The 16 Best Boutique Hotels in South Iceland (2025)

Nestled in the enchanting landscapes of Hvolsvöllur, Skálakot Manor Hotel invites you to experience a harmonious blend of rustic charm and modern luxury. With breathtaking views of the surrounding hills and the serene atmosphere that envelops this elegant manor, each moment spent here feels like a step into a postcard-perfect dream, perfect for couples seeking romance or adventure enthusiasts eager to explore Iceland's natural wonders.

Romantic Retreat - With its intimate ambiance and beautifully decorated interiors, Skálakot Manor serves as a picturesque setting for lovebirds. From candlelit dinners featuring locally sourced ingredients to cozy nights by the crackling fire, every aspect is designed to create unforgettable memories together.

Adventure Awaits - Surrounded by some of Iceland's most iconic natural landmarks, this hotel offers an abundance of activities for the adventurous spirit. Guests can embark on hiking excursions through majestic landscapes, or opt for exhilarating horse riding tours, all while soaking in the breathtaking scenery of waterfalls and mountains.

Culinary Delights - The hotel's restaurant presents a culinary journey where each dish tells a story, crafted from fresh, local produce. Start your day with a sumptuous breakfast that tantalizes the senses, or indulge in a remarkable dinner, where flavors mingle effortlessly amidst the warm, inviting atmosphere.

Guest Experiences - As the sun dipped below the horizon, guests reveled in the aroma of a hearty dinner wafting through the air, paired with laughter and the clinking of glasses. One couple shared how the staff went above and beyond for their anniversary, decorating their room with delicate flowers and a surprise dessert, making them feel cherished and celebrated.

Nestled in the serene embrace of Hveragerði, INNI - Boutique Apartments invites you to indulge in a luxurious escape, where the tranquil sounds of nature blend harmoniously with modern elegance. Each thoughtfully designed apartment offers a private sanctuary, perfect for romantic getaways and wellness retreats, allowing guests to unwind in style amidst Iceland's breathtaking landscapes.

Total Relaxation - Rejuvenate your senses in our inviting sauna and steam room, or sink into the soothing embrace of your private hot tub under the stars, where the gentle bubbling water whispers serenity after a day of exploring.

Romantic Break - Create lasting memories surrounded by chic interiors and cozy atmospheres, where every corner is adorned with artistic touches that inspire love and intimacy, making it an ideal haven for couples and honeymooners alike.

Outstanding Location - Conveniently situated amidst local restaurants and grocery stores, our apartments serve as the perfect launch pad for discovering the Golden Circle's wonders, while offering a peaceful retreat to return to at the end of your adventurous days.

Guest Experiences - Imagine curling up on soft, spacious bedding after a day of exploration, or savoring the aroma of freshly brewed coffee wafting from your fully equipped kitchen, while the sound of distant laughter from nearby eateries fills the air, reminding you that this charming town is alive with warmth and hospitality.

Nestled amidst the breathtaking Icelandic wilderness, Tindasel Lodge is a romantic escape where luxury meets nature. The serene surroundings provide an intimate atmosphere, enticing couples and wellness seekers to unwind amid stunning mountain views and tranquil gardens, making every moment feel like a delightful retreat from the world.

Total Relaxation - Indulge in the soothing sauna and hot tub, where warm water mingles with cool mountain air, and the distant sounds of nature create a peaceful backdrop for unwinding after your day's adventures.

Romantic Break - With its thoughtfully designed rooms offering touches of elegance and comfort, each stay becomes a cherished memory, perfect for honeymooners or couples seeking to rekindle their romance in a secluded paradise.

Outdoor Exploration - Discover the enchanting waterfall Kvernufoss just a short drive away, or embark on breathtaking hikes that reveal Iceland’s natural beauty, as the lodge serves as your cozy base for uncovering hidden gems of the countryside.

Guest Experiences - As evening falls, the heady scent of woodsmoke drifts through the air while guests share stories under twinkling stars, the warmth of the hot tub inviting laughter and quiet moments alike, creating a memorable intimacy that lingers long after departure.

Nestled amidst the breathtaking landscapes of South Iceland, Magma Hotel invites you to a sanctuary where modern chic meets nature's grandeur. Imagine waking up to the gentle whispers of the wind and the awe-inspiring views of the Vatnajökull Glacier, all while ensconced in stylish Nordic design that balances comfort with contemporary elegance.

Total Relaxation - Unwind in your spacious room, featuring plush mattresses and sweeping views that beckon you to relax, whether it's soaking in the northern lights or simply enjoying the serene ambiance of the lava fields.

