What makes a hotel in Iceland, high end or luxury? It’s not as simple a question as you might think in this remote island in the middle of the atlantic. This page will delve into what qualities an accommodation must have in order for us to include it in your itinerary and showcase some of our favourites.

The accommodation showcased below tends to be a little more luxurious than the comfort level options, but still have a unique quality to them, without feeling like a corporate chain of hotels. Our high end & luxury accommodation options tend to be more traditional hotels, though each of them will have their own unique styles. We have great examples of our preferred accommodations all around the island, so there’s no limit to where you can travel with Hidden Iceland. Scroll down to see some examples of accommodation that we like to use.

If you’d like to see what comfort options we like to use, you can jump over to our Comfort Accommodation page.

What qualities are required of a high end & luxury accommodation?

1. Extensively tested. Every accommodation you stay at has been tried and tested by a member of Hidden Iceland and in most cases, other guests will have stayed there many times before you, and provided us with great feedback.

2. Location is everything. Especially in winter, we aim for Northern Lights friendly locations whenever possible, but the main aim is finding somewhere that works well with your itinerary.

3. Clean, spacious and private. The hotel could look incredible from the outside, but if the room isn’t clean, spacious, well decorated and has its own en suite (and wifi), then it doesn’t get included in this list.

4. Great restaurant. Each of the options below have their own incredible restaurants with locally sourced food on hand. Many have their own bars.

5. Communal areas or hot pools. Not every high end or luxury accommodation has a hot pool, but they all do provide warm and relaxing areas to socialise each night. Always nice after a day of adventure with us.

Do you offer 5 star only itineraries?

Iceland doesn’t utilise the star system in the same way as other countries do, so to say a hotel is ‘5 stars’ is a little harder to gauge than you might think. There are certainly plenty of luxury options out there, but there are not so many we would say are typical 5 star hotels, other than perhaps the Retreat by Blue Lagoon and Reykjavík EDITION. Regardless, all the hotels below have fantastic service, great room options and are in wonderful locations. A typical itinerary with Hidden Iceland will likely shift between 4 star and the odd 5 star option, if we’re moving around regularly.

Please note; Hidden Iceland does not own any of the accommodations we are showcasing below. They are our preferred options only. 


Reykjanes Peninsula (close to the Airport)

The Retreat at the Blue Lagoon

The award-winning sanctuary The Retreat Lagoon & Spa transports your mind and body to new dimensions of peace and rejuvenation. Here, you get to enjoy a more exclusive and intimate way to experience the storied waters of the Blue Lagoon. Wander through the lava canyons and hidden corridors. Become one with the mineral-rich warmth and the volcanic earth. The hallmark of the spa journey is The Blue Lagoon Ritual which is an exhilarating wellbeing experience based on the Blue Lagoons trinity of natural wonders; silica, algae and its rich minerals. To make your journey even more special, make a reservation at the Michelin-recommended Moss Restaurant or one of their in-water spa treatment options. The rooms are pretty beautiful as well. 

Location: Retreat at the Blue Lagoon, Norðurljósavegur, 241 in Reykjanes Peninsula. Near the International Airport.