Best Places To Stay In Iceland for Luxury and Comfort

If you are planning a trip to Iceland, this guide will help you discover the best places to stay in Iceland.

If you love to travel, Iceland deserves a spot on your bucket list.

This country is one of my all-time favorite destinations, and I can’t wait to visit it again.

Iceland is a destination filled with unique landscapes, stunning waterfalls, black sand beaches, and of course, the chance to see the Northern Lights.

Choosing the right place to stay is essential to make the most of your adventure, especially after hiking and being out in nature all day.

One of the things I love about traveling is staying in nice hotels that improve the overall experience and feel like a memorable part of the trip, not just a place to sleep.

There are many ways to experience Iceland—you can join a guided tour where hotels are arranged for you, explore in a camper van, or choose your own hotels to tailor your stay.

In this guide, I share the best places to stay in Iceland based on my own experience staying at each hotel.

This blog post is not sponsored by the Marriott Bonvoy Program or any of the hotels mentioned in this blog post. I personally paid for all the stays, and all opinions shared are entirely my own.

1. Courtyard by Marriott Reykjavik Keflavik Airport

Best for: Late-night arrivals and early starts at the Blue Lagoon

If you’re arriving on a late-night flight like I did or leaving on an early morning one, the Courtyard by Marriott Reykjavik Keflavik Airport is an excellent choice.

Conveniently located just five minutes from Keflavik Airport, this modern hotel ensures you’ll have a smooth start or finish to your trip.

The rooms are spacious, comfortable, and equipped with blackout curtains—ideal for Iceland’s long summer days or winter nights.

If you arrive late at night you can order pizza from the hotel lobby computers but I highly recommend getting food before you leave the airport.

I almost didn’t have dinner because everything around this area was about to close.

Why stay here?

• Close to the Airport: After a long flight you just want to check in to a nice and comfy hotel to get a good night’s sleep. It has plenty of free parking space if you are renting a car.
• Close to the Blue Lagoon: After a restful night, head to the Blue Lagoon early in the morning before the crowds arrive. It’s only a 20-minute drive from the hotel.

2. ION City Hotel – Reykjavik

Best for: Exploring Reykjavik in style

Located in the heart of Reykjavik, the ION City Hotel is perfect if you want to explore Iceland’s capital.

This boutique hotel blends modern design with Icelandic charm, offering a modern yet cozy base to experience the city’s top attractions.

From the hotel, you can walk to Reykjavik’s highlights like the Hallgrímskirkja church, Harpa Concert Hall, and the Laugavegur shopping street.

After a day of exploring, relax in the sleek rooms, which feature Icelandic artwork and floor-to-ceiling windows.

Just keep in mind that the hotel doesn’t have parking space like most of the hotels in the downtown area. We parked in a nearby parking garage.

Why stay here?

• Central location: You’re steps away from Reykjavik’s best restaurants, bars, and shops.
• Modern amenities: Enjoy a fitness center and personalized service.

3. ION Adventure Hotel – Golden Circle

Best for: Luxury and relaxation in the Golden Circle

The ION Adventure Hotel is a gem located in the heart of the Golden Circle, one of Iceland’s most popular sightseeing routes.

The design of the hotel is meant to complement Iceland’s landscape, with large windows that frame breathtaking views and materials that reflect the natural environment. 

From the moment you are driving to the hotel and walk into the lobby you feel the luxurious environment.

The rooms are very modern and minimalist with views of the mountains.

The eco-friendly hotel sits in a stunning location surrounded by mountains and lava fields, making it perfect if you want luxury in nature.

One of the hotel’s highlights is its geothermal-heated outdoor pool with panoramic views of the mountains.

After a day of exploring Thingvellir National Park, Gullfoss waterfall, and Geysir you will want to relax in the sauna and thermal pool.

Due to the hotel’s isolated location make sure you make a reservation at the hotel’s restaurant, Silfra Restaurant.

They serve Icelandic dishes with a gourmet twist, making it the perfect place to sample local flavors.

Before heading to sleep get a cocktail at the Northern Lights bar, the atmosphere is cozy.

With only one bartender, it might take a while to get a drink during busy times, but the stunning views from the floor-to-ceiling windows make the wait well worth it.

Why stay here?

• Unbeatable scenery: Wake up to breathtaking views and enjoy the quiet serenity of Iceland’s countryside.
• Northern Lights Bar: Sip cocktails while gazing at the aurora through the bar’s floor-to-ceiling windows.

