Iceland blew my mind the first time I visited. The otherworldly landscapes of bubbling hot springs, massive glaciers, and black sand beaches make it feel like you’ve landed on another planet. But what made my trips truly unforgettable were the incredible places I stayed along the way.
I’ve explored many of the best places in Iceland, and the accommodation scene has evolved dramatically in recent years. From the glass-roofed suite near Reykjavik, where I watched the northern lights dance overhead without leaving my bed, to that converted farmhouse in the Golden Circle, where the owner served homemade skyr for breakfast. These trendy hotels aren’t just places to crash after a day of adventure—they’re experiences that enhance everything about your Icelandic journey. Here are 12 standout properties that perfectly blend style with the raw beauty of Iceland.
Top Unique Stays in Iceland
Looking to discover unique places to stay in Iceland? Beyond the typical accommodations, the country offers plenty of distinctive options waiting to be explored. Relax at the Panorama Glass Lodge, offering stunning views of the Northern Lights. Experience the charm of The Little House by the Sea, a cozy retreat with coastal beauty. Unwind at The Reykjavik Domes, providing a unique glamping experience near the city.
| Neighborhood/Town | Accommodation | Best For | Hotel Prices | Walkability | Vibe |
| Golden Circle (90 min from Reykjavík) | 5 Million Star Hotel | Aurora Viewers, Couples, Photographers | $$$$ | Low | Unique, Romantic, Natural |
| Akranes Peninsula (1 hr from Reykjavík) | Panorama Glass Lodge | Couples, Northern Lights Viewers | $$$$ | Low | Luxurious, Private, Immersive |
| Tröllaskagi Peninsula (North Iceland) | Original North | Instagram Enthusiasts, Solitude Seekers | $$$ | Low | Modern, Minimal, Remote |
| Snæfellsnes Peninsula | The Little House by the Sea | Coastal Lovers, Nature Enthusiasts | $$$ | Low | Cozy, Coastal, Peaceful |
| East Iceland (near Egilsstaðir) | Ormurinn Cottages | Architecture Fans, Off-the-beaten-path Travelers | $$$ | Low | Unique, Integrated, Secluded |
| Heiðmörk Nature Reserve (Reykjavík) | The Reykjavik Domes | Urban Explorers, Nature Lovers | $$$ | Moderate | Glamping, Accessible, Balanced |
| Nesjavellir (Golden Circle) | Ion Adventure Hotel | Luxury Travelers, Architecture Enthusiasts | $$$$ | Low | Contemporary, Dramatic, Sophisticated |
| Reykjanes Peninsula | Blue Lagoon Retreat | Luxury Travelers, Wellness Seekers | $$$$$ | Moderate | Exclusive, Refined, Healing |
| Downtown Reykjavík | Kvosin Downtown Hotel | Urban Explorers, City Lovers | $$$ | High | Historic, Local, Central |
| South Iceland (near Hella) | Hotel Rangá | Aurora Hunters, Stargazers | $$$$ | Low | Rustic Luxury, Astronomical |
| West Iceland | Hotel Húsafell | Eco-conscious Travelers, Adventure Seekers | $$$$ | Moderate | Sustainable, Artistic, Varied |
| South Coast (near Vík) | Klettar Farm | Authentic Experience Seekers, Families | $$$ | Low | Working Farm, Immersive, Private |
Whether you’re into stargazing, coastal retreats, or glamping, here are 12 of Iceland’s most exceptional places to stay!
1. 5 Million Star Hotel (The Bubble Hotel)
You can’t actually book just the bubble anymore – it’s only available as part of a tour package that costs around $500 per person. The 5 Million Star Hotel now operates exclusively through their Golden Circle or South Coast tours, and honestly, that’s probably better since you get transport and don’t have to drive through Iceland’s crazy weather. I stayed in bubble H4 and while the Northern Lights viewing was incredible, the privacy wasn’t what I expected – other guests walked right past our bubble to get to theirs.
The transparent domes sit about 90 minutes from Reykjavík in a secret location (they’ll give you GPS coordinates after booking). Each bubble has heated floors and a proper bed, but bathrooms are shared in a service building up the hill. The climb with luggage is no joke, so pack light. What makes this place special is the unobstructed aurora viewing – I’ve never seen the Northern Lights so clearly without leaving my bed. The bubbles stay warm even in winter, though you’ll definitely want an eye mask since sunrise comes early. Book months ahead because these fill up fast, and bring snacks since there’s no food included. The sulfur smell from nearby geothermal activity takes some getting used to, but it’s totally worth it for the experience.
