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Discover the 14 Coolest Places to Stay in Iceland For a Unique Trip

Discover the 14 Coolest Places to Stay in Iceland For a Unique Trip

Olly Gaspar

By Olly Gaspar, full-time traveler for 6 years. I visit every place I write about & share real tips, photos, & advice from my trips.

From northern light dome cottages to unique hotels with natural hot springs, here are the coolest places to stay in Iceland.

It’s safe to say that Iceland is one of the most unique travel destinations in the world. From the mesmerizing Northern Lights to the dramatic geothermal pools, there’s just nowhere like it. And, when it comes to your accommodation, the options are just as wild & Impressive.

Whether you’re looking for a cozy cabin in the wilderness, a luxurious hotel in the heart of Reykjavik, or a unique hotel with spectacular views, Iceland offers some of the coolest accommodation options in the world. Here’s my list, broken down into different regions to help you plan an epic trip across the country.

River in iceland on a budget

The Winners: 3 Coolest Hotels & Lodgings in Iceland

Coolest night views over frost and fire hotel, iceland

1. Frost and Fire

With its ideal location and incredible views over bubbling hot geothermal pools, Frost and Fire Hotel is a must-stay on your Golden Circle adventure.

Seljalandsfoss horizons outdoor view with unique cottages, iceland

2. Seljalandsfoss Horizons

Imagine your very own tiny home with incredible views over the surrounding mountains and wild Icelandic horses running past. Seljalandsfoss Horizons is an incredible hotel choice.

Silica hotel at blue lagoon iceland outdoor views at the coolest place to stay.

3. Silica Hotel at Blue Lagoon Iceland

With its own private lagoon and stunning views over the surrounding landscape, this option is a top choice for those wanting a luxury hotel stay.

Top 3 coolest places to stay in iceland

Coolest Hotels in Reykjavik

As the capital of Iceland, Reykjavik has many amazing hotels to choose from. Whether you're a luxury traveler or budget-conscious, here are the coolest hotels in Reykjavik.

The reykjavik edition bedroom view with sea viewsThe Reykjavik EDITION$$$$
Reykjavik domesReykjavik Domes$$$
Bedroom with views over city at the center hotels laugavegurCenter Hotels Laugavegur$$

1. The Reykjavik EDITION

Looking for one of the coolest places to stay in Iceland? You can't skip The Reykjavik EDITION, one of the most amazing hotels in Iceland.

This 5-star hotel is a great place to stay in downtown Reykjavik if you appreciate luxurious accommodations.

The hotel rooms at this luxury hotel feature a seating area, a flat-screen TV, and a safety deposit box. All units also have a private bathroom, while certain rooms boast spectacular views of the city.

There are many fantastic amenities for guests to enjoy at this hotel, such as free WiFi, a wellness and fitness center, room service, and a restaurant on-site.

Each morning, start your day with a delicious à la carte breakfast before heading out to explore Iceland's capital city. Points of interest to visit near the hotel include Hallgrímskirkja Church and Reykjavik Old Harbor.

2. Reykjavik Domes

Located just outside of Reykjavik, the Reykjavik Domes is one of the most unique places to stay in Iceland.

This fantastic accommodation provides guests with a garden, a terrace, a hot tub, and a shared kitchen.

Depending on which dome you choose to stay in, you will also have a private bathroom with a shower.

Spend your nights watching the stars through your dome tent, and in the morning explore the surrounding area. Some of the best things to see and do near the accommodation include Hallgrímskirkja Church and Solfar Sun Voyager.

3. Center Hotels Laugavegur

Situated in the heart of the city, Center Hotels Laugavegur is one of the coolest hotels in Reykjavik.

The rooms at this model hotel feature a seating area, a flat-screen TV, a safety deposit box, and a private bathroom. The hotel also has some rooms with a balcony, providing stunning views of the city.

The hotel also features a concierge, free wifi, a 24-hour front desk, and a restaurant and bar. In the evenings, you can enjoy a delicious meal at the on-site restaurant after a day of exploring.

In the mornings, guests can indulge in a vegetarian, buffet, or continental breakfast.

Some of the best things to see and do near the hotel include Hallgrímskirkja Church, The Pearl, and the Reykjavik Art Museum.

Reykjavik Domestic Airport is the nearest airport, 2 km from the property.

Unique Accommodations in the Golden Circle

Are you looking for the coolest places to stay in Iceland in the Golden Circle? Whether you want to see the Northern Lights or magnificent waterfalls, here are the best places to stay.

Bedroom at the ion adventure hotelION Adventure Hotel$$$$
Golden circle domes bed with views of the treesGolden Circle Domes$$$
Bedroom with large window looking into trees at the blue hotel fagrilundurBlue Hotel Fagrilundur$$$
Frost and fire hotel outdoor viewFrost and Fire Hotel$$$

4. ION Adventure Hotel

If you're looking for the best place to stay in Iceland to see the Northern Lights, ION Adventure Hotel is it!

