Top 21 Most Unique Places to Stay in Iceland

Coolest Hotels in Reykjavik

Reykjavik is not only Iceland’s bustling capital but also a hub for some of the country’s most remarkable accommodations. The city offers a diverse range of unforgettable stays. From boutique hotels with rich legacies to vibrant hostels and stylish glamping options, Reykjavik’s accommodations are destinations in their own right.

These establishments blend luxury, comfort, and authenticity, offering more than just a place to rest. In Reykjavik, you’ll find stays that bring the city’s history to life, celebrate its vibrant culture, and create an unforgettable base for exploring the capital and beyond. Read on to discover some of the coolest hotels in Reykjavik, each with its own story and charm.

• Check out the Top 10 Hotels in Reykjavik
• See also the Best Hotels in Downtown Reykjavik

Esjan Glamping Buses

Esjan Glamping Buses offers a unique experience just 17 miles (28 km) from Reykjavik, providing travelers with cozy accommodation in converted buses set against the serene backdrop of Mount Esja. As part of the SÓL Retreat Centre, Esjan invites guests to unwind in the Icelandic countryside while remaining within reach of the capital.

Located at the base of Mount Esja, a popular recreational spot, it combines rural charm with opportunities for adventure.

Originally a farm, Esjan has been transformed into a wellness retreat where the former cowshed now hosts various wellness events. The glamping buses, located above the farmhouse, provide fully-equipped kitchenettes and inviting seating areas, comfortably accommodating up to four people. Guests enjoy breathtaking views of mountains and the ocean in a space that harmonizes rustic charm with modern comforts.

Esjan is committed to sustainability, with each unit creatively designed using recycled and upcycled materials—re-purposed timber, vintage furnishings, and even original bus seating. A separate bathhouse with shared showers and toilets adds an element of adventure while maintaining the convenience of modern amenities.

The nearby town of Mosfellsbaer serves as a local hub with grocery stores, pharmacies, and other essentials, making it easy for guests to pick up necessities. It also offers attractions such as the charming Alafoss waterfall and two swimming pools - Varmarlaug and Lagafellslaug- which are ideal for a relaxing dip after exploring. Esjan is well-positioned for excursions to iconic sites, including Thingvellir National Park and the Golden Circle.

Pets and families are welcome, making Esjan a perfect choice for those seeking a sustainable, scenic, and restful escape into Iceland’s natural beauty.

• Check out The Ultimate Guide to Glamping in Iceland
• Discover The Best Swimming Pools in Reykjavik

Apotek Hotel

The unassuming grey concrete building at the corner of Austurstraeti and Posthusstraeti may blend into Reykjavik’s downtown landscape, yet it holds a significant place in Icelandic history. This historic building is now home to Apotek Hotel.

Originally designed by Guðjón Samúelsson, Iceland’s revered state architect, it was among the first large concrete buildings in Iceland, constructed between 1916 and 1917 following a major fire that devastated the area.

Samúelsson, known for his architectural masterpieces like Hallgrimskirkja, Landakotskirkja, and the National Theatre, infused the design with influences of Art Nouveau and Danish National Romanticism, featuring curved lines, marble staircases, and statues by sculptor Einar Jónsson. The distinctive tower on the northwest corner marked a new era for the city as Reykjavik’s skyline began to change and elevate.

Photo from Ljosmyndasafn Reykjavikur/Bragi Guðmundsson

Over the years, Austurstraeti 16 has housed various tenants, including a bank in the early 20th century to the city’s oldest pharmacy, which operated from 1930 until the late 1990s.

Today, Apotek Hotel and its renowned restaurant, Apotek Restaurant, occupy the space, offering a blend of heritage and modern luxury. Apotek Restaurant draws inspiration from the building’s history as a pharmacy (apotek means “pharmacy” in Icelandic, i.e. "apothecary"), combining Icelandic and European cuisine in an elegant setting that keeps the building’s vintage charm intact.

During the summer, outdoor seating opens along Austurvollur square, creating a lively atmosphere in the heart of the city.

Apotek Hotel offers 45 luxurious rooms, each equipped with flat-screen TVs, minibars, en-suite bathrooms, and parquet floors. Guests seeking added comfort can opt for Superior and Deluxe rooms or one of the hotel’s elegant suites, including a Tower Suite.

With its prime location near Domkirkjan cathedral, Parliament House, and Harpa Concert Hall, Apotek Hotel is an ideal base for exploring the city’s cultural scene, iconic landmarks, and nearby cafés. Perfectly positioned in central Reykjavik, Apotek Hotel promises a refined city stay steeped in Icelandic history.

• Explore the Top 21 Parks in Reykjavik
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Kex Hostel

KEX Hostel, located at Skulagata in Reykjavik, has become a beloved spot for travelers and locals alike, thanks to its fun social atmosphere, live music, and unique charm. “Kex,” meaning “biscuit” in Icelandic, reflects the building’s history as the former Frón biscuit factory, built in 1930.

After the factory closed, the building served various purposes, but in 2011, it was transformed into the eclectic hostel it is today, seamlessly blending the structure’s original industrial style with contemporary design. 

Next time you’re in an Icelandic grocery store, keep an eye out for the Frón label—a nostalgic nod to the building’s roots and a reminder of the beloved “kremkex” biscuits, a favorite treat for many Icelanders.

