to as Keflavik. There, you can find restaurants, cafés, stores, and fun cultural attractions, such as the Museum of Rock n' Roll, the Viking World Museum, and the charming Giantess in the Cave.

You'll also only be a 20-minute drive from the Blue Lagoon, so if you're planning a visit to the world-renowned spa, Hotel Keflavik is a good accommodation choice to pair with your visit. Book your room and prepare for a comfortable stay on the beautiful Reykjanes peninsula.

• See also: Best Hotels Near Keflavik Airport
• See more about What to Do During a Stopover in Iceland

Diamond Suites

Photo from the Diamond Suites.

If you're planning on spending time on the Reykjanes peninsula and want to enjoy optimal luxury during your time, you can book one of the 5-star Diamond Suites. They're a part of Hotel Keflavik, located on the top floor, and offer the best possible accommodation experience.

During your stay, you can enjoy the Diamond Lounge, the wonderful wine bar, and a generous breakfast that changes daily. You can also enjoy a meal at the Keflavik Hotel restaurant or request a private chef to soothe any food cravings.

Each suite has access to a terrace with wonderful views, which you can enjoy from your private hot tub. You'll have access to a SONOS music system, an entertainment system, and complimentary drinks.

With a 4.3 out of 5-star rating from over 15 guests and four total suites to choose from, book your stay in advance so you don't miss out on the best of what the Reykjanes peninsula has to offer.

Best Hotels in South Iceland

The South Coast is known for some of Iceland's most famous features, such as the Golden Circle, Seljalandsfoss and Skogafoss waterfalls, the Reynisfjara black sand beach, and the stunning Jokulsarlon glacier lagoon. You'll also find some of the country's most popular luxury countryside hotels in this area, so here are the best options for an enjoyable stay in South Iceland.

Hotel Geysir

If you're planning on doing a self-drive tour of the Golden Circle during your visit to Iceland, you may want to maximize your experience by staying in the vicinity of one of the route's most famous attractions, the Geysir geothermal area.

This is where you'll find the four-star Hotel Geysir, which offers stylish and modern comfort, just across the street from the Geysir hot springs. You'll even be able to dine with great views of the geothermal area at one of the five on-site restaurants! Make sure to book your table at the Geysir Restaurant ahead of time, as it's one of the best places for a meal in the area.

The Hotel Geysir is just over an hour's drive from Reykjavik, and you'll find all necessary services in the nearby town of Fludir, just a 20-minute drive away. That's also where you'll find the wonderful Secret Lagoon, one of the oldest geothermal pools in Iceland and a great place for a relaxing soak.

During your stay, you can visit the other two attractions of the Golden Circle, the gorgeous Thingvellir National Park, and the stunning Gullfoss waterfall. If you prefer relaxing at the hotel, you can make the most of your visit by enjoying a round of golf at the nearby Geysir Golf Course, framed by the lush surrounding nature.

Over 690 visitors have given their stay at Hotel Geysir an average rating of 4.5 out of 5 stars, so you can expect an enjoyable stay. With its great location near beautiful attractions, it's the best choice for exploring the Golden Circle. Book your room now to ensure availability.

ION Adventure Hotel

For a unique experience along the Golden Circle, you can stay at the award-winning ION Adventure Hotel. It's located in Nesjavellir, on the edge of Thingvellir National Park, a UNESCO World Heritage site that's just a 45-minute drive from Reykjavik. It's quite isolated among tranquil nature, making for a relaxing getaway during your Iceland trip.

The hotel is known for its unique architecture, featuring an amazing bar and seating area with huge floor-to-ceiling windows and pillars that support a wing of the hotel. There, you'll also find a heated outdoor swimming pool with views of the surrounding nature that's part of the hotel spa. You can also book a table at the Silfra restaurant to enjoy a culinary experience during your stay.

You can enjoy nature hikes around the surrounding area or visit the nearby Adrenalin Adventure Park, just a 10-minute walk from the hotel. There, you can try your hand at tackling fun obstacles by climbing, swinging, and zip-lining during this family-friendly 2-hour climbing thrill experience.

