Although Iceland is known for its rugged, lava-filled landscapes, your time here needn’t be spent rustically. While there’s no doubt that camping brings you closer to nature and keeps accommodation costs down, luxury has its own appeal.
After a full day of driving, hiking and exploring, you’ll want somewhere comfortable and spacious to return to. Those places where Iceland showcases its unique style. Let’s take a look at the top resorts in Iceland that do just this. Get your Iceland adventure started and book your rental today!
One of the key appeals surrounding Iceland’s luxurious retreats is their location. Their settings in beautiful fjords, near ski resorts or next to famous geothermal pools allow guests to take advantage of the incredible views and natural features that lie close-by.
After all, you’re not visiting Iceland to sit in an all-inclusive spa hotel all day. While that does sound nice, the real aim of an Iceland holiday is to explore, and the best resorts give you close access to do so. Here are some of the most popular.
Side note: when booking a hotel, check if your American Express reward points can be used.
The Retreat Hotel/Silica Hotel at the Blue Lagoon
Both of these hotels are located at the Blue Lagoon spa, and staying at them means easy access to the water. There are also three on-site restaurants, so you won’t have to leave the resort to satisfy your taste buds. With additional extras like optional in-water massages and a fitness center, the Blue Lagoon Resort has everything you need.
The Silica Hotel also includes access to the Silica Lagoon, a more private area than the public Blue Lagoon. With great views of the surrounding lava fields and complimentary breakfasts, this hotel is perfect for a couple’s getaway.
The Retreat Hotel contains larger suites more suited to families and includes access to the Retreat Spa and Retreat Lagoon. Like the Silica Lagoon, these are other more exclusive areas than the Blue Lagoon. With an À la carte breakfast, daily yoga sessions and floor-to-ceiling windows, you’ll feel utterly relaxed and cared for.
The Blue Lagoon is found on the Reykjanes Peninsula, around 20 minutes from Keflavík International Airport. Book your getaway online.
Iceland Luxury Lodges
These luxurious accommodations have four locations to choose from, depending on your group size and where you want to stay.
The nine-bedroom Úlfljótsskáli Luxury Lodge is found in the Golden Circle, slightly east of Reykjavík. This spacious building has enough bathrooms for everyone as well as a game room, sauna, hot tub and more. If you’re planning a big family reunion or celebration, this is the place for you, and you can rent a 9 passengers van in Reykjavik to reach your lodge without leaving anyone behind.
Úlfljótsskáli is close to some of Iceland’s most famous natural attractions, such as Gullfoss waterfall. There’s even a fire pit outside the accommodation to sit around while you swap stories from the day’s adventures!
Within the Golden Circle is the Álftavík Lakefront Villa, a four-bedroom space with incredible mountain and lake views. With a hot tub and lake access, you can go back and forth between hot and cold. Also, a private fire pit on the beach by the property means you can keep warm while watching the sunset.
Like the above Villa, Áslundur Lakefront Cabin is also located next to Lake Álftavatn. With its massive lake and a black sand beach, you’ll feel deeply connected to Iceland’s nature. Since there are four bedrooms, there’s plenty of room whether it’s a couple’s retreat or a family gathering.
Finally, Iceland Luxury Lodges has its downtown Reykjavík space, the Art Collector's Apartment. Here, you have access to four bedrooms and two underground parking spaces, making this the perfect base from which to explore the city.
With the capital’s major attractions within walking distance, you can see all the sights and come back to walls completely covered with art. Pick the resort that suits you best and book here.
This wonderful hotel is located along the southern coast of Iceland, around 100 km (62 miles) from the capital. As well as its range of differently decorated rooms, Rangá is famous for having its own observatory. With two telescopes and a roll-out roof, you’ll have a great view of the cosmos and, hopefully, the northern lights.
All of the rooms, regardless of their theme, are decorated with art from local artists. With multiple suite and room types, there is bound to be one that meets your needs and preferences.
Their Master Suite options include Africa, Antarctica, Icelandic and Royal. Their Junior Suites, on the other hand, feature destinations from Asia, Australia, North America and South America. In addition, you have Deluxe Superior, Deluxe, and Standard rooms to choose from.
This coast is often regarded as one of the most beautiful—and photogenic—parts of the country. With waterfalls, glaciers and glacial lagoons nearby, Hotel Rangá is the ideal luxurious starting point for southern coast adventures.
With a restaurant serving local food and a bar on-site, you’ll be well With a restaurant serving local food and a bar on-site, you’ll be well catered to from start to finish. Visit their website to book your stay and view the night sky in style.
If you want to visit somewhere very remote, stay at the Sigló Hótel in Siglufjörður. It’s the northernmost town in the country and has a population of just over a thousand people. Famously, a tourist ended up here when he misspelled “Laugavegur”, a street in Reykjavík, and missed his destination by 400km.
The hotel contains three restaurants and four different room types, so there’s plenty of choices. The building is located on the waterfront, so you’ll have a beautiful view of the surrounding fjord. Even when you venture outside the hotel side, hiking trails, geothermal pools and the Skardsdalur ski resort will keep you entertained.
If you’ve had an adventurous day and want to relax, slip into the hotel’s outdoor spa or sauna. The suites and junior suites have private balconies if you want to watch boats pass by in the harbor.
Reaching Sigló Hótel by car is very easy, just follow the directions provided by Google Maps. While you won't be legally required to drive a 4x4 to get to your destination, we recommend renting a reliable 4WD vehicle to those who plan to visit this area in winter, or would like to visit the interior of the country. Rent a Land Rover Defender, or check our selection of 4x4 Subaru rentals in Iceland, and drive through Iceland in safety and style.
The Sky Lagoon
While this isn’t a resort, as it currently doesn’t provide accommodation, it’s worth a mention here as it’s a very luxurious place. This geothermal spa, new in 2021, offers one of the best views of any spa in the country. On a clear day poolside, you can see the entire bay, even as far as Snæfellsjökull glacier.
The Sky Lagoon also contains a cold pool, steam room, sauna and in-water bar, so you’ll be set for hours. After you’ve relaxed in the water, fill yourself up on enriching food at the Sky Café or Smakk Bar.
The Lagoon is only a short drive from downtown Reykjavík, so you can easily get there with your rental car. And once you’re in, stay as long as you like. Be sure to book ahead, though, as it’s extremely popular and spots fill up quickly.
Time to unwind!
These are just a few of the top Iceland resorts, but the country has much to explore. Whatever your tastes, you’ll find the perfect accommodation to relax and rest your head after your adventures. Explore Iceland in style from a fancy hotel suite, or enjoy seclusion and peace in a cabin all to yourself.
Be sure to pack your swimming costume and plenty of warm clothing, no matter the season. Iceland’s weather is notoriously unpredictable, and you’ll want to have everything you need whether rain or shine.
Start planning your Iceland holiday today; before you know it, you’ll be in your rental car driving around the country.