The Best 5-Star & Luxury Hotels in Iceland

5. Hotel Grimsborgir

The five-star Hotel Grimsborgir is a large hotel in the heart of the Golden Circle, Iceland's most popular sightseeing route. Staying here means you'll easily be able to reach these incredible natural attractions. It has a 4.4/5 star rating from over 335 Google reviewers.

Of all the hotels near Selfoss and accommodations around Hella, which also provide easy access to the trail, this is the most luxurious.

The Golden Circle consists of three of the country's most famous sights: Thingvellir National Park, Gullfoss waterfall, and Geysir geothermal area. Thingvellir National Park, home to lava fields, mountains, glacial springs, waterfalls, and the Silfra fissure, is one of three national parks in Iceland.

Thingvellir is also the place where Iceland's first parliament gathered. Visiting this national park is a fantastic way to experience the beauty and history of Iceland all at once.

The Geysir geothermal area is the second sight on the Golden Circle route. This hot spring area in the Haukadalur Valley is home to the most famous geyser in the world, Geysir, which gave all other geysers their name. It's rarely active these days, so visitors often visit the nearby Strokkur geyser instead, which erupts every five to ten minutes.

The last sight on the route is Gullfoss waterfall. Gullfoss means "golden falls," and the Golden Circle route is named after it. It's a spectacular, two-tiered waterfall with a total drop of approximately 105 feet (32 meters).

Staying at the Hotel Grimsborgir means you'll be ideally located to visit each of these sights. A Golden Circle tour is an essential activity during any trip to Iceland. This hotel is a perfect choice of accommodation that ensures easy access and a luxurious place to stay.

The Accommodation

The hotel comprises 15 separate buildings and can accommodate up to 240 guests. Several types of rooms are available, each of which has a balcony or terrace and access to the 29 geothermal hot tubs set within the hotel grounds. Some are private, while others are open to all guests.

The Superior Rooms sleep up to three guests. They have comfortable double beds, a living area, and a desk. The rooms measure around 260 square feet (24 square meters), meaning guests have ample space to relax.

Junior Suites measure roughly 430 square feet (40 square meters) and sleep up to two guests. These spacious rooms are decorated to a high standard, with a comfortable living area and beautiful countryside views.

Gallery Suites have similar facilities but are decorated with unique art collections to add a touch of style to your stay. The terrace also has a private hot tub so guests can enjoy a relaxing soak without interruption.

The spacious suites at the hotel are approximately 600 square feet (56 square meters), providing two guests with plenty of room to spread out. The large living area has big windows to allow guests to take in the views, and the bathrooms have both a shower and a bathtub. The terrace has a private hot tub for guest use.

People traveling in a group can book an apartment instead of a single suite or room at this hotel. Two-bedroom apartments are an excellent choice for groups of four and families with young children. The main bedroom has a double bed, while the second bedroom has two single beds.

Larger groups can stay in deluxe four-bedroom or five-bedroom apartments. With spacious rooms, comfortable furniture, and large bathrooms, these are excellent options for groups of up to ten guests.

Each apartment has kitchen facilities, a spacious living room with a flat-screen TV, and a private hot tub.

Photo from Hotel Grimsborgir.

Hotel Grimsborgir has a four-bedroom cottage split over two floors. The cottage sleeps up to nine guests and has two bathrooms, plus a private terrace with a hot tub and a barbecue.

Dining and Facilities

Hotel Grimsborgir has excellent guest facilities, including numerous geothermal hot tubs around the property, which guests are free to use.

The hotel offers sightseeing tours of the Golden Circle to help you visit these must-see sights. Trips to Reykjavik and the South Coast are also available. Small groups can travel in a luxurious minivan to see the highlights of Iceland in style.

The hotel has a fantastic on-site restaurant (the Grimsborgir Restaurant) with an extensive menu. Try local seafood such as tuna tartare and cured salmon, or enjoy a hearty dish of veal steak. Vegetarian and vegan options and a children's menu are also available.

The restaurant also has terraced outdoor seating where guests can dine in the summer. In winter, the large windows will still allow you to enjoy the views as you eat.

