Few places on earth feel as magical as Iceland. The moment you step off the plane, it’s like you’ve stepped into another universe. Steam rises from the earth, glaciers glitter in the distance, and waterfalls seem to follow you everywhere.
But Iceland’s magic doesn’t stop at nature. The places you stay are often an experience in themselves. From glass igloos beneath a dancing starry sky to remote eco-lodges nestled in rugged lava fields, Iceland offers unique accommodations as special as the landscape itself.
Moreover, these accommodations often also offer fantastic activities such as horse riding, spotting the Northern Lights, etc., and are located near the most beautiful sights in Iceland.
Unfortunately, you won’t find an ice hotel like the one in Norway here. But there are plenty of other once-in-a-lifetime accommodations in Iceland that you won’t want to miss (although they are often a bit more expensive than more typical accommodations in Iceland).
Whether you’re taking a 10-day or 2-week tour including the Ring Road, or a 7-day trip along the South Coast, this article will help you discover the 10 most unique places to stay in Iceland, each with a style you’ll never forget.
1. Spend the night in a glass lodge
There’s something magical about waking up to views of vast lava fields, snow-capped mountains, and, if you’re lucky, the Northern Lights dancing overhead. In Iceland, you can truly live that dream by staying in a glass house. Most glass lodges are located on Iceland’s south coast.
These unique accommodations are designed to bring you as close to nature as possible without sacrificing comfort. While the wind howls through the windows, you’ll snuggle under a blanket with a cup of hot chocolate, gazing at a starry sky.
- ÖÖD Hekla Horizon Mirror Houses (Hella): Beautiful glass bungalows (for couples and families) with magnificent views. You can also use the sauna, hot tub, and cozy living area.
- Tiny Glass Lodge (Selfoss): This charming little house is located along Iceland’s popular south coast and offers stunning views, a hot tub, and a sauna. Book quickly because they only have one lodge!
- Panorama Glass Lodge (Hella and Akranes): Probably the most famous glass lodges in Iceland. They are luxurious, secluded, and offer fantastic panoramic views. You’ll find one on the south coast and one in West Iceland.
2. Stay in an Icelandic turf house
If you’ve ever dreamed of stepping back in time, staying in an Icelandic turf house is an experience you won’t soon forget. These charming cottages, partially covered with grass and earth, were once the traditional homes of Vikings and early Icelanders and are among Iceland’s hidden gems.
- Torfhús Retreat (Selfoss): One of the most beautiful places to experience this is Torfhús Retreat. This luxurious resort combines the traditional architectural style of turf houses with modern elegance. Each cottage has its own geothermal hot tub, so you can relax under the stars in the evening. Family stays are also available.
- Turf farmhouse (Highlands): For a truly authentic experience, stay at this original, restored turf farmhouse. There’s no electricity, and you’ll sleep above the kitchen, just like in the old days.
- Fagrafell Hostel (Husavík): This hostel in North Iceland is a true guesthouse (adults only) with cozy common areas and comfortable rooms.
3. Sleep on a (horse) farm
For horse lovers, Iceland is a true paradise. The Icelandic horses, with their friendly nature and unique tölt gait, are more than just animals. They are part of the country’s soul. A horseback ride is one of the best things to do in Iceland, but even better is staying overnight on a farm where you can experience these magnificent animals up close.
- Hotel Eldhestar (Hveragerði): An eco-farm and hotel (just a 30-minute drive from Reykjavik) where everything revolves around horses. You can book horseback riding tours here and then relax in the hot tub. Quite well-known, so you won’t be alone.
- Stóra Ásgeirsá Farm Stay (Víðigerði): A working farm in North Iceland, perfect for a charming stop along the Ring Road. You don’t come here for luxury, but for the hospitality, beautiful scenery, farm life, and horseback riding. Also great for families.
- Cora’s House and Horses (Ölfus): Beautiful farm where horses roam in the backyard, surrounded by beautiful nature! You can also enjoy horseback riding along the water.
4. Stay in an igloo
Imagine: you’re lying under a warm down comforter, while above your head the Northern Lights dance in green and purple waves. Outside, the silence of the Icelandic winter reigns, but inside, it’s cozy and comfortable.
Spending the night in an igloo in Iceland is a dream come true for anyone who loves magic, adventure, and a touch of romance. These transparent domes let you experience nature without freezing. You literally sleep under the stars, in the middle of a landscape that feels like the end of the world.
- Buubble Hotel (Selfoss): One of the most iconic places to sleep in an igloo is the Buubble Hotel (The 5 Million Star Hotel), located on Iceland’s south coast. You sleep in a completely transparent bubble in the middle of the forest, far from any artificial light.
- Helja Stay Glamping Domes (Hella): Beautiful and peaceful location, with very comfortable (heated!) beds in beautiful domes.
- Aurora Igloo (Hella): Beautiful and comfortable transparent igloos, with even a small bathroom and refrigerator attached.
5. Camp with style
For travelers who enjoy camping in Iceland but prefer a more comfortable experience than traveling through Iceland in a campervan, Iceland offers several unique accommodations (besides the igloos) in tents and yurts. These accommodations combine the freedom of camping with a surprising amount of comfort.
- Náttúra Yurtel (Haukadalur): Located in the unique geothermal region of Haukadalur, you can stay overnight in beautiful, comfortable, and cozy yurts surrounded by stunning nature. In the morning, you can also enjoy a delicious breakfast!
