Unique Places to Stay in Iceland: ION Adventure Hotel
Europe

Iceland’s 16 Most Unique Hotels: A Journey Through Enchantment

Iceland, the Land of Fire and Ice, has long captivated the imagination of travelers with its awe-inspiring landscapes and otherworldly beauty. From shimmering glaciers and ancient lava fields to erupting geysers and ethereal waterfalls, Iceland is a land of contrasts and surprises. With such an alluring landscape, it is no wonder that the country is home to some of the most unique hotels in the world.

In this in-depth article, we journey through the enchanting realm of Iceland’s most distinctive accommodations, where you can experience the magic of the island’s geological wonders, immerse yourself in its rich culture, and indulge in the finest Nordic cuisine. Let us embark on a journey to discover Iceland’s most unique hotels.

* Header image: ION Adventure Hotel

Disclaimer: Stay Distinct works with affiliate partners. If you make a purchase or booking through our links we may earn a commission (at no extra cost to you).

1. ION Adventure Hotel – Nesjavellir

Unique Hotels in Iceland: ION Adventure Hotel
Image courtesy ION Adventure Hotel

Nestled amid the raw, volcanic terrain of Nesjavellir, the ION Adventure Hotel is a stunning architectural masterpiece that seamlessly blends with its rugged surroundings. Designed with sustainability in mind, the hotel’s award-winning design features floor-to-ceiling windows, a moss-covered rooftop, and geothermal energy to provide a luxurious yet eco-friendly experience.

The ION Adventure Hotel’s 45 chic, minimalist rooms offer breathtaking views of the rugged landscape, while the Northern Lights Bar provides the perfect vantage point to witness the mesmerizing Aurora Borealis. Guests can enjoy traditional Icelandic cuisine at the Silfra Restaurant, where locally sourced ingredients take center stage. After a day of exploring the great outdoors, the Lava Spa offers rejuvenating treatments, a heated outdoor pool, and a sauna for the ultimate relaxation experience.

Read More


2. The Bubble – The 5 Million Star Hotel – Reykholt

The Bubble, also known as The 5 Million Star Hotel, offers a truly unique and unforgettable experience. Set within a secret forest in Reykholt, guests stay in fully transparent bubble tents, providing an unparalleled view of the night sky, including the enchanting Northern Lights.

Each Bubble is equipped with a comfortable double bed, cozy blankets, and heating, ensuring a comfortable stay in any season. While there are no in-bubble bathroom facilities, a shared service house offers modern amenities, including toilets, showers, and a self-catering kitchen. In this magical setting, you can enjoy a romantic escape, a solo adventure, or a family bonding experience like no other.

With its prime location in the heart of the Golden Circle, guests can easily explore Iceland’s most iconic natural wonders, including Thingvellir National Park, Geysir, and Gullfoss waterfall.


3. Hotel Ranga – Hella

Located in the picturesque region of South Iceland, Hotel Ranga offers a luxurious and immersive experience that caters to both adventure seekers and those looking for a tranquil escape. This four-star hotel is renowned for its exceptional views of the Northern Lights, its gourmet restaurant, and its themed suites, which transport guests to the far reaches of the world.

The hotel’s 51 cozy rooms and suites are designed with comfort and elegance in mind, with each of the seven themed suites offering a unique cultural experience, from an African safari to a journey into the heart of Antarctica. The Ranga Restaurant serves exquisite Nordic cuisine, with an emphasis on fresh, local ingredients. Guests can also enjoy a variety of activities, including horseback riding, snowmobiling, and guided tours of the area’s natural wonders.


4. Fosshotel Glacier Lagoon – Hnappavellir

Fosshotel Glacier Lagoon, perched on the edge of the Vatnajokull National Park, is a testament to the extraordinary beauty of Iceland’s natural wonders. Its minimalist design and glass façade allow guests to fully appreciate the staggering landscapes that surround the hotel, including the famed Jokulsarlon Glacier Lagoon and the Diamond Beach.

The hotel’s 104 modern rooms and suites are designed to provide comfort and tranquility, with floor-to-ceiling windows showcasing the awe-inspiring views. The on-site restaurant, Fjor, offers a tantalizing menu of Icelandic and international dishes, crafted from locally sourced ingredients. An extensive list of activities is available for guests, ranging from guided glacier hikes and ice cave tours to Zodiac boat trips on the Jokulsarlon Lagoon.


5. Deplar Farm – Troll Peninsula

Deplar Farm, a luxurious and secluded retreat in the remote Troll Peninsula, offers a haven for adventure enthusiasts and nature lovers alike. Once a working sheep farm, this exquisite boutique hotel has been meticulously transformed into an opulent sanctuary, complete with an indoor-outdoor geothermal pool, a world-class spa, and a gourmet restaurant.