A breakfast buffet is available each morning, including a range of freshly baked pastries and bread, cheeses, meats, jams, fresh fruits, and hot breakfast food such as bacon and sausages. If you're staying at the weekend, you can book a table for brunch with complimentary mimosas or sparkling wine.

Nearby Attractions

Due to the hotel's Golden Circle location, guests are well-placed to explore some of the country's best-loved attractions. It's only around 21 miles (35 kilometers) to Thingvellir National Park, approximately 35 miles (55 kilometers) to the Geysir geothermal area, and roughly 40 miles (65 kilometers) to the Gullfoss waterfall. You can easily drive the Golden Circle route from the hotel.

When you've finished exploring the main sights of the Golden Circle, you can easily visit the Kerid crater, which is only around 5.5 miles (9 kilometers) from the hotel. This 3,000-year-old crater lake is a popular detour from the Golden Circle. It has striking red walls distinguishing it from other volcanic lakes in Iceland.

4. Diamond Suites

Another five-star hotel on the Reykjanes Peninsula is Diamond Suites. This luxury hotel makes up the top floor of the four-star Hotel Keflavik, but it has additional facilities and features that make it unique.

The Diamond Suites have been granted a 4.5/5 star rating from over 15 reviewers.

Located in the heart of Keflavik, this penthouse accommodation was the first five-star hotel in Iceland. It has stunning city views, excellent personal service, and a rooftop hot tub for guest use.

Many guests choose Keflavik hotels for easy access to Keflavik International Airport and the Blue Lagoon. The Diamond Suites, however, has the most amenities.

The Accommodation

Five luxurious suites are available, each with a unique design and plenty of space to relax and unwind.

The Sapphire Suite has a private outdoor hot tub that's ideally placed for watching the northern lights if you're visiting during the winter. The queen-size bed ensures guests can have a comfortable night's sleep, and the spacious living area provides a place to relax after a day of sightseeing.

The Emerald Suite measures approximately 400 square feet (38 square meters) and has a comfortable king-size bed and seating area. Remote-controlled curtains mean you don't have to get out of bed to draw them closed when you're ready to go to sleep.

The spacious Ruby Suite has a king-size bed, which features an impressive hand-carved headboard. The bathroom has two large rainfall showerheads and a whirlpool bathtub so guests can soak away the stresses of a long flight after arriving in Iceland.

The Topaz Suite is the most modern in its decoration. Its elegant design showcases modern Icelandic art and contemporary furniture. You can light the room using multi-colored LEDs to create a cozy atmosphere before sleeping in the luxurious queen-size bed.

The Pearl Suite is designed with an all-white theme, making it ideal for a bride and groom celebrating their wedding day. The king-size bed has a leather frame decorated with Swarovski crystals for decadence.

All suites include luxury toiletries and bed linens, a large flat-screen TV, a SONOS music system, and complimentary beverages in the minibar. Guests also have access to a private Wi-Fi network to ensure fast internet access.

If you're traveling in a group, you can book the Jon William Suite, which combines the Ruby and Sapphire rooms, or the Diamond Suite, which consists of the entire floor.

Dining and Facilities

Travelers staying at the Diamond Suites can spend their evenings relaxing in front of the fireplace in the lounge area. Stretch out on the Chesterfield sofa and chat with your friends and family, or head to the wine bar for a glass of something special.

Photo from Diamond Suites.

If you're in the mood for a soak, make your way to the rooftop terrace to enjoy the views from the hot tub. Glass walls surround the hot tub to protect guests from the wind on drafty days, but these can be retracted in good weather.

Guests at the hotel can book a luxury car service to take them around the area. You can ask the staff at the front desk to organize your ride in a luxurious Range Rover. If you book all the rooms in the Diamond Suites, you'll have 24-hour access to a private driver to take you and your guests anywhere you want.

Breakfast takes place in the dining lounge each morning. You can try a fantastic selection of local and typical breakfast foods such as eggs and bacon. Breakfast changes daily to keep things interesting, and you can make requests if there's something specific you'd like.

Photo from Diamond Suites.

The KEF restaurant, part of Hotel Keflavik, is also available to guests at the Diamond Suites. Its menu consists of small plates so diners can try a wide range of local Icelandic delicacies. The chefs focus on fresh and seasonal ingredients.