Photo from Frónkex. No edits were made.

Situated just steps away from Reykjavik’s waterfront and close to the main shopping street, Laugavegur, KEX Hostel offers easy access to the city’s top attractions. The iconic Hallgrimskirkja church and Harpa Concert Hall are a short 10-minute walk away, while the rest of the downtown area, filled with galleries, museums, and bars, can easily be explored in less than 20 minutes on foot. 

KEX Hostel offers a variety of accommodation options to suit every budget, from spacious mixed dorms to private rooms for groups. Shared bathrooms are standard, but guests in premium rooms enjoy private facilities, luxurious bedding, and breakfast.

Each floor also features a well-equipped kitchen for guest use. The hostel’s popular bar, set within the old factory, is renowned for its jazz nights and vibrant atmosphere. Guests can also enjoy the “Gym and Tonic” function room for events or book a private dining space.

For travelers looking to dive into Reykjavík’s vibrant nightlife, make local connections, and enjoy live music, KEX Hostel offers an experience unlike any other in the city.

• Learn more: Shopping for Groceries in Iceland
• Explore our Reykjavik Nightlife Guide: The Best Bars and Clubs in Iceland

Sand Hotel

Sand Hotel sits within seven beautifully interconnected buildings on Laugavegur, with entrances on both Laugavegur and Grettisgata and a walkway connecting the two streets. This historic boutique hotel immerses guests in Reykjavik’s rich heritage, blending luxury with Icelandic culture.

Some of the buildings are protected, including Laugavegur 34, originally designed for Guðsteinn Eyjólfsson, a prominent tailor. His original men’s clothing store, which operated on the ground floor since 1929, was recently relocated to Armuli in 2024.

However, details from Guðsteinn’s trade are still celebrated throughout Sand Hotel’s décor, with pillows crafted from his fabric stock and staff dressed in custom-made uniforms inspired by his designs.

Adding to its charm, Sand Hotel is also home to the legendary Sandholt Bakery, established in 1920 by Stefán Sandholt. This bakery, which inspired the hotel’s name, serves fresh, locally loved pastries and is a destination in itself.

History lovers will appreciate that Icelandic writer and Nobel laureate Halldór Laxness was born in one of the buildings in 1902.

In addition to its fascinating history, Sand Hotel provides guests with modern comforts and amenities. Rooms are elegantly furnished with private bathrooms, complimentary toiletries, and smart TVs, with a delicious breakfast included.

Its central location allows for easy exploration of Reykjavik, with top sights, shops, museums, and restaurants all within walking distance. Perfect for those seeking an authentic Icelandic experience with a touch of history and luxury, Sand Hotel is an ideal base for your Reykjavik stay.

• Check out The Best Bakeries in Reykjavik
• Discover the Best Shops in Reykjavik - A Local Guide to the City's Gems

Hotel Borg

Hotel Borg, located at Posthusstraeti by Austurvollur in Reykjavik’s historic center, has long been woven into Iceland’s history. Founded and built by wrestler and circus performer Jóhannes Jósefsson and his wife Karólína Amalía Guðlaugsdóttir, and officially opened in the spring of 1930, it was designed by Guðjón Samúelsson, Iceland’s state architect.

The hotel was unveiled just before the grand Parliamentary Festival that year. Its dining halls first welcomed guests on New Year's, January 18, 1930, for a celebratory event before the hotel’s formal opening.

During World War II, the British forces occupied the hotel, using it as a base in downtown Reykjavik. For many years, Hotel Borg was the only place in Iceland with a licensed pub, becoming a major social and entertainment hub. In the 1950s, as restrictions relaxed, Hotel Borg continued to thrive with its restaurant, bar, and pub, each offering unique dishes in an atmosphere alive with music and revelry.

Photo from Kea Hotels

Located across from the parliament building and within view of Austurvollur Square, Hotel Borg is perfectly positioned for exploring Reykjavik’s main sights, including Harpa Concert Hall and Hallgrimskirkja.

The hotel, with its 99 Art Deco rooms—including six suites and a Tower Suite—captures the elegance of its era while offering modern amenities like smart TVs, Nespresso machines, heated bathroom floors, and complimentary WiFi.

Guests can enjoy a serene experience at the in-house spa and gym, complete with a hot tub, sauna, and steam room, or dine in the stylish Borg Restaurant, which honors the hotel’s storied past with a blend of classic and contemporary dishes.

The hotel’s central location makes it an ideal choice for those looking to immerse themselves in Reykjavik’s rich history and vibrant culture, all while enjoying luxurious accommodations and unparalleled service.

• Check out The Ultimate Guide to Downtown Reykjavik
• Explore Secret Spots & Hidden Gems in Reykjavik

Special Hotels in Southern Iceland

The South Coast of Iceland is a dream destination for travelers seeking the perfect blend of natural wonders, unique accommodations, and luxurious retreats. From serene countryside escapes to modern havens nestled amidst some of Iceland’s most iconic landscapes, the region offers something extraordinary for everyone.

Whether you’re looking to sleep under the northern lights in a futuristic pod, soak in the luxury of a themed suite inspired by the world’s continents, or enjoy an immersive stay on a floating glacier lagoon boat, South Iceland’s hotels and guesthouses promise unforgettable experiences.

