Top Boutique Hotels in Iceland (2026)

Best Boutique Hotels in Iceland

This guide to the best luxury, boutique, and design-forward hotels in Iceland is manually curated by our editorial team based on first-hand research, verified guest reviews, location analysis, and overall service quality. Each hotel is selected to meet high standards of comfort, authenticity, and guest experience.

Magma Hotel
Hotels
Tunga, 880 Kirkjubæjarklaustur, Iceland

Located within 1.9 mi of Kirkjugólf and Systrafoss twin waterfalls, Magma Hotel offers accommodations in Kirkjubæjarklaustur. Rooms are modern with Nordic design and free WiFi. Views of the lava-fields, black sand river and even Vatnajäkull Glacier can be enjoyed from the hotel. Rooms come with a flat-screen TV and private bathroom. Some room feature a patio looking out towards the impressive South Iceland nature. Vik is 45 mi from Magma Hotel. Skaftafell and Svartifoss waterfall are about a 50-minute drive away.

Guest Reviews:

- "Highly recommend Hotel restaurant is exceptional Staff is very supportive and kind" - "Unique, modern and peaceful" - "Big room with comfortable mattress and amazing views, perfect for northern lights seeing. Amazing breakfast, good quality restaurant for dinner." - "This hotel was beautiful and gave us great views! The room itself was clean and the bed was comfortable to sleep in. The staff were very friendly and helpful. We were able to eat dinner and breakfast at the restaurant - both were delicious!"

Tindasel Lodge
Hotels
Rangárvallavegur, 851 Hella, Iceland

Located in Hella, 23 miles from Seljalandsfoss, Tindasel Lodge provides accommodations with a garden, free private parking, a shared lounge and a terrace. This 3-star hotel has a spa experience, with its sauna and hot tub. Staff on site can arrange airport transportation. At the hotel, every room has a desk. With a private bathroom equipped with a shower and free toiletries, rooms at Tindasel Lodge also offer free WiFi, while selected rooms come with a mountain view. At the accommodation each room has bed linen and towels. Buffet and continental breakfast options are available daily at Tindasel Lodge.

Guest Reviews:

- "Absolute recommendation :) Very cosy and clean accommodation in the middle of the beautiful and remote countryside. The staff are also very friendly and professional. The jacuzzi and sauna were a welcome relaxation in the evening. We liked it here so much that we stopped here for another night on our unplanned return journey through the south." - "Very nice new clean location that was nicely decorated, good breakfast, outstanding staff and comfortable beds"

Siglo Hotel by Keahotels
Hotels
Snorragata 3, 580 Siglufjörður, Iceland

Located in Siglufjörður, Siglo Hotel by Keahotels offers 4-star accommodations with a terrace and a bar. Offering a restaurant, the property also has a shared lounge, as well as a sauna and a hot tub. The property has room service, a 24-hour front desk and organizing tours for guests. At the hotel, the rooms come with a desk, a flat-screen TV, a private bathroom, bed linen and towels. Each room has a safety deposit box, while selected rooms also feature a balcony and others also feature city views. Guests at Siglo Hotel by Keahotels will be able to enjoy activities in and around Siglufjörður, like hiking, skiing and fishing. The nearest airport is Akureyri Airport, 50 miles from the accommodation.

Guest Reviews:

- "Views, location, hot tub" - "This hotel is absolutely what every hotel needs to be! From the first step inside it feels like home. The first thing You see is the beautiful common area with the fireplace in the middle. Just sit down and read a book, play a game of chess or enjoy a nice talk to your fellow partner. The next thing you notice is the awesome bar and the fancy restaurant. The room is amazing. It is bigger than any other room on our Iceland trip. Awesome bathroom with nice tiles and design. Probably the best and most comfortable beds of our whole trip, and the most important part, it was definitely the most silent room we had. You couldn’t even hear the doors of the other rooms or that someone is walking outside. In the evening after an exhausting day you can relax in the infrared sauna and after that jump into the hot tub. Absolute recommendation. The breakfast is really amazing too and depending on where you seat yourself, you will enjoy a nice view while seating in sunshine."