2. Panorama Glass Lodge
Starting at €430 per night (around $470), the Panorama Glass Lodge has become Iceland’s most Instagram-famous accommodation, and I get why. They’ve got two locations now – West Iceland near Borgarnes (55 minutes from Reykjavík) and South Iceland near Hella (1 hour 40 minutes from the capital). I stayed at the south location and the views of Volcano Hekla were absolutely insane.
Each glass cabin sleeps up to 5 people and comes with a private hot tub, hammock, and fully equipped kitchen stocked with basics like pasta, coffee, and spices. The glass ceiling has no curtains so you can stargaze all night, though the wall windows do have privacy screens. What I loved most was soaking in the hot tub while watching for Northern Lights – we saw them on our second night and it was magical. Book at least 7-9 months ahead because these are booked solid. Pro tip: stop in Hella for groceries before arriving since the location is pretty remote. The 30% discount for 2+ night stays through August 2025 makes it way more affordable than booking single nights.
3. Original North
Tucked away in North Iceland‘s Tröllaskagi Peninsula about 30 minutes from Akureyri, Original North feels like you’ve discovered Iceland’s best-kept secret. These A-frame cabins cost significantly less than the famous glass lodges but deliver equally stunning views of Eyjafjörður fjord. I actually preferred the minimalist Scandinavian design to some of the more touristy places.
The location puts you perfectly positioned to explore North Iceland without the crowds that plague the south. Each cabin has floor-to-ceiling windows, a saltwater hot tub, and access to activities like Arctic Heli Skiing that you simply can’t do anywhere else in Iceland. Summer brings midnight sun hiking through landscapes that feel completely untouched. Winter delivers Northern Lights viewing with zero light pollution. The onsite kitchen facilities are basic but functional, and Akureyri is close enough for proper dining and supplies. What makes this place special is the complete isolation – you’ll feel like the only people on earth while still having easy access to adventures.
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4. The Little House by the Sea
This 100-year-old cottage on the Snæfellsnes Peninsula costs around €200-300 per night and sits literally steps from crashing North Atlantic waves. Located about 15 minutes from Stykkishólmur, The Little House by the Sea is the perfect base for exploring Snæfellsjökull National Park where Jules Verne’s “Journey to the Center of the Earth” begins. I fell asleep to rhythmic waves every single night.
The cottage comes stocked with coffee, breakfast basics, and everything you need for a cozy stay. Floor-to-ceiling windows frame constantly changing views of Breiðafjörður Bay and distant mountains. What’s amazing is how the seascape transforms hourly with Iceland’s wild weather – one minute it’s calm and glassy, the next it’s dramatic and stormy. The peninsula location gives you easy access to black sand beaches, glacier hikes, and some of Iceland’s most photogenic spots without the Golden Circle crowds. Seabirds dive right outside your windows, and you can watch the weather roll in across the bay. It’s simple but that’s exactly what makes it perfect.
5. Ormurinn Cottages
The dragon-shaped Ormurinn Cottages in East Iceland look exactly like their name suggests – they wind along a hillside like a massive serpent. Located about 30 minutes from Egilsstaðir overlooking Lake Lagarfljót (home to Iceland’s version of the Loch Ness monster), these interconnected units with turf roofs blend seamlessly into the landscape.
Each cottage section has excellent insulation and panoramic lake views through massive windows. The location puts you in Iceland’s least-visited region, which means pristine wilderness access without fighting crowds at every waterfall. Hengifoss waterfall and the East Fjords are easily accessible from here. I loved having geothermal heating throughout while still feeling completely connected to the wild landscape outside. The mystical lake setting creates an atmosphere unlike anywhere else in Iceland. Winter brings Northern Lights viewing with virtually zero light pollution, while summer offers access to remote highland hiking. The interconnected design means groups can stay together while still having privacy.
6. The Reykjavik Domes
Just 10 minutes from downtown Reykjavik in Heiðmörk Nature Reserve, The Reykjavik Domes solve the eternal Iceland problem – do you stay in the city or the wilderness? Here you get both. Each dome costs around $300-400 per night and includes a private hot tub, king bed, and transparent walls for Northern Lights viewing.
What’s brilliant is you can soak in your private hot tub after a day exploring Reykjavik‘s legendary restaurants and bars, then wake up surrounded by birch forest. I spotted Arctic foxes from my dome window, which felt surreal given how close we were to the capital. The heated floors keep everything cozy even when it’s freezing outside. The location gives you easy access to both Reykjavik‘s nightlife and day trips to the Golden Circle. Despite being so close to the city, the surrounding forest creates genuine isolation. No WiFi in the domes forces you to actually disconnect, though there’s connectivity in the shared facilities. Book well ahead since these are incredibly popular with couples looking for a romantic escape.