Explore a handpicked selection of the coolest hotels in Southern Iceland that combine design, relaxation, and adventure, creating the ultimate backdrop for your Icelandic journey.

• Check out The Ultimate Guide to Iceland's South Coast

Aurora Igloo

Hidden near the quiet town of Hella in South Iceland, Aurora Igloo offers a surreal, sci-fi-esque experience that’s as captivating as it is unique. These transparent domed pods, placed in the heart of the Icelandic countryside, immerse guests in nature while blending the futuristic with the serene. Whether gazing at the stars or marveling at the northern lights, staying in these igloos feels like stepping into an otherworldly reality.

Conveniently close to the Ring Road, Aurora Igloo provides an excellent base for exploring South Iceland’s iconic landscapes. From cascading waterfalls like Aegissidufoss, Seljalandsfoss, and Gljufrabui to the dramatic black-sand beaches and rugged coastline, some of Iceland’s most stunning sights are just a short drive away.

The nearby town of Hella offers essentials, including grocery stores, cafes, and the intriguing Caves of Hella, a historical and geological treasure worth exploring.

Each igloo is fully transparent, offering a 360-degree view of the night sky. Fall asleep beneath the stars or the swirling auroras from the warmth of your heated pod, which comes equipped with a double bed, seating, and curtains for extra privacy.

Separated by wooden partitions, the pods offer intimacy and a sense of isolation in this minimalist yet luxurious retreat. Bathroom facilities are conveniently located in a nearby service house, ensuring comfort while keeping the setting pristine.

Aurora Igloo isn’t just accommodation—it’s an encounter with Iceland’s raw beauty and vastness. Perfect for couples or adventurous travelers seeking something extraordinary, this glamping experience is your chance to step into a sci-fi-inspired haven and connect deeply with the wonders of nature.

• Learn more about Caves in Iceland
• Check out 8 Amazing Black Sand Beaches in Iceland

Umi Hotel

Speaking of mirrors, Umi Hotel reflects the natural beauty of Iceland’s South Coast with its striking blend of modern luxury and spectacular surroundings. This stylish retreat offers stunning views of mountains and the ocean, making it an exceptional choice for travelers seeking tranquility, especially couples in search of a romantic escape.

Nestled along the South Coast, Umi Hotel provides easy access to some of Iceland’s most iconic attractions. Located between the breathtaking waterfalls of Skogafoss and Seljalandsfoss, 15 and 20 minutes away, the hotel is perfectly positioned for exploring the region’s wonders.

Solheimajokull glacier tongue lies just 25 minutes away, and the charming village of Vik, with its black sand beaches and Dyrholaey rock arch, is a mere 40-minute drive.

Further afield, Umi Hotel is an ideal base for those venturing beyond the Golden Circle, offering proximity to the Skaftafell Nature Reserve and Jokulsarlon glacier lagoon, which are must-see destinations further along the coast.

The hotel features 28 beautifully designed, soundproofed rooms, each accommodating two guests. Whether you prefer views of the ocean or the mountains, every room is equipped with flat-screen TVs, private bathrooms, hair dryers, and free Wi-Fi.

Superior rooms offer a touch more space for added comfort. Guests can enjoy complimentary breakfast each morning, and the on-site restaurant serves exquisite lunch and dinner options in a setting as stunning as its menu.

Umi Hotel also boasts a terrace, cozy communal areas, and a 24-hour tour desk to enhance your stay. Its blend of comfort, style, and proximity to Iceland’s natural marvels makes it a perfect retreat or stopover for travelers exploring this enchanting region.

• See also: Top 9 Things To Do in Vik

Stay at Fjallsarlon Glacier Lagoon

Can’t get enough of the icebergs at Fjallsarlon? Treat yourself to an extraordinary 16-hour glacier lagoon adventure. This one-of-a-kind overnight stay on a floating igloo boat is perfect for those who crave intimacy with Iceland’s pristine wilderness while marveling at the northern lights or the midnight sun.

Your journey begins in the evening with check-in at the lagoon. With only two Aurora Huts available, this exclusive experience is limited to just a handful of lucky travelers, making it one of the most unique places to stay in Iceland. Please note that the stay requires a minimum age of 20, and the price is for two guests.

Your accommodation, an Aurora Hut or "igloo boat," combines luxury with nature. A Zodiac boat will transport you across the lagoon to your floating retreat.

The journey itself is unforgettable, with shimmering icebergs, a majestic glacier, and the serene lake creating a fantasy-like setting. Anchored on the lagoon during spring, summer, and fall, the igloo boat provides unrivaled proximity to the glacier.

Each Aurora Hut features a double bed, panoramic glass walls, and a ceiling for unparalleled views of the surrounding landscape. Inside, you’ll find a small kitchenette, electricity, Wi-Fi, and cozy bedding, ensuring comfort in the wilderness.

While a composting toilet is available, there are no shower facilities. Your stay includes a dinner basket, a light breakfast, and optional vegetarian meals. Champagne and wine are also available for purchase to elevate your experience.

Seasonal highlights include the midnight sun in summer, painting the lagoon in endless daylight, and the chance to see the northern lights during spring and autumn.

Check-out is the following morning, leaving you with cherished memories and stunning photographs of this once-in-a-lifetime adventure.