Nearby Attractions

The Diamond Suites hotel is in the town of Keflavik on the Reykjanes Peninsula. It's approximately 2.5 miles (4 kilometers) from Keflavik International Airport, meaning it's an excellent choice for visitors just landing in Iceland or a great way to end your vacation.

Keflavik and the nearby town of Njardvik are home to fascinating museums such as the Viking World Museum and the Icelandic Museum of Rock 'n' Roll. Learn more about Iceland's music history and Viking culture before returning to your luxurious hotel for a relaxing evening.

3. The Black Pearl in Reykjavik

​The Black Pearl is a luxury boutique hotel located in the heart of Reykjavik. The hotel is known for its stylish and contemporary design and personalized service, and over 105 reviewers have granted it a 4.6/5 star ranking.

The property is ideally situated for travelers who want to explore the highlights of the Icelandic capital, as its central location makes it convenient for walking around the city. Guests can explore Reykjavik’s top attractions on foot before returning to their luxury accommodation.

Unlike many more affordable Reykjavik hotels, however, the Black Pearl offers a high level of luxury. Though technically a four-star hotel, it has high-end furnishings and facilities that give it a five-star experience.

The Accommodation

​The Black Pearl is an apartment hotel, meaning each suite is a fully equipped apartment. There are ten luxury suites available, each decorated with stylish modern furnishings and artwork. 

The Junior Suite can sleep up to four guests and measures 645 square feet (about 60 square meters). It has a master bedroom with a comfortable double bed, and there’s a sofa bed in the living room for additional guests. 

The suite has a well-equipped kitchen for guests who prefer to eat at home, and there’s a balcony where you can sit up in the midnight sun during the summer.

The Economy Suite sleeps up to five guests across the master bedroom and sofa beds — there’s a double and a single sofa bed in the living area. This suite also has a beautifully designed bathroom and a balcony.

The Standard Suite is over 800 square feet (about 76 square meters) and has a spacious bedroom with a comfortable double bed — this can be made up as two singles if you prefer. The living room has a double sofa bed to sleep an extra two guests if you’re traveling as a group.

This suite is spacious and comfortable, with a well-stocked kitchen and a modern bathroom.

If you want an even more comfortable experience, the Deluxe Suites are a great choice. There are one- or two-bedroom suites available depending on your group size. Guests here can enjoy extra facilities, such as a washing machine and dryer. There’s also a spacious terrace balcony that’s the perfect place for eating your breakfast.

Guests looking for luxury should book the Penthouse Suite. This spacious apartment measures over 1,500 square feet (almost 150 square meters), giving you plenty of room to stretch out and relax. 

The penthouse has two bedrooms, each with an en-suite bathroom. The kitchen has everything you could need to cook a delicious meal, and the large dining room is the perfect place to enjoy it. 
This suite also has a large terrace balcony with lovely views over Reykjavik’s skyline. It’s a great choice for visitors who want a five-star experience.

Dining and Facilities

The Black Pearl has excellent facilities and amenities for guests. The concierge team is available to help you organize day trips from the city and suggest things to do around Reykjavik. They can help you book tickets to special tours.

The property doesn’t have an on-site restaurant because each room has its own kitchen. However, you can still enjoy top-quality food during your stay. A room-service breakfast is available each morning between 08:00 and 11:00. 

The hotel staff can also arrange for a private chef to prepare a delicious meal for you in the comfort of your apartment suite. A selection of high-quality wines is also available.

There’s no on-site spa, but the hotel can organize a massage therapist to come to your suite if you want to relax or soothe aching muscles after a busy day of hiking. A hairdresser and manicurist are also available.

Nearby Attractions

The Black Pearl is located in the heart of Reykjavik, just a few minutes walk from the city's main attractions.

The Old Harbor is just three minutes away on foot, so guests can quickly find themselves in a picturesque part of the city. The harbor is also the starting point for many whale-watching tours. 

Photo from Affordable 3-Hour Whale Watching Boat Tour from Reykjavik.

The waters surrounding Iceland are rich in animal life, with whales, orcas, dolphins, and porpoises swimming in the ocean currents. Whale watching is a fantastic activity to try while visiting Iceland.

