Hotels in Island

What are the best hotels in Iceland? Where are the best hotels in Reykjavík? Where to book accommodation in Iceland? What is accommodation in Iceland like? Read about best-value hotels and luxury hotels in Iceland here.

Have you booked your flight to Iceland but are now wondering where to stay? We at Guide to Iceland have made a list of our top 12 hotels in Iceland, which is not only based on luxury, comfort and style but also value for money. Find the perfect place to stay in Reykjavik, to see the full Top 12 list, simply press 'Read more'...

12. Hotel Katla

Hotel Katla is a traditional 3-star country hotel is great value for money and is in a fantastic location. It's also recently been renovated, offering a number of new and stylish accommodations mixed in with rooms in an older style.

Situated near the village Vik, you can easily access some of the country's most breathtaking locations, such as Dyrholaey cliffs, Seljalandsfoss waterfall and Skogafoss waterfall. A tour of the South Coast will allow you to discover all that this area has to offer.

Many people that are driving on the south coast of Iceland from Reykjavik towards Jokulsarlon glacier lagoon choose to spend the night at Vik, and then Hotel Katla is a great and affordable option. There are plenty of attractions by the Ring Road in Iceland, so taking your time to enjoy this route is advisable.

All guests have access to their outdoor hot tubs, and the restaurant serves a buffet breakfast and a delicious and extremely varied dinner buffet with local specialties. There is also a cozy bar where you can have a drink before or after dinner.

11. Hotel 1001 Nott

Hotel 1001 Nott is a fantastic getaway surrounded by woodland in East Iceland, with mountain or lake views from every modern room, outdoor hot tubs, and easy accessibility to the town of Egilsstadir.

The hotel is located on the banks of Lake Lagarfljot in East Iceland, surrounded by the largest forest in the country, Hallormstadaskogar.

Guests will find twin or double rooms that overlook mountains or Lake Lagarfjlot. As such, the establishment is great for romantic getaways, solo travelers, and pairs of friends.

All guests are welcome to enjoy the outdoor hot tubs during their stay, which boast incredible views. These pools are great for enjoying the midnight sun in summer and northern lights in winter.

The hotel has a restaurant and bar. You can enjoy a breakfast buffet each morning and receive a complimentary parking space with your booking. Furthermore, the 24-hour front desk staff can help you with queries and recommendations.

Anyone embarking on a Ring Road tour or East Fjords exploration looking to stay somewhere surrounded by nature, with a hot tub to boot, should not hesitate to book a room at this hotel.

10. Umi Hotel

Umi Hotel is a superb choice of accommodation on Iceland’s South Coast, with spectacular views over mountains and the ocean. Travelers, particularly couples, will find it a modern, comfortable place to stay on their journey.

With a spectacular location right on the South Coast of Iceland, Umi Hotel is fantastically positioned for those who want to be surrounded by nature. It is also close to many significant sites. Most notably, it is almost directly between Skogafoss and Seljalandsfoss waterfalls, 15 minutes and 20 minutes away.

Umi Hotel has 28 beautifully decorated, soundproofed, and well-furnished rooms, all accommodating at least two people. Some have mountain views, some look over the ocean, and the superior rooms are slightly more spacious.

The hotel also boasts comfortable communal areas, a terrace, and a 24-hour tour desk. Breakfast is provided for free each morning, and you can enjoy lunch and dinner at the stunning restaurant on site.

Umi Hotel’s fantastic location, plentiful amenities, and welcoming rooms make it a brilliant base or pit stop for all travelers, particularly couples seeking a romantic getaway.

9. Skuggi Hotel

Skuggi Hotel is the ideal choice for those who are looking for a central hotel in Reykjavik. Skuggi Hotel gives you the chance to discover the most of what Reykjavik has to offer, combining outstanding service with a great location.

Located in the heart of Reykjavik, Skuggi Hotel sits by one of the oldest streets, Hverfisgata. Iceland’s main shopping street, Laugavegur, is only a 2-minute walk away from the hotel, which is well-known for its variety of restaurants, designer shops, cafés, and thrilling nightlife.

Skuggi Hotel’s rooms found their inspiration from photographs of Iceland’s nature by Ragnar Axelsson. There are 100 in total. All are elegantly decorated to create a cozy home-from-home atmosphere. Downstairs there's a bar that's open to guests and locals.

Skuggi Hotel gives you the chance to discover all that Reykjavik has to offer with its central location.

8. Hotel Laxa

Hotel Laxa is a 3-star hotel by Lake Myvatn. It opened in 2014 and aims to be green and eco-friendly.