Each of the 13 individually designed suites exudes rustic elegance, with exposed wooden beams, sumptuous linens, and plush furnishings. Guests can enjoy farm-to-table dining at the on-site restaurant, which emphasizes local ingredients and traditional Icelandic cooking techniques. Activities on offer include heli-skiing, horseback riding, whale watching, and guided hiking expeditions, making Deplar Farm an ideal destination for those seeking both relaxation and adventure.


6. Hotel Husafell – West Iceland

Nestled in the heart of West Iceland, Hotel Husafell is a luxurious, eco-friendly haven that seamlessly blends modern design with the rugged beauty of its surroundings. Surrounded by glaciers, lava fields, and dense forests, this four-star hotel is the perfect base from which to explore the region’s natural wonders, including the Langjokull Glacier and the lava tube cave system of Víðgelmir.

The hotel’s 48 contemporary rooms and suites are designed with comfort and sustainability in mind, featuring geothermal heating, natural materials, and original artworks by local artist Pall Gudmundsson. The on-site restaurant offers a sumptuous menu of Icelandic and international dishes, made from locally sourced ingredients. Guests can also enjoy the hotel’s geothermal pools, spa, and a wide array of outdoor activities, such as hiking, golfing, and snowmobiling.


7. Siglo Hotel – Siglufjordur

Siglo Hotel, a charming and elegant property in the picturesque fishing village of Siglufjordur, offers guests an idyllic retreat in the heart of North Iceland. With its stunning waterfront location and unobstructed views of the surrounding mountains and fjord, this boutique hotel exudes a sense of tranquility and timeless beauty.

The hotel’s 68 rooms and suites, designed in a contemporary Scandinavian style, feature floor-to-ceiling windows that showcase the breathtaking landscape. Guests can dine at the on-site Sunna Restaurant, which offers a delightful menu of local and international dishes, or unwind in the serene spa facilities, which include a hot tub, sauna, and massage treatments. Outdoor enthusiasts can indulge in a variety of activities, such as skiing, hiking, and boat tours.


8. Silica Hotel – Blue Lagoon

Nestled within the iconic Blue Lagoon geothermal spa, the Silica Hotel offers an unparalleled wellness experience in a stunning, otherworldly setting. This luxurious retreat boasts its own private lagoon, where guests can rejuvenate their body and mind amidst the mineral-rich waters and ethereal steam.

The hotel’s 35 spacious and minimalist rooms feature floor-to-ceiling windows, offering captivating views of the surrounding lava fields. A complimentary breakfast is served daily, and guests can enjoy exclusive access to the Blue Lagoon’s spa facilities, which include saunas, steam rooms, and a variety of rejuvenating treatments. The nearby Lava Restaurant and Moss Restaurant offer exceptional dining experiences, with menus inspired by Iceland’s unique culinary heritage.


9. Hotel Glymur – Hvalfjordur

Overlooking the serene Hvalfjordur fjord, Hotel Glymur is a boutique hideaway that combines comfort, style, and breathtaking natural beauty. This intimate property, comprised of a main hotel building and charming villas, offers a peaceful and luxurious retreat just a short drive from Reykjavik.

The hotel’s 22 rooms and suites are thoughtfully designed with comfort in mind, featuring private balconies, cozy furnishings, and panoramic views of the surrounding landscape. Guests can enjoy gourmet Icelandic cuisine at the on-site restaurant or unwind in the outdoor hot tubs, sauna, and geothermal pool. Activities in the area include hiking, fishing, and exploring the nearby Glymur waterfall, the second-highest in Iceland.


10. Kvosin Downtown Hotel – Reykjavik

Located in the heart of Reykjavik, Kvosin Downtown Hotel offers a stylish and contemporary urban retreat. Housed in a historic building that dates back to 1900, this boutique hotel artfully combines modern design with a nod to Iceland’s rich cultural heritage.

Kvosin’s 24 spacious and individually designed rooms and suites boast high ceilings, original artwork, and custom-made furniture. Guests can enjoy a delicious breakfast at the hotel’s restaurant, Bergsson Mathus, or relax with a cocktail at the cozy Klaustur Bar. With its central location, guests can easily explore the vibrant city of Reykjavik, including landmarks such as the iconic Hallgrimskirkja and the Harpa Concert Hall.


11. Hotel Flatey – Flatey Island

Situated on the idyllic Flatey Island in Breidafjordur Bay, Hotel Flatey offers a unique and tranquil escape in a remote and picturesque setting. This charming hotel, housed in a lovingly restored historic building, provides an authentic and intimate Icelandic experience.

