15 Most Stunning & Unique Hotels In Iceland

Iceland is a beautiful and astonishingly diverse island just south of the Arctic Circle. The dramatic landscape of volcanos, fjords, waterfalls, glaciers, and desolate highlands make for an incredible vacation destination. 

Luckily, there are tons of unique hotels to match the country’s stunning landscape. From modish, scandinavian designs to glass cabins and hot springs overlooking the mountainside, there are so many hotels worth splurging on here.

Read on for the 15 most unique hotels in Iceland! 

The Most Unique Hotels In Iceland

Frost & Fire Boutique Hotel 

Distance from Reykjavik: 50 minutes south (47 km / 29 miles)

Frost & Fire Boutique Hotel is perfect for those who want to get away from Reykjavik, but not too far away. The modern yet cozy hotel allows visitors to enjoy Iceland’s quiet beauty within 1 hour of the capital city.  

Some of the hotel’s best features are the geothermal spa and outdoor hot tubs set right along a river. 

It’s also got a prime location within close proximity to the Golden Circle, Thingvellir National Park and other south coast attractions. Plus it’s a great spot for northern lights come winter.

What Sets Frost & Fire Apart? 

Beautiful yet accessible location, hot springs on site, and the northern lights. 

Check rates & availability for the Frost & Fire Boutique Hotel here

The Five Million Star Hotel (Formerly Buubble or Bubble Hotel)  

If you tend to be a bit extreme and really want to immerse yourself in nature, or simply want to flex on Instagram, the Five Million Star Hotel is for you. 

The accommodations are remote and incredibly simple. Your “hotel room” is a tiny, igloo-like bubble with one double bed, heat, and power strips (no WiFi).

In true Icelandic fashion, the decor is provided by the immediate surroundings and nothing else. There’s a shared home on site providing bathrooms, showers, and a kitchen area for all guests. 

Can you imagine seeing the northern lights here!?

What Sets The Five Million Star Hotel Apart?

What isn’t unique about exclusive, luxury bubbles in an undisclosed Icelandic location? The company also offers guided tours of the Golden Circle or South Coast for it’s guests.  

Check rates & availability for the Five Million Star Hotel here

If you love the idea but want WiFi and something a little less extreme check out Reykjavik Domes.

101 Hôtel

Located in Reykjavik City Center 

101 Hôtel is perfect for design nerds and those who want a primo location in downtown Reykjavik. The hotel overlooks Old Harbor and is located in a refurbished 1930’s building with design elements described as “monochrome, minimalist, and ultra-modern.”

The hotel is just a short walk to Hallgrímskirkja church and other famous attractions in Reykjavik.

And lets be frank, if 101 Hôtel is good enough for the Kardashians it’s good enough for me. Love them or hate them, they know how to travel in style.

Added Bonus: You can stay here with your Marriott points.

What Sets 101 Hôtel Apart?

Modern design, full service spa, prime location in Reykjavik City Center, and the fact that the Kardashians stayed here.  

Check rates & availability for the 101 Hôtel here

Hótel Búðir

Distance from Reykjavik: 2 hours, 30 minutes away on Snæfellsnes Peninsula (178 km / 111 miles)

Hótel Búðir is located in a stunning, remote area on the Snæfellsnes Peninsula. It has jaw-dropping views of glaciers, mountains, lava fields, and the Atlantic coast.

Additionally, the hotel does a great job marrying up-to-date Scandinavian design with classic elements which speak to the building’s history.  

It’s hard to find a more perfect place to stay on the Snæfellsnes Peninsula.

What Sets Hótel Búðir Apart?

Remote location with excellent views, charming decor, and a popular restaurant with seasonal dishes. 

Check rates & availability for Hótel Búðir here

Hotel Húsafell 

Distance from Reykjavik: 2 hours north (132 km / 82 miles)

Iceland is a country known for energy efficiency but Hotel Húsafell takes the cake in the “green hotels” category. It’s the only 4-star, self-sufficient resort powered completely by hot springs…

What does that actually mean? They took green energy and made it stylish. Hotel Húsafell is a beautiful, contemporary hotel with all the amenities we’ve come to expect, yet somehow it’s all powered by hot springs. 

Additionally it’s located in an impressive setting, with outdoor hot springs for guests, a golf course, and nearby activities such as hiking. They have truly combined the comfort of a modern hotel with the unique wonders of Icelandic nature.

There’s no doubt this is one of the coolest hotels in Iceland.

What Sets Hotel Húsafell Apart? 

Beautiful, remote location, impressive energy efficiency, hot springs, golf course, immediate proximity to hiking and outdoor activities, and a great shot at seeing the northern lights. 

Check rates & availability for Hotel Húsafell here

The Retreat at Blue Lagoon Iceland 

Distance from Reykjavik: 45 minutes south (49 km / 30 miles)

For those seeking the ultimate in luxury and relaxation look no further than The Retreat at Blue Lagoon. This 5-star hotel is immaculate with sleek, yet warm design elements and unbeatable views of the famous aquamarine waters of the Blue Lagoon. 