The hotel’s fun and funky décor are also stylish, and the hotel boasts a lounge, bar, and restaurant emphasizing local ingredients.

Lake Myvatn is one of Iceland’s gems. It’s famous for its spectacular nature, full of pseudo-craters, interesting flora and fauna, peculiar rock formations and hot springs. 

Nearby you’ll find Dimmuborgir (Dark Fortress), a great area to explore on foot with its hauntingly beautiful lava landscape. You can also head to Myvatn Nature Baths and soak in hot natural water or go fishing in the Laxa river, from which the hotel draws its name.

Hotel Laxa should be a top choice of accommodation for any summer travelers to north Iceland looking to stay in the countryside, central to the region’s many spectacular attractions.

7. Hotel Reykjavik Saga

Hotel Reykjavik Saga is a beautiful, central hotel in the capital of Iceland with a range of chic rooms for its guests. Travelers hoping for a stylish base in the heart of Reykjavik should book their accommodation while availability lasts by choosing a date.

Located on Laekjargata, Hotel Reykjavik Saga is central to many of the capital's most famous and fascinating sites. Downtown Reykjavik is around the corner, with Austurvollur square and the Althingi Parliament Building just a 3-minute walk away.

Hotel Reykjavik Saga's spacious and luxurious rooms have large satellite televisions and en suite bathrooms with showers and hair dryers.

The hotel boasts many amenities for those staying here. The restaurant serves a delicious breakfast and is open for dinner each evening, while the bar provides another place to relax. A fitness center allows you to keep active during your stay, and a breathtaking rooftop terrace will enable you to hunt for the northern lights in winter or enjoy the midnight sun in summer.

Hotel Reykjavik Saga is a modern, chic place to stay in downtown Reykjavik, particularly for couples and solo travelers.

6. Siglo Hotel

Siglo Hotel is located in picturesque Siglufjordur in North Iceland and is the only hotel in Iceland with a dock entrance! So if you arrive on a boat, you’ll have a private harbor.

Siglo Hotel is stylish but with a definite small fishing town charm, more due to its location than its decoration. It's highly modern, with a spacious lobby, big rooms, and a stylish outdoor hot tub right next to the marina. All rooms have ocean and mountain views, and all guests have access to their hot tubs and sauna.

You don’t need a boat to reach the gorgeous town of Siglufjordur. It is one of Iceland’s hidden gems, slightly off the beaten track but easily reachable by car. It is situated on Trollaskagi (Troll Peninsula) in the north of Iceland, not far off from Akureyri, Iceland's 'Capital of the North'.

The hotel is situated within the town's marina village, along with the neighboring restaurant Hannes Boy and the café Raudka. The hotel itself also boasts a lobby bar and café and a delicious restaurant called Sunna. You might even catch a glimpse of the chef picking out the freshest fish when the fishing trawlers sail in.

Siglufjordur used to be quite isolated as the mountain pass to reach it wasn’t opened until 1967. Before then, people had to sail in and out of the town. Take advantage of this mountain pass and go explore this beautiful town, its nearby hiking trails, planted forest, or its great skiing area.

Siglo Hotel's incredible location, modern rooms, and fantastic facilities make it a perfect choice of accommodation for North Iceland travelers.

5. Alda Hotel

The quality Alda Hotel is ideal for those who want to enjoy all that the city has to offer while relishing the calm sanctuary away from the hustle and bustle of the city noise.

Alda Hotel is another boutique hotel in the heart of Reykjavik. With 88 rooms, this is a medium-sized hotel. The rooms boast a grayscale decor, which gives this hotel a chic but cozy feel. You will notice the Icelandic fair in the detail of the decor design.

Located at the top of Laugavegur, the main shopping street, this places you just 15 minutes walking distance from the main attractions. You are, however, ideally located for shops and amenities and far enough from the nightlife in the city to know you won’t be disturbed by Saturday night partygoers.

For those who have traveled from out with the EEA, you will benefit from the use of one of the hotel’s complimentary smartphones. Take this high-tech device out in the city and make the most of the free 4G and local phone calls.

Enjoy your breakfast, lunch, and dinner within the restaurant's cozy surroundings. Find yourself in need of a haircut? Alda Hotel has you covered on this, too, with an on-site barber. 

Every convenience you need, Alda has thought of, and more! It is also consistently highly rated by travelers to Reykjavik.

4. Hotel Myvatn

Hotel Myvatn is a stylish, modern hotel located in the geothermal wilderness of North Iceland. With 59 rooms, hot tubs on-site, and accessibility to many incredible attractions. Travelers on the Ring Road or guests visiting North Iceland will find no better place to stay.