The hotel’s 11 simple yet comfortable rooms exude a rustic charm, while the on-site restaurant serves delectable, locally sourced cuisine in a warm and welcoming atmosphere. With no cars or urban distractions, guests can immerse themselves in the island’s unspoiled natural beauty and enjoy leisurely walks, birdwatching, or simply relaxing in the peaceful surroundings. Boat trips to explore the nearby islands and their abundant wildlife are also available.


12. Magma Hotel – Kirkjubæjarklaustur

Magma Hotel, located near the picturesque village of Kirkjubæjarklaustur, offers a serene and luxurious retreat amidst the rugged beauty of southern Iceland. Set against a backdrop of basalt columns, lava fields, and glacial rivers, this boutique hotel is the perfect base for exploring the region’s natural wonders, including the famous Fjaðrárgljúfur canyon and Skaftafell National Park.

The hotel’s 10 stylish and contemporary rooms feature floor-to-ceiling windows, private balconies, and luxurious amenities, ensuring a comfortable and unforgettable stay. Guests can enjoy a delicious breakfast, with an emphasis on local ingredients, in the cozy and inviting dining area. A variety of outdoor activities, such as hiking, glacier tours, and horseback riding, are available for guests to experience the captivating landscapes of southern Iceland.


13. Hotel Djupavik – Westfjords

Located in the remote Westfjords, Hotel Djupavik is a historic and enchanting property that offers a truly unique Icelandic experience. Once a thriving herring factory in the early 20th century, the hotel has been carefully restored, preserving its industrial charm and showcasing local artwork and memorabilia.

The hotel’s 19 simple yet comfortable rooms provide guests with an authentic and intimate experience. The on-site restaurant, housed in the former herring factory, serves a delicious menu of traditional Icelandic dishes, prepared with locally sourced ingredients. Surrounded by the pristine beauty of the Westfjords, guests can enjoy hiking, birdwatching, and exploring the nearby abandoned village of Djupavik.


14. ION City Hotel – Reykjavik

Situated in the vibrant heart of Reykjavik, the ION City Hotel offers a chic and sophisticated urban retreat. Designed by award-winning Icelandic architect, Gudmundur Jonsson, this boutique hotel combines contemporary design with elements inspired by the island’s natural beauty.

The hotel’s 18 rooms and suites, each with unique artwork and bespoke furnishings, provide a luxurious and stylish stay for guests. The on-site restaurant, Sumac, offers a delectable fusion of Icelandic and Mediterranean cuisine, while the stylish bar and lounge area provide the perfect space to unwind after a day of exploration. With its prime location on Laugavegur, Reykjavik’s main shopping street, guests can easily explore the city’s numerous attractions, including museums, galleries, and restaurants.


15. 101 Hotel – Reykjavik

Located in the heart of Reykjavik’s cultural and historic district, the 101 Hotel is a luxurious and stylish property that offers an intimate and personalized experience. Housed in a beautifully restored historic building, this boutique hotel artfully combines contemporary design with classic elements.

The hotel’s 38 elegantly appointed rooms and suites feature modern amenities, sleek furnishings, and original artwork by Icelandic artists. Guests can enjoy fine dining at the on-site restaurant, which serves a sumptuous menu of international and Icelandic cuisine, or relax in the hotel’s spa facilities, including a steam bath, hot tub, and fitness center. With its central location, the 101 Hotel provides easy access to Reykjavik’s vibrant cultural scene, including galleries, museums, and iconic landmarks.


16. The Tower Suites Reykjavik

Unique Hotels in Iceland: Tower Suites Reykjavik
Image courtesy Tower Suites Reykjavik

Perched high above the city skyline, the Tower Suites Reykjavik offers a unique urban retreat in Iceland’s vibrant capital. Each of the eight suites features floor-to-ceiling windows, providing guests with panoramic views of Reykjavik’s colorful rooftops, the majestic mountains, and the sparkling waters of the bay. The hotel’s personalized concierge service ensures a seamless experience, whether you’re exploring the city’s bustling streets or embarking on an adventure in the nearby countryside.

Read More


Iceland’s unique hotels offer a diverse range of experiences, catering to every taste and desire. Whether you seek adventure, relaxation, or a chance to immerse yourself in the country’s rich culture, these extraordinary accommodations provide the perfect setting for an unforgettable journey through the enchanting landscapes of the Land of Fire and Ice.

From glass-walled eco-lodges and luxurious farm retreats to transparent bubble tents beneath the Northern Lights, these distinctive hotels invite you to experience the magic of Iceland and create memories that will last a lifetime. So pack your bags, and let the spellbinding beauty of this extraordinary island captivate your heart and soul.