Located on Mount Hengill, 18 km from the UNESCO-listed Thingvellir National Park, ION Adventure Hotel is one of the coolest places to stay in Iceland.

The drawing card of this hotel is that it's one of the best places to see the Aurora Borealis. However, other amenities and facilities that make it great include the stunning panoramic views and a restaurant offering Nordic specialties.

In each room, guests can enjoy free wifi, satellite TV, a seating area, and a private bathroom. Some rooms also feature views of Lake Thingvallavatn. After a day of touring the Golden Circle, you can book a sauna or spa to unwind.

5. Golden Circle Domes - Coolest Glamping Experience 

Do you want to see the Northern Lights from the comfort of your own bed? Golden Circle Domes allows you to do just that!

As one of the coolest hotels in Iceland, Golden Circle Domes is a luxurious glamping experience that boasts stunning mountain views and even better ones of the Northern Lights.

The accommodation features free wifi, a garden, a terrace, and a restaurant for guests to enjoy. There is also free parking on-site.

If you aren't sure of what to do in the area, the concierge service can provide you with plenty of suggestions.

6. Blue Hotel Fagrilundur

Whether visiting in the peak of summer or the cold of winter, Blue Hotel Fagrilundur is one of the most amazing hotels in Iceland.

This 3-star accommodation features modern amenities, a modern design, and spacious rooms. Each of the guest rooms boasts free wifi, a flat-screen TV, and a private bathroom. There is also a terrace and hot tubs for guests to enjoy.

Each morning, before you go off and explore the Golden Circle, you can enjoy a tasty buffet or continental breakfast.

Popular points of interest near this beautiful accommodation include Geysir, Gullfoss Waterfall, and Thingvellir National Park.

7. Frost and Fire Hotel

Surrounded by lush greenery and bubbling geothermal springs, Frost and Fire Hotel is one of the coolest places to stay in Iceland.

This modern and beautifully designed 4-star hotel features an outdoor pool, a sauna, and two hot tubs for guests to enjoy.

The hotel rooms at this property feature bright, modern decor, and work by a range of Icelandic artists. All of the rooms have free wifi, large beds, wooden floors, and a private bathroom. Particular rooms also offer stunning views of the River Varmá.

After spending a day exploring the stunning surrounding region, treat yourself to a meal at the hotel restaurant. Here you will enjoy Icelandic fine dining food slow-cooked in the hot springs while taking in the views over the beautiful River Varmá.

A tourist office and local shops are just a short walk from the property. Thingvellir National Park is a 40-minute drive away.

Coolest Hotels on Iceland's South Coast

Planning a trip to Iceland's South Coast to visit black sand beaches and majestic glaciers? Here are some of the most unique places to stay in Iceland's southern region.

Hotel rangá bedroom suite with stuffed animals, icelandHotel Rangá$$$$
Seljalandsfoss horizons bedroom loft, south icelandSeljalandsfoss Horizons$$$
Hotel vík í mýrdal bedroom suite with large window and tvHotel Vík í Mýrdal$$$

8. Hotel Rangá

When it comes to cool hotels in Iceland, Hotel Ranga is hard to beat!

Featuring a stargazing observatory on-site, this luxury hotel is situated in an idyllic remote location next to the Ranga salmon river. As if a stargazing observatory isn't enough, the hotel offers a wake-up call for when the Northern Lights appear! You can see the Aurora Borealis light up the night sky from your room or head outside to witness the dancing colors!

The hotel also features outdoor hot tubs, free wifi, and an on-site restaurant.

All of the individually decorated rooms at this luxury hotel boast impressive views of Mount Hekla or the riverside. You also have the option of choosing a room with a spa bath or balcony.

If you're keen on a taste of Nordic cuisine, head to the on-site restaurant. There you can indulge in local cuisine while admiring views of Eyjafjallajökull volcano and the riverside.

9. Seljalandsfoss Horizons

Want to stay in your own cabin in the heart of Iceland's south coast?

Set in Hvolsvöllur, Seljalandsfoss Horizons is one of the coolest places to stay in Iceland.

Each beautifully decorated cabin features a terrace with mountain views, a dining area, a well-fitted kitchenette, free wifi, and a private bathroom.

This is one of the best areas for hiking, so you can guarantee there are plenty of trails to explore. A highlight near the accommodation is Skogafoss Waterfall, 28 km from the property.

The nearest airport is Vestmannaeyjar Airport, 31 km from the accommodation.

10. Hotel Vík í Mýrdal

Located only 400 meters from Black Sand Beach, Hotel Vík í Mýrdal is one of the best places to stay in Iceland.

This modern, 3-star hotel features a fitness center, a restaurant, a bar, and a 24-hour front desk.

All of the contemporary and neutral-colored hotel rooms include free wifi, a flat-screen TV, and a private bathroom. Each morning, you can wake up and enjoy a delicious buffet or continental breakfast.

Hiking is very popular in the area, so you can enjoy exploring the many trails found near the property. If the outdoors isn't your thing then be sure to check out the Lava Show in the town of Vik.