Located on the shores of Lake Myvatn, in the hamlet of Reykjahlid, Hotel Myvatn boasts unmatched surroundings. This lake region is North Iceland’s most famous area, renowned for its serene bodies of water, abundant flora and fauna, fascinating geology, and seething geothermal activity.

For example, the dramatic Dimmuborgir lava fortress is just five minutes drive south, whereas the majestic pseudocraters of Skutustadagigar can be reached in fifteen minutes. Though the hotel has hot tubs, those seeking the full spa experience will find the luxurious Myvatn Nature Baths just a short drive away.

All rooms boast a beautiful, modern Icelandic decor with rich furnishings and all necessary amenities, such as Wifi, TVs, and en suite bathrooms. The hotel's largest rooms, the King Junior Suites, also boast a chic living area. Business travelers will also find a contemporary meeting room for up to 30 people.

The luxury of Hotel Myvatn extends into its communal areas. Its restaurant has a fantastic menu, providing a breakfast buffet for all guests and a great place to enjoy lunch and dinner. Its bar is a wonderful place to unwind in the evening, as are the hot tubs, particularly beneath the Northern Lights or Midnight Sun.

Hotel Myvatn’s stylish rooms, abundant facilities, and unmatched location in the Lake Myvatn area make it a perfect choice for travelers seeking a luxurious base from which to explore the geothermal north.

3. Hotel Geysir

Hotel Geysir is a spectacularly located hotel, sitting right by the Geysir Geothermal Area on Iceland’s Golden Circle. Travelers who want modern, chic accommodation right by one of the country's most iconic attractions should look no further than one of the hotel’s 77 rooms and suites.

Guests staying here will thus have very easy access to the other sites of the Golden Circle. The magnificent waterfall of Gullfoss is only ten minutes away, whereas Thingvellir National Park can be driven to in less than an hour.

Hotel Geysir has rooms and suites with a modern Icelandic design, all of which can accommodate two guests. Each one has an en suite bathroom with a shower and comfy bedding. Those seeking to spare no expense should book the Geysir Suite, which is a gargantuan 87 square meters and boasts plenty of space to spread out and have your home away from home in the Icelandic countryside.

Guests will find five restaurants on-site where they can enjoy a range of locally-sourced dishes. For fine dining, the Geysir Restaurant and Geysir Glima Restaurant come most highly recommended, whereas those looking for something simpler can get fast food from the canteen Kantina or soup from Supa. Soup in the Forest is as much an experience as it is a restaurant, allowing groups who have organized it to dine out in Iceland’s beautiful nature.

Travelers who want modern, comfortable accommodation right by one of the most impressive sites in Iceland, with easy access to many more attractions, should look no further than Hotel Geysir.

2. Sand Hotel

Sand Hotel is a superb choice if you’re looking for a boutique hotel in central Reykjavik. Its unbeatable location, superior comfort, cleanliness, and facilities make it the perfect option for the discerning traveler who values a touch of luxury.

There is plenty to keep you entertained in the area. A wide array of museums, restaurants, cafes and shops are within easy walking distance. For stylish modern design, sophistication, and excellent customer service, you can’t go past Sand Hotel.

The central location of Sand Hotel allows you to take in the vibrancy of city life and all that it has to offer. Reach shops and restaurants and several nearby cultural attractions by foot within a matter of minutes.

At only a six-minute walk from Sand Hotel, the iconic Hallgrimskirkja church is practically on your doorstep. There are several other walking-distance attractions, including Reykjavik Art Museum Kjarvalsstadir, Icelandic Phallological Museum, and Hljomskalagardur park.

You don’t need to go far at all to sample delectable bakery treats. Sandholt Bakery is conveniently-located on the ground floor of Sand Hotel, where the hotel breakfast is served as well.

Sand Hotel is a superior choice for top-end accommodation in central Reykjavik. If you value a great night’s sleep in a comfortable bed and waking up to a delicious buffet breakfast, we highly recommend Sand Hotel. It’s perfect for anyone who values high-quality services and amenities with a dazzling array of city attractions within a short distance.

1. Fosshotel Glacier Lagoon

Fosshotel Glacier lagoon is the number one hotel in Iceland according to Guide to Iceland. A superior four-star hotel close to Iceland's famous glacier lagoon, Jokulsarlon. The hotel has plenty of options for travelers no matter the group size and offers a perfect rest stop after exploring Iceland's spectacular south coast.