The hotel offers countless amenities and spa services in addition to unlimited access to the main part of the Blue Lagoon and the more exclusive Retreat Lagoon. 

If you’re looking to spend over a $2,000 (USD) per night on a hotel room you really might as well double down and get the Lagoon Suite. The suite has it’s own private lagoon. I repeat, it’s own private Lagoon. 

Imagine stepping out of bed and dipping your toes into your own slice of the Blue Lagoon. 

What Sets The Retreat at Blue Lagoon Apart? 

Where to begin? Luxury, modern amenities, top notch spa, unlimited access to the Blue Lagoon, and simply being really, really cool.  

Check rates & availability for The Retreat at Blue Lagoon here

Hotel Ranga 

Distance from Reykjavik: 1 hour, 25 minutes (103 km / 64 miles) 

Hotel Ranga makes its way to this list of unique hotels in Iceland thanks to it’s observatory and fun rooms. In a country full of hotels with ultra-modern designs it’s refreshing to find a hotel that veers off that path a bit. Hotel Ranga has a number of suites with geographical themes, most of which have a warm, mountain cabin feel to them. 

Their top feature to me though is the stargazing observatory equipped with telescopes and a local astronomer to guide guests on clear nights. 

What Sets Hotel Ranga Apart?

Convenient south coast location, unique rooms, stargazing observatory. 

Check rates & availability for Hotel Ranga here

Fossatún Camping Pods

Distance from Reykjavik: 1 hour, 20 minutes north (91 km / 56 miles)

Fossatún Camping Pods are a camping-hotel hybrid, so we’ll call this the most unique hotel in Iceland for campers. Think of a pod as a hotel-like tent replacement. The individual pods provide a warm, weather proof place to sleep with the absolute minimum in amenities. The off-site facilities provide shared kitchen and bathrooms. 

This is perfect for campers who need a warm shower and a break from the great outdoors. 

What Sets Fossatún Camping Pods Apart

Providing an affordable stopping point for campers traveling around Iceland. 

Check rates & availability for Fossatún Camping Pods here

ION Adventure Hotel

Distance from Reykjavik: 50 minutes (45 km / 28 miles)

ION Adventure Hotel is a trendy, nordic inspired hotel set in a stunning valley surrounded by lava fields and mountain views. The design features lots of concrete, glass, lofty spaces, and natural light. 

This is another Iceland hotel located in a prime spot near both the Golden Circle and South Coast attractions. It’s also a great spot to catch the northern lights come winter!

Bonus: You can use your Marriott points here.

What Sets ION Adventure Apart?

Modern design, full service spa, close proximity to popular Golden Circle and south coast attractions, as well as northern lights.  

Check rates & availability for ION Adventure Hotel here

Fosshotel Glacier Lagoon

Distance from Reykjavik: 4 hours, 35 minutes, south coast (350 km / 217 miles)

While there are 15 Fosshotels around Iceland their Glacier Lagoon location makes this list of unique hotels in Iceland thanks to it’s excellent location. Fosshotel Glacier Lagoon is situated between Skaftafell National Park and Jökulsárlón Glacier Lagoon, a popular area for tourists with a lack of luxury hotel options. 

If staying at Fosshotel Glacier Lagoon rest easy knowing you have a gorgeous hotel with sauna, hot tubs, and jaw-dropping views to return to following your full day of exploring the area. 

What Sets Fosshotel Glacier Lagoon Apart?

Prime location near Skaftafell National Park and Jökulsárlón Glacier Lagoon, top-notch amenities, northern lights. 

Check rates & availability for Fosshotel Glacier Lagoon here

Kvosin Downtown Hotel

Located in Reykjavik City Center 

Kvosin Hotel is a small boutique hotel located in the heart of Reykjavik. This hotel makes my list of unique hotels in Iceland thanks to the room’s kitchenettes, which provide more of an apartment feel than that of a traditional hotel room.

They also do a great job of marrying a modern and home-y balance. The decor is clean and sleek yet inviting. 

Last, they have an award winning concierge team on site! Need transportation arranged? Fridge stocked before you arrive? Just ask.

This is definitely one of the best places to stay in downtown Reykjavik.

What Sets Kvosin Downtown Hotel Apart?

Prime location in Reykjavik city center, apartment-like hotel rooms, excellent concierge, cozy design. 

Check rates & availability for Kvosin Hotel here

Camp Boutique For Glamping

Camp Boutique – Original North Distance from Reykjavik: 5 hours, 50 minutes (440 km / 273 miles)
Camp Boutique Distance from Reykjavik: 1 hour south (75 km / 47 miles)

Dreaming of glamping in Iceland? Camp Boutique is a small family business providing glamping sites on their private estates.

They have two locations, the first just south of Reykjavik and the second in north Iceland.

The tents are beautifully decorated and situated right on a river, and best of all they have free WiFi! 

The tents obviously don’t have plumbing, but don’t worry, there are restrooms nearby! 

At the Original North location they also have a country house (with bathrooms) if that’s more your speed. The country house can be booked here. 

For another popular glamping option check out: Volcano Huts Þórsmörk

What Sets Camp Boutique – Original North Apart?

Luxury glamping, gorgeous location, northern lights. 

