The Best Luxury Hotels in Iceland

4 and 5-Star hotels in Iceland

Reykjavik, Iceland Reykjavik, Iceland

Trying to decide where to stay in luxury in Iceland? This is a popular destination, especially with visitors seeking out high-end luxury hotels, resorts, or B&B's for their next trip. Whether you're visiting as a family, couple, or group of friends, the city has a wealth of luxurious hotels to choose from, each offering its own unique blend of comfort, style, and sophistication. From 5-star and 4-star hotels with elegant spas and swimming pools, to romantic boutique hotels and family-friendly resorts, there is something for every visitor in Iceland looking for pampering and comforts. When searching for the best luxury hotels in Iceland, you should consider aspects such as guest ratings, quality of service, amenities, activities, price, and more to ensure that you book the best option for your trip. Some of the highest-rated luxurious stays in Iceland offer spacious suites, world-class bars, restaurants, swimming pools, and spas, providing guests with an unforgettable experience. So, whether you're looking for a romantic getaway, a family-friendly vacation, a relaxing retreat, or a once in a lifetime trip, Iceland has a range of luxurious hotels to choose from. We've also done much of the hard work for you, as we have analyzed and researched Iceland's luxury hotels across key criteria to find the absolute best. So, read on to find the best luxury hotels and resorts in Iceland to guarantee a memorable, relaxing, and extravagant vacation.

(Prices are listed in U.S. Dollars.)

Hotel Island

Reykjavik, Iceland
4-star Hotel with prices starting at $121 (before taxes) - See All Prices
Perfect for Your Extravagant trip to Iceland
  • Great Value: the price is lower than average for 4-star hotels.
  • Pool
  • Room service

Located at Armuli 9, Hotel Island has great rooms from $121 (before taxes). It offers a pool, room service, a restaurant, a fitness center, and a bar. It has a terrific 8.10 rating out of 10 from previous guests who have stayed here. Only a short distance from the city center, visitors will especially love mountain views, laundry services, city views, a hot tub, and a spa and wellness center at this relaxing hotel. That hot tub is terrific after a long day of sightseeing. The price of this hotel is less than average for luxury hotels, which makes it a great value.

Luxury Hotel Amenities
  • Pool
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Tour desk
  • Sauna
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Laundry service
  • Family rooms
  • Airport shuttle


CenterHotel Thingholt

Reykjavik, Iceland
4-star Hotel with prices starting at $163 (before taxes) - See All Prices
A Terrific High-End Hotel in Iceland
  • Great Value: the price is lower than average for 4-star hotels.
  • Family-Friendly
  • Room service

A great place to stay is CenterHotel Thingholt which has nice rooms starting at $163. Offering room service, a restaurant, a fitness center, a bar, and breakfast, it also has a great guest rating of 8.50 out of 10 from many previous guests. It's located at Thingholtsstraeti 3-5. This luxurious hotel is also nice because it offers laundry services, a free breakfast, a hot tub, a spa and wellness center, and a spa which discerning travelers will enjoy. Also, it's just a short drive from the city center. Having the delicious restaurant in the hotel is an added bonus. It's also less than the average price for luxury hotels, so it's a great value.

Luxury Hotel Amenities
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Tour desk
  • Sauna
  • Wedding services
  • Family-Friendly
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Breakfast included
  • Laundry service
  • Free breakfast
  • Airport shuttle


Hotel Borg by Keahotels

Reykjavik, Iceland
4-star Hotel with prices starting at $158 (before taxes) - See All Prices
A Hotel for Pampering
  • Great Value: the price is lower than average for 4-star hotels.
  • High Quality: guest ratings are higher than average.
  • Family-Friendly
  • Room service

We found Hotel Borg by Keahotels to be a great place to stay, and the price starts at $158. We loved that is has room service, a restaurant, a fitness center, a bar, and parking, and it also has a terrific guest rating of 8.70 out of 10 from previous guests. It's located at Posthusstraeti 11. You'll also find child care, laundry services, a hot tub, a spa and wellness center, and a spa which experienced travelers will love. And this comfortable hotel is just a quick trip from the center of town. We love the convenience of room service, and it's really nice here. It's a great value, too, because it's less than the average price for luxury hotels.

