The Retreat at Blue Lagoon Iceland
Grindavík, Reykjanes
Sixty-one rooms with a private lagoon for its guests, a spa and the restaurant Moss. Two MICHELIN Keys, the highest distinction in Iceland.
The Blue Lagoon.
On the Reykjanes peninsula, near Keflavík airport, set in moss-covered lava.
Silica Hotel at Blue Lagoon Iceland
Grindavík, Reykjanes
Thirty-five rooms with private access to the Silica Lagoon, within the Blue Lagoon’s grounds.
Reykjavík.
Design hotels in the capital, for a first or last night and for its restaurants.
The Reykjavik EDITION
Old Harbour, Reykjavík
Two hundred and fifty-three rooms and suites by the harbour, designed by Roman and Williams, with a penthouse, a spa and the restaurant TIDES. One MICHELIN Key.
101 Hotel
Downtown Reykjavík
Thirty-eight black-and-white rooms in a modernist building in the centre, with a spa, steam rooms and its own gallery.
Sand Hotel
Laugavegur, Reykjavík
A seventy-nine-room hotel on the capital’s main shopping street.
The south and the Golden Circle.
Waterfalls, glaciers and dark skies within reach of Reykjavík.
Hotel Rangá
Hella
A log-built lodge of fifty-one rooms with suites themed on the continents and its own observatory for the northern lights. One MICHELIN Key.
UMI Hotel
Hvolsvöllur
A low, modernist hotel of twenty-eight rooms facing Eyjafjallajökull and the south coast, with a wellness area. One MICHELIN Key.
Torfhús Retreat
Near Selfoss, the Golden Circle
Turf-roofed cabins, each with its own heated basalt-stone hot pool for the northern lights.
ION Adventure Hotel
Nesjavellir, by Þingvellir National Park
Forty-three rooms on the edge of the national park, with a spa, an outdoor pool and a hot-spring bath.
The north, the west and the highlands.
Remote lodges where the country is at its emptiest.
Eleven Deplar Farm
Fljót, the Troll Peninsula
A converted sheep farm of thirteen rooms with a geothermal pool, a spa and two helipads, offering heli-skiing from March to June and exclusive use of the whole lodge.
Hotel Búðir
Snæfellsnes peninsula
Forty-nine rooms among lava fields and glaciers on the peninsula’s south coast, with a modernist master suite.
Highland Base Kerlingarfjöll
The central highlands
A remote highland lodge of sixty-four rooms among the Kerlingarfjöll mountains, with a restaurant and bar. One MICHELIN Key.
Boutique luxury, not grand resorts.
Iceland has no mega-resorts. Its best hotels are small, many with fewer than sixty rooms, and they are chosen for where they stand: on a lava field beside a lagoon, beneath a glacier, by the sea or deep in the highlands.
Most journeys combine a night or two in Reykjavík with lodges in the countryside, and many add The Retreat at the Blue Lagoon at the start or the end, since it lies near Keflavík airport.
For the northern lights.
From September to March, the best hotels for the aurora are those away from city lights. Hotel Rangá, in the south, has its own observatory, and Torfhús Retreat, near the Golden Circle, gives each turf-roofed cabin its own hot pool for watching the sky.
Lagoons and private hot pools.
Geothermal water is Iceland’s great luxury, and several hotels are built around it. The Retreat has a lagoon for its guests alone, and the Silica Hotel has private access to its own. At Torfhús, each cabin has a heated basalt-stone pool; ION Adventure has a hot-spring bath on the edge of Þingvellir; and Eleven Deplar Farm has a geothermal pool and a Viking sauna ritual.
Near the airport, for the first and last night.
The Blue Lagoon lies on the Reykjanes peninsula, close to Keflavík airport, so The Retreat and the Silica Hotel make a natural first night after a long flight or a last night before the journey home, with the lagoon to begin or end the trip.
For the north and heli-skiing.
The north is reached by a short private flight to Akureyri. Eleven Deplar Farm, a converted sheep farm in a remote valley of the Troll Peninsula, has two helipads and runs heli-skiing from March to June.
Exclusive use, and room for a party.
Eleven Deplar Farm, in a remote valley in the north, can be booked by the room or for exclusive use, and its own heli-skiing is offered for a full or half buy-out. The country’s small lodges suit parties well: an advisor can reserve all or most of one for a family celebration, a team or a group travelling with a principal.
Where to stay in Iceland.
Reykjavík is the base for culture, dining and day trips. The south, along the Golden Circle and the south coast, holds the waterfalls, black-sand beaches and the glaciers. The Reykjanes peninsula is the Blue Lagoon. The north is whales, the Troll Peninsula and Lake Mývatn. The highlands, reached in summer, are Iceland at its emptiest.
Distances are long and winter roads demanding, so an advisor often joins regions by helicopter or a private super-jeep rather than self-drive.
Recognised by Michelin.
The MICHELIN Guide’s 2026 selection lists 28 hotels in Iceland and gives Keys, its distinction for exceptional stays, to five of them: two Keys to The Retreat at Blue Lagoon Iceland, and one each to The Reykjavik EDITION, Hotel Rangá, UMI Hotel and Highland Base Kerlingarfjöll.
What booking through an advisor adds.
Advisors’ relationships with hotels bring benefits such as an upgrade on arrival, a hotel credit and early check-in, and suites that never reach public booking sites. Your advisor tells you which apply to your stay, and arranges the helicopters, guides and transfers between the lodges.
Your questions.
What is the most luxurious hotel in Iceland?
The Retreat at Blue Lagoon Iceland, with its own private lagoon, is the only hotel in Iceland with two MICHELIN Keys. For exclusive use of a whole lodge, Eleven Deplar Farm in the north.
Where is the best place to stay to see the northern lights?
Away from city lights: Hotel Rangá in the south has its own observatory, and Torfhús Retreat gives every cabin a private hot pool to watch from.
Is Reykjavík or the countryside better to stay in?
Both: a night or two in Reykjavík for its restaurants, and lodges in the countryside for the landscapes and the aurora.
Which Iceland hotels have private hot pools?
At Torfhús Retreat every cabin has its own heated basalt-stone pool, and The Retreat at Blue Lagoon has a lagoon for its guests alone.
Can we take over a whole lodge in Iceland?
Yes. Eleven Deplar Farm offers exclusive use, and the country’s small lodges suit a party well. An advisor finds out what is free on your dates and on what terms.
Is it better to book through an advisor or directly?
The rate is usually the same, and an advisor’s relationships with the hotels can add benefits such as upgrades and credits, along with the helicopters and guides between them.
Tell us how you would like to stay in Iceland.
Recommendations chosen for you, an itinerary crafted around them, and every booking managed by an independent Ultra Advisor who works with local specialists in Iceland.
Free to ask, no obligation.