• Explore the Glacier Lagoons in Iceland
• Check out the Top Activities in Iceland for Adrenaline Junkies

Hotel Ranga

Hotel Ranga is one of Iceland’s most unique and luxurious accommodations, set in the heart of the stunning South Icelandic countryside. Renowned for its unparalleled charm and attention to detail, the hotel blends Icelandic heritage with global influences, creating a haven of comfort, art, and natural immersion.

The hotel’s 52 rooms and suites are individually designed, with the suites themed around the seven continents. Each suite is a masterpiece, reflecting the art, culture, and design of its respective region, while the standard rooms feature murals inspired by Icelandic nature and folklore. Handpicked crafts and artwork adorn the spaces, providing an aesthetic that is both sophisticated and deeply personal.

Adding to its allure, Hotel Ranga offers guests the opportunity to witness the northern lights in extraordinary comfort. The hotel features outdoor hot tubs with uninterrupted views of the night sky, and its in-house observatory, equipped with top-of-the-line telescopes, allows for a closer look at the celestial wonders above. A dedicated northern lights wake-up call ensures that no guest misses the breathtaking auroras when they appear.

The hotel’s gourmet restaurant is another highlight, celebrated for its exquisite modern Nordic cuisine crafted from the freshest local ingredients. Overlooking one of Iceland’s premier salmon rivers, the dining experience here is as visually stunning as it is delicious.

Hotel Ranga has welcomed an impressive roster of distinguished guests, including Justin Bieber, Charlize Theron, Forest Whitaker, the Kardashians, and Swedish royalty, King Carl XVI Gustaf, Queen Silvia, and Princess Victoria. This history of hosting notable figures underscores its reputation as a premier destination for those seeking exclusivity and elegance.

Combining artistic design, luxurious amenities, and extraordinary service, Hotel Ranga is definitely one of the coolest hotels in Iceland.

• Discover the Northern Lights in Iceland - When & Where To See the Aurora
• See also: Aurora Borealis v. Aurora Australis: What's the Difference?

ION Adventure Hotel

The ION Adventure Hotel is a stunning boutique accommodation located in Iceland’s Golden Circle, offering spacious rooms, a geothermal pool, and wellness facilities. Perfect for travelers seeking tranquility and proximity to Iceland’s iconic natural wonders, this award-winning hotel is an ideal base for exploring the Golden Circle and enjoying the northern lights or midnight sun.

Perched on the slopes of Mount Hengill, the hotel is just 45 minutes from Reykjavik, surrounded by breathtaking landscapes of mountains and lava fields. Its serene location provides easy access to major attractions, including Thingvellir National Park, just 15 miles (25 km) away.

A UNESCO World Heritage Site, Thingvellir is celebrated for its historical significance and unique geology. Guests driving to the park will enjoy stunning views of Lake Thingvallavatn along the way.

Other Golden Circle highlights, such as the powerful two-tiered Gullfoss waterfall and the Geysir geothermal area, are also within a short drive. Gullfoss drops an impressive 105 feet (32 meters), while Strokkur geyser erupts every few minutes, shooting water 66 feet (20 meters) into the air.

For a cultural experience, the town of Selfoss, with its Old Dairy food hall and diverse eateries, is just 30 minutes away.

The hotel offers a range of rooms, from single sub-parterre options to deluxe double rooms and thermal junior suites, catering to solo travelers, couples, and small groups. Each room features private bathrooms, organic linens, free Wi-Fi, and modern amenities like coffee and tea-making facilities.

Guests can unwind at the Lava Spa’s geothermal pool, indulge in Nordic cuisine at the Silfra restaurant, or relax with a drink at the Northern Lights bar. With its high ceilings and glass walls, the hotel offers uninterrupted views of the surrounding nature, creating a perfect retreat for adventure and relaxation.

• Explore the Top 20 Attractions in Iceland: A Must-See List of Natural Wonders
• Check out The 30 Best Hot Springs and Geothermal Pools in Iceland

Unique Hotels in West Iceland

From charming guesthouses to luxury hotels with unparalleled views, West Iceland's accommodations cater to every traveler’s taste.

Immerse yourself in the stories of Iceland’s past, such as the lives of French fishermen or the folklore of mythical guardians, while enjoying modern comforts and spectacular surroundings.

Explore our selection of extraordinary places to stay in West Iceland, where every detail invites you to connect with the region’s vibrant history and dramatic natural landscapes.

• Check out the Top 5 Destinations in Iceland

Englendingavik

Trading activity in Englendingavik began in 1881, and by 1888, J.P.T. Bryde, a prominent merchant, had established a store there, which operated until 1913. From 1916 to 1959, Borgarfjordur's Co-operative ran a store and offices at this historic site.

These co-operatives played a vital role in Iceland's economic and social development, emerging as symbols of national independence. They were the first Icelandic enterprises to challenge foreign merchants, providing local communities with essential goods and services.

The trading co-operatives spread across Iceland’s towns and villages, becoming integral to the first Icelandic market system. Their operations expanded beyond trade, encompassing production, processing, and transportation, and with collective, indivisible funds, they served as development hubs for their communities.

Photo from Héraðsskjalasafn Borgarfjarðar

In urban areas, co-operatives primarily focused on retail, but in rural Iceland, they were multi-functional, contributing significantly to the country's progress.