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7. Ion Adventure Hotel
The Ion Adventure Hotel floats above lava fields like a spaceship and honestly, the Northern Lights Bar alone makes this place worth the splurge. Located 40 minutes from Thingvellir National Park, rates start around $400-600 per night depending on season. The award-winning suspended bar has 360-degree aurora viewing through floor-to-ceiling windows.
I was blown away by the sustainable design – everything from furniture made of lava and Icelandic wool to sinks crafted from recycled tires. The 10-meter geothermal hot pool sits partially outdoors so you can soak in mineral-rich water while watching for Northern Lights. Silfra Restaurant serves incredible hyperlocal farm-to-table cuisine that rivals anything in Reykjavik. The Northern Lights wake-up call service means you’ll never miss a show. What makes this place special is how it transforms Iceland’s harsh volcanic landscape into sophisticated luxury without feeling pretentious. The Golden Circle location provides easy access to Gullfoss and Geysir, while the architectural design makes the brutal landscape feel welcoming.
8. Blue Lagoon Retreat
If you’re tired of fighting crowds at the main Blue Lagoon, the exclusive Retreat offers private access to a secluded section of those famous milky-blue waters. Located 20 minutes from Keflavík Airport on the Reykjanes Peninsula, suites start around $1,500+ per night. Yes, it’s expensive, but you’re paying for crowd-free bliss.
The 62 suites feature floor-to-ceiling windows overlooking the 800-year-old lava field, plus private lagoon access that transforms jet lag into floating relaxation. The underground Retreat Spa uses the lagoon’s healing minerals for treatments, while Moss Restaurant serves refined Icelandic cuisine with wine pairings from their volcanic rock cellar. What sets this apart is the tranquil atmosphere – no selfie sticks or crowded changing rooms. I’ve never experienced such seamless luxury that actually enhances rather than detracts from Iceland’s natural beauty. The private lagoon section maintains perfect temperature year-round, and the mineral-rich waters genuinely leave your skin feeling amazing. Book far ahead and splurge on the spa treatments.
9. Kvosin Downtown Hotel
Right in Reykjavík‘s historic Austurvöllur Square across from Parliament, Kvosin Downtown Hotel puts you in the heart of everything while feeling like a stylish local apartment. The 24 spacious rooms in this renovated 1900s building start around $300-500 per night and include kitchenettes, dining areas, and living spaces.
What I loved most was the apartment-style setup that makes you feel like you’re actually living in Reykjavík rather than just visiting. Some rooms have balconies overlooking the square or Reykjavík Cathedral. The ground-floor Klaustur Bar has Iceland’s most impressive selection of wines and spirits – perfect for pre-dinner drinks before exploring the city’s famous restaurant scene. Harpa Concert Hall and the harbor are five minutes away on foot. The location can’t be beat for experiencing authentic Reykjavík life, though you’ll pay city prices. The neighborhood setting means you’re walking to dinner with locals rather than tourist traps. Book early since there are only 24 rooms and the central location makes this incredibly popular.
10. Hotel Rangá
Hotel Rangá is hands-down the best Northern Lights hotel in Iceland, and their aurora wake-up call service proves they take it seriously. Located 90 minutes from Reykjavík near Hella, this log cabin-style luxury resort sits directly under one of Iceland’s most active aurora zones. Rates start around $400-800 per night depending on season and room type.
The three on-property observatory domes house powerful telescopes with resident astronomers who’ll wake you when the lights appear. I’ve stayed at plenty of Northern Lights hotels, but none match Rangá‘s combination of luxury and authentic aurora viewing. The acclaimed Rangá Restaurant serves incredible farm-to-table Nordic cuisine featuring local lamb and salmon from the river flowing outside. The location provides perfect access to Seljalandsfoss, Skógafoss, and black sand beaches. What makes this special is the perfect balance of luxury and genuine Icelandic hospitality – it feels exclusive without being pretentious. The outdoor geothermal hot tubs are positioned for optimal aurora viewing, and the continental-themed suites add a fun touch. Book the observatory tours even if you’re not into astronomy.
11. Hotel Húsafell
Nestled between Langjökull glacier and Hallmundarhraun lava field in West Iceland, Hotel Húsafell runs entirely on renewable energy from its own hydroelectric plant. Located 90 minutes from Reykjavík, rates start around $300-500 per night. The eco-conscious design incorporates artwork by renowned Icelandic artist Páll Guðmundsson, who actually grew up on this land.
