Iceland’s Luxury Hotel Choices: Exploring Ultimate Comfort and Relaxation
Iceland, the land of fire and ice, is a destination that attracts travelers from all over the world with its rugged landscapes, stunning natural wonders, and unique experiences. While many travelers come to Iceland seeking adventure, there’s also a growing demand for luxury, comfort, and relaxation. Luckily, Iceland boasts a variety of luxurious hotels and resorts that allow guests to indulge in world-class amenities, exceptional service, and spectacular views, all while being surrounded by some of the most breathtaking scenery on Earth.
Whether you’re planning a romantic getaway, a peaceful retreat, or a lavish vacation, Iceland has several top-notch accommodations that promise to deliver on every level. From remote, secluded resorts to lavish urban retreats, the island has something to offer for every luxury traveler.
1. The Retreat at Blue Lagoon
- Location: Grindavík, Reykjanes Peninsula
- Price Range: $1,200 – $3,500 per night (varies based on season and room type)
- Services: Spa, private lagoon access, fine dining, wellness programs, guided tours
- Booking Method: Can be booked via a selection of online travel platforms and luxury travel agencies
The Retreat at Blue Lagoon is arguably one of the most famous luxury accommodations in Iceland. Located in the Reykjanes Peninsula, it’s positioned next to the renowned Blue Lagoon, one of Iceland’s most iconic natural attractions. The resort combines modern luxury with natural beauty, offering guests a unique opportunity to relax in the therapeutic geothermal waters of the Blue Lagoon, just steps from their room.
What sets The Retreat apart from other hotels in Iceland is its exclusive, private access to the lagoon, as well as its exceptional spa facilities. The Retreat’s subterranean spa is designed with natural stone, and guests can unwind in private geothermal pools, indulge in a wide range of treatments, or simply relax while enjoying the stunning surroundings.
The accommodations here are luxurious, with minimalist Nordic design blending seamlessly with the natural environment. Each suite offers panoramic views of the lagoon or the lava fields surrounding the property. If you’re looking for a truly unique experience, the hotel also offers the option to stay in their Lagoon Suite, which features its own private entrance to the Blue Lagoon.
For food, The Retreat offers two outstanding dining options. The Lava Restaurant is located in a lava cave and serves contemporary Icelandic cuisine, while the Moss Restaurant provides an intimate, fine dining experience with floor-to-ceiling windows, giving diners unparalleled views of the natural beauty surrounding the hotel.
While the price tag may be high, guests are not only treated to luxury but also to one of the most unique experiences Iceland has to offer.

2. Hotel Borg by Keahotels
- Location: Reykjavik, City Center
- Price Range: $350 – $800 per night (depending on the season and room category)
- Services: Spa, restaurant, bar, central location, 24-hour concierge
- Booking Method: Available on numerous luxury hotel booking sites and travel agencies
For those who prefer a luxurious city break, Hotel Borg by Keahotels in Reykjavik offers a mix of old-world charm and modern comforts. Located in the heart of Reykjavik, this iconic hotel offers a refined atmosphere, perfect for guests who want to enjoy the cultural and historical richness of Iceland’s capital while experiencing high-end service and comfort.
Built in 1930, the hotel’s Art Deco architecture has been preserved, giving it a sense of timeless elegance. The rooms are stylish and well-appointed, offering all the amenities that modern travelers expect, including high-speed internet, flat-screen TVs, and plush bedding. For a more indulgent experience, guests can opt for one of the hotel’s luxurious suites, which offer additional space and exquisite design.
Hotel Borg’s renowned spa is a place of ultimate relaxation, with treatments designed to rejuvenate the body and mind. The hotel also has an exclusive restaurant and bar, where guests can enjoy gourmet meals and crafted cocktails while overlooking the picturesque square.
The central location makes it easy to explore the best that Reykjavik has to offer. Guests can easily walk to major attractions like the Hallgrímskirkja Church, Harpa Concert Hall, and the Old Harbour, making it an excellent choice for those who want to immerse themselves in the culture of the city while enjoying luxury accommodations.
3. Hotel Husafell
- Location: Borgarfjörður, West Iceland
- Price Range: $350 – $1,000 per night (based on room choice and season)
- Services: Spa, golf course, geothermal swimming pool, gourmet restaurant, guided tours
- Booking Method: Available through online booking platforms and Icelandic luxury travel agents
For those seeking a peaceful retreat away from the hustle and bustle of Reykjavik, Hotel Husafell in West Iceland offers a tranquil, nature-centric luxury experience. Nestled in the Borgarfjörður region, surrounded by lush greenery, waterfalls, and lava fields, Hotel Husafell is a haven for those looking to escape into Iceland’s serene countryside while enjoying all the luxuries of a world-class resort.
