Iceland is renowned as the land of fire and ice, where nature’s drama unfolds in a spectacular display of glaciers, volcanoes, hot springs, and the wondrous Northern Lights. But beyond its wild landscapes, the country is also home to some of the world’s most extraordinary luxury hotels.
From the sophistication of Reykjavík’s city hotels to the remote, adventure-inducing lodges hidden away in Iceland’s hinterlands, these properties redefine what it means to travel in style. Whether you’re looking to soak in a private lagoon, or wake up to awe-inspiring views of snow-capped peaks, our team of dedicated experts handpicked this list of Iceland luxury hotels that offer the ultimate in luxury travel.
Edition Hotel, Reykjavik
This 5-star hotel is where modern luxury meets Icelandic hospitality. Located in the country’s thriving capital, Reykjavík, it is a welcome addition to Iceland’s luxury hotel scene. Situated in the city’s vibrant downtown next to the historic concert hall, staying here allows you to take in spectacular views of the old harbour, where urban living and sprawling wilderness come together in the most spectacularly dramatic fashion.
Watch stunning sunsets over a glass of wine at one of the hotel’s many fine dining restaurants and bars. The rooms themselves exude sophisticated elegance, featuring stylish décor and sweeping vistas of the vast Icelandic ocean. It’s the perfect place to begin your luxury Iceland trip and an excellent introduction to the city of Reykjavík itself.
Parliament Hotel, Reykjavik
Located in the capital’s iconic Austurvöllur town square, this exquisite luxury hotel offers 163 beautifully designed rooms and suites, blending historic charm with modern elegance. Admire contemporary art, revel in rich history, and indulge in world-class amenities during your stay.
Parliament Hotel’s stunning restaurant, Hjá Jóni, elevates Nordic and international flavours with the finest local ingredients, handpicked wines, and beautifully crafted cocktails. After a day exploring Reykjavík’s stunning sights, unwind at The Parliament Spa as you plan your next day’s adventure. This hotel is a perfect destination for those looking to soak up Reykjavík’s cultural heritage in style.
Eleven Deplar Farm, Troll Peninsula
For those seeking the ultimate secluded escape, Deplar Farm is hard to beat. Once a 15th-century sheep farm, the historic building has now been transformed into a luxury ski and adventure lodge located in Fljót Valley on the Tröllaskagi Peninsula in Iceland’s north. Named one of the Best Hotels in the World by Condé Nast Traveler’s Gold List in 2023, this award-winning retreat offers untamed beauty and adventure at every turn.
Thanks to its remote location and lack of light pollution, Deplar Farm is a prime spot to witness the Northern Lights. The lodge features 13 beautiful suites, geothermal indoor and outdoor heated pools, a spa, a steam room, and a cold plunge. It also has floor-to-ceiling windows throughout the property, allowing you to take in the beautiful snow-capped peaks and reconnect with nature during your stay.
The Retreat at Blue Lagoon Iceland, Reykjanes
No luxury trip to Iceland is complete without a stay at The Retreat at Blue Lagoon. This award-winning resort features 60 elegantly designed suites and offers an intimate escape, where every detail is curated for pure relaxation. Beneath its sleek, volcanic-inspired architecture lies a subterranean spa, while culinary delights await at Moss, the Michelin-starred restaurant, where Icelandic flavours are reimagined through a fine-dining lens.
But the highlight of the stay is, of course, the private lagoon, where you can heal yourself in mineral-rich waters fed by the world-famous Blue Lagoon. This secluded oasis invites you to unwind, recharge, and experience all enchanting magic Iceland has to offer.
Highland Base, Kerlingarfjöll
This one-of-a-kind hotel is the ideal destination for those seeking adrenaline-filled adventure year-round. Located in the untamed beauty of the Icelandic Highlands, your trip here will be nothing short of unforgettable. You can explore dramatic landscapes, immerse yourself in nature, and experience the wilderness like never before. You’ll fall in love with Iceland’s raw beauty while staying in the warmly designed rooms, all offering breathtaking views of the surrounding terrain.
You can also experience some of Iceland’s most breathtaking natural wonders, including the spectacular volcanic landscapes of Kerlingarfjöll, geothermal hot springs, and stunning waterfalls. Adventure, tranquillity, and unforgettable experiences await at Highland Base.
Skálakot Manor Hotel, Iceland’s South Coast
This boutique hotel is the perfect place to relax amidst the spectacular landscapes of Iceland’s South Coast. Skálakot Manor Hotel is a retreat where Nordic elegance meets rugged adventure. This family-run estate, once a traditional sheep farm, has been transformed into a boutique haven, offering plush, artfully designed rooms that blend contemporary luxury with Icelandic charm.
By day, guests can embark on fun-filled horseback rides across black sand beaches, chase waterfalls, or explore volcanic highlands. Evenings are best spent indulging in seasonal, locally-inspired cuisine, followed by a relaxing soak in the hotel’s hot tubs or a full-body massage at the luxury spa.
Glacier Lagoon Hotel, Southeast Iceland
Located between the awe-inspiring Vatnajökull National Park and the mesmerising Jökulsárlón Glacier Lagoon, Glacier Lagoon Hotel is a retreat purpose made for nature lovers. The hotel’s design is sophisticated yet authentic, with clean lines, warm textures, and large windows that invite the ever-changing scenery inside.
Mornings begin in the outdoor hot tubs taking in the beauty of nature, while days are spent exploring glittering glaciers and exhilarating ice caves. As night falls, guests can settle in for locally inspired dining before stepping outside to watch the Northern Lights flicker across the sky. A stay here isn’t just about seeing Iceland but about being immersed in it.
While the next three Iceland luxury hotels are not our primary picks, they still offer an exceptional experience, and we are happy to incorporate them into our custom itineraries upon request.
ION Adventure Hotel, Nesjavellir
ION Adventure Hotel is a place where Iceland’s raw, untamed landscapes meet sleek, modern design. Around one hour outside of Reykjavik in southwest Iceland, this striking retreat, built on stilts above an ancient lava field, feels both otherworldly and deeply connected to nature. Here, you will find sweeping views of moss-covered mountains, steaming geothermal springs, and a front-row seat to the aurora borealis.
Torfhús Retreat, South Iceland
Torfhús Retreat is the epitome of Icelandic eco-luxury. Set against the dramatic backdrops of the Golden Circle, this boutique hideaway redefines escapism with its traditional turf-roofed lodges, inspired by Viking craftsmanship and reimagined for the modern traveller.
Inside, rustic elegance meets contemporary comfort, with chalet-style interiors, private verandas, and geothermally heated basalt hot tubs. Days unfold at an unhurried pace, and are filled with exploring waterfalls, glaciers, and volcanic landscapes, all before returning to fireside cocktails and thoughtfully crafted Nordic cuisine.
Hotel Rangá, South Iceland
Known for its themed suites inspired by different continents, outdoor hot tubs and a laid-back yet polished atmosphere, along with its renowned stargazing observatory, it’s a place you’ll want to stay a while.
If you’re looking to curate a once-in-a-lifetime Icelandic experience, get in touch today by calling +354-770-5733 or email us at info@hiddeniceland.is to start planning your tailor-made adventure.
From exclusive Iceland luxury hotels and accommodation to unforgettable private tours and activities, we craft itineraries that allow you to experience Iceland in the lap of luxury.
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