Discover the Best Hotels in Iceland: A Guide to Luxury in Fire and Ice

Hotels Iceland

Iceland, a country where nature’s extremes converge to create a landscape of raw beauty, has long been a magnet for travelers seeking adventure, tranquility, and a touch of the extraordinary.

From the dancing auroras of the Northern Lights to the soothing warmth of geothermal lagoons, Iceland’s unique blend of natural wonders offers an unparalleled backdrop for an unforgettable stay.

Amidst this dramatic scenery, a collection of exceptional hotels provides not just a place to rest, but a gateway to experiencing the country’s majestic beauty and rich cultural heritage.

In this blog, we embark on a curated journey through Iceland’s best hotels, each offering a distinct experience that mirrors the diversity of the island itself.

Whether you’re dreaming of waking up to the sight of icebergs floating in a glacial lagoon, soaking in the mineral-rich waters of the Blue Lagoon, or cozying up under the ethereal glow of the aurora borealis, Iceland’s top hotels cater to every whim with impeccable style and comfort.

1. Northern Light Inn

A Cozy Retreat Near the Blue Lagoon

Source: TripAdvisor

The Northern Light Inn, located just a stone’s throw away from the Blue Lagoon in Grindavík, Iceland, offers a warm and inviting atmosphere for travelers seeking both adventure and relaxation.

This family-run hotel is known for its personal touch, cozy accommodations, and, as the name suggests, its fantastic opportunities to witness the Northern Lights.

Here’s an expanded look into what the Northern Light Inn offers, including pricing structures and nearby attractions.

Pricing Structure

The Northern Light Inn’s pricing varies depending on the season, room type, and package deals that may include meals and access to the Blue Lagoon. On average, room rates can range from:

  • Standard Rooms: Starting at approximately $200-$300 per night.
  • Deluxe Rooms: Offering more space and often better views, these rooms may range from $250-$350 per night.
  • Suites: For those looking for luxury, suites can start from $400 and go up depending on the suite size and view.

It’s essential to check the hotel’s website or contact them directly for the most accurate and current pricing, especially for special packages that include dining options at their LAVA Restaurant and tickets to the Blue Lagoon.

Nearby Attractions

Staying at the Northern Light Inn positions you perfectly to explore some of Iceland’s most captivating natural wonders:

Blue Lagoon: Just a minute’s drive away or a short walk, the Blue Lagoon is one of Iceland’s most famous geothermal spas. Guests often opt for packages that include entry to the lagoon, ensuring a seamless experience of soaking in its milky-blue, mineral-rich waters.

Reykjanes Peninsula: This area is known for its rugged landscapes, geothermal activity, and coastal beauty. Attractions include the Bridge Between Continents, where you can walk between the Eurasian and North American tectonic plates, and the Reykjanesviti, Iceland’s oldest lighthouse with stunning ocean views.

Lava Fields: The inn is surrounded by vast lava fields, offering unique landscapes that are a testament to Iceland’s volcanic activity. Hiking and guided tours through these fields offer insights into the geological forces at play.

Grindavík: The nearby fishing town of Grindavík provides a glimpse into Icelandic culture and history. Here, you can enjoy fresh seafood, visit the Saltfisksetur Íslands (the Icelandic Salt Fish Museum), and explore local shops.

Kleifarvatn Lake: A short drive from the inn, Kleifarvatn is the largest lake on the Reykjanes Peninsula. It’s known for its dramatic scenery, with steep hills and mysterious stories of a lake monster.

Gunnuhver Hot Springs: These are a set of boiling mud pools and steam vents named after a ghost story. It’s a spectacular site where the Earth’s geothermal activity is visibly powerful and accessible via a short drive from the inn.

2. Hotel Rangá – South Iceland

Located in the remote countryside of South Iceland, Hotel Rangá is a luxury lodge that offers an excellent base for exploring the natural wonders of the region, such as the waterfalls of Seljalandsfoss and Skógafoss.

This hotel is renowned for its observatory, equipped with high-quality telescopes for unparalleled stargazing opportunities, especially of the Northern Lights.

The rooms are themed after different continents, providing a unique and comfortable stay.