Today, Englendingavik is a charming guesthouse with a restaurant on Borgarnes’s scenic waterfront. Set in the tranquil Englendingavik bay (“The Englishman’s Bay”), it’s a fantastic choice for travelers who value nature, especially birdwatching.

This peaceful location offers easy access to the Borgarnes town center, just a short drive from Reykjavik, and local attractions such as the Settlement Center museum and Borgarnes swimming pool.

Englendingavik offers double, twin, and family rooms with shared or private bathrooms and idyllic sea views. The guesthouse also features a cozy hot tub for relaxing after a day of exploration and a highly-rated restaurant serving fresh Icelandic cuisine.

With modern decor, free Wi-Fi, and on-site parking, Englendingavík offers a comfortable stay with easy access to the historic Ring Road.

• Discover The Best Museums in Iceland
• See also: A Complete History of Iceland

Fosshotel Reykholt

Fosshotel Reykholt is a chic, modern hotel situated in the historically significant village of Reykholt, West Iceland. Surrounded by serene geothermal landscapes, it offers travelers a perfect blend of comfort, relaxation, and proximity to Iceland’s natural and historical treasures.

Reykholt is renowned as the home of Snorri Sturluson, the 13th-century writer, historian, and chieftain. Snorri’s works, such as the Prose Edda, are invaluable to our understanding of Old Norse mythology and medieval history.

His legacy is reflected in local landmarks, including Snorralaug, the ancient geothermal pool behind the hotel. This pool, once central to wellness and social life during the Middle Ages, remains a symbol of Reykholt’s past. Nearby, a statue of Snorri stands before a striking white building, an old school designed by Guðjón Samúelsson, Iceland’s state architect.

Fosshotel Reykholt is ideally located near several of West Iceland’s most famous sites. The beautiful Hraunfossar and Barnafoss waterfalls are less than a 15-minute drive away, while Deildartunguhver, Europe’s most powerful hot spring, is only 5 minutes from the hotel. Visitors can also unwind by booking a ticket to Krauma, a spa located next to the spring.

The hotel features a luxurious spa with hot and cold tubs, steam baths, and a sauna. Guests can also enjoy a delicious breakfast and dinner at the on-site restaurant. Each of the 83 rooms includes modern amenities such as private bathrooms, TVs, coffee-making facilities, and comfortable furnishings.

Fosshotel Reykholt offers the perfect balance of historical charm, modern luxury, and unbeatable access to some of Iceland’s most stunning natural attractions, making it an excellent choice for any traveler.

• Read more about The Historic Reykholt in West-Iceland & Snorri Sturluson
• See also: Vikings and Norse Gods in Iceland

Hotel Budir

Hotel Budir, nestled on the stunning Snaefellsnes peninsula, is one of Iceland's most beautiful countryside hotels. Surrounded by breathtaking natural landscapes, this enchanting retreat combines luxury, history, and unparalleled views of the Snaefellsjokull glacier, Faxafloi bay, and sprawling lava fields.

Established in 1947, the hotel began as a guesthouse and fish restaurant on the site of a former trading post. Over time, it became a favorite retreat for notable Icelandic figures, including Nobel laureate Halldór Laxness and artist Jóhannes Kjarval.

Though the original structure was destroyed by fire in 2001, the hotel was lovingly rebuilt and reopened in 2003, preserving its charm and historical essence.

Today, Hotel Budir offers 28 elegantly appointed rooms, and a renowned restaurant celebrated for its fresh, locally sourced Icelandic ingredients. Guests can savor seasonal dishes while enjoying views of the glacier and ocean, making it one of the most romantic dining spots in the country.

Just steps away lies Budakirkja, the iconic black church. Originally built in 1703, it was rebuilt in 1848 by Steinunn Sveinsdóttir, with special permission from the King of Denmark. She spearheaded and financed the construction of the wooden church that still stands in Budir today.

Steinunn is laid to rest in Budir cemetery, where a tombstone commemorates her legacy. Relocated to its current position in 1984, it houses artifacts from the 1700s and is renowned for its striking appearance amidst the rugged landscape.

Hotel Budir and Budakirkja are more than just destinations; they are gateways to Iceland’s cultural and natural heritage. Whether you’re looking for a luxurious retreat, stunning photography opportunities, or a connection to Iceland’s history, Hotel Budir is the perfect choice.

• Read about The Black Church of Budir as a Photography Location
• Discover the Top 16 Things to Do on the Snaefellsnes Peninsula

Arnarstapi Cottages

Another unusual accommodation in Iceland found on the Snaefellsnes peninsula is the Arnarstapi Cottages. These stand-alone cottages offer a charming and comfortable base for exploring one of Iceland’s most legendary regions. Often called "Iceland in Miniature," the Snaefellsnes peninsula showcases a stunning variety of landscapes, from glaciers and lava fields to rugged cliffs and tranquil seas, all within easy reach of these cozy cottages.

The village of Arnarstapi, where the cottages are located, is steeped in history and folklore. Once a bustling trading post during Iceland’s monopoly era, it was a hub where the king’s agents and magistrates oversaw commerce.

Today, its historical significance is complemented by its association with Bárður Snæfellsás, the mythical half-troll and guardian of Snaefellsnes. According to local folklore, Bárður settled here after arriving from Norway and became a protector of the region.