Luxury Hotel Amenities
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Tour desk
  • Sauna
  • Family-Friendly
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Parking
  • Babysitting / Child Care
  • Laundry service
  • Breakfast in the room


Diamond Suites Keflavik

Keflavik, Iceland
5-star Hotel with prices starting at $818 (before taxes) - See All Prices
Stay in Style in Iceland
  • High Quality: guest ratings are higher than average.
  • Room service
  • Water park

With terrific rooms from $818, Diamond Suites Keflavik, at Vatnsesvegi 12-14 provides room service, a water park, a restaurant, a fitness center, and a bar. Its terrific guest rating is 9.60 out of 10 from previous guests staying here. Travelers will really like this posh hotel which also offers a kid-friendly buffet, laundry services, golf, city views, and a hot tub. It's located just a short distance from the city center, too. Having a water park here is a terrific addition, too.

Luxury Hotel Amenities
  • Room service
  • Water park
  • Fitness center
  • Golf
  • Hot tub
  • Horse riding
  • Tour desk
  • Sauna
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Kid-friendly buffet
  • Laundry service
  • Family rooms
  • Airport shuttle
  • Breakfast in the room


Grand Hotel Reykjavik

Reykjavik, Iceland
4-star Hotel with prices starting at $105 (before taxes) - See All Prices
Experience Comfort in Iceland Here
  • Great Value: the price is lower than average for 4-star hotels.
  • Family-Friendly
  • Room service

Grand Hotel Reykjavik has a great guest rating of 8.40 out of 10, and offers room service, a restaurant, a fitness center, a bar, and mountain views. The great rooms here start at $105 before taxes and depending on the season. It can be found at Sigtún 28. Furthermore, it also offers laundry services, pet-friendly rooms, a hot tub, a spa and wellness center, and a spa, which is nice for visitors. Just a short drive from the city center, this amazing hotel is a terrific choice. We found the price of this hotel to be a great value because the price is less than average for luxury hotels.

Luxury Hotel Amenities
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Tour desk
  • Sauna
  • Wedding services
  • Family-Friendly
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Laundry service
  • Pets allowed
  • Family rooms
  • Breakfast in the room


Siglo Hotel

Siglufjordur, Iceland
4-star Hotel with prices starting at $249 (before taxes) - See All Prices
Plenty of Luxury Amenities Await
  • High Quality: guest ratings are higher than average.
  • Family-Friendly
  • Spa/Wellness
  • Room service

The great guest rating of Siglo Hotel is 9.50 out of 10. This place has skiing, room service, a restaurant, a bar, and hiking. Prices for the terrific rooms are from $249, and it's located at Snorragata 3. We also love the mountain views, laundry services, golf, city views, and a hot tub which are great for discerning travelers. And since it's just a quick trip from the center of the town, the location is great, too.

Luxury Hotel Amenities
  • Skiing
  • Room service
  • Golf
  • Hot tub
  • Spa
  • Horse riding
  • Fishing
  • Tour desk
  • Sauna
  • Family-Friendly
  • Spa/Wellness
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Hiking
  • Laundry service
  • Family rooms
  • Breakfast in the room


101 Hotel

Reykjavik, Iceland
4-star Hotel with prices starting at $231 (before taxes) - See All Prices
A Luxurious Stay in Iceland
  • Family-Friendly
  • Room service

A cool place is 101 Hotel because it has great rooms that start at $231. It has room service, a restaurant, a fitness center, a bar, and laundry services, it also earned a great guest rating of 8.40 out of 10 from people who have stayed here before. It's found at Hverfisgata 10. Only a short distance from the city center, experienced travelers will especially love city views, a hot tub, a spa and wellness center, a spa, and free parking at this relaxing hotel.