Basalt Hotel
Hotels
Iðunnarstaðir Lundarreykjadalur, 311 Borgarnes, Iceland

Located in Borgarnes, 27 miles from Thingvellir National Park, Basalt Hotel provides accommodations with a restaurant, free private parking and a bar. The property has a hot tub, hot spring bath and free WiFi. At the hotel, every room comes with a desk, a flat-screen TV, a private bathroom, bed linen and towels. All guest rooms will provide guests with a closet and an electric tea pot. A buffet, continental or vegetarian breakfast is available daily at the property. Guests at Basalt Hotel will be able to enjoy activities in and around Borgarnes, like hiking. The nearest airport is Reykjavík Domestic Airport, 67 miles from the accommodation.

Guest Reviews:

- "Super nice surroundings. The staff were so friendly and recommended nice things to do for us. The rooms were clean and comfortable and we got nice bathrobes. Breakfast had eggs, bacon warm bread and all kinds of other things. Coffee was good. Over all we had a super good stay here ☺️" - "Beautiful hotel, wonderful staff, excellent food & drink, comfortable bed" - "Location, facilities, staff and the food was outstanding! Our dinner was delicious and our breakfast was prepared to go and to our surprise we had two yummy sandwiches and juice boxes.. very sweet as we had to check out at 7am for planned activities… Service from Ale was wonderful! The property is really in the middle of nowhere…. Making it the perfect location for the northern lights…. and we couldn’t say enough about the outside hot tub… one of the most incredible experiences ever! We were blown away truly!"

INNI - Boutique apartments
Hotels
3 Frumskógar, 109 Hveragerði, Iceland

28 miles from The Pearl in Hveragerði, INNI - Boutique apartments features accommodations with access to a sauna, hot tub, and steam room. This condo hotel offers free private parking, private check-in and check-out, and free Wifi. Featuring a private entrance, the condo hotel allows guests their privacy. The units come with parquet floors and feature a fully equipped kitchen with a dishwasher, a dining area, a flat-screen TV, and a private bathroom with walk-in shower and bathrobes. A toaster, a fridge, and stovetop are also featured, as well as a coffee machine. At the condo hotel, the units are fitted with bed linen and towels. Hallgrímskirkja Church is 28 miles from the condo hotel, while Solfar Sun Voyager is 28 miles away. The nearest airport is Reykjavík Domestic Airport, 29 miles from INNI - Boutique apartments.

Guest Reviews:

- "The apartment is very well equipped. Owners were helpful and quick in communication. They really provide everything you need. The place is very cosy and comfy. Really good location for the golden circle sights but Skogar and Vík are not too far either. The town also has everything that you may need (grocery store, restaurants etc.). Iceland is wonderful but if Iceland's weather forces you to stay in for a morning or afternoon (and it will), you will be happy you booked this place."

360 Hotel & Thermal Baths
Hotels
Mosató 3, 801 Selfoss, Iceland

360 Hotel & Spa is located in Selfoss. Each guest at the 4-star property can enjoy views from the rooms. The property features a shared lounge. At 360 Hotel & Spa, every room comes with a desk. With a private bathroom fitted with a shower and free toiletries, rooms at 360. At 360 Hotel & Spa every room is fitted with air conditioning and a flat-screen TV. A buffet breakfast is served each morning at the property. There is an on-site restaurant, which serves local cuisine and also offers dairy-free and vegetarian options. All guests have access to a spa which includes a pool with warm geothermal water, a sauna and relaxing lounge with an open fire. Speaking Danish, English, German and Icelandic at the 24-hour front desk, staff are willing to help at any time of the day. The nearest airport is Reykjavík Domestic Airport, 39 mi from the property.