The hotel features modern, stylish rooms with breathtaking views of the nearby mountains and forests. The premium suites offer large, private balconies, providing an ideal space for guests to relax and take in the incredible landscape.
The onsite spa is a highlight of the property, offering a range of treatments designed to rejuvenate and restore. For a truly unique experience, guests can unwind in the hotel’s geothermal pool, which is naturally heated by the surrounding lava fields.
Hotel Husafell also offers a selection of guided tours to explore the nearby sights, including the famous Hraunfossar waterfalls, Langjökull Glacier, and the nearby Lava Tunnel. Guests who want to add an element of adventure to their trip can try a thrilling glacier hiking tour or even snowmobiling.
In addition to its peaceful location and luxurious amenities, Hotel Husafell also offers a fine-dining experience. The hotel’s restaurant serves locally-sourced Icelandic cuisine, including fresh fish and lamb, and is a great way to experience the flavors of the region.

4. Fosshotel Glacier Lagoon
- Location: South Iceland, near Vatnajökull National Park
- Price Range: $250 – $700 per night (depending on room type and season)
- Services: Restaurant, bar, spa, proximity to Vatnajökull Glacier, adventure tours
- Booking Method: Available through luxury travel booking sites and specialized agencies
Situated in the stunning landscapes of South Iceland, Fosshotel Glacier Lagoon is the perfect base for those who wish to explore the nearby Vatnajökull National Park, home to the largest glacier in Europe. This luxurious property blends contemporary design with the beauty of Iceland’s natural environment, providing guests with a comfortable yet stylish experience.
The hotel’s rooms are spacious and modern, with sleek furnishings and large windows that allow guests to take in the incredible views of the surrounding mountains and glaciers. For those seeking a little more luxury, the hotel offers suites with extra living space and high-end amenities, perfect for couples or families looking to indulge in a more lavish stay.
The hotel’s restaurant serves an exquisite range of Icelandic and international dishes, while the bar offers a wide selection of drinks, including locally distilled spirits. After a day of adventure, guests can unwind at the hotel’s spa or enjoy a relaxing evening in one of the lounge areas, perfect for soaking in the peaceful atmosphere.
Fosshotel Glacier Lagoon is ideally located for exploring nearby attractions like the Jökulsárlón Glacier Lagoon, Diamond Beach, and Skaftafell National Park, making it a great option for those looking for both adventure and luxury.
5. Ion Adventure Hotel
- Location: Nesjavellir, Thingvellir National Park
- Price Range: $350 – $900 per night
- Services: Geothermal spa, restaurant, adventure tours, private hot tubs, mountain views
- Booking Method: Can be booked through various travel agencies and booking websites
For travelers looking to combine adventure with luxury, Ion Adventure Hotel is a fantastic option. Located just outside Reykjavik, in the Thingvellir National Park, the hotel offers the perfect mix of modern amenities and incredible natural beauty. The hotel’s design embraces Iceland’s rugged landscapes, with walls of windows offering unobstructed views of the mountains and nearby lava fields.
Ion Adventure Hotel is ideal for those who want to stay close to nature, with a range of outdoor activities such as hiking, snorkeling, and horseback riding available nearby. The hotel also has its own geothermal spa, perfect for relaxing after a day of adventure.
The on-site restaurant serves creative Icelandic cuisine, while the bar offers an extensive selection of drinks. The hotel is especially popular with visitors who want to experience the Northern Lights in luxury, as it’s located in an area with minimal light pollution, making it one of the best places in Iceland to see the aurora borealis.
Iceland offers a wide range of luxury hotels that cater to different preferences and needs. Whether you’re seeking a tranquil spa retreat, an adventure-filled stay, or a luxurious urban escape, there are plenty of options to choose from. These hotels not only provide exceptional service and first-class amenities but also allow guests to immerse themselves in the natural beauty and rugged landscapes that make Iceland one of the most unique destinations in the world.
While prices vary, the experiences offered by these hotels are well worth the investment, ensuring that your time in Iceland will be as luxurious and memorable as the incredible scenery surrounding you.