- Camp Boutique (Gaulverjabær): Do you enjoy glamping? Then these comfortable bell tents located in South Iceland will definitely appeal to you. In the winter, they also have an igloo you can stay in.
- Valhalla Yurts Freya (Selfoss): Very nice accommodation, where each yurt is tastefully decorated and equipped with wood-burning stoves and comfortable beds.
6. Relax in a geothermal spa hotel
After a day of adventure through volcanic landscapes, lava fields, and waterfalls, there’s nothing quite as magical as immersing yourself in the warm, healing waters of a natural hot spring. Iceland boasts countless hotels that elevate this experience to a luxurious level, with geothermal baths, spas, and wellness facilities designed to completely unwind.
As steam rises above the water, gaze out over snow-capped mountains or expansive fjords, and feel the stresses of everyday life melt away.
- Blue Lagoon Retreat Hotel (Grindavík): One of Iceland’s most luxurious and unique geothermal spa hotels. It comes at a price, but from your luxurious suites, you have direct access to the mineral-rich, turquoise waters of the famous lagoon.
- Skálakot Manor Hotel (Hvolsvöllur): This incredibly beautiful hotel has everything for a perfect stay: from stunning surroundings and a spa to horseback riding and a delicious breakfast.
- Hvammsvík Nature Resort (Kjósahreppur): Located between Reykjavik and the Snaefellsnes Peninsula, this beautiful nature resort has its own hot springs and spa complex.
7. Spend the night in an eco-lodge in nature
For those who want to become one with Iceland’s rugged nature while also respecting it, eco-lodges are perfect. Far from the noise of the city, often surrounded by lava fields, glaciers, or endless mossy plains, these sustainable accommodations invite you to slow down and breathe.
Many focus on renewable energy, local materials, and a minimal ecological footprint, combined with wonderful and comfortable accommodations.
- ION Adventure Hotel (Nesjavellir): Located near Thingvellir National Park in the Golden Circle, this hotel runs entirely on geothermal energy, including its thermal pool. It also offers breathtaking views of lava fields and mountain peaks.
- Hótel Laxá (Mývatn): One of the most eco-friendly hotels in North Iceland, where even the sheets are made of organic cotton. The hotel blends seamlessly into the beautiful surroundings of Mývatn (it even has grass on the roof), and the thermal pools are also nearby.
- Hótel Rangá (Hella): Situated in the plains of South Iceland beside a river, this 4-star resort, with 52 rooms, a bar, hot tubs, and a wonderful restaurant, also operates on thermal energy. The panoramic views are fantastic, and there’s also an observatory for comfortable stargazing.
8. Sleep in a remote accommodation
For travelers who truly want to escape the hustle and bustle of everyday life, the remote hotels in the Icelandic wilderness are a dream. Surrounded by vast lava fields, fjords, glaciers, or mountains, they offer ultimate peace, privacy, and Iceland’s rugged beauty.
- Highland Base (Kerlingarfjöll): This fantastic hotel in the Highlands (only accessible during peak season) is magnificently situated, with beautiful (family) rooms, a delicious restaurant, wonderful hot springs, and many hiking trails.
- Eleven Depler Farm (Ólafsfjörður): One of the most unique accommodations in North Iceland. This former sheep farm, located on the Tröllaskagi Peninsula, has been transformed into a luxurious hotel. Surrounded by rugged and wild nature, you can enjoy unique activities here. They even have several lodges that are only accessible on foot, by ski, or by bike.
- Holt Inn (Flateyri): Located in the Westfjords, this hotel feels like you’re away from it all. The rooms are very comfortable and cozy with beautiful views. You can also use some of the common areas.
9. Stay in style in Reykjavik
Anyone visiting the Icelandic capital will quickly discover that Reykjavik not only offers cultural and culinary surprises, but also a hotspot for stylish accommodations. Design hotels combine modern comfort with creative architecture and unique interiors, often inspired by the island’s rugged landscapes.
- Canopy by Hilton Reykjavik: A modern hotel with colorful, playful details and a warm, inviting atmosphere, centrally located in Reykjavik.
- Black Pearl Apartment Hotel: Beautiful apartments in downtown Reykjavik, very stylish and luxuriously finished with a private kitchen.
- Eyja Guldsmeden Hotel: Cozy rooms (with four-poster beds) on Reykjavik’s shopping street with mountain views. You can also rent bikes here to explore the city.
10. Spend the night in a historic accommodation
For those who love stories, ambiance, and a touch of nostalgia, Iceland’s historic accommodations offer an unforgettable experience. From centuries-old farmhouses and manor houses to restored manors that once housed Icelandic families and adventurers, these accommodations literally let you sleep amidst history.
- Hótel Búðir (Snæfellsbær): Located on the Snæfellsnes Peninsula, this iconic historic manor house is surrounded by black lava fields and overlooks the Breiðafjörður fjord. Nearby is the famous Búðir Black Church.
- Apótek Hotel (Reykjavik): A historic building from the early 20th century in downtown Reykjavik, it combines historic charm with modern comfort.
- Héradsskólinn Historic Guesthouse (Laugarvatn): This beautiful building, built in 1928 by a renowned Icelandic architect as a school, boasts a prime location in the Golden Circle.
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