Torfhús Retreat
Hotels
Dalsholt, 801 Selfoss, Iceland

Located in Selfoss, 8.5 miles from Geysir, Torfhús Retreat has accommodations with a garden, free private parking, a terrace and a restaurant. Built in 2018, the property is within 10 miles of Gullfoss Waterfall. The hotel has a hot tub, room service and free WiFi throughout the property. The rooms at the hotel come with a seating area, a flat-screen TV with satellite channels, a safety deposit box and a private bathroom with a shower, free toiletries and a hairdryer. Rooms have a coffee machine, while certain rooms come with a kitchen with a fridge, a dishwasher and a microwave. At Torfhús Retreat all rooms come with bed linen and towels. The accommodation offers a hot spring bath. Guests at Torfhús Retreat will be able to enjoy activities in and around Selfoss, like hiking and cycling. The nearest airport is Reykjavík Domestic Airport, 66 miles from the hotel.

Guest Reviews:

- "Setting , rooms . Food hospitality . Luxury classy" - "The chef was excellent, some of the best food we have experienced and served with pride and excellent wine pairings. and the team very helpful and friendly." - "Dinner were incredible as was the sommelier and his wine pairing. Staff were all so helpful and friendly. Facilities were wonderful. Thank you" - "All" - "beautiful property, loved the hot springs" - "The guest house is in a beautiful location conveniently located for all the golden circle sights. Our room was warm and cosy and we loved the outside hot tub. The breakfasts and the dinners were all delicious and the staff were super friendly and helpful."

Skorrahestar
Hotels

Set on the most eastern fjord, Nordfjördur, this family-run farm stay is 4.3 mi from Neskaupstadur town center. It provides free WiFi, scenic country views, as well as horse riding tours on site. Spread over 2 buildings, Skorrahestar offers basic guest room accommodations with shared or private bathroom facilities. All have access to a communal kitchen, dining area and lounge area. Local and homemade products are served for Skorrahestar’s daily breakfast. BBQ facilities and laundry facilities are available on site. Guests can also pet the farm animals. A public swimming pool can be found in Neskaupstadur, while the Neskaupstadur Golf Course is less than 1.2 mi away. The town and airport in Egilsstadir are 50 minutes’ drive from the property.

Guest Reviews:

- "The owners, who are so friendly and nice, converted a big old barn into a beautiful guest house. And the horses and sheep and goats are there for you to enjoy, as it is a working farm." - "Facilities are great, owners are very friendly and helpful. Enjoyed our stay a lot" - "Thordur the owner was already waiting for us when we arrived. He gave us a tour of the place. Our son loved playing with the toys they had there. The room was clean and the beds were very comfy. Breakfast in the morning was amazing. Would definitely recommend this place."

Umi Hotel
Hotels
Leirnavegur, 861 Skogar, Iceland

Featuring a lounge and views toward Eyjafjallajökull, Umi Hotel is located at the foot the famous volcano in South Iceland. It features a terrace and views of the sea. Guests can enjoy the on-site restaurant. Vik is 25 mi away. Each room is fitted with a flat-screen TV. Certain rooms include a seating area for your convenience. You will find a kettle in the room. Rooms include a private bathroom. For your comfort, you will find bathrobes and free toiletries. Umi Hotel features free WiFi throughout the property. There is a 24-hour front desk at the property. You can engage in various activities, such as horse riding and fishing. Eyjafjallajökull Erupts exhibit is 1.9 mi from the hotel, while Ring Road 1 is just 1.2 mi away. Hvolsvöllur is 27 mi away.

Guest Reviews:

- "Horses outside the room, very friendly and helpful staff" - "Beautiful building and room, our favourite hotel during our trip" - "Our stay at Umi Hotel was absolutely perfect! The location is superb, situated off the main road and surrounded by Icelandic fields, offering a private and secluded atmosphere. The hotel itself is stunning, with beautifully designed structures and rooms. Our room featured stylish Scandinavian decor and was impeccably clean. We dined at the hotel's restaurant, and the food and service were outstanding – among the best we experienced in Iceland. The beach is about a 20-minute walk away, and we enjoyed a peaceful stroll, having the beach almost entirely to ourselves. I highly recommend this place and look forward to returning."

