10 Best Boutique Hotels In Iceland

Are you thinking about taking a luxury trip to Iceland? If yes, then experiencing the country’s stunning natural beauty is probably at the forefront of your mind. Nevertheless, rest assured you will get to enjoy boutique accommodation here too. The boutique hotels in Iceland have their special charm and appeal. You will find something in this country, from wellness retreats to adventure hotels, which will suit you perfectly. The land of fire and ice has plenty to offer when it comes to boutique hotels. From modern downtown escapes in Reykjavik to luxe spa getaways edging the Blue Lagoon, many are worth the flight themselves. Both in restaurants and spas, recurring themes are available, which include locally sourced ingredients and cool Scandinavian design. 

10 Boutique Hotels In Iceland

The boutique hotels in Iceland are something special, so wait no more and read this blog to know more about them. Look at some of our picks of the best boutique hotels for luxury travel in Iceland.

1. Diamond Suites Luxury Boutique Hotel
2. The Retreat at Blue Lagoon Iceland
3. Hotel Laki
4. Geysir Hotel
5. Hotel Fransiskus
6. Skalakot Manor Hotel
7. Ion Adventure Hotel
8. Hotel Glymur
9. Hotel Rangá
10. 101 Hotel

1. Diamond Suites Luxury Boutique Hotel

Diamond Suites Luxury Boutique Hotel is Iceland’s only five-star hotel. It is a hotel within a hotel. Situated on the top floor of Hotel Keflavik, it consists of seven individually decorated suites. Most of them are named after a different gem. Are you looking for an ultra-luxe group option? If so, then rent out all of them as a private penthouse. The benefit of it is that you receive exclusive use of a Range Rover and a personal driver.

2. The Retreat at Blue Lagoon Iceland

As you can guess from the name, the Retreat is built around the iconic geothermal spring in the southwest of Iceland. A series of suites offers lagoon rugged landscape views. You can enjoy and relax in the private section of the Blue Lagoon. Along with that, it also has a spa built into an 800-year-old lava flow. You can choose the Ritual spa journey to exfoliate, cleanse and moisturise using algae, silica and mineral salt. Moreover, all these are sourced from the surrounding waters.

3. Hotel Laki

Situated in southern Iceland, Hotel Laki is just off Ring Road. Also, you will find it near Stjórnarfoss waterfall. It is an excellent base for exploring the beauty of the south. Additionally, there are endless activities that you can engage in here. You can fish for Arctic char in the adjacent Lake Víkurflód, explore the Fjádrargljúfur canyon and visit the 11 dwellings right behind the hotel. If you think it is time for some shut-eye, rooms are cosy and well-appointed.

4. Geysir Hotel

How about staying in a hotel next to one of the most powerful geysers in the world? You will find nothing but a sense of peace while staying in Hotel Geysir. Located adjacent to the Great Geysir, a bed of geothermal activity surrounds this hotel. When you are done marvelling at this natural wonder, dine at the hotel restaurant Geysir Glíma for a taste of hyper-local Icelandic fare.

5. Hotel Fransiskus

Constructed by a group of Catholic sisters in the 1930s, Hotel Fransiskus is steeped in history. It overlooks Stykkishólmur harbour and only recently converted to a hotel. Altogether, it has 21 rooms, which are clad in neutral hues. But you will likely spend most of your time wandering past the 150-year-old colourful shopfronts in this town on a western peninsula.

6. Skalakot Manor Hotel

Skalakot Manor Hotel is a fourth-generation-run farm. It specialises in breeding Icelandic horses. If you are a fan of the pony-sized, long-maned animals, this is the place to be. You can’t leave this place without taking part in a horse-riding tour. The stunning landscapes you cross are a bonus. The hotel houses gorgeous, upscale rooms with beamed ceilings. Also, some are accompanied by in-room roll-top tubs. When you are somewhat hungry, you can head to the in-house restaurant for fine dining.

7. Ion Adventure Hotel

Among all the boutique hotels in Iceland, Ion Adventure Hotel should draw your attention more. The first thought that will come to your mind seeing this hotel is that it is built in a modern style. Set in the beautiful countryside near Selfoss in southwest Iceland, it is an ode to combining architecture with the landscape. Its design will make you feel like you are truly staying in this country. Locally retained driftwood and lava rocks are woven into the earthy-yet-classy atmosphere. If hungry, enjoy particularly delicious cuisine at Silfra Restaurant. Gaze at the spectacular views from the Northern Lights Bar and rejuvenate yourself when at the Lava Spa. For you to enjoy the views towards Nesjavellir Geothermal Power Plant and the surrounding lava fields, each room has floor-to-ceiling windows.

8. Hotel Glymur

Situated on the northern shore of Hvalfjörður (Whale Fjord), Hotel Glymur is about 45 minutes drive from Reykjavik. You will get a chance to witness beautiful views of the fjord from this remote hillside. Decorated with vibrant works from local artists, the hotel’s interior also includes carvings, ceramics and rugs. Also, you will find a geothermal hot tub outside. Moreover, it is a great place for viewing the Northern Lights. Additionally, explore the local waterfalls and hiking paths before heading back to the homely hotel restaurant.

9. Hotel Rangá

You can find this log-built hotel sitting next to the salmon-fishing river Ytri-Rangá. It is only an hour’s drive from Reykjavik. Relax as you find warmth and comfort in the warm interiors of the alpine lodge. The rooms are enlivened with paintings of Icelandic nature and wildlife by local artists. Sink your teeth into mouth-watering meals in an excellent hotel restaurant next to the river. Did you know there is even a stargazing observatory and a bar in this hotel? Also, there are outdoor geothermal hot tubs where you will catch the Northern Lights. So, do visit this one of the extraordinary boutique hotels and catch a glimpse of the Northern Lights, considering the fact that you are there on the right night.

10. 101 Hotel

This boutique hotel sits in a 1930s building in downtown Reykjavik. It offers an intoxicating blend of contemporary design and minimalist couture. You will observe stark furniture and a monochromatic colour scheme throughout. These are emboldened by a gallery-worthy collection of modern pieces from Icelandic artists. There is a hot tub and geothermally heated steam room inside the basement. This one of the best boutique hotels in Iceland also offers an in-room massage.

Tips for Your Iceland Trip

1. Bring back all the best souvenirs from Iceland.
2. There are a lot of activities to do in Iceland, so don’t forget to try out all of them.
3. Take part in all the famous festivals in Iceland.
4. Also, discover all the hidden ice caves in Iceland.
5. Iceland provides a lot of walking tours. So experience the best walking tours there.

Frequently Asked Questions for Your Iceland Tour

Did you get to know about all the incredible boutique hotels in Iceland? If yes, then go and visit your dream destination now. Choose the best boutique hotel to stay in and enjoy all the mesmerising views from nearby locations. Visit Pickyourtrail to find the best pre-packaged Iceland packages. Moreover, you can also customise your Iceland itinerary and choose what suits you the most.

checkout other places to eat in iceland

Best Indian Restaurant in Iceland | Best Places to Eat in Reykjavik | Iceland’s Must-Try Foods