If you want to learn more about the northern lights, Aurora Reykjavik is also close to the Black Pearl. This museum is dedicated to the aurora borealis and gives visitors a better understanding of the incredible natural light display. It’s less than 10 minutes on foot from the hotel.

Art lovers can easily visit the National Gallery of Iceland from the hotel. The museum showcases some of the best art produced by Icelandic artists, in addition to international artists such as Edvard Munch and Pablo Picasso.

2. Reykjavik EDITION Hotel

The Reykjavik EDITION Hotel is a five-star hotel in central Reykjavik with excellent facilities and luxurious rooms. It has a harborside location so guests can enjoy stunning views of the surrounding mountains and ocean, especially from the property's spectacular rooftop terrace.

The Reykjavik EDITION Hotel has over 165 reviews and a 4.6/5 star ranking.

The hotel is decorated in a sleek Scandinavian style and has excellent facilities to make every stay memorable. Expect natural materials like wood and stone in common areas, plus crisp, modern interiors in each guest bedroom and suite.

The hotel is ideally located for visitors to Reykjavik who want to explore the city's most exciting sights. If you wish to enjoy a private sightseeing tour of Reykjavik or head out of the city on a private northern lights hunting tour, you'll be able to do it all easily by staying at the Reykjavik EDITION.

The Accommodation

The hotel has 253 guest rooms, including standard, superior, and deluxe rooms. Suites are also available for guests who want an extra-special stay in Reykjavik.

Standard rooms are available with a king-size bed or two queen-size beds, so there are excellent options no matter your group's requirements. These rooms have a courtyard view, and king rooms are available with a terrace overlooking the city below.

Superior rooms are more spacious, and the Harbor King rooms offer fantastic views of Reykjavik's Old Harbor. Deluxe King rooms overlook the Harpa Concert Hall and Conference Center, one of the most iconic buildings in the city.

Suites at the Reykjavik EDITION Hotel include spacious living areas with comfortable sofas. All suites come with a scenic view, either of the cityscape or the harbor.

The Corner Suite and the Penthouse make excellent choices if you want something even more spectacular. The Corner Suite includes a spacious dining area, while the Penthouse sprawls over the hotel's top floor and provides guests with magnificent panoramic views. It also contains a fully equipped kitchen, and the living room has a working fireplace.

All rooms and suites at the Reykjavik EDITION have luxurious bathroom toiletries, free Wi-Fi, and a twice-daily housekeeping service to ensure everything meets your standards at all times.

Dining and Facilities

The facilities at the Reykjavik EDITION Hotel are second to none. Guests have access to a 24-hour gym with high-end machinery and equipment. There's also an on-site spa with a range of treatments available. The spa has a bar where you can enjoy a bespoke cocktail while relaxing in a thermal plunge pool.

The hotel has four other bars, including a rooftop terrace and an underground cocktail bar with live music and DJs. If you're looking for something more low-key, you can visit the Tides Cafe, a cozy spot for coffee and light bites. The Lobby Bar is another good option, serving craft beers and a good selection of wines.

When guests get hungry, they can visit the incredible Tides Restaurant, run by Iceland's first Michelin-starred chef, Gunnar Karl Gislason. The dinner menu focuses on traditional Icelandic food made with a modern spin, using local ingredients and with a focus on seasonality. Given the restaurant's waterside location, diners can expect incredibly fresh seafood.

Nearby Attractions

The EDITION hotel is situated right on Reykjavik's Old Harbor, so it's ideally located for exploring the city on foot. You'll also find yourself within easy reach of famous sights such as the Harpa Concert Hall and Conference Centre.

Other nearby sights in Reykjavik include the Sun Voyager sculpture, Iceland's best-known piece of art. Sculpted by Icelandic artist Jon Gunnar Arnason, this stainless-steel structure looks like a Viking ship and is an ode to the sun shining over Faxafloi Bay.

The Hallgrimskirka church is also just a short walk from the hotel. This church is the tallest in Iceland and offers impressive panoramic views from the top of its tower.

Since you'll be staying in the heart of Iceland's capital city, you'll be able to head out on several exciting tours around the country, many of which start in Reykjavik. Alternatively, you can stay closer to your accommodation and enjoy exciting day trips around the city, such as this private helicopter tour over the city skyline.