The ION Adventure Hotel has an average rating of 3.9 out of 5 stars from over 400 guests and offers a rejuvenating and luxurious stay.  It's a popular location, so make sure to book well ahead of time when planning your trip.

360 Hotel

Just an hour's drive from Reykjavik, you'll find the bustling town of Selfoss, the largest town on the South Coast. Just outside the charming town, you'll find the four-star 360 Hotel, which is a very convenient base for exploring the region's many attractions. It's one of the best resorts in the area, with an average rating of 4.8 out of 5 stars from over 120 guests.

The greatest feature of the hotel is the beautiful views of undisturbed nature, with comfortable and stylish rooms featuring floor-to-ceiling windows. Guests can enjoy the on-site restaurant and spa, with a geothermal pool, cold water pool, and a sauna. Its distance from urban light pollution can also provide good conditions for spotting the northern lights during the darker months.

During your stay, you'll only be a 35-minute drive from the Reykjadalur geothermal region by the small town of Hveragerdi. You'll find the iconic Seljalandsfoss and Skogafoss waterfalls around an hour's drive away, and you can easily do a day trip to Reynisfjara black sand beach, the Skaftafell nature reserve, and Jokulsarlon glacier lagoon.

The great amenities, combined with the nice location, make the 360 Hotel a luxurious choice for staying on the South Coast of Iceland. When planning your itinerary, book your stay ahead of time, as the area is very popular.

Hotel Ranga

The 4-star Hotel Ranga is located in the small town of Hella along the South Coast and is one of the more popular luxury hotels in Iceland. They have an average rating of 4.6 out of 5 stars from over 480 reviews.

They have very comfortable rooms and suites, many of which are stylized in the traditions of different continents and countries. Enjoy a stay in the "Icelandic room," which has an in-room hot tub modeled after the hot springs found in nature. You can also choose from a North or South American room or travel to Australia, Asia, and even Antarctica! Each one is a different experience, but all offer great comfort.

During your stay at Hotel Ranga, make sure to try the on-site restaurant, as it's known for great food. They also have one of the largest whisky collections in Iceland. Afterward, you can enjoy a soak in the outdoor hot tubs or have fun in the hotel game room. If the sky is clear, head up to the observatory, where you can explore the stars with the help of a local astronomer!

If you're doing a winter self-drive tour in Iceland, staying at Hotel Ranga can be a good spot to observe the northern lights, as it's a good distance from light pollution. The hotel even takes the extra step to turn off all outdoor lighting so guests can enjoy the best possible chances of seeing them.

Hotel Ranga is a great location to stay if you want to spread your exploration of South Iceland over two or more days. Indulge in luxury and embrace a more unique accommodation experience at one of the best hotels in Iceland.

Hotel Grimsborgir

If you want to indulge yourself during your tour of the South Coast, consider staying at the 5-star Hotel Grimsborgir. It's located in the area of the Golden Circle and offers a nature retreat within a 15-minute drive from the town of Selfoss and an hour's drive away from Reykjavik. It has an average rating of 4.4. out for 5 stars from over 370 reviews.

With different room sizes to choose from, enjoy a visit that best suits your needs and desired experience. Hotel Grimsborgir is also a great option if you're celebrating a special occasion while in Iceland, as they're a popular location for romantic getaways and even for hosting weddings.

They have a delicious breakfast and brunch, and their on-site restaurant focuses on a mix of Icelandic and international cuisine. You can even add to the fun by checking out their evening musical performance! Make sure to book your table at Hotel Grimsborgir restaurant ahead of time.

It's the perfect place for a meal before or after an adventure along the South Coast or along the Golden Circle. Staying in this area allows you more time to explore as you don't have to worry about the added 40-minute travel time to Reykjavik.