Pricing Structure

The pricing at Hotel Rangá varies depending on the time of year, room category, and package deals, which may include special tours or dining experiences. Generally, the rates can be categorized as follows:

  • Standard Rooms: Prices for these cozy rooms start from around $300-$400 per night. They offer a comfortable stay with all the basic amenities.
  • Deluxe Rooms: With more space and enhanced views, deluxe rooms are priced from approximately $400-$500 per night. Some deluxe rooms feature themes inspired by the continents, adding a unique touch to your stay.
  • Suites: The suites at Hotel Rangá, including the themed suites that transport guests to different parts of the world, range from $600 to over $1000 per night. These premium accommodations offer luxury, exceptional comfort, and panoramic views.

For the most accurate and up-to-date pricing, including any special offers or packages, it’s best to consult directly with Hotel Rangá or visit their official website.

Nearby Attractions

Hotel Rangá’s location in South Iceland makes it a prime spot for accessing the region’s diverse attractions:

The Golden Circle: This popular tourist route includes Þingvellir National Park, the Geysir Geothermal Area, and Gullfoss Waterfall. Each site offers a unique glimpse into Iceland’s natural beauty and geological phenomena.

Seljalandsfoss and Skógafoss Waterfalls: These stunning waterfalls are within easy driving distance. Seljalandsfoss is known for the path that leads behind its cascading waters, while Skógafoss impresses with its power and the rainbows that often appear in its mist.

Eyjafjallajökull Volcano: Famous for its 2010 eruption, the volcano can be explored through guided tours that offer insights into its impact on Iceland and the world.

Reynisfjara Black Sand Beach: Near the village of Vík, this beach is famed for its dramatic black sands, towering basalt columns, and the powerful waves of the North Atlantic.

Jökulsárlón Glacier Lagoon: A bit farther away but worth the journey, this glacial lagoon is filled with icebergs calving from the glacier. Boat tours allow you to navigate among the icebergs for an up-close experience.

Hiking and Outdoor Activities: The area around Hotel Rangá offers numerous hiking trails, horseback riding, and the opportunity for glacier walks and Super Jeep tours.

3. Ion Adventure Hotel – Nesjavellir

The Ion Adventure Hotel, located near the UNESCO World Heritage site of Thingvellir National Park, stands as a testament to modern design and sustainability, perfectly melded with the rugged beauty of Iceland’s landscapes.

Famed for its eco-conscious approach, stunning architecture, and breathtaking views, the Ion Adventure Hotel offers a unique stay for those looking to immerse themselves in Iceland’s natural wonders while enjoying contemporary comfort and luxury.

Below we explore the pricing structure and nearby attractions that make Ion Adventure Hotel a standout choice for travelers.

Pricing Structure

The Ion Adventure Hotel offers various room types, each designed with sustainability and comfort in mind, with pricing that reflects its luxury status and unique offerings:

  • Standard Rooms: These rooms provide a cozy retreat after a day of exploration, with prices starting from approximately $300-$400 per night.
  • Deluxe Rooms: Offering more space and enhanced views, deluxe rooms are priced around $400-$500 per night. They feature large windows that frame the stunning landscapes surrounding the hotel.
  • Suites: For the ultimate luxury experience, the hotel’s suites offer expansive views and additional amenities, with prices starting from $600 and going upwards, depending on the season and availability.

It’s important to note that prices can vary significantly based on the time of year, with peak tourist season (summer and early autumn) generally seeing higher rates.

For the most accurate pricing, potential deals, and packages that might include dining options or special tours, visiting the Ion Adventure Hotel’s official website or contacting them directly is recommended.

Nearby Attractions

The Ion Adventure Hotel’s location is ideal for those eager to explore Iceland’s geological marvels and outdoor activities:

Thingvellir National Park: Just a short drive from the hotel, this park is not only a site of geological significance, where the North American and Eurasian tectonic plates are pulling apart, but it’s also steeped in history as the site of Iceland’s ancient parliament.

Geysir Geothermal Area: Home to the famous Strokkur geyser, which erupts every few minutes, and the now-dormant Great Geysir. This area offers a fascinating glimpse into the geothermal activity that shapes much of Iceland’s landscape.

Gullfoss Waterfall: One of Iceland’s most iconic waterfalls, Gullfoss (“Golden Falls”) is part of the Golden Circle route and impresses visitors with its immense power and beauty.

Hiking and Outdoor Adventures: The hotel’s proximity to the highlands and various natural parks makes it an excellent base for hiking, mountain biking, and even snowmobiling or glacier tours, depending on the season.

The Northern Lights: Due to its remote location, the Ion Adventure Hotel provides an excellent opportunity to witness the Aurora Borealis (Northern Lights), especially from late autumn to early spring.