4. Hotel Kría

Best for: Exploring the South Coast

Vík is a small but charming town along Iceland’s southern coast, and Hotel Kría is the perfect place to stay while exploring this region.

This modern hotel offers sleek rooms and excellent service, with easy access to some of Iceland’s most iconic natural wonders.

From the hotel, you can visit the famous Black Sand Beach (Reynisfjara) with its dramatic basalt columns and roaring waves.

The breakfast in this hotel was amazing, it had a variety of fruits and delicious pancakes.

Why stay here?

• Convenient: Perfect place to spend the night if you are on your way to Diamond Beach.
• Restaurant and bar: The on-site dining options are perfect after a long day of exploring.

5. Fosshotel Glacier Lagoon

Best for: Staying near Diamond Beach and Jökulsárlón Glacier Lagoon

If you’re planning to visit the Jökulsárlón Glacier Lagoon and Diamond Beach, the Fosshotel Glacier Lagoon is an exceptional choice.

This luxurious hotel is located in one of Iceland’s most picturesque areas, offering beautiful views of the surrounding mountains.

The hotel’s rooms are stylish and cozy and have great blackouts so make sure to set up your alarm.

After a day of adventure, treat yourself to a meal at the Fosshotel Restaurant, where you can enjoy Icelandic cuisine made with fresh, local ingredients.

They also have a bar where you can get cocktails or order comfort food like burgers and fries.

Why stay here?

• Proximity to top attractions: You’re just a short drive from Diamond Beach, Jökulsárlón Glacier Lagoon, and Skaftafell National Park.
• Relaxation: Unwind at the bar with a cocktail while watching the sunset over the mountains.

6. The Reykjavik EDITION

Best for: A luxury splurge

If you’re looking to splurge on a luxurious stay, The Reykjavik EDITION is the ultimate choice.

This high-end hotel offers sophisticated design, exceptional service, and prime views of the harbor.

From the moment you walk, you can sense that you are walking into an exclusive hotel.

Their signature smell and welcome drink make you feel at home.

The rooms feature sleek interiors, floor-to-ceiling windows, and luxurious amenities.

Our room view was to the harbor and the Harpa Concert Hall which looked breathtaking at night.

The hotel also has a spa, gym, and rooftop terrace.

The Edition is within walking distance of the city center, making it an ideal base for exploring the city.

Why stay here?

• Unparalleled luxury: Enjoy a world-class stay with personalized service and attention to detail.
• Central location: Easily walk to the Harpa Concert Hall, Sun Voyager sculpture, and other Reykjavik landmarks.
• Hafnartorg Gallery: Walking distance from this food hall filled with restaurants, bars, and shops.

Tips for Booking Your Stay in Iceland

• Make reservations in advance: Many hotels, especially those outside Reykjavik, have limited dining options nearby. Be sure to book your table at their on-site restaurants before your trip.
• Request a Northern Lights wake-up call: Most hotels offer this service, so you won’t miss the chance to see the auroras if they appear.
• Plan your itinerary around your hotel stays: Iceland’s top attractions are often spread out, so choose accommodations that fit your travel plans.

Sample Itinerary for Your Iceland Adventure

1. Arrival Night: Stay at Courtyard by Marriott Reykjavik Keflavik Airport. Rest up for an early visit to the Blue Lagoon.
2. Explore Reykjavik: Spend a night at the ION City Hotel to see the capital’s sights and try its best restaurants.
3. Golden Circle: Stay at the ION Adventure Hotel to explore Thingvellir, Gullfoss, and Geysir, and relax in luxury.
4. South Coast: Spend a night at Hotel Kría in Vík to visit the Black Sand Beach as well as make a stop-over from Skógafoss and Seljalandsfoss to Diamond Beach.
5. Jökulsárlón and Diamond Beach: Stay at Fosshotel Glacier Lagoon, close to the glacier lagoon and other attractions.
6. Reykjavik: End your stay at the EDITION Hotel before heading out the next day. Enjoy a night at the Harpa Concert Hall and walk around the city.

Rest Easy on Your Iceland Journey

With these hotels, your trip to Iceland will be as comfortable and memorable as the stunning landscapes you’ll explore.

Whether you’re chasing the Northern Lights, marveling at waterfalls, or relaxing in geothermal pools, each of these accommodations offers a unique experience tailored to your Icelandic adventure.

Enjoy your trip and don’t forget to pack warm clothes and a sense of adventure!