I think first time visitors to Iceland feel overwhelmed when planning their trip. I know I did. First the city names are hard to pronounce and a lot sound the same, plus its a big country and you need to know where you want to go before you know where you want to stay.

If this is your first trip to Iceland, I recommend that you pick one or two hotels/home rentals and visiti attractions that are near those spots, and then on your next visit you can plan an more extensive itinerary.

Iceland has some amazing hotels, and in lots of different price points, so you can pick and choose what matters most to you.  It might be an inexpensive stay because you are just sleeping there, or it could be that you want to be immersed in nature and spend some time at your hotel.  You can find all of these options in Iceland.

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1. Hotel Reykjavík Saga – Sophisticated Comfort in the Heart of the Capital

If you want to spend some time in the capital city of Reykjavik, this is a great hotel to try out. This might the most luxurious hotel I have ever stayed in in Iceland, and if you want a high end experience this is a great place to stay.

Be aware, that there is no parking at the hotel, so you will have to make do with street metered parking, which is sometimes hard to find.

The rooms are large and look out over downtown, plus you can walk to most tourist attractions from the hotel.

 

Facts about Hotel Reykjavík Saga

• Location: Centrally located in Reykjavík’s historic downtown, steps from Hallgrímskirkja and Harpa Concert Hall.

• Style: Modern Nordic design meets quiet luxury; elegant interiors with warm wood and minimalist décor.

• Highlights:

  • Rooftop views of the city and harbor.

  • Exceptional breakfast and on-site restaurant.

  • Ideal for travelers who want culture, shopping, and nightlife within walking distance.

• Perfect for: First-time visitors or those wanting a stylish city base before exploring the countryside.

 

2. The Artist’s Lodges at Hvammsvík Hot Springs – Creative Seclusion by the Sea

If you want to really enjoy how beautiful Iceland can be, this is where you want to stay, at least for one night.  There are 8 artist lodges overlooking a lake in the West of Iceland.  Each lodge is decorated to feature a famous Icelandic artist and has its own unique decorating touch.

These one bedroom lodges feature floor to ceiling glass walls facing the lake, so you feel totally immersed in the nature around you.

Facts About The Artists Lodges at Hvammsvik

• Location: Around 45 minutes from Reykjavík, in the peaceful fjords of Hvalfjörður.

• Style: Artist-designed lodges blending Icelandic simplicity with stunning nature views.

• Highlights:

  • Close to Hvammsvík Hot Springs, one of Iceland’s most beautiful and lesser-known geothermal spas.

  • Cozy, artistic interiors with panoramic windows over the water.

• Perfect for: Travelers seeking creative solitude, relaxation, and a connection with nature.

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3. Hotel Húsafell – Gateway to Glaciers and Lava Fields

Hotel Hussafel is a lodge type hotel surrounded by nature on all sides. The rooms are large and comfortable and they offer free breakfast with your stay.

The restaraunt at Hotel Hussafel is highly regarded and serves really unique takes on classic Icelandic favorites. For example, one dessert on the menu featured skyr (a local type of yogurt) that was steeped with wool to give it a funky sheep flavor. While it may not be up your alley you won’t be bored, plus their cheesburger is delicious, so you will find something you like.

Facts about Hotel Hussafel

• Location: In West Iceland’s scenic Borgarfjörður region, near Langjökull glacier.

• Style: Sustainable luxury — built with local stone and designed to complement the surrounding lava fields.

• Highlights:

  • On-site geothermal pools and a gourmet restaurant.

  • Access to nearby Hraunfossar and Barnafoss waterfalls, glacier tours, and ice caves.

• Perfect for: Outdoor adventurers who still want comfort, style, and top-tier dining.

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4. ION Adventure Hotel – Futuristic Luxury in a Volcanic Landscape

The Ion Adventure hotel is a great location for people who want to exploreÞingvellir National Park. This very modern hotel has amazing view of the nearby mountains and is built to help you enjoy them. The dining room is made entirely of glass so you can enjoy 360 views of the landscape.

The rooms are spare in a very Scandinavian fashion, and the hallways almost feel like you are walking through a haunted house (but in a good way!) The beds are comfortable and the food at the restaurant is really delicious.

Facts About Ion Adventure Hotel

• Location: Near Þingvellir National Park, about an hour from Reykjavík.

• Style: Striking modernist architecture built into lava rock — glass, steel, and concrete balanced with geothermal warmth.

• Highlights:

  • Infinity pool heated by hot springs.

  • Restaurant featuring local Icelandic ingredients with a fine-dining twist.

  • Eco-conscious ethos and award-winning design.

• Perfect for: Design lovers and couples looking for an unforgettable stay close to Iceland’s Golden Circle.

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5. Hotel Hamar – Tranquil Golf Resort with a View

This is not your expensive luxury hotel, but it is a charming hotel with fabulous staff and very comfortable rooms.  The locations is perfect for people who are planning on spending time in the Snæfellsnes Peninsula.

Each room opens up to a beautiful view of the countryside, and the breakfast buffet is very extensive. If you are on a budget or staying with a family I highly recommend Hotel Hammar.

Facts About Hotel Hammar

• Location: Near Borgarnes, about an hour north of Reykjavík.

• Style: Relaxed country resort surrounded by mountains and rolling green landscapes.

• Highlights:

  • 18-hole golf course with glacier views.

  • Outdoor hot tubs for Northern Lights watching.

  • Family-friendly, great for self-drive travelers exploring West Iceland.

• Perfect for: Families or couples who want peace, comfort, and easy access to both Reykjavík and Snæfellsnes Peninsula.