Hot Springs and Bathing: The hotel is near several hot springs and geothermal pools, offering a relaxing way to unwind after a day of adventure. The hotel itself features an outdoor hot pool, boasting magnificent views of the surrounding landscapes.

4. Deplar Farm – Troll Peninsula

Deplar Farm: An Exclusive Luxury Retreat in Iceland’s Troll Peninsula

Deplar Farm, situated in the remote and stunningly beautiful Troll Peninsula in Northern Iceland, is a transformed sheep farm that now serves as one of the most exclusive luxury adventure retreats in the world.

With its secluded location, Deplar Farm offers unparalleled privacy and access to outdoor activities in a landscape that remains largely untouched by the hustle and bustle of mainstream tourism.

This retreat combines the rustic charm of its original structure with the utmost in luxury and personalized service, ensuring an unforgettable experience for its guests.

Pricing Structure

Given its exclusivity and the bespoke nature of the experiences it offers, Deplar Farm operates with a pricing model that reflects its status as a top-tier luxury destination. Rates at Deplar Farm can vary widely depending on the season, the specific accommodations chosen, and the tailored experiences included in the stay. Guests can expect:

  • Room Rates: Starting from approximately $1,500 to $2,000 per person, per night or even more during winters. This rate typically includes not just the accommodation but also access to a wide range of amenities and activities on the property.
  • Exclusive Use: For those seeking absolute privacy or traveling with a larger group, Deplar Farm offers the option to book the entire property for exclusive use. Pricing for exclusive use is custom and depends on the number of guests and the duration of the stay, often starting in the range of $20,000 to $30,000 per night.

These rates include gourmet meals prepared by top chefs, most on-site activities, and access to the property’s luxurious amenities, including the spa, outdoor geothermal pool, and sauna. Specific off-site adventures and some specialized services may incur additional charges.

Nearby Attractions

The Troll Peninsula is a paradise for outdoor enthusiasts and adventure seekers, offering a range of activities throughout the year. Deplar Farm itself is the gateway to these experiences, with most arranged directly through the property to ensure a personalized and exclusive adventure.

Heli-Skiing and Snowboarding: With some of the best heli-skiing in the world, guests can carve through untouched powder from mountain tops down to the ocean’s edge during the winter and spring months.

Whale Watching: The nearby fjords are home to a variety of marine life, including whales. Boat tours offer the chance to see these magnificent creatures up close.

Hiking and Mountain Biking: The rugged terrain of the Troll Peninsula is crisscrossed with trails that offer breathtaking views, suitable for all levels of experience.

Fishing: The rivers and streams in Northern Iceland are teeming with salmon and trout, making for excellent fly-fishing opportunities.

Northern Lights: During the darker months, the remote location of Deplar Farm offers one of the best vantage points in the world for viewing the Northern Lights, away from light pollution.

Kayaking and Paddleboarding: The calm waters of the fjords provide perfect conditions for kayaking and paddleboarding, allowing for a peaceful exploration of the stunning coastal landscapes.

6. Fosshotel Glacier Lagoon – Hnappavellir

Fosshotel Glacier Lagoon is a modern and comfortable hotel situated in a prime location between Skaftafell National Park and Jökulsárlón Glacier Lagoon, making it an ideal base for exploring some of Iceland’s most breathtaking natural attractions.

This hotel combines sleek, Nordic design with stunning views of the surrounding landscapes, providing guests with a peaceful retreat after a day of adventure.

Here’s a closer look at the pricing structure and the nearby attractions that make Fosshotel Glacier Lagoon a must-stay for nature enthusiasts.

Pricing Structure

The rates at Fosshotel Glacier Lagoon can vary significantly depending on the season, the type of room, and the booking conditions. Here is a general guide to what guests might expect:

  • Standard Rooms: Typically, prices for standard rooms range from about $200 to $300 per night. These rooms offer comfort and style with all the necessary amenities for a pleasant stay.
  • Deluxe Rooms: For those seeking more space and perhaps better views, deluxe room rates can range from $300 to $400 per night.
  • Suites: The hotel also offers more spacious suites with additional luxury features. Prices for suites can start from $400 and go upwards, depending on the suite’s size and amenities.

It’s advisable to check the hotel’s official website or contact them directly for the most accurate and current pricing, especially regarding special offers or packages that might include meals, guided tours, or other perks.

