Iceland, also known as “The Land of the Midnight Sun”, is an island country found in the North Atlantic Ocean, south of the Arctic Circle. It’s a place where snow and ice complement the region’s breathtaking landscape. Over the last decade, tourism in the country has increased substantially. Each year, thousands flock to the country to see the blue lagoon, whale-watch and experience the beautiful northern lights.

If you’re looking for the most top-rated hotels in Iceland, here are some of the best spots we’ve chosen just for you. 

101 Hotel 

For several years now, 101 Hotel has been consistently ranked as the best luxury hotel in Reykjavik, Iceland’s capital city. Located on a busy corner of downtown Reykjavik, 101 hotel offers the best amenities for travelers looking for comfort and luxury during their stay. 

The hotel has around 38 rooms including six suites. They also have a room designed for disabled guests. All rooms are set along a darkened corridor which emphasizes their light and mellow color schemes. All suites have bathtubs and amazing harbor views. 

Built from a former 1930 office building, this hotel is now one of the most popular stylish places to stay in Iceland. It is designed by owner and professional designer Ingibjorg S. Palmadottir. The interior is an elegant and exquisite mix of black and white palette, with sleek grey furnishings and unique artworks. 

Center Hotel Plaza

Center Hotel Plaza offers comfortable rooms, cool venues, and the best family-friendly amenities in the capital city of Iceland. The hotel is situated near the city’s oldest square where cultural events and performances happen each year. It’s also in the center of the city surrounded by restaurants, shops, and the harbor. Like many great Iceland hotels, it also has a meeting room and a secluded garden that can accommodate hundreds of guests.

Diamond Suites 

If you’re visiting Iceland for the famous blue lagoon, Diamond Suites is the top luxury boutique hotel in the area. This five-star hotel is located on the top floor of the renowned Hotel Keflavik. The hotel offers exceptional personal service, amazingly decorated suites, and the finest furniture and amenities. Diamond Suites hotel also has a first-class restaurant that serves the best dishes and Icelandic wines. For a luxurious Icelandic experience, Diamond Suites is the perfect hotel choice. 

Hotel Ranga 

Hotel Range is one of the best places to stay in Iceland if you want to see the northern lights. You’ll also find amazing volcano views while staying in the hotel’s geothermal hot tubs. Hotel Ranga is designed with wraparound glass windows to help you enjoy its beautiful surroundings. One of the highlights of this hotel is its gourmet restaurant which is covered in glass windows. They also have a lounge bar that serves hot chocolates and toddies. 

Hotel Ranga is two hours from the capital city and is located near the river between the towns of Hvolsvöllur and Hella. The hotel’s style is rustic and cabin-like. The interiors are traditional and there’s beautiful comfortable furnishing everywhere. Overall, it’s a homely, warm, and peaceful accommodation. 

Hotel Jökull

Located 8km from Reykjavik, Hotel Jökull is a family-run hotel near Iceland’s famous glacier mountain and lagoon. It is located in the fishing village of Höfn, one of the largest settlements in eastern Iceland. If you want to see the famous Vatnajökull Glacier, this hotel is the best base and accommodation for your trip. The hotel has around 58 rooms with wonderful snow-capped mountain views. They serve breakfast and dinner and even have fast free Wi-Fi despite its remote location. If you have an electric car, you’ll be happy to know that the hotels also have a charging station for them. 

Icelandair Hotel Herad

This understated yet elegant hotel sits in the beautiful East Iceland town of Egilsstadir. Going here is like experiencing the most unique part of Iceland with all its thoughtful service and comfortable accommodations. 

Inside, you’ll find the interiors warm and cozy. There are also plenty of activities you can enjoy nearby. From the hotel, you can find a nearby place to hike, fish, or bird watch. At the end of the day, you can drink in the bar while watching the sunset or the northern lights. The hotel also has a first-class restaurant that serves amazing dishes including reindeer and goose. 

Hotel Kea

With its bright airy rooms and wooden floors, this luxe hotel is the only four-star hotel in town in the heart of Akureyri. Hotel Kea has spacious rooms ranging from standard to suite. They also have an in-house restaurant, a bar, and meeting halls.  Since 1944, Hotel Kea has kept its standard of quality and service. It is also fully equipped with modern amenities such as fast WiFi, minibars, and television. If you ever want to go explore the rich nature of Northern Iceland, Hotel Kea is on of our recommended places To stay in Iceland.