Luxury hotels in Iceland: Top 10 places you'll want to stay longer

A land of contrasts, a land of fire and ice, and a unique place in the North Atlantic that is both European and Scandinavian. A little over a decade ago, Iceland was more of a stopover destination on a trip to the United States, with its capital city resembling more of a village than a city. Thanks to a successful policy aimed at attracting tourists, the number of travellers has skyrocketed since 2008, and there are now many accommodation options to suit all tastes: from fantastic converted ranches in the countryside to designer boutiques in Reykjavik.

With waterfalls roaring all around you, hot springs beckoning you to dive in, glaciers towering over the side of the road, and whales jumping out of the sea right in front of you, this is a place that is unrivaled in the world. No wonder the best hotels in Iceland are in harmony with nature and natural materials are used for their construction, such as local stone for walls and turf for authentic roofs. In addition, the colours of the interiors and exteriors are dominated by earthy pastel palettes that echo the shades of local moss, black sand, and berries.

Whether you are planning to stay in one of the smallest capitals in Europe or want to experience the beauty and majesty of nature in a secluded, quiet place, the following selection of the top 15 hotels in Iceland will help you choose the best option for your upcoming adventure.

Reykjavik Edition

If you want a five-star luxury experience, head to one of the best hotels in Iceland. Reykjavik Edition is a new complex that is like a breath of fresh air in a city that breathes creativity and style. The hotel is part of the Edition brand, developed in a successful collaboration between Marriott and Ian Schrager, so it can easily compete with such popular destinations as Barcelona, Shanghai and New York.

The interior of Reykjavik Edition features oak, basalt, lava and concrete, reflecting the bold and young spirit of the capital, with a touch of Scandinavian creativity. The warm and cosy apartments are decorated with Italian ash furniture and feature floor-to-ceiling windows so guests can enjoy views of Reykjavik's city centre, fjord and majestic Mount Esja.

Key amenities that will make the stay even more chic include:

• a rooftop terrace where you can watch the northern lights;
• a speakeasy-style bar (similar to atmospheric American establishments that sold alcohol during Prohibition);
• a restaurant run by Gunnar Karl Gislason, the first Icelandic chef to receive a Michelin star;
• four conference rooms;
• spa centre;
• round-the-clock gym;
• hot tub.

In addition, the hotel has a good location as it is situated between Reykjavik's Old Harbour and the famous Harpa concert hall.

The Retreat at Blue Lagoon

Among the country's most famous attractions, the Blue Lagoon deserves special attention. The mineral-rich waters and special volcanic soil of the geothermal lake on the Reykjanes Peninsula attract a large number of visitors from all over the world every year. So, if you like to plunge into popular tourist attractions, this is the place to go.

A new upscale hotel in Iceland is located near the famous hot spring. The Retrear at Blue Lagoon: the name speaks for itself because here all the benefits of the region's geothermal miracle are combined into a luxurious and modern wellness centre. You can book an elegant suite decorated in a minimalist style with floor-to-ceiling windows that let you see the ethereal glow of the peninsula. Thanks to this lighting, the muted, stark gray interiors take on a whole new colour.

The highlight of The Retreat at Blue Lagoon is the underground spa, to which all roads lead. Here you can try the signature and patented Blue Lagoon ritual, a wellness cleansing using a number of minerals, algae and silica contained in the surrounding geothermal waters. The room rate includes access to an exclusive part of the lake, and there is also a world-class luxury restaurant on site, which you will definitely want to visit after your treatments.

101 Hotel

In Reykjavik, creativity can be seen in everything from architecture and tourist attractions to boutiques and the best hotels in Iceland. If you want to feel the height of the country's outstanding designers, we recommend staying at 101 Hotel. The complex belongs to the Design Hotels group, offering sophisticated and stylish interiors that follow fashion trends. In particular, the collection of works of art by contemporary Icelandic authors shines even more brightly against the background of black and white walls, and the exquisite furniture is carefully selected to complement the whole picture.

The rooms are decorated with carpets spread on wooden floors and furnished with the most comfortable beds, and the windows offer picturesque views of Mount Esja. The 101 Hotel has a restaurant, which is very popular with locals, as well as an authentic bar with tables made of tree trunks and a fireplace, which gives a special magical atmosphere to the whole room. Another advantage is the location within walking distance of the city's main thoroughfare, Laugavegur.

Hotel Rangá

As soon as you walk into Hotel Rangá, you are greeted by a huge 10-foot bear, made by taxidermists, after the animal was found dead on a piece of ice that washed up from Greenland to the coast. Located in the southern part of Iceland, this special hotel is a cross between a stylish country estate and a luxurious hunting lodge. So, if you want to go on an adventure exploring, for example, the twin glaciers Mýrdalsjökull and Eyjafjallajökull, we recommend staying in this cosy wooden shelter.

After a day of outdoor activities, such as a private tour of the extraordinary Þórsmörk Nature Reserve or snowmobiling, there is nothing more pleasant than returning to a warm room filled with a friendly atmosphere. The interior has a homey atmosphere, and the dormitories are decorated with local artwork and warm Icelandic blankets.

The Hotel Rangá features seven original suites, each decorated according to a specific continent: from Antarctica to America. In the evening, a warm bath and a visit to the observatory led by an astronomer and a photographer who will tell you all about the dancing northern lights and help you take the most successful photos to remember.

