Best Hotels in Iceland: Reykjavik, Northern Lights & Glacier Lodges (2026)

Iceland’s Hotel Landscape

Iceland has developed one of the most distinctive hotel markets in the world — the extraordinary natural context (the extraordinary volcanic landscapes, the extraordinary geothermal activity, the extraordinary Northern Lights (Aurora Borealis), and the extraordinary midnight sun) creates the most unusual hotel design challenges and opportunities in the world. The finest Iceland hotels engage directly with this landscape — the extraordinary ION Adventure Hotel (the hot tub directly under the aurora), the extraordinary Hotel Rangá (the telescopes for aurora viewing in the garden), and the extraordinary Fosshotel Glacier Lagoon (the floor-to-ceiling glacier view from the beds).

The two season choices:

Northern Lights (September–March): The extraordinary aurora, the extraordinary dark nights, the extraordinary snow landscapes
Midnight Sun (June–August): The extraordinary 24-hour daylight, the extraordinary hiking, the extraordinary puffin watching, the extraordinary accessible highland roads (F-roads, only open June–September)

Reykjavik — The Capital

Hotel Borg — Art Deco Original

Price: $200–800/night | Location: Pósthússtræti 11, Reykjavik

Hotel Borg (1930 — the most elegant building in Reykjavik, the extraordinary Art Deco architecture on Austurvöllur Square — the most important public square in Iceland, directly adjacent to the extraordinary Alþingi (the Icelandic Parliament — the oldest parliament in the world, established 930 CE)) is the most historically significant hotel in Iceland — the extraordinary 1930 Art Deco interior (the most beautiful hotel interior in Reykjavik — the extraordinary black-and-white marble, the extraordinary period furniture), the excellent Restaurant Borg (the finest hotel restaurant in Reykjavik), and the extraordinary Austurvöllur Square position.

Canopy by Hilton Reykjavik — Contemporary Design

Price: $150–500/night | Location: Smiðjustígur 4, Reykjavik

Canopy Reykjavik (the Hilton lifestyle brand’s Icelandic outpost — the most design-forward contemporary hotel in Reykjavik) is the finest value design hotel in Iceland — the extraordinary neighbourhood position (the extraordinary Laugavegur shopping street, the finest street in Reykjavik), the extraordinary design (the most thoughtfully designed mid-range hotel in Iceland — the extraordinary Nordic aesthetic, the extraordinary Icelandic materials), and the excellent ADO restaurant (the finest hotel restaurant for value in central Reykjavik).

Northern Lights Hotels — Beyond Reykjavik

ION Adventure Hotel — Geothermal Lagoon

Price: $350–1,200/night | Location: Nesjavellir, 40km from Reykjavik

ION Adventure Hotel (the most celebrated eco-design hotel in Iceland — the extraordinary position on the extraordinary geothermal-active Thingvallavatn Lake, directly adjacent to the extraordinary Nesjavellir geothermal power plant) is the finest Northern Lights experience in Iceland — the extraordinary geothermal hot tub (the most extraordinary hotel hot tub in the world — the extraordinary outdoor geothermal pool facing the extraordinary Northern Lights on clear nights, the most extraordinary single hotel amenity in Iceland), the extraordinary Northern Lights bar (the extraordinary floor-to-ceiling glass wall overlooking the extraordinary volcanic landscape — the finest aurora viewing position of any hotel building), and the extraordinary adventure program (the extraordinary glacier hikes, the extraordinary snowshoeing, and the extraordinary snorkeling at the extraordinary Silfra fissure — the most extraordinary fresh water snorkeling in the world — are all within 30 minutes of the hotel).

Hotel Rangá — South Iceland Aurora Base

Price: $300–900/night | Location: South Iceland, near Hekla volcano

Hotel Rangá (the most celebrated aurora-chasing hotel in Iceland — the extraordinary South Iceland position, the extraordinary Northern Lights wake-up service (the extraordinary hotel staff alert guests when the aurora appears, the most distinctive hotel service in Iceland — guests are called at any hour when the lights are active), and the extraordinary Hekla volcano view (the most active volcano in Iceland, visible from the hotel grounds, the most extraordinary hotel view in Iceland) is the finest Northern Lights hunting base in Iceland — the extraordinary dark sky conditions (the extraordinary absence of light pollution in the South Iceland interior), the extraordinary Northern Lights hot tubs (each of the extraordinary river-facing hot tubs provides the most extraordinary aurora backdrop), and the excellent Aurora Restaurant (the finest hotel restaurant in South Iceland).

