Here is a handpicked selection of the 10 best hotels in Iceland, designed for travelers who value elegance, comfort, and unforgettable experiences. Iceland boasts a wide array of accommodations, particularly in Reykjavík and around the country. Whether you’re seeking high-end luxury or refined charm, these are the properties we most often recommend to our private tour guests. We have built strong relationships with these hotels, and unless our clients request something specific, they are our preferred choices. Each one offers a blend of sophistication and local character, consistently delighting our guests. And of course, if you have a personal favorite, let us know—we always tailor every journey to your desires.
10 - The FossHotel Glacier Lagoon: South Coast
Spend the night at this premium 3-star hotel nestled beneath Europe’s largest glacier: Vatnajökull. The FossHotel Glacier Lagoon enjoys a privileged location near iconic natural wonders like Jökulsárlón, Fellsfjara (Diamond Beach), and Fjallsárlón. It offers refined comfort and exceptional views, with luxurious amenities such as outdoor hot tubs facing panoramic landscapes.
This is a cherished stop in our multiday private tours, where guests enjoy both nature and elegance.
To book it, check their website
9 - FossHotel Reykajvík: Boutique Elegance in the Capital
Located at the heart of Reykjavík and steps from Bus Stop 12, FossHotel Reykjavík is ideally positioned for embarking on small group tours. Renowned for its exceptional breakfast buffet and spectacular tower rooms, it offers panoramic city views and refined service.
8 - Hotel Rangá: A South Coast Icon
Hotel Rangá is a distinguished luxury lodge nestled between Hella and Hvolsvöllur. Celebrated for its hospitality and tranquil location, this hotel is perfect for those chasing the Northern Lights, with minimal light pollution and sublime stargazing conditions.
Enjoy premium comfort, gourmet cuisine, and Icelandic charm. Reserve your stay today
7 - Hotel Laxá: Refined Seclusion in North Iceland
In the serene Mývatn region, Hotel Laxá offers stylish rooms, a delightful restaurant, and an atmosphere of quiet elegance. Surrounded by unspoiled nature and free from nearby buildings, this is the ideal retreat for relaxation and immersion in Iceland’s northern beauty.
6 - Eyja Guldsmeden: Sustainable Comfort in Reykjavík
This eco-conscious 4-star hotel is tucked away in a peaceful Reykjavík neighborhood, offering serene stays with impeccable service. Eyja Guldsmeden is our top recommendation before heading on a multiday journey. Guests rave about the cozy rooms and the breakfast buffet that’s one of the city’s best.
5 - Hotel Von: Chic Boutique on Laugavegur
For those who want to stay in the beating heart of Reykjavík, Hotel Von offers boutique sophistication right on Laugavegur, the city’s main street. With curated interiors, personal charm, and easy access to shopping and dining, it’s the perfect urban hideaway.
4 - ION Adventure: Golden Circle Luxury Escape
Perfectly located near Iceland’s famed Golden Circle, the ION Adventure Hotel offers an unmatched experience surrounded by geothermal beauty. Its Northern Lights Bar, elegant restaurant, and recently opened luxury suites set it apart for guests looking for exclusivity and style.
3 - Blábjörg Resort: Puffins & Wellness in the East
Set in the peaceful village of Borgarfjörður Eystri, Blábjörg Resort is ideal for travelers venturing east to see Atlantic Puffins or explore prime hiking territory. Offering everything from budget rooms to stylish suites, along with a sea-facing spa, this resort delivers comfort with spectacular views.
2 - Hotel Búðir: Timeless Charm on the Snæfellsnes Peninsula
Hôtel Búðir is a beloved icon located near the famed Búðir Black Church, where classic ambiance meets modern luxury. Known for its fine dining and striking lounge with floor-to-ceiling views, it’s a gem on the Snæfellsnes Peninsula.
1 - Hotel Jökulsarlón: Glacier View Excellence
Topping our list is the luxurious Hotel Jökulsarlón, a sleek 4-star haven located minutes from Jökulsárlón Glacier Lagoon. With expansive views, elegant hot tubs, and what we believe is the best breakfast in the country, it’s the epitome of refined Icelandic hospitality.
Book your stay at Hotel Jökulsarlón
To conclude:
Crafting this list of the best hotels in Iceland was no easy feat, each property offers something uniquely enchanting. These ten accommodations have consistently delighted our guests, and they remain our top recommendations for those booking private multiday tours with Lilja Tours.
Whether you explore Iceland through one of our tailor-made journeys or choose a self-drive adventure, these hotels promise an authentic and luxurious Icelandic experience.