The helpful hotel staff can also help you plan your excursions and even book tours! You can enjoy exploring the beautiful attractions of the area and return to a luxurious and cozy stay at Hotel Grimsborgir. This is definitely high on the list of the best hotels in the region.

Umi Hotel

If you're planning a thorough exploration of the South or a longer trip around the Ring Road, a great place to stay is the Umi Hotel. The greatest highlight of this hotel is the closeness of the region's many iconic attractions. It's located between the stunning Seljalandsfoss and Skogarfoss waterfalls, and you can quickly reach locations like the Solheimajokull outlet glacier, Dyrholaey rock arch, and the village of Vik.

You'll be able to enjoy a delicious complimentary breakfast and can treat yourself to lunch or dinner at the on-site restaurant. You can embark on many nature adventures in the vicinity before returning to the comfort of a modern, stylish hotel room. You can even enjoy a dip in the isolated Seljavallalaug swimming pool, which is a 10-minute drive away!

Umi Hotel is a fantastic choice for your South Iceland adventure, with over 240 guests giving their stay an average rating of 4.7 out of 5 stars. With so many possible adventures in the region, enjoy the best possible experience by staying at the Umi Hotel. Book your stay ahead of time when planning your South Coast trip.

Fosshotel Glacier Lagoon

As you travel further to the Southeast of Iceland, the perfect stop is the Fosshotel Glacier Lagoon. This four-star hotel is located by the Oraefajokull glacier volcano and is only a 25-minute drive from the famous Jokulsarlon glacier lagoon and Diamond Beach.

During your stay, you'll be able to bask in the fantastic mountain or ocean views from your modern room, and you can enjoy the beautiful on-site restaurant and bar before relaxing at the hotel sauna. Just make sure to book a table at the Glacier Lagoon restaurant, as it's a popular location!

Guests can also enjoy the benefits of a convenient laundry service, perfect for refreshing your suitcase after days of travel.

While staying at the Fosshotel Glacier Lagoon, you'll only be an hour's drive from the nearest town, the tranquil Hofn, and just over an hour from the village of Kirkjubaejarklaustur. You can visit the Skaftafell nature reserve, just a 25-minute drive away, to explore natural wonders at the roots of the Vatnajokull glacier.

Discover the different adventures you can experience, like this affordable boat tour of the Jokulsarlon glacier lagoon, where you can see the dramatic icebergs up close. You may even spot seals on the way! For an even more magical experience, try this ice cave tour in the Vatnajokull glacier that starts from Jokulsarlon.

Staying at the Fosshotel Glacier Lagoon is the best way to explore this area of Iceland, providing optimal luxury after a day of adventure. Over 1,800 guests have given their stay an average rating of 4.5 out of 5 stars, so book your room now to ensure a stay on your itinerary.

Best Hotels in North Iceland

The North of Iceland features some charming towns and stunning locations, such as the beautiful Asbyrgi Canyon and Dettifoss waterfall, one of the most powerful waterfalls in Europe. They're both part of the Diamond Circle route, which features even more natural wonders. Here are the best luxury accommodations to maximize your travel experience.

Siglo Hotel

The charming Siglo Hotel is one of the best hotels in North Iceland. It is located in Siglufjordur on the dramatic Trollaskagi peninsula, which is just over an hour's drive from Akureyri. This makes staying at the four-star Siglo Hotel a great choice for your North Iceland exploration, especially as it has a fantastic average rating of 4.8 out of 5 stars from over 400 guests.

Some of the best features of this luxury experience are the on-site sauna, outdoor swimming pool, and hot tub, available for all guests to use at their leisure. Guests can take in the northern lights dancing in the skies or bathe in the midnight sun. It's the perfect way to rest after returning from an exciting tour of North Iceland.

To make your stay even more comfortable, you can try the three different on-site restaurants that provide quality food from fresh ingredients. You can also visit nearby restaurants, cafés, stores, and museums.

As one of the more popular hotels in the region, book your stay in a timely manner so you don't miss out during your visit. Alternatively, there are many more accommodation options in Siglufjordur if you want a different option for enjoying this lovely town.