1. Blue Lagoon Retreat Hotel

The Blue Lagoon Retreat Hotel is a five-star hotel in Iceland that gets its name from its prime location near the Blue Lagoon thermal spa. Google reviewers have granted it 4.6/5 stars from over 300 reviews.

The Blue Lagoon is one of the most visited destinations in the whole country, making hotels nearby a popular choice. Visitors from around the world come to spend a few hours soaking in the soothing geothermal waters and enjoying the spa’s mud masks and luxury skincare products.

You can book day trips to the Blue Lagoon. On a guided tour, you can soak in the waters, enjoy a relaxing spa treatment, and take in the magnificent views of the milky blue waters.

Travelers to Iceland who want a five-star experience should consider a stay in the Blue Lagoon Retreat Hotel. Guests staying here get unlimited access to the Retreat Lagoon, which has waters from the same spring as the main Blue Lagoon pools but offers a more intimate experience.

Guests also receive unlimited access to the Retreat Spa, which offers various treatments in its beautiful subterranean and outdoor spaces. Enjoy a relaxing day in the geothermal spa and return to your luxury suite for a good night's sleep.

The Accommodation

The hotel offers 62 nature-inspired suites.

The Lava View Junior Suite, which sleeps up to two guests, has a private terrace with views over the lava fields outside.

Moss Junior Suites have a private balcony and floor-to-ceiling windows through which guests can enjoy the spectacular views of lava fields and mountains. They sleep up to two guests.

The Lagoon View Junior Suite and Lagoon Suite are excellent choices if you want a view of the lagoon's waters. The Junior Suite, which can sleep two, is stylishly furnished and has a private balcony.

The Lagoon Suite is a fantastic choice for travelers who want something extra luxurious. It has access to a private lagoon where guests can enjoy a secluded soak at any time during their stay. Floor-to-ceiling windows offer incredible views over the lagoon, and the spacious living room provides a comfortable place where guests can spend time in the evenings.

The spacious Moss Suite has ample space for two guests and has panoramic lava field views. These rooms also have a living area with comfortable sofas and large balconies.

The most decadent room of all available rooms is the Blue Lagoon Suite. This two-bedroom suite has a private lagoon and spa, a spacious living room, large terraces, and a private butler service. It's the ultimate place to stay for travelers who want luxury.

Dining and Facilities

All guests at the Blue Lagoon Retreat Hotel enjoy a gourmet a-la-carte breakfast and access to the hotel's fitness center. Morning yoga sessions take place in a common area that has volcano views.

Guests at the hotel have access to the three restaurants around the Blue Lagoon. Enjoy a gourmet meal at Moss, a Michelin-recommended restaurant serving seasonal set menus with vegan options available. Moss is situated at the highest point of the Blue Lagoon, and diners can enjoy jaw-dropping views of the surrounding volcanic landscapes.

Lava offers an a-la-carte menu serving traditional Icelandic food such as seafood and lamb. A tasting menu is available for diners who want to sample the chef's favorites. The restaurant is built into an 800-year-old lava cliff and offers a once-in-a-lifetime dining experience.

The Spa restaurant is also accessible to guests. It has a more relaxed atmosphere. Diners can eat in their spa robe between treatments if they want to grab a bite.

Nearby Attractions

Thanks to the hotel's location at the Blue Lagoon spa, guests will be ideally placed to explore the highlights of the Reykjanes Peninsula.

If you want to learn more about geothermal energy, go to the Krysuvik geothermal area, around 22 miles (35 kilometers) from the Blue Lagoon Retreat Hotel. You'll see mud pots, hot springs, and steam vents in this fantastic display of Iceland's geothermal power.

The Fagradalsfjall volcano erupted in 2021 and 2022 and is only around 10 miles (17 kilometers) from the hotel. Hiking the volcanic paths is an unforgettable experience. You'll be able to see the newly formed lava and learn about Iceland's volcanic power.

Iceland's capital city is also around 30 miles (50 kilometers) from the hotel, so you can easily explore the best attractions in Reykjavik during your stay. Keflavik International Airport is only 13 miles (around 21 kilometers) from the hotel, making it an excellent choice for travelers just arriving in Iceland or returning home.

Where to book a luxury hotel in Iceland

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