Best Luxury Hotels In Iceland 2020


A land of fire and ice, the scenery in this country is unlike anywhere else. Lagoons, geysers, piping hot natural springs and lunar landscapes await. Whether passing through or staying awhile, these are the hottest hotels in Iceland.

Read our guide to the best luxury hotels in Reykjavik

Fosshotel Glacier Lagoon

Found between Skaftafell and Jökulsárlón Glacier Lagoon, Fosshotel Glacier Lagoon is one to add to your Icelandic road trip. The 125 contemporary rooms have a minimal peaceful design, with huge windows looking out onto local wilderness and the country’s highest peak, Hvannadalshnúkur. High ceilings add to the sense of peace and serenity that this hotel embodies. The hotel’s large restaurant is decorated in geometric style, with dishes inspired by its natural surroundings. The highlight of this property is, of course, its proximity to the Fosshotel Glacier, providing fantastic hiking on the doorstep.

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Hótel Kría

If visiting the south of the island, stay at Hótel Kría in Vik. This opened as recently as the summer of 2018, a cool new addition to the area with black sandy beaches just a five-minute walk away. Light wood panelling, charcoal tones and glass feature heavily in the modern design, both inside and out. Meals are taken in Drangar Restaurant, with lamb and fish being especially popular. Innovative creations such as avocado chocolate pudding, skyr and cucumber crystalised white chocolate with dill and merengue appear on the pudding menu – you won’t want to skip dessert at Hótel Kría.

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Canopy by Hilton Reykjavik City Centre

The upscale Hilton chain has you covered on a trip to the heart of the capital. The building was once a furniture factory, music and arts venue, repurposed across six interconnected areas forming this eclectic approach to hospitality. Guests are invited to peruse Canopy’s vinyl collection and take a portable record player back to one of their 112 rooms – a selection of which are fully accessible. Pet-friendly and 100% smoke-free, this isn’t the place to stay if you’re a smoker, but a literal breath of fresh air if you’re not.  It’s also home to several dining options, including Geiri Smart, an exclusive restaurant, where chefs prepare food based on the farmers and fishers’ offers of the day.

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Alda Hotel

Another city-break favourite is Alda, on Reykjavik’s main shopping street. Although centrally located, the emphasis here is on tranquillity and calm, creating an oasis-like experience – the outdoor hot tub is perfect for winding down after some hectic sightseeing. 88 swanky guest rooms with L’Occitane toiletries all vary in shape and size, furnished in vibrant colour schemes, eye-catching artworks and designer furnishings. Alda is perfect if you like a stylish, laid back vibe, or are travelling with kids. Meals can be enjoyed at the casual Brass Kitchen & Bar, or you can explore the array of options in the vicinity.

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The Retreat at Blue Lagoon

If you fancy staying at the most famous attraction in the country, book a minimalist suite and enjoy views over the volcanic delights of the Blue Lagoon. Spa breaks are a speciality – The Retreat Spa is a part of The Retreat experience. Within the main subterranean spa lies Lava Cove, a private sanctuary, reserved for the affluent, offering gourmet dining, in-water massage, and guided yoga sessions. Be sure to try the signature ritual utilising the silica, algae, and minerals of the geothermal seawaters. There’s also a restaurant with an equally soothing atmosphere. And of course, the lagoon, for quintessential Iceland bathing.

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ION City Hotel

Looking out onto the pretty, colourful rooftops of the capital and mountains beyond, ION City Hotel is well-located to explore Reykjavik’s nightlife. One of two ION hotels, rooms feature saunas, recycled wood panelling, organic linens, Bang & Olufsen Bluetooth speakers, mid-century furniture and Scandi style by design studio Minarc. Sumac, the hotel’s restaurant is the hip place to be. One of Iceland’s top chefs Hafsteinn Ólafsson, is at the helm, serving North African dishes in surroundings inspired by the Beirut of the past. Relax in the bar after your meal, with an unusual drinks list including Lebanese wine.

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ION Adventure Hotel

Located in Selfoss, this remarkable modernist structure sits on stilts, cutting an impressive outline in the already dramatic landscape. Once a spooky abandoned inn, it’s now a 45 room (choose between standard and deluxe) boutique hotel with outlooks over Nesjavellir Geothermal Power Plant or across the lava fields towards Thingvellir National Park. As with ION’s City Hotel, there’s a clear presence of salvaged materials in the design with the exterior mimicking the brutal conditions of Icelandic winter. Sigurlaug Sverrisdottir is behind the concept and manager to the ION brand. Once air cabin crew, she’d also created a business, arranging adventure tours -and there’s many wonderful excursion to be enjoyed from here. Adventure Hotel juts out on Mount Hengill as a secluded and sustainable retreat for those wishing to get off the beaten track.

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