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Home » Top 10 Must-Visit Luxury Hotels in Iceland
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Top 10 Must-Visit Luxury Hotels in Iceland

Denmark ReviewBy Denmark ReviewDecember 7, 2025No Comments6 Mins Read
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Iceland, a land characterized by its mesmerizing contrasts of fire and ice, captivates visitors with stunning glaciers, roaring volcanoes, soothing hot springs, and the ethereal Northern Lights. Yet, beyond these dramatic landscapes, it boasts an exceptional array of luxury hotels that redefine the very essence of indulgent travel.

From the refined accommodations nestled within Reykjavík to the secluded lodges tucked away in the island’s wild interior, Iceland’s luxury offerings promise unforgettable experiences. Whether you dream of soaking in a private lagoon or waking to panoramic views of snow-capped peaks, our team of experts has carefully curated a list of hotels that embody the pinnacle of luxury travel in Iceland.

Edition Hotel, Reykjavik

A shining gem in Reykjavík’s vibrant capital, this 5-star hotel fuses modern luxury with genuine Icelandic hospitality. Ideally situated in downtown, next to the historic concert hall, guests are treated to breathtaking views of the old harbor—a stunning amalgamation of urban life and wild beauty.

As the sun sets, savor a glass of wine in one of the hotel’s sophisticated dining venues. The elegantly designed rooms, adorned with chic décor and panoramic vistas of the majestic Icelandic coast, provide the perfect starting point for your luxurious Icelandic adventure and an inviting introduction to Reykjavík.

Parliament Hotel, Reykjavik

Nestled in the heart of Austurvöllur town square, this exquisite hotel marries historic charm with contemporary elegance across its 163 well-appointed rooms and suites. Guests can immerse themselves in contemporary art, rich Icelandic history, and world-class amenities throughout their stay.

At the hotel’s stunning restaurant, Hjá Jóni, savor a culinary journey that elevates Nordic and global flavors with the finest local ingredients and thoughtfully curated wines. After a day spent exploring Reykjavík’s cultural sights, unwind at The Parliament Spa, and prepare for the adventures that lie ahead.

Eleven Deplar Farm, Troll Peninsula

For those yearning for the ultimate retreat, Deplar Farm is an unparalleled haven. Once a 15th-century sheep farm, this historic structure has been transformed into a luxury ski and adventure lodge located in Fljót Valley on the Tröllaskagi Peninsula in northern Iceland. Recognized by Condé Nast Traveler’s Gold List in 2023, this award-winning destination offers breathtaking beauty and exhilarating opportunities for adventure.

Thanks to its remote setting, Deplar Farm serves as a prime location for witnessing the Northern Lights. Guests can indulge in one of 13 beautifully appointed suites, rejuvenate in geothermal pools, or relax in the spa—all while enjoying stunning vistas of the dramatic mountain landscape.

The Retreat at Blue Lagoon Iceland, Reykjanes

No visit to Iceland would be complete without experiencing The Retreat at Blue Lagoon. This award-winning resort features 60 elegantly designed suites, each meticulously curated for an intimate escape from everyday life. Beneath its striking volcanic-inspired architecture lies a subterranean spa, complemented by culinary delights at Moss, the Michelin-starred restaurant where Icelandic flavors take center stage.

Of course, the highlight of your stay will be the private lagoon, allowing you to immerse yourself in the revitalizing, mineral-rich waters of the iconic Blue Lagoon—an oasis that beckons for relaxation and rejuvenation amidst Iceland’s natural wonders.

Highland Base, Kerlingarfjöll

Highland Base is a remarkable destination for thrill-seekers eager for adventure year-round. Tucked within the rugged beauty of the Icelandic Highlands, this hotel promises unforgettable journeys amid dramatic landscapes. Guests can connect with nature and revel in Iceland’s raw allure while enjoying warmly appointed rooms that offer breathtaking views of the surrounding wilderness.

Here, you’re invited to explore volcanic landscapes, geothermal hot springs, and stunning waterfalls—where adventure and tranquility coexist harmoniously. Highland Base awaits to create unforgettable memories.

Skálakot Manor Hotel, Iceland’s South Coast

This boutique hotel serves as a tranquil retreat amid the breathtaking surroundings of Iceland’s South Coast. Skálakot Manor Hotel harmoniously blends Nordic elegance with adventurous spirit. Once a traditional sheep farm, this family-run estate has been transformed into a boutique oasis, featuring plush rooms that marry contemporary luxury with Icelandic charm.

By day, guests can embark on exhilarating horseback rides across black sand beaches, chase magnificent waterfalls, or venture into volcanic highlands. Evenings are best spent savoring seasonal, locally-inspired dishes before unwinding in the hot tubs or indulging in a soothing massage at the luxurious spa.

Glacier Lagoon Hotel, Southeast Iceland

Perched between the spectacular Vatnajökull National Park and the captivating Jökulsárlón Glacier Lagoon, Glacier Lagoon Hotel offers a haven for nature enthusiasts. With sophisticated yet authentic design, the hotel features clean lines, warm textures, and expansive windows that draw the awe-inspiring Icelandic scenery indoors.

Awaken in the outdoor hot tubs, taking in nature’s beauty, and spend your days exploring dazzling glaciers and exhilarating ice caves. As night descends, indulge in locally sourced dining before stepping outside to witness the Northern Lights dancing overhead. A stay here transcends mere observation; it invites you to become part of Iceland’s enchanting landscape.

While the following three luxury hotels may not top our primary list, they undoubtedly offer exceptional experiences, and we are pleased to tailor itineraries that include them upon request.

ION Adventure Hotel, Nesjavellir

ION Adventure Hotel is where Iceland’s rugged landscapes converge with sleek, contemporary design. Located about an hour outside Reykjavík, this striking retreat stands on stilts above an ancient lava field, immersing guests in an experience that feels both surreal and deeply connected to nature. The views of moss-covered mountains, steaming geothermal springs, and the aurora borealis are nothing short of spectacular.

Torfhús Retreat, South Iceland

Torfhús Retreat epitomizes Icelandic eco-luxury. Set against the dramatic backdrop of the Golden Circle, this boutique hideaway redefines relaxation with its traditional turf-roofed lodges, seamlessly blending Viking craftsmanship with modern design.

Inside, rustic elegance meets contemporary comfort, featuring chalet-style interiors, private verandas, and geothermally heated basalt hot tubs. Days unfold at a leisurely pace, filled with adventures to explore waterfalls, glaciers, and volcanic landscapes. Evenings are ideal for fireside cocktails and thoughtfully crafted Nordic cuisine.

Hotel Rangá, South Iceland

Known for its themed suites inspired by various continents, inviting outdoor hot tubs, and a relaxed yet refined atmosphere, this hotel features a stargazing observatory, making it a perfect destination for extended stays.

If you’re ready to curate a once-in-a-lifetime Icelandic experience, reach out to us today at +354-770-5733 or email info@hiddeniceland.is to start planning your tailor-made adventure.

From exclusive luxury hotels to unforgettable private tours and activities, we craft tailored itineraries that allow you to experience the magic of Iceland in unparalleled comfort.

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