More Fun & Unique Places to Stay in Iceland

If you love seeking out unique hotels, you can have peace of mind knowing Iceland is full of them! Here are some of the most fun and unique places to stay in Iceland to make the most out of your trip!

Silica hotel at blue lagoon iceland bedroom with views over the lagoonSilica Hotel at Blue Lagoon Iceland$$$$
Exterior view of the barn house, icelandThe Barn$$$$
Lighthouse inn bedroom suiteLighthouse-Inn$$$
Fossatun camping pods cottagesFossatun Camping Pods & Cottages$$$

11. Silica Hotel at Blue Lagoon Iceland

You've undoubtedly heard of the famous Blue Lagoon in Iceland, but did you know that you could stay there?

Located only 500 meters from the Blue Lagoon, Silica Hotel at Blue Lagoon Iceland is a perfect place to stay if you intend on visiting the hot springs.

This beautiful 4-star hotel features a fitness center, a 24-hour front desk, and a bar.

All of the hotel rooms feature free wifi, a flat-screen TV, a private bathroom, and a private balcony with views of the volcanic horizon.

One of the things that makes staying at this hotel so great is that the room rate includes premium admission to the Blue Lagoon for every guest (per night booked). The hotel also has its own private lagoon, the Silica Lagoon. This lagoon is sourced from the same geothermal pool as the Blue Lagoon, and guests have access to it while they stay at the hotel!

Each morning before you go off for a soak, you can enjoy a free, tasty buffet breakfast.

12. The Barn - Coolest Stay for Architectural Design

Still, looking for the coolest place to stay in Iceland? Go no further than The Barn House. This unique place to stay is close to the Golden Circle route and is the perfect choice for any group of family.

Boasting large windows with incredible views over the natural surroundings it sure will put you into a state of relaxation. It has its very own private hot tub and impeccable interior design throughout the property.

The Barn House has everything one would need for an epic stay with three modernly designed private rooms, a fully equipped kitchen, and a large living space.

The property is located just a short 15-minute short drive from Sellfoss.

13. Lighthouse-Inn

Located in Gardur, on the southwest coast of Iceland, Lighthouse-Inn is one of the best hotels to stay at.

This quirky accommodation is surrounded by nothing except for green grasslands in summer and white snow in winter, making it the perfect place to watch the Northern Lights. Since it's located on the peninsula, the hotel offers sea views, a garden, a sun terrace, and free wifi.

All of the guest rooms feature air conditioning, a flat-screen TV, and a private bathroom. There is also a shared lounge area for guests to relax in.

A delicious English/Irish breakfast is available daily at the accommodation.

14. Fossatun Camping Pods & Cottages

Finally, one of the most unique places to stay in Iceland is Fossatun Camping Pods & Cottages.

This accommodation features wooden camping pods in Fossatun, located in west Iceland, a fantastic area for watching the Northern Lights.

There are three different types of camping pods to choose from, and all are insulated and heated. However, guests must bring their own sleeping bags and camping gear (or rent a bed linen package).

Free wifi is available in commune areas and there are shared outdoor hot tubs to enjoy.

There is also a service house with shared bathroom facilities, communal changing rooms, and showers, plus a private shower. Guests can also cook their own meals in the shared kitchen and make use of the outdoor barbecue facilities.

There is an on-site restaurant if you prefer where you can indulge in international cuisine overlooking Troll Falls. The restaurant features a vinyl collection with over 3,000 records, which you can choose from during dinner! What could be better than eating dinner while listening to your favorite tunes?

Reykjavik Airport is 90 km from the accommodation.

Frequently Asked Questions About Planning Accommodation in Iceland

What part of Iceland is the best area to stay?

If you're only staying for a short trip, Reykjavik is your best option as it has many tourist sites, restaurants, accommodations, and nightlife.

When is the best time to visit Iceland to see the Northern Lights?

The best time to see the Northern Lights in Iceland is from September to April.

How many days in Iceland is enough?

If you plan on staying in different regions and exploring a range of attractions, 8-12 days is the perfect amount of time to stay in Iceland.

Is it expensive to stay in Iceland?

Yes, Iceland is one of the more expensive countries in Europe. However, it's worth visiting because of the many fantastic things to see and do. However, it is possible to travel Iceland on a budget if you know how.

More Iceland Travel & Accommodation Guides

I hope that you've enjoyed this fun guide to the coolest places to stay in Iceland! Check out some of my other guides below for more travel inspiration & tips based on my personal experiences in this amazing country.

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I'm Olly Gaspar, adventure traveler from Australia. I’ve spent the last six years traveling the world full-time, sharing my first-hand experiences & photography in over 700 travel guides on We Seek Travel. I visit every destination I write about to bring you unique travel itineraries, epic hiking routes, fun tour ideas, travel & photography gear ideas, & interesting places to stay.

I only make genuine, worthwhile recommendations based on my experience, expertise, & research. If you buy through my links, I may get a commission, supporting this website at no extra cost to you. Read my Publishing Ethics Statement.