Luxury Hotel Amenities
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Tour desk
  • Sauna
  • Family-Friendly
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Laundry service
  • Breakfast in the room


Hilton Reykjavik Nordica

Reykjavik, Iceland
4-star Hotel with prices starting at $130 (before taxes) - See All Prices
Among the Most Luxurious Places to Stay in Iceland
  • Great Value: the price is lower than average for 4-star hotels.
  • Family-Friendly
  • Room service

Hilton Reykjavik Nordica offers skiing, room service, a restaurant, a fitness center, and a bar which we really like. The terrific rooms here start at $130 (before taxes). It's located at Sudurlandsbraut 2 and has earned a guest rating of 8.30/10. This luxurious hotel is also nice because it offers a kid-friendly buffet, mountain views, laundry services, city views, and a hot tub which travelers will enjoy. Also, it's just a short drive from the city center. It's a great value, too, because it's less than the average price for luxury hotels.

Luxury Hotel Amenities
  • Skiing
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Sauna
  • Wedding services
  • Hammam (Turkish bath)
  • Family-Friendly
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Kid-friendly buffet
  • Laundry service
  • Breakfast in the room


Hotel Keflavik by Keflavik Airport

Keflavik, Iceland
4-star Hotel with prices starting at $126 (before taxes) - See All Prices
Perfect for Your Extravagant trip to Iceland
  • Great Value: the price is lower than average for 4-star hotels.
  • Room service

Located at Vatnsnesvegur 12-14, Hotel Keflavik by Keflavik Airport has great rooms from $126 (before taxes). It offers skiing, room service, a restaurant, a fitness center, and a bar. It has a terrific 8.10 rating out of 10 from previous guests who have stayed here. You'll also find a kid-friendly buffet, breakfast, hiking, mountain views, and laundry services which visitors will love. And this comfortable hotel is just a quick trip from the center of town. It's a great value, as the price is less than the average for luxury hotels.

Luxury Hotel Amenities
  • Skiing
  • Room service
  • Fitness center
  • Golf
  • Hot tub
  • Tour desk
  • Sauna
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Kid-friendly buffet
  • Breakfast included
  • Hiking
  • Laundry service
  • Free breakfast
  • Pets allowed
  • Family rooms
  • Airport shuttle
  • Breakfast in the room


CenterHotel Midgardur

Reykjavik, Iceland
4-star Hotel with prices starting at $167 (before taxes) - See All Prices
A Terrific High-End Hotel in Iceland
  • Great Value: the price is lower than average for 4-star hotels.
  • High Quality: guest ratings are higher than average.
  • Room service

A great place to stay is CenterHotel Midgardur which has nice rooms starting at $167. Offering room service, a restaurant, a fitness center, a bar, and parking, it also has a great guest rating of 8.80 out of 10 from many previous guests. It's located at Laugavegur 120. Discerning travelers will really like this posh hotel which also offers breakfast, mountain views, laundry services, a free breakfast, and city views. It's located just a short distance from the city center, too. We found the price of this hotel to be a great value because the price is less than average for luxury hotels.

Luxury Hotel Amenities
  • Room service
  • Fitness center
  • Hot tub
  • Spa and wellness center
  • Spa
  • Sauna
More Great Amenities
  • Restaurant
  • Bar/Lounge
  • Parking
  • Breakfast included
  • Laundry service
  • Free breakfast
  • Breakfast in the room


For more terrific hotel ideas in Iceland, make sure you also see Best Family-Friendly Hotels in Iceland, Best Cheap Hotels in Iceland, Best Pet-Friendly Hotels in Iceland, Best Hotels for First Time Visitors in Iceland, Best Hotels for a Weekend Getaway in Iceland, Best Hotels for One Week in Iceland, Best Hotels for One Night in Iceland, Best Romantic Hotels for Couples in Iceland, Best Hotels for Scuba Diving in Iceland, Best Hotels for Skiing in Iceland, or Best Business Hotels in Iceland.


How much do luxury hotels cost in Iceland? How much are luxury hotel rooms in Iceland?

Iceland Average Luxury Hotel Price
$193

Travelers to Iceland will have a large number of terrific luxury accommodation options with a variety of great prices. The price of luxury hotels here can vary by amenities, dates, and the neighborhood. Based on thorough data from 26 luxury hotels, their average price is a very reasonable $193. If you're interested in more information about hotels here, see our guide to hotel prices in Iceland.

The average prices of our suggested luxury hotels by star rating:

  • 5-star hotels: $818
  • 4-star hotels: $168


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