The Retreat at Blue Lagoon Iceland
Hotels
Norðurljósavegur 11, 240 Grindavík, Iceland

Featuring a subterranean spa, a geothermal lagoon and a restaurant that re-imagines Iceland’s culinary traditions, this 62-suite luxury hotel is encircled by the Blue Lagoon’s mineral-rich waters. All rooms provide a mini-bar with soft drinks, wine and Icelandic beer, turndown service, WiFi and 24-hour room service. Located in the heart of an extraordinary volcanic frontier, the Retreat offers all guests unlimited access to the Retreat Spa, the Retreat Lagoon, the Blue Lagoon and Blue Lagoon Ritual, as well as skin care amenities. Designed to erase the boundaries between hospitality and well-being, each suite becomes the foundation of a relaxing, rejuvenating and exploratory experience. Offering daily guided group hikes and yoga sessions as well as afternoon Icelandic coffee in the shared lounge, this hotel has a 24-hour front desk, concierge service and valet parking. An à la carte breakfast is served each morning. Guests at The Retreat at Blue Lagoon Iceland will be able to enjoy activities in and around Grindavík, like hiking. There is also a fitness center at the property that guests have access to. Keflavík Airport is just 14 mi from the property.

Guest Reviews:

- "Food, views, spa, everything!" - "everything is the best place on Earth" - "This hotel was excellent! Very luxurious with very helpful staff." - "Everything" - "Amazing beautiful place The lagoon is something very special and the retreat provides everything you need to have a relaxing peaceful stay" - "This place is amazing!! It’s worth every cent!" - "EVERYONE and EVERYTHING!" - "Experience" - "The pools around the hotel was a very good idea . The food was very good and the staff was excellent. The shower was very good. The Lava restaurant."

Iceland Family Friendly Boutique Hotels

boutique hotels in Iceland
9.4
827 reviews
From $480

At Magma Hotel, families will find a welcoming haven for bonding and relaxation. Nestled in scenic Kirkjubæjarklaustur, this family-friendly hotel features spacious accommodations that keep safety and comfort in mind. Kids can enjoy the beauty of surrounding nature while parents appreciate the peace of mind knowing their family is secure. With easy access to nearby attractions, this destination provides the perfect backdrop for unforgettable family memories without the stress.

boutique hotels in Iceland
9.4
127 reviews
From $255

Tindasel Lodge offers a reassuring atmosphere for families seeking quality time together in Hella. With safe accommodations and spacious rooms featuring private bathrooms, parents can relax while kids enjoy their own adventures. The lodge’s dedicated staff ensures a stress-free experience, allowing families to bond over exciting excursions and delightful buffet breakfasts. Create cherished memories as you explore nearby attractions while returning to a secure haven tailored for family enjoyment.

boutique hotels in Iceland
9.4
1233 reviews
From $301

Families will find a warm welcome at Siglo Hotel by Keahotels, offering a safe environment that encourages stress-free bonding. Enjoy spacious accommodations designed to cater to families, complete with convenient amenities. Kids will love engaging in nearby outdoor adventures like hiking and fishing, creating lasting memories together. After a day of exploration, relax in comfort knowing your family's needs are prioritized in this reassuring retreat.

boutique hotels in Iceland
9.5
1134 reviews
From $247

Basalt Hotel is a reassuring haven for families seeking stress-free bonding in Iðunnarstaðir. Enjoy accommodations designed with safety in mind, ensuring a secure environment for children to explore and thrive. The family-friendly atmosphere promotes relaxation while offering ample opportunities for adventure, with nearby hiking trails perfect for quality time together. Start your mornings with a delightful breakfast buffet, providing a nurturing space where families can create cherished memories without worry.

boutique hotels in Iceland
9.4
748 reviews
From $169

Create lasting memories with your loved ones at our family-friendly accommodations, where safety and enjoyment go hand in hand. Kids can thrive in the secure environment while participating in engaging activities at our dedicated kids' club. Our spacious serviced apartments provide the perfect backdrop for stress-free family bonding, featuring fully equipped kitchens and cozy living areas. Enjoy peace of mind while your children play, knowing you are in a welcoming and reassuring space designed for families.