Hotel Kea

Photo from Hotel Kea by Keahotels.

The historic Hotel Kea is located in the center of Akureyri, which is sometimes called the "capital of the North." It has an average rating of 4.1 out of 5 stars from over 600 visitors.

Hotel Kea originally opened in 1944 and has since become a landmark of Akureyri. The hotel's on-site restaurant, Múlaberg, is known for its great food made from local ingredients, nice cocktails, and warm atmosphere. As one of the more popular restaurants in Akureyri, make sure to book your table at Mulaberg Bistro and Bar beforehand.

During your stay, you'll be able to enjoy comfortable rooms with views of the town center, and you'll have access to a nearby gym and spa. The hotel lies next to the iconic stairs leading up to the Akureyrakirkja church, the best possible location for exploring Akureyri's many attractions. It's in the middle of the town's main street, where you'll find charming stores, restaurants, and bars.

Across the street, you can visit the Akureyri Art Museum, which also has a great café with delicious brunch platters. You'll be close to the Hof Cultural Center and the beautiful Akureyri Botanical Gardens.

You'll find fun activities during your stay, especially as many tours operate from Akureyri. You can try this whale-watching tour of the Eyjafjordur fjord, or go on a northern lights hunt during the darker months. If you visit in winter, you can go skiing in Hlidarfjall, the most popular ski resort in Iceland.

You'll surely have a memorable stay at the Hotel Kea during your travels. You can also find different accommodations in Akureyri if you want to see other available options. No matter what you choose, it's best to book well ahead to ensure the best accommodation for your trip.

Berjaya Hotel Akureyri

If you're traveling around the North and want to enjoy a lovely stay in Akureyri, then consider a stay at the Berjaya Akureyri Hotel. It's part of an international chain of hotels, and they offer many comfortable rooms featuring modern Icelandic design. Some even have a beautiful view of the Hlidafjall mountain.

They offer a nice breakfast buffet, and you can enjoy lunch or dinner; just remember to book a table at the wonderful Aurora restaurant! Afterward, you can relax in the hotel garden. It's the perfect hang-out spot, no matter the temperature, as the stylish seating area features a fireplace.

The Berjaya Akureyri Hotel is close to the town center of the Capital of the North and just across the street from the Akureyri swimming pool. You can reach attractions like the beautiful botanical garden, the Akureyri Art Museum, or the Akureyrakirkja church within a 12-minute walk. You're also a short distance from the city center, where you can find stores, restaurants, cafés, and fun activities.

Staying at the Berjaya Akureyri Hotel is an especially great option if you're spending multiple days in Akureyri, as you'll be able to make the most of the comfortable amenities. This hotel has an average rating of 4.3 out of 5 stars from over 499 guests, and with beautiful rooms and a convinient location, this is a fantastic option for your North Iceland adventure.

Hotel Akureyri Dynheimar

The quirky Hotel Dynheimar in Akureyri offers a rather unique hotel experience in North Iceland. It has an average rating of 4 out of 5 stars from over 300 reviews, and it's part of the historic Hotel Akureyri, which also includes Hotel Skjaldborg.

Hotel Dynheimar is located in one of Akureyri's most historic buildings called "Lón," which was Iceland's first movie theater! It has served many purposes since, and today, it's a micro hotel that's perfect for those looking for a relaxed atmosphere.

At the Hotel Akureyri Dynheimar, you can check in and out through your phone for a contactless visit. Choose from a cozy small double room or the more spacious superior double for views of the Eyjafjordur fjord.

A major highlight of the hotel is its restaurant, North. It's run by chef Gunnar Karl Gíslason, who is also the founder of the Michelin-star restaurant Dill in Reykjavik. They take pride in using local ingredients and even have a hydroponic farm, where they grow much of their own produce! It's a must-have dining experience in Akureyri, so make sure to book your table at North Restaurant with good notice.

