20 Cool & Unique Hotels & Stays in Iceland
Iceland is one of those destinations where even the place you sleep can become a highlight of your trip. From transparent bubble hotels where you watch the northern lights from your bed, to a converted water tower on a volcanic peninsula, the accommodations here are as dramatic as the landscapes themselves.
Whether you’re road-tripping the Ring Road on a budget or splurging on a private geothermal lagoon, there’s something on this list for every type of traveler.
Here are the 20 coolest and most unique hotels in Iceland, counted down to the most unforgettable of them all.
20. Kuku Campers
The best campervan rental in Iceland, with options ranging from small rooftop tent cars to vehicles sleeping up to 5.
Choose a 4×4 if you want to explore Iceland’s famous F-roads and remote attractions.
19. Puffin Capsule Hostel
A futuristic capsule hostel on the island of Vestmannaeyjar, accessible by ferry.
Each capsule has a TV and independent lighting. They’re great for solo travelers and perfect during the midnight sun.
18. Rent a Tent
A luxury camping company that sets up and tears down all your equipment for you. Tents come with sleeping bags, mattresses, heaters, and even cooking gear.
17. The 5 Million Star Hotel
A transparent bio-bubble in the forest, about 90 minutes east of Reykjavik.
Watch the midnight sun in summer or the northern lights in winter … from your bed.
16. Hrafnavellir Guest House
Seven family-built cabins right off Route 1 in South Iceland, backed by snow-capped peaks.
A homemade breakfast spread, including a surprisingly good caviar paste, is served every morning.
15. The Retreat at Blue Lagoon
Iceland’s most luxurious hotel experience, with 60+ suites, private geothermal lagoon access, and in-water spa treatments.
The most exclusive suites include your own private lagoon.
14. Hotel Laxa
An affordable option near Lake Mývatn with a northern lights wake-up service and sky views from every room.
Breakfast is included, and the staff helps arrange nature baths, horse-riding, and hiking tours.
13. Fosshotel Myvatn
A trendy, quiet hotel along the Ring Road near Lake Mývatn.
Designed to blend into the landscape, with a complimentary sauna open daily from 10am–10pm.
12. Siglo Hotel
Arguably the coolest hotel in Northern Iceland, with over 1,000 reviews averaging 9.5/10.
Premier harbor-view rooms in Siglufjörður are consistently praised, and a continental breakfast is included.
11. Hotel Budir
A historic, cozy hotel just 14 miles east of Snæfellsnes National Park in Western Iceland, next to the famous Budir Black Church.
Rooms have views of glaciers, lava fields, and the ocean.
10. Hotel Husafell
A modern hotel less than two hours north of Reykjavik, near Langjökull Glacier, Krauma Baths, and Vidgelmir Lava Cave.
Rooms range from standard suites to three-bedroom houses with Icelandic wool throws.
9. Arnarstapi Cottages
A secluded series of modern tiny-house cottages in West Iceland with mountain views and private patios.
8. Fosshotel Reykholt
Close to the waterfalls Hraunfossar and Barnafoss in West Iceland, with spacious rooms, a jacuzzi, spa, sauna, and heated bathroom floors.
7. Lake Hotel Eglisstadir
A farmhouse-style hotel in East Iceland with locally sourced Icelandic cuisine, deluxe rooms overlooking Lagarfljót lake, and Icelandic reindeer wandering nearby.
6. Foss Hotel Nupar
A sprawling single-story hotel in Southern Iceland with panoramic glacier and mountain views.
Each room feels like a separate apartment, and you can watch the Aurora Borealis from your bed.
5. Hotel Vik Myrdal
The best base hotel in Southern Iceland, about two and a half hours east of Reykjavik.
Offers an Aurora Borealis wake-up call, free parking, and a delicious buffet breakfast. Close to Reynisfjara Black Sand Beach (below) and the Katla ice caves.
4. ION Adventure Hotel
An affordable luxury retreat just outside Reykjavik, with a stunning spa, geothermal pool, plunge pool, and sauna overlooking Mount Hengill.
Steps from Thingvellir National Park and the Silfra Fissure.
3. EYJA Guldsmeden Hotel
An eco-friendly, bohemian-luxury hotel right in the heart of Reykjavik, from the beloved family-owned Scandinavian Guldsmeden group. Some rooms have balconies with water or mountain views.
2. Iceland Parliament Hotel
A Hilton Curio Collection property made up of seven buildings, including three historic sites, right in the heart of Reykjavik.
Blends restored 1950s architecture with modern comfort, plus a geothermal-inspired spa.
1. Converted Water Tower
I could live in this one!
Iceland’s first purpose-built micro house, on the Reykjanes Peninsula about 45 minutes from Reykjavik.
This three-floor, two-bedroom Airbnb-style rental is a one-of-a-kind stay near the Blue Lagoon and Gunnuhver Hot Spring.