His story is entwined with nearby landmarks, including Raudfeldsgja, a ravine where he threw his cousin, and Bardarlaug, a pond where he is said to have bathed. A striking statue of Bárður, sculpted by Ragnar Kjartansson, stands in Arnarstapi, a testament to this enduring legend.

The cottages themselves are designed to blend comfort and seclusion. Each of the nine stand-alone units features a large double bed, a private bathroom with a shower, and practical amenities such as a refrigerator, microwave, and kettle.

Outdoor patios with seating provide breathtaking views of the surrounding mountains and sea. Guests can also enjoy complimentary WiFi, free parking, and an on-site restaurant serving locally inspired cuisine.

From Arnarstapi, you can easily explore the Snaefellsjokull glacier, Raudfeldsgja ravine, and countless other natural wonders. Whether you’re drawn by the folklore, the history, or the spectacular scenery, Arnarstapi Cottages offer an unforgettable stay on Iceland’s Snaefellsnes peninsula.

• Learn more about Bárður Snæfellsás - the Mythical Protector of the Snæfellsnes Peninsula in West Iceland
• See also: Folklore in Iceland: The Complete Guide

Unique Hotels in the Westfjords

The Westfjords offer an unparalleled sense of serenity and the chance to stay at some unique lodgings in Iceland.

An invitation to immerse yourself in a world where nature and history harmonize, these accommodations combine modern comforts with authentic experiences.

Join us as we explore the unique places to stay in the Westfjords, where heritage, hospitality, and breathtaking vistas come together to create true magic.

• Check out The Ultimate Guide to the Westfjords of Iceland

Einarshusid in Bolungarvik

Photo from Bolungarvik

Einarshusid is a charming guesthouse in the picturesque town of Bolungarvik with a long history. Built in 1902, this wooden house has witnessed the joys and sorrows of its prominent inhabitants, serving as both a residence and a center of community life.

The house was originally constructed by Pétur Oddsson, who lived there until 1930. His time in the home, however, was marked by profound tragedy.

Over the years, he lost 14 family members, including his wife and children, to tuberculosis and other illnesses. Despite this sorrow, the house later became a symbol of prosperity and community under its next owner, Einar Guðfinnsson.

Einar moved into the house with his family and spent decades building a thriving fishing enterprise, which played a crucial role in the economic life of Bolungarvik.

Einar was deeply respected for his humility, integrity, and dedication to the community, earning him the title of the town’s first honorary citizen. A monument to Einar and his wife, Elísabet, was erected in 1998, featuring a bas-relief by artist Ríkey Ingimundardóttir and inscribed with Einar’s poignant words: “I did not inherit money, I inherited virtues.”

After falling into disrepair, Einarshusid was lovingly restored in 2004 and later in 2016, returning it to its former glory as one of Bolungarvik’s most beautiful houses. Today, it operates as a cozy guesthouse with eight rooms offering breathtaking views of the surrounding mountains and Isafjardardjup fjord.

Guests at Einarshusid can explore the local history through displays in the lounge area, relax on the terrace, or dine at the summer restaurant, known for its locally sourced seafood.

Located near the port and attractions such as the Osvor Maritime Museum and Bolafjall mountain, Einarshusid offers a blend of authentic Icelandic heritage and unparalleled natural beauty.

• Explore the Fjords in Iceland
• Learn more about Fishing in Iceland

Fisherman Gusethouse Sudureyri

Fisherman Guesthouse in the tranquil fishing village of Sudureyri is a charming escape, positioned along the scenic Sugandafjordur fjord in the Westfjords. Offering modern accommodations, an acclaimed seafood restaurant, and a serene atmosphere, it’s an ideal base for exploring one of Iceland’s most remote and beautiful regions.

The guesthouse sits just 14 miles (23 km) from Isafjordur, the largest settlement in the Westfjords, where travelers can find additional amenities and cultural attractions.

Sudureyri itself has a rich fishing history, celebrated through the guesthouse's own tour called Fisherman Seafood Trail, an immersive guided tour offered free to hotel guests during the summer. This unique experience showcases the village’s sustainable fishing practices and includes tastings of freshly prepared seafood, connecting guests to the area’s heritage.

Nearby, the Sudureyri swimming pool offers heated outdoor pools, hot tubs, and a cold plunge—perfect for relaxing after a day of exploration. Guests can venture further to natural wonders like Dynjandi waterfall, just 40 miles (65 kilometers) away, or the Latrabjarg cliffs, known for their birdlife and panoramic views.

At the guesthouse, guests can choose rooms with shared or private bathrooms, all featuring essentials like towels, linens, and clothes racks. The on-site seafood restaurant and bar serves an à la carte menu during summer and daily fish specials in the off-season. Outdoor seating and cozy communal spaces provide a welcoming atmosphere to unwind and enjoy the village’s charm.

Fisherman Guesthouse offers a perfect blend of history, culture, and nature, making it an excellent choice for travelers seeking an authentic Westfjords experience.

• See also: The History of 66°North: Keeping Iceland Warm for a Century
• Discover Dynjandi as a Photography Location

Unique Hotels in Northern Iceland

North Iceland offers a blend of dramatic landscapes, rich history, and some of the coolest hotels in Iceland. From harborfront luxury in picturesque villages to hotels steeped in Icelandic heritage, the North promises a stay that’s as memorable as the sights themselves.