The 48 rooms feature contemporary Nordic design with stunning mountain views, while the geothermal pools range from swimming temperature to hot-pot warm. What impressed me most was their commitment to sustainability without sacrificing luxury – they serve hyperlocal ingredients from their own ponds and trout farm. The location provides easy access to Víðgelmir Cave, Hraunfossar waterfall, and Into the Glacier ice tunnel tours. The diverse landscape around Húsafell offers activities you can’t find elsewhere – from glacier tours to lava field exploration. The geothermal pools have incredible mountain backdrops, and the restaurant sources everything locally. It’s the perfect base for exploring West Iceland‘s unique attractions while staying somewhere genuinely sustainable.
12. Klettar Farm
Want to bottle-feed lambs in the morning and soak in a private hot tub under Northern Lights at night? Klettar Farm offers exactly that authentic working farm experience about 15 minutes from Vík on Iceland’s South Coast. The five converted cottages feature floor-to-ceiling windows framing views of Mýrdalsjökull glacier and Reynisfjara black sand beach.
Each cottage has a private hot tub positioned for optimal Northern Lights viewing in winter. What makes this place truly special is the balance between privacy and farm engagement – owners offer optional tours where you can participate in seasonal activities like sheep herding or collecting eggs. I particularly loved the farm-produced breakfast items including freshly laid eggs and homemade bread. The location provides unbeatable access to Dyrhólaey Arch, Skógafoss, and the famous DC-3 plane wreck. Working farm life means you’ll hear sheep and see authentic Icelandic rural culture. The cottages feel luxurious while maintaining that authentic farm atmosphere. Book during lambing season (April-May) for the ultimate cute overload experience.
Frequently Asked Questions (FAQs) about Unique Places to Stay in Iceland
Are you looking for more content about where to stay in Iceland? Here are some common questions (and answers) I get asked a lot about Iceland’s most unique hotels.
Which area is best to stay in Iceland?
The best area to stay in Iceland depends on what you’re looking for. For first-time visitors, Reykjavik is a great starting point because it offers a mix of culture, history, and access to famous sites like the Golden Circle. If you’re into nature and want to escape the crowds, the South Coast or West Iceland are fantastic for their breathtaking landscapes and quieter atmosphere.
Where do most people stay when visiting Iceland?
Renowned as one of the best places to live in winter, most visitors tend to stay in Reykjavik because it’s the capital and has a variety of accommodations to suit different budgets. It also serves as a convenient base for popular day trips. For a more unique experience, visitors often choose places like the Golden Circle area, Akureyri in the North for a less touristy vibe, or even remote locations like the Westfjords.
How many days should I spend in Iceland?
Ideally, spend at least 7 to 10 days in Iceland. This gives you enough time to explore the Golden Circle, the South Coast, and parts of the West or North. If you can only spare a few days, focus on Reykjavik and nearby attractions. For a more in-depth exploration, especially if you want to circle the entire island on the Ring Road, consider extending your trip to 2 weeks.
Is Iceland expensive?
Yes, Iceland is known to be quite expensive. Dining out, accommodations, and activities can add up. To save money, consider self-catering accommodations, use public transportation or rent a smaller car, and look for free natural attractions like waterfalls and hiking trails. Planning and booking in advance can also help manage costs.
Can you see the northern lights in Reykjavik?
Yes, but it’s not guaranteed. The Northern Lights are visible in Reykjavik, especially on clear, dark nights. However, light pollution in the city can make them less vivid. For the best experience, I recommend heading out to less populated areas, where the skies are darker. The period from September to April is your best bet for catching this natural wonder.
What is the best time of year to go to Iceland?
The best time to visit Iceland really depends on what you want to do. For warmer weather and to experience the midnight sun, visit in the summer months (June to August). For Northern Lights, winter (September to April) is ideal. Keep in mind, though, that winter also means shorter days and potentially challenging weather. Spring and autumn can be great for fewer tourists and lower prices, but the weather can be unpredictable.
Final Thoughts on Iceland’s Unique Places to Stay
Wrapping up, Iceland is a land of stunning contrasts and unforgettable experiences. From my travels, Hotel Rangá stands out as my personal favorite. It strikes the perfect balance between luxury and adventure, which makes it an ideal base for exploring the South Coast’s natural wonders. The hotel’s cozy atmosphere and exceptional views of the Northern Lights are truly unmatched.
Remember, when planning your trip, consider what you want to see and do. Reykjavik is great for culture and convenience, while the countryside offers tranquility and natural beauty. Budget wisely, as Iceland can be pricey, but the experiences are worth every penny. And no matter when you visit, Iceland’s landscapes and warm hospitality will leave you with memories to cherish for a lifetime. Whether you’re chasing the Northern Lights, exploring volcanic landscapes, or soaking in geothermal spas, there are unique hotels in Iceland that promise an adventure like no other.