The Hotel Dynheimar is also conveniently located along the lovely Akureyri coastline, and you'll be close to the main whale-watching departure location in the town. You can reach the town center within a 5-minute walk, which has many major attractions, so it's truly a fantastic accommodation option for a laid-back, luxurious Akureyri experience.

Fosshotel Myvatn

In the Northeast of Iceland, you'll find the beautiful lake Myvatn area. It's part of the Diamond Circle route, which showcases some of the best natural attractions the region has to offer. To enhance the experience, you can enjoy a luxury stay during your travels!

The Fosshotel Myvatn is a four-star hotel located on the banks of lake Myvatn, offering stunning views of the surrounding nature. The hotel's design mixes modernity with nature, with a wooden exterior and grass roof, which merges the building with the landscape.

The comfortable rooms are equipped with all necessary amenities, and guests can enjoy a meal at the onsite restaurant, which has beautiful views. Remember to book a table at the Fosshotel Myvatn restaurant so you don't miss out.

Over 700 guests have given their stay an average rating of 4.5 out of 5 stars.

While enjoying a luxurious stay, you'll be close to many attractions. A mere 10-minute drive from the Fosshotel Myvatn, you'll find the Myvatn Nature Baths, where you can enjoy a relaxing soak in milky blue geothermal water. You can book your Myvatn Baths admission online for a stress-free entry.

You'll also find the dramatic lava formations of Dimmuborgir, an area rich in folklore and natural beauty, and a shooting location from the Game of Thrones TV series. If you're looking for adventure, you can find interesting tours of Myvatn and the surrounding area. Try unique experiences, such as this incredible 2-hour dog sled tour with Siberian huskies, that's sure to be a highlight of any Iceland trip.

Fosshotel Myvatn is one of many great accommodation options by lake Myvatn, so you're sure to find an option that suits your needs if you prefer a different experience. Book your room well ahead of time to ensure availability and the best deals for your trip.

• Plan your trip with the Ultimate Guide to Iceland's Diamond Circle

Berjaya Myvatn Hotel

Another great option for an indulgent stay by lake Myvatn is the Berjaya Myvatn Hotel. This 4-star luxury hotel has an average rating of 4.4 out of 5 stars from over 420 visitors and offers five different room types for two to four visitors. They feature fun Icelandic design and prioritize convenience and comfort, and some even have views over the Myvatn lake!

The hotel features a stylish bar and the Mylla restaurant, where you can enjoy a lovely meal. If you aren't planning to stay at Berjaya Myvatn Hotel, you can also book a table at the Mylla restaurant for lunch or dinner when traveling in the area.

You can also get moving at the hotel gym and relax in the lovely outdoor hot tubs. If you're visiting in winter, you may even be able to spot the northern lights in the secluded darkness!

For optimal relaxation, treat yourself with a visit to the Natura Spa. Enjoy a soak in the warm swimming pool, the sauna, or the hot tub for the perfect end to a day of exploring. You can then unwind in the seating area before returning to your lovely room.

The luxurious amenities, comfortable rooms, and convinient location make it a fantastic choice of accommodation when traveling around North Iceland. Make sure to book your stay with good notice so you don't miss out on the experience.

Best Hotels in West Iceland

West Iceland features some incredible nature, whether it's along the lush Borgarfjordur fjord, on the stunning Snaefellsnes peninsula, or among the dramatic Westfjords. Here are some of the best luxury hotels and accommodations for your travels in the region.

Hotel Husafell

Located deep in the fjord of Borgarfjordur, you'll find the picturesque area of Husafell, the site of a former farm. It's a very popular site for camping among locals, but if you want to explore this beautiful area, you can also treat yourself to optimal comfort by staying at the Hotel Husafell.

This excellent four-star hotel provides a gateway to Icelandic nature, with stylish and comfortable rooms with great views. It has an average rating of 4.5 out of 5 stars from over 400 guests.