Fosshotel Glacier Lagoon is in a perfect location for travelers who want to explore the Jokulsarlon glacier lagoon and the nearby Diamond Beach. It's also well-placed for glacier hikes in Vatnajokull National Park. Guests can enjoy glacier or countryside views from each room. The hotel is an hour away from Hofn, a town with everything you need to stock up on supplies before hitting the road once more - as well as a swimming pool and other activities.

The hotel has luxury rooms available for guests, ranging from suites and deluxe rooms to standard options. All rooms have private facilities with a walk-in shower, room service, laundry service, and a sauna are available for all guests.

The restaurant hits the same heights as the rest of the hotel, serving only the freshest local produce from a regularly changing menu that represents the best of Iceland's food. The bar is a trendy escape for guests and a perfect spot to unwind after the day's adventure.

The otherworldly location, the trendy design, the great service, and the luxurious restaurant make Fosshotel Glacier Lagoon the best hotel in Iceland.

Hotel chains in Iceland

There are a few hotel chains in Iceland. Foss hotels have 12 hotels around the country. The newest one, Fosshotel Glacier Lagoon, is a 4-star hotel that opened in 2016 in a gorgeous location close to Jokulsarlon glacier lagoon. Another one of our favorites is Fosshotel Vatnajokull, which has a great view of the stunning Vatnajokull glacier. 

Another chain is Berjaya Iceland hotels, with a total of 13 hotels dotted around the country. Our favorite is the hotel by the harbor in Reykjavik called Reykjavik Marina hotel, a stylish hotel in a beautiful setting. Note that breakfast is not included in the prices at Berjaya Iceland hotels but can be purchased when you book.

KEA hotels have a total of 8 hotels around the country, thereof 5 in Reykjavik, 2 in Akureyri, and one by Lake Myvatn. The KEA hotel in Akureyri has a perfect central location, right next to the iconic church and the ever-so-popular Akureyri swimming pool. However, our favorite has to be the historic Hotel Borg, opened in 1930 by Icelandic wrestler Johannes Josefsson, it has retained its beautiful art deco style with a great location by Austurvollur square. If you want to treat yourself to a great meal in Iceland, check out nearby Apotek restaurant as well.

Center hotels have 6 different hotels, all in Reykjavík. For a stay in Reykjavík, any of the Center hotels are a good option as they are all centrally located, and stylish, but still good value for money. Check out the Ský Lounge Bar at Center Hotel Arnarhvoll for the best view of the Northern Lights from Reykjavik city, as it is situated high up above the streetlights.

Edda hotels are Iceland's oldest summer hotel chain, now with 11 hotels around Iceland. The hotels are only open during summertime, and most of them close in mid-August.

The chain hotels are mostly good value no matter which hotel you pick. The newer hotels are more stylish, are more likely to be 4-star hotels, and may have more amenities, such as spas or gyms. The older hotels are cheaper and have a certain quirky charm about them.

Luxury Hotels in Iceland

The general emphasis of luxury hotels in Iceland is on the surrounding nature. Even the most luxurious hotels in Iceland won’t offer much more than friendly service, a good restaurant, and bar, comfortable and clean rooms that are en-suite, continental or buffet breakfast, and possibly a pool, spa and/or sauna. Perhaps even a small gym.

So if you’re used to a 5-star hotel luxury, take note that your Icelandic luxury will be a bit more rustic, wild, and intimate. There won’t be multiple pools or restaurants anywhere or champagne breakfasts. Some hotels may not have the possibility to get breakfast in bed. Some may not even have room service. Others may only have shared bathrooms. They’re pretty much self-service. And you can forget about a pillow or a duvet menu!

On the other hand, many hotels are family-run, and they strive to provide you with good and friendly service. Many new restaurants are popping up that use fresh Icelandic and local ingredients, and most hotels in the countryside are ideally situated, surrounded by stunning nature. 

Iceland is rich in minerals and hot springs, and if the hotel doesn’t boast its own spa, it may be situated very near one. Whereas most hotels don’t have a gym, they may have a nearby mountain to climb or various hiking trails. Or horses on-site to go horseback riding. And Reykjavik’s hotels compete with each other in good design, good restaurants, and cocktail bars.

On top of that, many hotels have their own cute and quirky charm that you can see in small details.

For a romantic getaway break, you might also want to look into booking your own personal countryside cabin. Icelandic summer cabins, or cottages, can be found all over the country, varying in amenities and luxury. Many of them have a hot tub and are situated amongst the spectacular nature, tranquil and secluded. There's no better way to enjoy the Northern Lights than from your own hot tub, far away from any light pollution - it really is the best seat for the show!