5 Best Luxury Hotels in Iceland 2023

3 Mins read

Wondering why suddenly Iceland is at the top of the wish list of every individual? There are numerous reasons for it. The stunning natural scenic beauty of Iceland with numerous snow-covered volcanoes, ice fields, mountains, and eye-catching views which you’ll not get to see in any other part of the world.

The list does not end here, the Iceland tour also fulfills one of the biggest dreams of everyone i.e. seeing the spectacularly beautiful northern lights and also not to mention, including the most attractive tourist spot, the geothermal spa – Blue Lagoon is also there. Now you know why Iceland is now topping the wish list? We think now it tops your list too!

But what about staying there? Visiting Iceland is a beautiful experience and for many, it’s a once-in-a-lifetime experience. So, naturally, everyone would want to make the best out of it. Staying in the best hotel to do all the seeing, everything should be perfect. Here in this article, we will share with you a few of the best hotels in Iceland that you can give a try.

Top 5 luxury hotels Iceland

Searching for the best hotels in Iceland? Getting a lot of results? Facing a dilemma about which one would be best for you? Here we made sure you get all your results. We have prepared a list of 5 highly rated best hotels in Iceland to make it easy for you to choose.

Best 5-star hotel in Iceland –

The Retreat at Blue Lagoon Iceland

When searching Iceland’s 5-star hotels the hotel that tops the list is “The Retreat at Blue Lagoon Iceland”. With an average rating of 4.6, the spa hotel is situated 4km from the aurora viewpoint and surrounded by volcanic terrain.

The sophisticated suites are painted and designed in earthly tones and contain floor-to-ceiling windows. There you can enjoy several other amenities like minibars, a spa, a pool, free wifi, restaurants, a bar, 24-hour services, a hot tub, a sauna, a fitness center, etc.

Best 4-star hotels with the highest customer ratings

Hotel Rangá  –

Surrounded by countryside, this rustic hotel is situated in a beautiful timber building that overlooks the Ytri-Rangá, this river is popularly known for salmon fishing.

It offers 24/7 room service with free amenities like wifi, TVs, Minifridges, pool along with complimentary free parking and breakfast, etc. The check-in time is 15:00 and the check-out time here is noon. This beautiful rustic-chic hotel has an average of 4.6-star ratings by customers.

Umi Hotel  –

This four-star stylish hotel is situated facing the Atlantic Ocean. It features mountain or ocean views with warm and fashionable rooms along with free wifi, TVs, Minifridges, tea, coffee-making facilities, etc.

A few other amenities like a restaurant and a hip bar with a warm fireplace are also available there. This hotel has been ranked 4.7 by visitors. The check-in time is 15:00 and check-out is 11:00.

Magma Hotel

This beautiful, calm–composed hotel is set along a lake surrounded by countryside. It is located at a distance of 10km from the ancient Fjaðrárgljúfur river canyon and almost 70 km away from hiking at Skaftafell nature reserve.

It has family rooms that can contain up to 5 guests at a time. This beautiful chic hotel has a rating of 4.8 stars overall. The check-in time here is 16:00 and the check-out time is the same as others at 11:00.

Best 3-star hotel in Iceland

Heima Holiday Homes – This beautiful, cozy holiday home provides you with wonderful mountain views with clean and bright beautiful rooms. It gives a home-like feeling.

This setting this perfect if you want to travel between Reykjavik and other sights. This is rated 4.9 by the visitors of this beautiful holiday home. The check-in time is the same as others above i.e. 15:00 and the check-out time is 11:00.

While staying at these hotels where else can one visit for a refreshing evening time?

Iceland’s tour is filled with scenic beauty and views. But if you are a person who loves walking on the streets and making beautiful memories, which most of us are, or needs to have a little break from the constant quiet scenic drives, Reykjavik is the perfect place for you!

This is the northernmost capital city of Iceland and has scores of restaurants, museums, bars, cafes, and many more.

It’s a beautiful walkable city and can be highly cost-saving for travelers as they can opt for numerous free activities like enjoying and relaxing at the parks, checking out the Street arts, etc.

So to stay in or at least near Reykjavik, you need to know about the best hotels in Iceland near Reykjavik.


This article tells in brief about the best customer-rated Luxury hotels in Iceland where you can stay and have a refreshing tour during your Iceland visit.

These hotels are also near Reykjavik and you can on your off day visit there and have a quick beautiful visit there as well. Hope this was helpful.

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