Whether you dream of waking up to the majestic Godafoss waterfall, enjoying a window seat overlooking the serene fjords of Siglufjordur, or staying in one of Akureyri's iconic landmarks, Northern Iceland’s accommodations are as diverse as the region.

Discover the finest accommodations in Northern Iceland, where modern comforts blend seamlessly with stunning locations, providing the perfect starting point for exploring the region's wonders and cultural treasures.

• Check out the 11 Must-See Destinations in North Iceland
• Discover the Best Restaurants in North Iceland

Hotel Godafoss

Have you ever dreamt of waking up to the serene sounds of a waterfall? Well, look no further than Hotel Godafoss! 

This hotel offers travelers the unique opportunity to stay just steps away from one of Iceland’s most renowned cascades. Located 0.5 miles (800 meters) from Godafoss in North Iceland, this cozy hotel features nine comfortable rooms and spectacular views.

Godafoss, or the "Waterfall of the Gods," is renowned for its breathtaking horseshoe-shaped cascade, 98 feet (30 meters) wide and 39 feet (12 meters) tall.

Its historical significance stems from Iceland’s adoption of Christianity in 1000 AD when idols of the Norse gods were symbolically cast into its waters. Across the road from the hotel lies Geitafoss, another stunning waterfall on the Skjalfandafljot river, just 295 feet (90 meters) away.

The hotel’s location provides access to several attractions. The Laugar swimming pool, 8 miles (13 km) northeast, offers hot and cold pools in a peaceful countryside setting.

Akureyri, known as the "Capital of the North," is just 21.5 miles (34.6 km) west and features museums, botanical gardens, restaurants, and shops. A convenient café, bistro, gift shop, and petrol station are located right next door.

Hotel Godafoss features modern rooms with private bathrooms, some boasting verandas or picturesque river and garden views. Guests can enjoy breakfast from 8-10 AM, as well as meals and drinks at the on-site restaurant and bar. Complimentary Wi-Fi and free parking are available for added convenience.

With its exceptional location, comfortable accommodations, and proximity to North Iceland’s natural and cultural treasures, Hotel Godafoss offers an unforgettable stay surrounded by beauty and history. Don’t miss the chance to experience the magic of this extraordinary destination.

• Explore the Waterfalls in Iceland
• See also: Top 11 Waterfalls in Iceland to See in Winter

Hotel Siglo

Hotel Siglo is widely regarded as one of Iceland's finest hotels, offering an unforgettable stay in the charming village of Siglufjordur. Nestled along the harborfront, the hotel boasts luxurious amenities, including a geothermal swimming pool, sauna, and hot tub, all surrounded by the breathtaking beauty of the Trollaskagi peninsula. 

Each room includes a charming window seat, perfect for immersing yourself in the captivating views of the fjord and sea—a true embodiment of slow living.

Siglo Hotel enjoys an enviable location in Siglufjordur’s picturesque harbor, providing easy access to boat tours, the village’s amenities, and local attractions.

A short walk takes you to Torgid Restaurant and Kaffi Raudka, where you can enjoy exceptional Icelandic cuisine. The Herring Era Museum, Iceland’s largest maritime museum, is also nearby, offering a fascinating glimpse into the town's fishing heritage.

Siglufjordur itself is a gateway to the stunning Trollaskagi, renowned for its dramatic mountains, coastal views, and abundant Icelandic horses. Just 21 miles (34 km) away, Dalvik offers unforgettable whale-watching tours, where humpback whales, dolphins, and even blue whales are often spotted.

The nearby island of Hrisey is a birdwatching paradise, while the Beer Spa in Arskogssandur, 29 miles (46.5 km) away, provides a one-of-a-kind rejuvenating experience. For more shopping and tours, Akureyri, the “Capital of North Iceland,” is 48 miles (77 km) south.

The rooms and suites at Hotel Siglo are thoughtfully designed with modern amenities, including smart TVs, free Wi-Fi, and private en suite bathrooms.

Options range from standard doubles to deluxe sea-view rooms with balconies and luxurious suites for added comfort. Guests can enjoy complimentary breakfast at the on-site restaurant and relax at the bar.

• Explore 15 Hidden Destinations in North Iceland
• Check out The Best Guide to Whale Watching in Iceland

Hotel KEA

KEA, established in 1886 as a cooperative, began with the mission of providing its members with affordable goods. Over the years, it became the largest employer in North Iceland, operating stores, milk processing plants, slaughterhouses, and fishing vessels, significantly contributing to the region's development.

KEA also played a key role in Iceland’s industrial growth, co-founding a gas station chain in 1946. Though it has transitioned into an investment company, KEA remains a cooperative with over 19,000 members. Today, it focuses on supporting economic growth and improving living conditions in North Iceland through strategic investments, no longer engaging in direct business operations.

Photo from KEA

Hotel KEA, a central part of KEA’s legacy, opened in 1944 and quickly became one of Akureyri’s most prominent landmarks. Located just below the iconic Akureyrarkirkja church, the hotel’s position in the heart of the town offers breathtaking views of Eyjafjordur and easy access to Akureyri’s attractions.

Originally housing the Gildaskali KEA restaurant, Hotel KEA has undergone multiple renovations and expansions to meet modern demands, earning its reputation as the only 4-star hotel in Akureyri.

