Skip to Content

Top 5 Hotels In Iceland For 2021

Share The Article

Last Updated

As Iceland is opening up to tourism again, vaccinated tourists from all over the world are turning their eyes to this beautiful country for their next trip.

What other area in the world offers views of volcanos, the ocean, glaciers, and waterfalls in such a compact space? The list of unique natural features in Iceland goes on and on. Iceland is also known for having accommodations that keep their focus on offering their guests stunning views and access to the natural surroundings. The historic farms, churches, and buildings of Iceland offer another kind of beautiful view.

Top 5 Hotels In Iceland For 2021

No matter what season it is, there are great views and adventurous activities to enjoy in Iceland. If you’re one of the many people hoping to see the great Icelandic countryside or the beautiful city of Reykjavik this year, check out this list of the top five hotels in Iceland for 2021.

Iceland mountain sunset water

1. Sigló Hotel

This waterfront hotel is often cited as the best hotel in Iceland. Its views of the Northern Lights will leave you awestruck. The Sigló’s décor blends modern style with rustic, Nordic charm to great effect. All of this coupled with the hotel’s ideal location gives this hotel a lot of draws.

This hotel is located in Siglufjörður, the northernmost town in Iceland and a historic fishing village. This area is known for adventures ranging from whale sightings to heliskiing. The staff at the Hotel Sigló will arrange whale watching tours for you, point out where you can access geothermal pools, or help you set up a day of golfing or snowshoeing.

Siglo hotel Iceland
(Image: Siglo Hotel — Booking)

2. Frost and Fire Hotel

If you’re looking for a hotel that’s a little more remote, the Frost and Fire is an excellent option. Just a thirty-minute drive from Reykjavik, this hotel combines the ease of access to the city with the views and experiences of more wild locations. The Frost and Fire is set deep in the beauty of the natural wonders of Iceland and offers views that will take your breath away.

This boutique hotel sits on the banks of a geothermal river. And the area is filled with waterfalls, black sand beaches, lagoons, and Viking-age farms. Take a tour of the countryside or relax in the geothermal pools.

Frost and Fire Hotel Iceland
(Image: Frost and Fire Hotel — Booking)

3. Hotel Rangá

This luxury hotel offers its guests a quintessential Icelandic experience. Their restaurant and bar are impressive. The Rangá is set into the landscape of southern Iceland, an area known for its rich history and culture of artistry. This hotel has great access to dozens of lagoons, caves, and craters. You’ll also be able to tour around historic towns and buildings.

You can even take a snowmobile tour of the surrounding area. Or see the sights from the back of an Icelandic horse! The Rangá also has its own observatory with telescopes to help their guests get the most out of the sprawling night sky.

hotel ranga northern lights Iceland
(Image: Hotel Ranga — Booking)

4. Alda Hotel

The Alda was designed with the intention of providing a relaxing and calming space in the heart of Reykjavik, Iceland’s capital city. The hotel’s outdoor hot tub offers a view of the Northern Lights and millions of stars, and the indoor sauna is a great place to sit back and relax.

Reykjavik brightly colored town

Their hotel is well-regarded, and they even have a highly rated barber shop inside the hotel! Reykjavik is a very walkable city. It’s also known for being one of the safest European cities. It’s easy to walk around Reykjavik and enjoy the museums, art galleries, and historic sights. The ease of access to the city offered by the Alda will ensure that you get the most out of your Reykjavik experience while enjoying a quiet stay.

hotel alda reykjavik
(Image: Alda Hotel — Booking)

5. Hotel Búðir

This hotel, situated about two hours from Reykjavik, has won numerous awards over the past few years. The Búðir has a restaurant that offers exquisite three-course meals. And the hotel’s lounge and the bar show off the views in a comfortable and luxurious environment.

Fishing tours, adventure sea tours, and museum tours are just a few of the adventures that the hotel’s staff can help you plan. The Búðir partners with several eco-conscious tour companies that will take you on grand adventures while keeping sustainability and conservation in mind.

hotel budir iceland
(Image: Hotel Budir — Booking)

↓ Elevate Your Travel↓

Sign Up Now For Travel Off Path Premium! No ads, VIP Content, Personal Travel Concierge, Huge Savings, Daily Deals, Members Forum & More!

✈️Join Our Travel Off Path Community Forum: Where travelers unite, ask questions, share experiences and even find like-minded travel buddies!


Enter your email address to subscribe to Travel Off Path's latest breaking travel news, straight to your inbox.

This article originally appeared on

Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.


Saturday 20th of March 2021

Just in time for summer. The Reykjavik EDITION will be quite the hotel ;)