Iceland Boutique Hotels with Parking

boutique hotels in Iceland
9.4
827 reviews
From $480

Magma Hotel ensures a seamless arrival experience with ample parking that prioritizes security and convenience. Located in Kirkjubæjarklaustur, this property offers hassle-free transit options, allowing you to explore the stunning South Iceland landscape without any parking worries. Designed for efficient travel, you'll appreciate the dedicated space to park and easily access your accommodations, making your getaway both relaxing and organized.

boutique hotels in Iceland
9.4
127 reviews
From $255

Arrive effortlessly at Tindasel Lodge with its convenient free private parking, ensuring your journey starts off smoothly. Designed for hassle-free transit, the property provides secure parking options for those traveling by car. Guests can enjoy peace of mind as they explore the beautiful surroundings of Hella, knowing their vehicle is safely tucked away. Experience seamless arrival and departure, allowing you to focus on creating unforgettable experiences during your stay.

boutique hotels in Iceland
9.4
1233 reviews
From $301

Experience seamless transit at Siglo Hotel by Keahotels with convenient parking options that prioritize security and efficiency. Positioned in picturesque Siglufjörður, this hotel ensures a hassle-free arrival so you can focus on enjoying your getaway. With dedicated facilities for guests traveling by car, you’ll enjoy peace of mind as you explore the stunning surroundings. Make every moment count without the fuss of parking logistics.

boutique hotels in Iceland
9.5
1134 reviews
From $247

Arrive with ease at Basalt Hotel, where efficient parking solutions simplify your travel experience. Enjoy hassle-free transit with free private parking available on-site, ensuring the security of your vehicle throughout your stay. Begin your adventures stress-free, knowing that seamless arrival and departure are prioritized here. With access to the surrounding attractions, you can focus on exploring the incredible beauty of Iðunnarstaðir, confident in the knowledge that your transportation needs are well taken care of.

boutique hotels in Iceland
9.4
748 reviews
From $169

Experience hassle-free arrival and departure with our complimentary private parking facilities, ensuring your vehicle is safe and secure during your stay. The efficient layout of our property allows for seamless transit, making it easy to explore local attractions without the stress of urban parking challenges. Enjoy the convenience of private check-in and check-out, allowing you to focus on your travel experience rather than logistics—your perfect getaway awaits.

Iceland Boutique Hotels with Entertainment

boutique hotels in Iceland
9.4
827 reviews
From $480

Experience the vibrant pulse of Icelandic nightlife at Magma Hotel, where the energy never fades! This 3-star gem is located just moments from breathtaking natural landmarks and offers a modern atmosphere perfect for socializing. With activities that connect you to local culture and stunning views of lava fields and glaciers, you'll find your evenings filled with adventure and camaraderie. After a day exploring, unwind in stylish rooms and share stories with fellow travelers in this lively setting.

boutique hotels in Iceland
9.4
127 reviews
From $255

Discover the vibrant energy of Hella at Tindasel Lodge, where the night comes alive with thrilling activities just around the corner! With a lively atmosphere and easy access to local nightlife, guests can immerse themselves in Icelandic culture after a day of adventure. Enjoy a cocktail on the terrace or engage with fellow travelers in the shared lounge, making unforgettable memories in this entertaining hub. Experience a stay that pulses with excitement and social interaction!

boutique hotels in Iceland
9.4
1233 reviews
From $301

Dive into the vibrant nightlife at Siglo Hotel by Keahotels, where energy and excitement await! Located in the heart of Siglufjörður, this 4-star gem boasts a lively bar and shared lounge, perfect for socializing after a day filled with adventure. Engage in thrilling activities like skiing and fishing during the day, then unwind in the hot tub or sauna as the evening unfolds. With its dynamic atmosphere and proximity to local entertainment, you're set for an unforgettable experience!

