The first thing you need to know about hotels in Iceland is that they are a luxury good themselves. There are not many hotels so they are really demanded and prices are much higher than in other European countries. That is why some visitants opt for hostels and many others rent a camper or motorhome. These kinds of vehicles give you freedom but are not the best choice if looking for a luxury trip. Even if you are on a tight budget, it is always worthy to have a look at this article and maybe treat yourself with a night in one of the top 5 luxury hotels in Iceland.

Luxury Hotels In Iceland

Alda Hotel

If Budget is not a problem and you are looking for a modern hotel in the heart of the capital, that’s your place! Alda hotel is right in Laugavegur just 12 minutes walking from the beach and 5 minutes from Hallgrímskirkja church. You will enjoy the spacious and well designated rooms – the Junior suite is about 60m². You will definitely find cheaper places in Reykjavik, as it has the biggest hotel concentration in the country, but bear in mind this is a boutique hotel and it is worth the price!

Siglo Hotel

This stunning hotel is located in the north of the island, in a small village called Siglufjörður. It is the perfect place for couples, with hot tub in the rooms, sauna and outdoor pool! This area is ideal to practice ski during winter time, even the very hotel sells forfaits. During summer, golf is a nice sport option. The decoration and atmosphere is unbeatable, and prices are much lower than a 4 start hotel in the capital. Definitely a must go if you want to treat yourself! Tip: ask for a room with sea views, it will leave you speechless.

Luxury Hotels In Iceland

UMI Hotel

UMI must be one of the quietest hotels in the country. Located at the foot of the Eyjafjallajökull volcano, it is not a beautiful hotel from outside, as it is basically a ground floor concrete building. However, when you get inside you see why it is on the top 5 luxury hotels in Iceland. With a fine Nordic decoration together with helpful and professional staff, this place is the best to enjoy the Northern lights spectacle as there are no other light sources in kilometres.

The ring Road is only 2km away, so this is a great hotel if planning a route through South Iceland.

Diamond Suites

This accommodation is more than recommendable if you want to start or finish your trip surrounded by luxury. This hotel has a really particular and extravagant decoration and it is really valued by its customers. As it is located in Keflavik area, the location is suitable if you are looking for a short ride to and from the airport –and this hotel offers free shuttle! They also offer free car parking, really convenient if you decide to rent a car and tub in all the rooms. Definitely the best room is the one on the top floor, with a lovely living room. You will love to have a bath in its outdoor hot tub while watching the Atlantic Ocean and Reykjanes peninsula.

Luxury Hotels In Iceland

Top 5 Luxury Hotels In Iceland – The High End Experience

Hotel Borg by Keahotels

This is probably the most expensive hotel in the island so it had to be of course on the top 5 five luxury hotels in Iceland. The Hotel Borg is located in the heart of Reykjavik, next to Asuturvollur square. The hotel style is Art Déco and the rooms have Philippe Starck’s accessories. The whole hotel has wooden floor and it features a fitness center, hot tub, spam sauna and steam bath. The staff is well known to go above and beyond the customer’s needs, and that is also essential in a luxury hotel, isn’t it?

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