Nearby Attractions

Fosshotel Glacier Lagoon’s location is perfect for those looking to immerse themselves in Iceland’s unparalleled natural beauty. Here are some of the top attractions within easy reach:

Jökulsárlón Glacier Lagoon: Just a short drive from the hotel, this glacier lagoon is one of Iceland’s most iconic sights, where visitors can witness icebergs calving off the glacier and floating out to sea. Boat tours on the lagoon offer a closer look at the icebergs and the chance to spot seals lounging on the ice.

Skaftafell National Park: This park is a hiker’s paradise, offering trails that lead to stunning vistas, waterfalls, and the impressive Svartifoss, known for its basalt column surroundings. The park is also a starting point for glacier walks and ice cave tours, providing a unique way to experience the Vatnajökull Glacier.

Diamond Beach: Located near Jökulsárlón, this black sand beach is where icebergs from the lagoon wash ashore and sparkle like diamonds against the dark sand. It’s a fantastic spot for photography and enjoying the surreal beauty of Iceland’s landscapes.

Vatnajökull Glacier: As Europe’s largest glacier, Vatnajökull offers numerous opportunities for exploration, including ice cave tours, glacier hiking, and snowmobiling, providing an adventurous way to appreciate the glacier’s vastness and beauty.

7. The Retreat at Blue Lagoon Iceland – Grindavík

The Retreat at Blue Lagoon Iceland, located in the enchanting lava landscapes near Grindavík, is a sanctuary of luxury, wellness, and serene beauty.

This exclusive resort is designed to offer guests an unparalleled experience of relaxation and rejuvenation, blending seamlessly with the natural wonders of the Blue Lagoon.

Offering spa treatments, fine dining, and direct access to the mineral-rich waters of the lagoon, The Retreat is the pinnacle of luxury travel in Iceland.

Below, we delve into the pricing structure and highlight the attractions that make The Retreat a must-visit destination.

Pricing Structure

The pricing at The Retreat is reflective of its status as a luxury spa resort offering an exclusive, high-end experience. Rates vary based on room type, season, and the inclusion of special packages or experiences:

  • Standard Suites: These elegantly designed suites start at approximately $1,100 to $1,500 per night. They provide spacious accommodations with sophisticated décor and access to the Retreat Spa and the Blue Lagoon.
  • Lagoon Suites: For those seeking direct access to a private section of the Blue Lagoon from their terrace, Lagoon Suites offer this unique feature, with prices ranging from $1,800 to $2,500 per night.
  • The Retreat Suite: As the pinnacle of luxury, The Retreat Suite offers expansive and opulent accommodations with bespoke services and amenities. Rates for this exceptional suite experience can exceed $3,000 per night.

These rates typically include breakfast, unlimited access to the Retreat Spa, the Blue Lagoon, and the Retreat Lagoon, as well as other amenities and services that underscore the resort’s commitment to a holistic and luxurious guest experience.

Nearby Attractions

While The Retreat itself is a destination with its spa, restaurants, and exclusive lagoon access, its location in Grindavík on the Reykjanes Peninsula means it is also perfectly situated for exploring some of Iceland’s most notable attractions:

Blue Lagoon: The most obvious attraction, the Blue Lagoon, is renowned worldwide for its geothermal waters rich in silica and sulfur, offering healing and relaxation benefits. The Retreat guests enjoy exclusive access to parts of the lagoon.

Lava Fields: The starkly beautiful lava fields surrounding the Blue Lagoon offer unique hiking and exploration opportunities, showcasing Iceland’s volcanic landscape.

Reykjanes UNESCO Global Geopark: This geopark covers the entire Reykjanes Peninsula, featuring geothermal areas, volcanic landscapes, and cultural sites. It offers a deep dive into the geological and historical significance of the region.

Bridge Between Continents: This small footbridge over a fissure represents the boundary between the North American and Eurasian tectonic plates, symbolizing the bridge between two continents.

Grindavík: The nearby fishing town of Grindavík provides a glimpse into Icelandic coastal life, with excellent seafood restaurants, museums, and the opportunity to explore local culture.


Iceland’s hotels offer more than just a place to stay; they provide gateways to the country’s extraordinary natural beauty and cultural richness.

Whether you’re soaking in geothermal waters, gazing at the Northern Lights from a luxurious lodge, or immersing yourself in the charm of Reykjavik, these hotels ensure your Icelandic adventure is as comfortable as it is unforgettable.

Remember, booking in advance is key, especially during peak travel seasons, to secure your spot in these exceptional accommodations.

Happy travels!

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