The hotel features 104 well-appointed rooms, each equipped with a private bathroom, flat-screen TV, writing desk, and mini-fridge. Deluxe rooms include mini-bars, and the top-floor suite offers panoramic views over the fjord and town.

Guests can enjoy locally inspired dishes made from fresh, seasonal ingredients at the hotel’s restaurant and access discounts at a nearby spa and gym. Free Wi-Fi is available throughout the property, and public parking is conveniently located nearby.

With its historical significance, modern comforts, and unbeatable location in Akureyri’s town center, Hotel KEA provides an exceptional experience for travelers exploring North Iceland in style.

• Learn more about Akureyri, the Capital of North - Culture, History and Activities
• Discover the 13 Best Things to Do in Akureyri (and Nearby)

Unique Hotel in East Iceland

Experience the Eastfjords by staying in accommodations that blend contemporary comfort with deep-rooted cultural significance. The hotels in the East region not only offer excellent amenities but also immerse guests in the Eastfjords' captivating heritage and stunning natural landscapes.

From historic restorations to unique stories tied to Iceland’s past, these stays provide the perfect gateway to exploring the East's breathtaking fjords and all the fun activities.

Check out the coolest places to stay in East Iceland for a truly memorable journey!

• Check out The Ultimate Guide to Iceland's East Fjords

Fosshotel Eastfjords

Fosshotel Eastfjords, located in the picturesque village of Faskrudsfjordur on Iceland's East Coast, is a 3-star hotel celebrated for its historical significance and architectural restoration. In 2016, it earned the prestigious European Heritage Award for its exceptional preservation of cultural heritage, making it the first project in Iceland to receive this honor.

The hotel occupies four meticulously restored buildings originally constructed between 1889 and 1907 to serve French fishermen. The centerpiece of these structures is the French hospital, built in 1903.

Photo from Minjavernd

For a quarter of a century, the hospital provided medical care to French seafarers. In 1939, the building was relocated to Hafnarnes, where it functioned as a school and apartment complex.

During its restoration, special care was taken to reuse original materials, ensuring that the renovation honored its historical roots. Today, these buildings house Fosshotel Eastfjords, preserving the legacy of the French fishermen who were once vital to the area’s economy.

Guests of the hotel can explore this history at the on-site French Museum, where exhibits delve into the life and work of these fishermen. Admission to the museum is complimentary for hotel guests, providing a deeper connection to the region’s past.

The hotel features 47 tastefully decorated rooms with modern amenities, such as free Wi-Fi and satellite TV, all set within a charming French-inspired interior. The on-site restaurant, L’Abri, located on a floating pier overlooking the fjord, offers exquisite French and Nordic cuisine crafted with local ingredients.

Fosshotel Eastfjords offers travelers not only a comfortable stay but also an opportunity to immerse themselves in the unique cultural history of Faskrudsfjordur, making it a truly special destination on Iceland's east coast.

• Explore the Best Restaurants in East Iceland
• See also: 12 Towns to Visit in Iceland's Eastfjords

Eidar Hotel & Apartments

The history of Eidar dates back to the early days of Icelandic settlement, with its first mention in the Saga of Droplaugarson around the year 1000. However, it was in 1881 that Eidar gained prominence when plans were made to establish an agricultural school in East Iceland.

On June 20th of that year, a decision was made to situate the school on the land at Eidar, chosen for its suitability and existing facilities, including the Eidar church. The church was rebuilt in 1886, restoring its historical significance. It remains standing today, a testament to the area’s long history, adjacent to Eidar Hostel & Apartments.

In 1917, Eidar School transitioned into Iceland’s first public school established by law, owned and operated by the government. The school opened on October 20th, 1919, and operated until 1995.

Egilsstadir College temporarily took over operations for three years before the school finally closed in 1998. Over the decades, Eidar became a vibrant hub for social life, sports, and music, with the school playing a central role in the cultural development of East Iceland for nearly a century.

Today, Eidar Hostel & Apartments occupies the site of this historic school, offering modern accommodations while preserving the area’s heritage. Surrounded by forests and mountains, the hostel provides a peaceful retreat and access to East Iceland’s attractions.

Nearby, guests can explore Sigfusarlundur park, Gufufoss waterfall, and Hengifoss, one of Iceland’s tallest waterfalls. Skiing at Stafdalur Ski Station, dining at Nielsen Restaurant, or going on a reindeer safari enhances visitors' experience.

Eidar Hostel offers various room options, shared kitchen facilities, and communal spaces, combining comfort with history. Its peaceful setting and proximity to natural wonders make it a perfect base for exploring East Iceland and connecting with its rich cultural heritage.

• Check out The Best Places to Visit in East Iceland
• See also: Top 9 Things to Do in Egilsstadir

Summary of the Most Unique Places to Stay in Iceland

No matter which of these unique accommodations you choose, your stay in Iceland is bound to be unforgettable. From quirky glamping experiences to luxurious boutique hotels steeped in history, each place offers something special, making it a highlight of your journey.

Whether you’re soaking in breathtaking landscapes, marveling at the northern lights, or immersing yourself in local culture, these extraordinary stays promise comfort, adventure, and memories to last a lifetime.

Which of these cool Icelandic accommodations would you like to experience? Are there any hidden gems you’d add to the list? Let us know in the comments below!