Check rates & availability for the Camp Boutique location near Reykjavik here

Check rates & availability for the Camp Boutique – Original North location here

Deplar Farm

Distance from Reykjavik: 4 hours, 45 minutes in Northern Iceland (373 km / 232 miles)

If you want to go the all-inclusive, ultra-luxury route in Iceland then Deplar Farm is for you. The stunning hotel is located on the Troll Peninsula, a remote mountainous area of Northern Iceland.

The prices are steep but keep in mind that rates include all meals, alcohol, two guide-led adventures per day, transportation, and concierge. This is in addition to the spa, indoor/outdoor pool with swim up bar, sauna, and fitness programs.

One of the included adventures? Heli skiing.

Getting here is a process but the property’s remoteness is part of the appeal. There’s also a landing strip on the property grounds if you want to charter a jet, how convenient!

What Sets Deplar Farms Apart?

Luxury, all-inclusive, excursions included, remote location, heli skiing. 

Check rates & availability for Deplar Farm here

Panorama Glass Lodge

Hella Distance from Reykjavik: 1 hour, 45 minutes south (120 km / 75 miles)

Akranes Distance from Reykjavik: 45 minutes north (49 km / 30 miles)

Glass cabin anyone? Enjoy the northern lights or midnight sun from the comfort of your bed or private hot tub at Panorama Glass Lodge. Those seeking unique places in Iceland will love this gem.

Each lodge has it’s own bathroom and kitchen with stylish and warm finishings, not to mention beautiful views of the impressive surroundings. Panorama Glass Lodge has two locations within relatively close proximity of Reykjavik, one to the north and one to the south.

What Sets Panorama Glass Lodge Apart?

Up-to-date glass cabins perfect for viewing the northern lights, convenient amenities such as the kitchen, gorgeous locations that aren’t too far from the city.  

Check rates & availability for Panorama Glass Lodge here

Black Sand Beach Suites

Black Sand Beach Suites are apartment-like hotel rooms near Vik with incredible views overlooking the sea.

The suites are sleek, contemporary, and have a spacious kitchen and lounging area. The hotel is conveniently located near Vik and Reynisfjara Black Sand Beach making it a perfect stopping point along your Ring Road tour. 

This is where we stayed in Vik during our 8 Day Iceland Road Trip.

What Sets Black Sand Beach Suites Apart?

Prime location on Iceland’s south coast, spacious apartment-like rooms, good chance of seeing the northern lights. 

Check rates & availability for Black Sand Beach Suites here

Additional Information For Booking The Right Hotel In Iceland

What Part Of Iceland Is Best To Stay In?

The areas surrounding Reykjavik, especially the south coast, are most popular. During our 8 Day Iceland Trip we ventured from the capital city along the south coast staying in Reykjavik, Vik, and Hof. If you’re visiting for the first time I recommend staying along the south coast.

Now if you want to know what’s best, this depends on your preferences and how much time you have. If you’re only in Iceland for a few days it’s best to stay in or near Reykjavik. The south coast and Golden Circle are the most popular areas to explore near the city.

Those spending a week or two in Iceland could explore the entire island which would take you to popular cities such as Reykjavik, Vik, Hofn, Akureyri, Ísafjörður, and Stykkisholmur.

Is It Cheap To Stay In Iceland?

Lodging in Iceland is not cheap. Hotels average about 30.000 – 45.000 ISK ($220 – 380 USD) per night. There are some hostels for budget travel.

Additionally, there are ways to keep your overall trip budget down even when hotel prices are high.

Why Are Hotels So Expensive In Reykjavik? 

Iceland is located on a small, remote island near the Arctic, everything has to be imported from overseas, and therefore the cost of living (and visiting) is high.

Additionally, there’s a hotel shortage. This is due to the very rapid boom in tourism, more hotels are being built to help counterpoise the demand.

Iceland Hotels With Hot Springs 

Below are a few of the most popular hotels with hot springs on site:

• Hótel Húsafell
• Silica Hotel at The Blue Lagoon
• Frost & Fire Boutique Hotel
• The Retreat At Blue Lagoon 

Best Hotels In Iceland For Northern Lights

Any hotel that’s 45 minutes or more outside of Reykjavik will be great for northern lights. You can see even see them in Reykjavik, they just aren’t as bright.

The following hotels are especially great for the northern lights:

• ION Adventure Hotel
• Deplar Farm 
• Hotel Ranga 
• 5 Million Star Hotel (Buubble Hotel)
• Panorama Glass Lodge
• Camp Boutique – Original North

There are so many cool and unique hotels in Iceland and more being built all the time. I hope this list helped you narrow down some of the best options, happy vacation planning!

Any questions? Please leave a comment below or reach out on social media.

Looking for more ideas? Check out my additional Iceland guides below or head on over to Visit Iceland!

More Information For Your Iceland Vacation:

• 19 Things To Do In Reykjavik On A Rainy Day
• 16 Things To Do On The Snaefellsnes Peninsula
• Reykjavik 3 Day Itinerary
• Everything To Know About The Golden Circle
• 8 Day Iceland Road Trip Itinerary