Glacier and Countryside Hotels

Fosshotel Glacier Lagoon — Jökulsárlón View

Price: $250–700/night | Location: Adjacent to Jökulsárlón Glacier Lagoon

Fosshotel Glacier Lagoon (the most dramatically positioned hotel in Iceland — the hotel is built within 500m of the extraordinary Jökulsárlón Glacier Lagoon, the most extraordinary natural attraction in Iceland: the extraordinary floating blue icebergs calving from the extraordinary Breiðamerkurjökull glacier, the most beautiful blue ice colors in the world, the extraordinary Diamond Beach (the extraordinary black sand beach where the melting icebergs deposit the most extraordinary translucent ice sculptures at the sea’s edge)) is the finest remote Iceland hotel:

The extraordinary floor-to-ceiling glacier views (every room oriented to face the extraordinary Vatnajökull ice cap — the largest glacier in Europe, covering 8% of Iceland’s land area), the excellent Jökull restaurant, and the extraordinary glacier walk access (the extraordinary guided glacier walks on the Breiðamerkurjökull directly from the hotel, the most accessible glacier hike in Iceland).

Frost & Fire Hotel — South Iceland Hot Springs

Price: $200–600/night | Location: Hveragerði, South Iceland

Frost & Fire Hotel (the extraordinary outdoor hot spring pools fed directly from the extraordinary natural geothermal springs of the Ölfusá River valley — the most extraordinary hotel hot spring setting in Iceland) is the finest spa hotel in South Iceland — the extraordinary river-edge hot spring pools (the natural volcanic water pools at the river’s edge, the most atmospheric hot spring experience in Iceland — more personal than the extraordinary Blue Lagoon, more authentic than the extraordinary hotel pools), the excellent restaurant, and the extraordinary South Iceland hiking access (the extraordinary Reykjadalur Hot Spring River — the extraordinary 3km hike to the extraordinary natural swimming river, the most beautiful geothermal river in Iceland — 30 minutes from the hotel).

The Blue Lagoon — Essential Iceland

The extraordinary Blue Lagoon (the Svartsengi geothermal power plant’s cooling water, the extraordinary milky-blue silica-rich water, the most visited attraction in Iceland — 1+ million visitors annually) is the most distinctive natural spa in the world:

Hotel options:

Retreat Hotel at Blue Lagoon (the finest in-lagoon hotel, the extraordinary private lagoon access for all guests, from $800/night)
Silica Hotel (the more affordable Blue Lagoon hotel, the extraordinary lagoon access included, from $400/night)
Blue Lagoon Day Visit (without accommodation, from $100 — advance booking essential, sells out weeks ahead)

FAQ

What is the best month to see the Northern Lights in Iceland? September–October and February–March provide the finest Northern Lights conditions — the extraordinary dark nights (the extraordinary autumn and winter darkness, the most clear nights of the year), the extraordinary KP index conditions (the extraordinary geomagnetic activity, the Kp Index — the measure of aurora intensity — must be 3+ for naked-eye viewing), and the extraordinary weather (the extraordinary Iceland autumn (September–October) is significantly less stormy than deep winter). January has the most darkness but also the most overcast conditions. The aurora cannot be guaranteed on any given night — a 4+ night stay significantly increases the probability.

Is Iceland safe for solo travel? Iceland is the safest country in the world for solo travel — the extraordinary low crime rate (the most peaceful country in the Global Peace Index consistently since 2008), the extraordinary solo travel infrastructure (the extraordinary Ring Road (Route 1) which circles the entire island, the extraordinary self-catering guesthouses, and the extraordinary accessibility of all major attractions to solo visitors) make Iceland the most recommended solo destination globally.

Is Iceland expensive? Yes — Iceland is consistently one of the 5 most expensive countries in the world for visitors. The extraordinary cost of accommodation ($150–300/night for mid-range), food (extraordinary restaurant mains $25–50 in Reykjavik), and car rental ($80–150/day) make Iceland significantly more expensive than most European destinations. The extraordinary natural experiences (the extraordinary Golden Circle — the extraordinary Þingvellir, Geysir, and Gullfoss — are all free) offset the extraordinary cost somewhat; the extraordinary self-catering approach (the extraordinary N1 service stations — the extraordinary Icelandic gas station café culture, the most extraordinary fast food concept in Scandinavia) reduces food costs significantly.