During your stay, you'll be able to enjoy a complimentary breakfast, and their innovative on-site restaurant provides fantastic dinners. Make sure to book your table at the Husafell restaurant beforehand to enjoy a culinary experience. You can also enjoy a visit to the nearby geothermal swimming pool, providing relaxation no matter the weather.

Husafell has some beautiful natural attractions, and you'll find many hiking paths throughout the area. Before you head out adventuring, you can stock up on snacks at the hotel's mini-market, a good way to make your exploration even more enjoyable.

You can also get help from their tour desk to plan an adventure. From Husafell, you can go on this relaxing 2-hour Husafell canyon baths tour, where you can visit the secluded geothermal Husafell nature baths. For more thrills, you can try this Into The Glacier experience at Langjokull, where you can explore man-made ice tunnels in the Langjokull glacier.

You'll also be close to attractions such as the Hraunfossar and Barnafoss waterfalls and Deildartunguhver, the highest-flowing hot spring in Europe. It supplies the luxurious Krauma Spa, just next to it! Nearby, you can also visit the historic Reykholt and see Icelandic goats at the Haafell Goat Farm.

A 50-minute drive away, you can visit Borgarnes, the largest town in the area, and a further hour and a half away, you can relax at the luxurious Hvammsvik Hot Springs in the Hvalfjordur fjord. Reykjavik is also just under a two-hour drive away, so you'll find plenty of activities to maximize your stay in this beautiful area.

• See more: The Extraordinary Lava Formations and Colours in Vidgelmir Lava Cave

Hotel Budir

The Snaefellsnes peninsula is home to great natural beauty and is a popular location for shorter trips, as it's said to give a sample of all that Iceland's nature has to offer. In "Iceland in Miniature," you'll find black sand beaches, lava fields, the dramatic cliffs of Arnarstapi, the iconic Kirkjufell mountain, and the Snaefellsjokull National Park, all framed by charming small towns along the coastline.

You can experience all the area has to offer while staying in the historic and beautiful Hotel Budir. It has an average rating of 4.6 out of 5 stars from over 370 guests and is surrounded by vast nature. With their great breakfast and gourmet restaurant, you're also sure to have enough delicious fuel for your days of adventuring!

Hotel Budir offers the perfect romantic retreat in the hamlet of Budir, a historic trading post. The original buildings have given way over time, leaving only the iconic Budakirkja, a picturesque black wooden church that's one of the most popular photography locations on the Snaefellsnes peninsula. It's just a 3-minute walk from the Hotel Budir, and it can even be seen from select rooms!

You'll also find many great activities on the Sneafellsnes peninsula. You can go whale-watching or embark on a unique culinary adventure. Try this magical 2-hour seafood boat cruise from Stykkisholmur, where you get to explore the Breidafjordur bay while catching fresh shellfish that you can then enjoy!

The area has so much to discover, and Hotel Budir is a good base to explore the surrounding nature. You can also find many different accommodations on the Snaefellsnes peninsula, as it's a popular region among travelers. Make sure to book well ahead of time to ensure you get the best options for your needs and preferences.

• For more: Top 16 Things to Do on the Snaefellsnes Peninsula

Country Hotel Heydalur

The Westfjords of Iceland are known for their isolated and rugged beauty. They're best visited during the warmer months and feature long winding roads that bring you along tranquil fjords and stunning attractions, like the Dynjandi waterfall or Latrabjarg cliffs. You can find many accommodation options in the Westfjord region, though most of them are 3-star options.

For the most comfortable experience, the best hotel in the Westfjords is the Country Hotel Heydalur. This three-star hotel offers the perfect countryside stay. Nestled in the Mjoifjordur fjord, you'll be surrounded by tranquil mountains, just under a two-hour drive from Isafjordur, the largest town of the Westfjords. From there, you'll find many exciting Westfjord tours to enhance your trip.

While the Country Hotel Heydalur is not a luxury hotel, it still provides a wonderful experience. It's located on a renovated farm, adding to the countryside charm, and it has an on-site restaurant serving breakfast, lunch, and dinner, using fresh local ingredients. Over 290 guests have given their stay an average rating of 4.7 out of 5 stars.