Deplar Farm

For travellers who want to escape to remote regions, the Tröllaskagi peninsula, one of the most mountainous places in the country, is a great choice. It is home to several atmospheric fishing towns, all of which are accessible by a single road along the coastline, offering fantastic views of the Atlantic Ocean. Deplar Farm, shrouded in fog, is among all this beauty in the depths of the peninsula. One of the highest-rated hotels in Iceland is located in a picturesque meadow, surrounded by mountain peaks. This house, the roof of which is covered with turf, merges so seamlessly with the environment that passing by, you would hardly guess its true value as a luxury mountain estate.

Deplar Farm belongs to the exclusive Eleven Experience, so travellers can expect top-level service and full immersion in adventure. From salmon fishing and mountain biking in the summer to skiing in the winter, there are plenty of leisure options to choose from, and a team of experts will help organize and execute them. After a day of adventure, enjoy world-class cuisine prepared by Iceland's top chefs, relax in the heated pool, and enjoy a cocktail at the nearby bar.

ION Adventure Hotel

ION Adventure Hotel is an excellent hotel in Iceland, located in one of the most picturesque places not only in the country but also in the entire Northern Hemisphere. This complex rises above a field of black lava, growing out of a series of steep cliffs, and is located in the Þingvellir National Park, a UNESCO World Heritage Site. If the landscapes around the hotel are somewhat dramatic, the interior embodies calm, warmth and comfort. The rooms are elegantly designed with a variety of natural materials collected from the surrounding area as a tribute to the beauty of the Icelandic landscapes.

While staying at the ION Adventure Hotel, don't miss the Northern Lights Bar with huge panoramic windows from which you can watch the shimmering aurora borealis while enjoying cocktails. There is also an on-site restaurant, Silfra, which offers fantastic dishes such as glazed lamb shank and fresh Arctic char. To enjoy the full spectrum of dramatic weather, spend time in the heated plunge pool.

From jeep tours and lava cave expeditions to snorkeling between tectonic plates in Silfra, the helpful staff is happy to help organize off-site activities.

Hótel Egilsen

A beautiful harbour surrounded by sharp cliffs, mountains with snow-capped peaks, and old houses: this is all about Stykkishólmur on the Snæfellsnes Peninsula. Walking through the town, which was once one of the most important harbours in the country from the 17th to the 19th century, you feel a special atmosphere, imagining ships from Norway, Denmark, and Sweden docking.

One of the historic buildings dating back to 1867 houses the Egilsen Hotel, which preserves relics of that time. You will notice the building from afar as its exterior is painted red. Inside, guests will find a cosy, nostalgic boutique hotel that demonstrates all aspects of typical Scandinavian comfort.

The spacious rooms are decorated with antique furniture and are inspired by the fishing and maritime industry. The pride of this beautiful hotel in Iceland is the library, which has a collection of poetry by local authors and old Scandinavian folk tales. If you get enough inspiration, be sure to write down your own story during your stay here so that you can read it on the Hotel Egilsen website and briefly plunge into the same emotions from an unforgettable vacation in the North Atlantic.

Hótel Búðir

One of the reasons why Iceland is one of the most popular destinations in the world today is its isolation because here you can feel the grandeur of the fantastic landscape and understand its beauty. Nature, which stirs the soul, makes you forget about all the troubles and everyday affairs, enjoying the incredible landscapes.

Located on a remote beach on the southern coast of Snæfellsnes, Búðir boasts an unusually beautiful backdrop. The former trading outpost is surrounded by spectacular views from the bay to the glacier, a prominent feature of the Snæfellsnes National Park. The interior of this top hotel in Iceland is elegant and minimalist, full of warmth and comfort. Vintage-style furniture adds to the appeal of the rooms, and the on-site restaurant is famous among locals across the country.

Hótel Flatey

If you really want to be alone and visit a fantastic, yet remote place, be prepared to travel. Once in the fishing town of Stykkishólmur in the west of the country, you need to take the Westfjords ferry, which travels through islands and thousands of rocks to the least visited region. On the way there, the ferry makes a stop at Flatey. This is the only inhabited island in the Breiðafjörður Fjord, with a somewhat sad landscape dotted with a small number of colorful houses. You can experience emotions here that are impossible anywhere else because even time flows differently on Flatey.

One of the most atmospheric and beautiful hotels in Iceland is open only in summer, and in winter, the island's population is even less than ten people. The complex consists of several 19th-century buildings and includes comfortable, spacious rooms. The interiors are decorated in a poetic Scandinavian style with a laconic light design, as if from the pages of a fashionable Scandinavian magazine.

The hotel restaurant is both a lounge and a pub, so every evening, locals and travellers gather here to enjoy a hot meal and exchange news. Tourists can feel as if they are visiting a distant Icelandic relative.

Kvosin Downtown Hotel

Among the best hotels in Iceland, it would be a crime not to mention the charismatic Kvosin Downtown Hotel. The recreational complex occupies a historic building in the heart of the capital, offering luxurious luxury apartments. This hotel is perfect for a long stay in Reykjavik, thanks to its good location (the city hall, parliament and cathedral are in the neighbourhood), attentive staff and modern amenities.

Inside, you will find updated interiors inspired by the modern, creative city. Guest rooms include sleek kitchenettes, chic leather chairs and desks, and bathrooms with rainfall showers and designer toiletries.

Outside the hotel, you will find great bars where you can try local craft beers, live concerts or leisurely strolls along the central Tjörnin pond.