boutique hotels in Iceland
9.5
1134 reviews
From $247

Experience the vibrant nightlife at Basalt Hotel in Iðunnarstaðir, where excitement meets comfort! Dive into a world of thrilling activities, from lively evening events to unforgettable adventures surrounding the stunning landscapes of Iceland. With an energetic atmosphere and a bar that serves up refreshing cocktails, this hotel is your gateway to endless entertainment options. Revel in the hot spring bath or unwind in the hot tub after a day filled with exploration, ensuring every moment is packed with fun!

boutique hotels in Iceland
9.1
418 reviews
From $609

Dive into the vibrant nightlife at 360 Hotel & Thermal Baths, where exhilarating experiences await around every corner. Enjoy an electrifying atmosphere filled with social activities and lively gatherings, perfect for those seeking adventure. Savor delectable local cuisine at the on-site restaurant, followed by relaxing moments in the warm geothermal pool or sauna. With its central location in Selfoss, the hotel provides easy access to nearby entertainment hotspots, making it a premier destination for night owls and social butterflies alike.

Iceland Eco Friendly Boutique Hotels

boutique hotels in Iceland
9.4
827 reviews
From $480

Immerse yourself in the beauty of nature at Magma Hotel, where eco-friendly practices harmonize with the stunning Icelandic landscape. Committed to sustainability, this property embraces earth-conscious initiatives that allow guests to enjoy the breathtaking views responsibly. With modern Nordic design and a location amidst pristine scenery, you can relax knowing your stay contributes to preserving the environment while you explore volcanic landscapes and cascading waterfalls.

boutique hotels in Iceland
9.4
1233 reviews
From $301

At Siglo Hotel by Keahotels, sustainability meets comfort in a breathtaking natural setting. This eco-friendly property embraces earth-conscious practices that harmonize with the stunning landscape of Siglufjörður. Guests can indulge in luxurious accommodations while supporting responsible tourism. Engaging in local activities such as hiking and fishing allows you to connect deeper with nature—making each stay not only refreshing but also environmentally sound.

boutique hotels in Iceland
9.4
748 reviews
From $169

Immerse yourself in nature while enjoying eco-friendly practices at our boutique apartments. With a commitment to sustainability, we prioritize harmony with the environment through responsible operations. Relish in our thoughtfully designed spaces that encourage conservation while providing comfort and style. Experience the beauty of the surroundings, knowing that your stay contributes positively to the planet—for an unforgettable retreat that aligns with your values.

boutique hotels in Iceland
9.4
78 reviews
From $631

Torfhús Retreat embodies a commitment to sustainability, seamlessly blending luxury with earth-friendly practices. Nestled within nature, this immaculate retreat emphasizes harmony with the environment, ensuring your stay has a minimal ecological footprint. From using eco-conscious materials to promoting local biodiversity, you can immerse yourself in a breathtaking landscape while supporting responsible tourism. Choose this sanctuary for a rejuvenating escape that respects the planet and encourages conscious living.

boutique hotels in Iceland
9.0
608 reviews
From $511

Iceland Boutique Hotels with Private Beach

boutique hotels in Iceland
9.0
608 reviews
From $511

Iceland Boutique Hotels with Spa

boutique hotels in Iceland
9.2
106 reviews
From $1870

Experience unparalleled tranquility at the subterranean spa, where wellness takes center stage amidst Iceland's natural beauty. Pamper yourself with signature treatments designed to rejuvenate the senses, all while soaking in the geothermal waters of the Blue Lagoon. Each treatment offers a unique sensory experience, promoting relaxation and holistic well-being. Guests are encouraged to indulge in yoga sessions that enhance peace of mind, making it an idyllic sanctuary for mindful travelers seeking restorative rejuvenation.

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