The farm's old barn has been transformed into a charming greenhouse, complete with an indoor swimming pool. Guests also have access to hot tubs and a natural outdoor swimming pool, perfect after a day of hiking and exploring. You can also enjoy exciting activities in the area, such as horseback riding and kayaking.

A stay in the Country Hotel Heydalur is the perfect choice for a Westfjord adventure. To ensure availability, book your stay ahead of time when planning your trip.

Best Hotels in East Iceland

The East of Iceland tends to be overlooked by visitors because of the area's distance from Reykjavik, but it features some stunning attractions and tranquil small towns nestled among the region's many fjords. You won't find many luxury hotels in East Iceland, but many great 3-star hotels will provide a wonderful stay. Here are the best options for your stay in East Iceland.

• See more: The Best Places to Visit in East Iceland

Fosshotel Eastfjords

Located in the small fishing village of Faskrudsfjordur, you'll find the three-star Fosshotel Eastfjords. The hotel has an average rating of 4.5 out of 5 stars from over 510 visitors, and it can serve as a good base for an East Iceland adventure.

It's located in a historic building that served as a hospital for French sailors in the late 19th and early 20th centuries. In fact, the town is even sometimes called the "French town in Iceland" because of the presence of French sailors along the coast in the past. As you explore the town, you'll see their influence all over, from the building styles to the French street names. You can dive into this history at the French Museum, just a minute away.

The hotel embraces this rich past with rooms inspired by traditional French styles. The L'abri on-site restaurant and bar also offers a mixture of French and Scandinavian cuisine, and it's best to book a table at the Fosshotel Eastfjords restaurant ahead of time.

The town is a 45-minute drive from Egilsstadir, the largest town in East Iceland, where you'll find more restaurants, shops, and cultural attractions. Nearby, you can visit the largest forest in Iceland, Hallormsstadarskogur, and the mystical Lagafljot lake.

This makes staying at the Fosshotel Eastfjords a great choice for your stay in the region. Alternatively, you can find many different hotels in East Iceland. To ensure the best possible deals and options, make sure to book well ahead of time when planning your trip.

Hotel 1001 Nott

The three-star Hotel 1001 Nott is one of the best hotels in East Iceland, with an amazing average rating of 4.9 out of 5 stars from over 160 guests. It's located in Egilsstadir, the most convenient base for exploring the East Fjords.

The Hotel 1001 Nott is just a short drive away from Hallormsstadarskogur forest, and you can easily get to the Skriduklaustur Cultural Center, and the exciting Wilderness Center. It's the perfect base for day trips to more attractions around the East Fjords, such as the Storurd boulders, the Hengifoss waterfall, or the otherworldly Studlagil canyon.

When returning to your comfortable room, you can unwind in the hotel's outdoor hot tubs, which provide beautiful views of the Lagafljot lake and surrounding mountains. For an even more luxurious experience, visit the Vok Baths, the perfect place to unwind after an adventure and just a 12-minute drive away from your hotel!

You can combine a visit with an adventure, like with this stunning 7-hour summer tour to Studlagil canyon that includes a visit to the Vok Baths. For further adventure, you can embark on any of the available Eastfjord tours, which are sure to create unique memories. You can also choose from various accommodation options in Egilsstadir, each providing a charming countryside escape.

Summary of the Best Luxury Hotels in Iceland

Whether you're enjoying a city break in Reykjavik, exploring iconic attractions, or taking on the Ring Road, you can find optimal luxury accommodations all over Iceland. It's the perfect way to enhance your journey, with comfort complimenting the rugged beauty of Iceland's nature.

You'll find accommodation that suits your needs and preferences, so book your perfect stay, pack your bags, and prepare for the best possible hotel experience in Iceland!

What luxury hotel in Iceland would you most like to stay at? Are there any other hotels that deserve to be on the list? Which part of Iceland would you most like to visit? Share your thoughts in the comments below!