Top places to stay in Iceland.
Iceland offers accommodations that range from sophisticated waterfront hotels and luxury countryside retreats to geothermal resorts, boutique guesthouses, and remote wilderness lodges, placing visitors within easy reach of volcanic landscapes, glacial lagoons, dramatic waterfalls, and one of the world's most extraordinary natural destinations. Each region reveals a different perspective on the island, where rugged coastlines, lava fields, and geothermal wonders stretch from Reykjavík to the Highlands.
Reykjavík remains Iceland's defining hospitality district, where Hallgrímskirkja, Harpa Concert Hall, the Old Harbour, and the city's celebrated restaurants create an exceptional base for exploring the capital while serving as the primary gateway to the Golden Circle and southwestern Iceland. Landmark accommodations including The Reykjavík EDITION, Hotel Borg by Keahotels, ION City Hotel, Canopy by Hilton Reykjavik City Centre, and Sand Hotel by Keahotels surround visitors with boutique shopping, contemporary Nordic cuisine, and energetic cultural attractions, while neighboring Reykjanes Peninsula combines dramatic lava fields, coastal scenery, and the world-renowned Blue Lagoon with luxury accommodations including The Retreat at Blue Lagoon Iceland and Silica Hotel. Beyond the capital region, the Golden Circle surrounds visitors with Þingvellir National Park, Geysir, Gullfoss, and countryside lodges that reveal another side of Iceland's volcanic interior.
As Iceland extends beyond the southwest, the South Coast blends black-sand beaches, waterfalls, glaciers, and glacier lagoons with boutique hotels and countryside retreats surrounding Vík, Skógafoss, Seljalandsfoss, and Jökulsárlón Glacier Lagoon, while North Iceland reveals another perspective through Akureyri, geothermal landscapes, whale-watching excursions, and accommodations overlooking fjords and snow-capped mountains. Across the island, luxury geothermal resorts, family-owned guesthouses, remote wilderness lodges, and modern design hotels provide distinctive ways to experience Iceland's extraordinary landscapes. Between sophisticated city hotels, secluded countryside retreats, and iconic geothermal resorts, Iceland offers accommodations that complement every style of travel while showcasing the remarkable diversity and breathtaking beauty of the Land of Fire and Ice. Foresyte may earn a commission when you book.
Foresyte Travel's top five choices.
5. Sand Hotel by Keahotels
Sand Hotel by Keahotels occupies a collection of buildings along Laugavegur, the commercial street that developed into Reykjavík's principal downtown axis during the city's twentieth-century expansion. The property incorporates the former Sandholt bakery premises, connecting the hotel to a family baking business whose Reykjavík history reaches back to 1920. Sandholt continues beside the hotel, preserving an unusual continuity between contemporary hospitality and one of the street's enduring commercial institutions. Icelandic artwork, Nordic materials, and residential-scale interiors connect the property closely with the surrounding center. Sand Hotel derives its character from this integration with Laugavegur and the commercial history embedded in its buildings.
4. Canopy by Hilton Reykjavik City Centre
Canopy by Hilton Reykjavik City Centre became the first property in Hilton's Canopy brand when it opened in 2016, making Reykjavík the launch point for a concept subsequently expanded internationally. The hotel occupies six interconnected buildings near Laugavegur, incorporating structures whose differing periods and forms preserve the irregular grain of the surrounding downtown blocks. Icelandic textiles, artwork, materials, and furnishings embed the international brand within Reykjavík's visual culture. The project established Hilton's lifestyle-hotel concept through direct integration with an existing urban district. Reykjavík served as the prototype for a Hilton brand built around the character of individual neighborhoods.
3. Tower Suites Reykjavík
Canopy by Hilton Reykjavik City Centre became the first property in Hilton's Canopy brand when it opened in 2016, making Reykjavík the launch point for a concept subsequently expanded internationally. The hotel occupies six interconnected buildings near Laugavegur, incorporating structures whose differing periods and forms preserve the irregular grain of the surrounding downtown blocks. Icelandic textiles, artwork, materials, and furnishings embed the international brand within Reykjavík's visual culture. The project established Hilton's lifestyle-hotel concept through direct integration with an existing urban district. Reykjavík served as the prototype for a Hilton brand built around the character of individual neighborhoods.
2. Hotel Borg by Keahotels
Hotel Borg occupies a commanding position on Austurvöllur beside Alþingi and Reykjavík Cathedral, placing it within Iceland's historic civic center. Jóhannes Jósefsson, an Icelandic wrestler and circus performer who competed at the 1908 London Olympics, founded the hotel after building an international career beyond Iceland. Architect Guðjón Samúelsson designed the building in the Art Deco style, and Hotel Borg opened in 1930 as Reykjavík entered a period of accelerating urban modernization. Its geometric interiors, polished stone, decorative metalwork, and restrained ornament connected the capital with the cosmopolitan hotel culture emerging across Europe between the world wars. Hotel Borg endures as a physical expression of Reykjavík's transformation from a compact North Atlantic town into a modern national capital.
1. The Reykjavik EDITION
The Reykjavik EDITION occupies the Old Harbour waterfront beside Harpa, anchoring a district reshaped by major cultural and architectural investment along Reykjavík's shoreline. Ian Schrager and Marriott International developed the property through the EDITION partnership, extending Schrager's decades-long influence on modern hotel design into Iceland. Architecture by T.arch and interiors involving Roman and Williams combine dark basalt references, timber, concrete, and expansive glazing with the austere material character of Iceland's volcanic landscape. The hotel opened in 2021 as the Old Harbour continued its transition from working maritime infrastructure toward a mixed cultural, hospitality, and public waterfront district. The Reykjavik EDITION captures that transformation through architecture directly connected to the harbor, Harpa, and the city's contemporary waterfront.
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