Sights Nearby - With Kirkjugólf and the majestic Systrafoss twin waterfalls just a stone's throw away, adventure awaits at every corner, from invigorating hikes to captivating explorations of local history.

Romantic Break - Perfect for couples seeking intimacy, the warm, cozy atmosphere coupled with the stunning backdrops creates an enchanting setting for unforgettable moments together.

Guest Experiences - As you step into the hotel, the aroma of freshly prepared dishes wafts through the air, hinting at the exceptional culinary experience awaiting you. Guests have marveled at the clean, inviting rooms filled with natural light, but it's the little details—like the friendly smiles from the staff and the delightful surprise of homemade pastries at breakfast—that leave a lasting impression.

Nestled amidst the enchanting landscapes of Haukadalur, Náttúra Yurtel offers a romantic escape enveloped in nature's splendor. Here, luxury intertwines with authenticity, as each yurt provides not just a place to stay but a doorway into Iceland's captivating wilderness, where breathtaking mountain views and the soothing symphony of the natural world set the stage for unforgettable moments.

Romantic Hideaway - Imagine waking up to the gentle glow of dawn filtering through your yurt’s canvas walls, with the sound of rustling leaves and distant geysers creating a serene soundtrack for your morning ritual. Each space is designed to evoke intimacy, making it perfect for couples seeking a secluded retreat.

Culinary Delights - Savor the simple joys of a carefully curated breakfast awaiting you each morning; from homemade pastries to fresh Icelandic treats, every bite nourishes both body and soul, allowing you to start your day rejuvenated and inspired to explore the wonders nearby.

Adventure Awaits - Strategically located between the iconic Geysir and Gullfoss Waterfall, your adventures begin just steps from your door. Whether trekking through snow-dusted trails or enjoying local delicacies at the charming bistro within walking distance, every day promises new discoveries steeped in Icelandic culture.

Guest Experiences - One guest recalled the delightful surprise of heated floors that kept their yurt cozy during icy nights, while another reminisced about the joy of opening their fridge each morning to find a lovely breakfast spread prepared just for them, all perfectly blending comfort and charm in this unique glamping experience.

Nestled in the enchanting landscape of Selfoss, 360 Hotel & Thermal Baths offers a serene retreat where contemporary luxury meets the raw beauty of Icelandic nature. With geothermal waters beckoning from the spa and captivating views framing each window, every moment spent here feels like a private escape into tranquility.

Total Relaxation - Indulge in the spa's warm geothermal pool, where the gentle steam mingles with the crisp Icelandic air, creating a serene atmosphere that invites you to unwind completely. The sauna, with its soft glow and soothing heat, is perfect for melting away the day's stresses while the crackling fire in the lounge provides a cozy backdrop for quiet reflection.

Romantic Break - Experience romance at its finest as you bask under the northern lights from the comfort of your private hot tub, surrounded by stunning vistas that feel almost otherworldly. Each evening becomes a cherished memory as you sip local wines, wrapped in blankets, while starry skies dance above you.

Chic Accommodations - The rooms, adorned with bespoke artworks and natural textures, invite relaxation with their luxurious bedding and modern amenities. Every detail—from the soft linen curtains that flutter gently in the breeze to the refreshing scent of organic toiletries—contributes to an atmosphere of sophisticated simplicity.

Guest Experiences - One guest described the thrill of spotting the auroras directly from the bubbling hot tub, their laughter mixing with the elated gasps of fellow travelers. Others found joy in the delightful aroma of home-cooked dishes wafting from the restaurant, alongside the warmth of hosts who made it feel like a second home.

Nestled in the heart of Iceland's mesmerizing landscapes, Torfhús Retreat offers a luxurious escape where contemporary elegance meets nature’s raw beauty. With its harmonious blend of modern comforts and rustic charm, this retreat is an intimate sanctuary for couples, adventure seekers, and wellness enthusiasts alike, beckoning you to unwind amidst breathtaking mountain views and rejuvenating hot springs.

Romantic Break - Indulge in an atmosphere designed for intimacy, where each room features plush seating and warm lighting, inviting whispered conversations over steaming cups of coffee brewed from your very own machine.

Total Relaxation - Immerse yourself in tranquility with private hot tubs that overlook the stunning vistas—imagine soaking under the stars with only the sounds of nature surrounding you, a perfect end to a day of exploration.

Culinary Delights - Savor the culinary artistry of Torfhús Retreat's exceptional chef, whose exquisite seasonal dishes tantalize the palate and are perfectly complemented by curated wine pairings, making each meal a memorable occasion.

Guest Experiences - Guests have described waking up to the gentle aroma of freshly baked bread wafting through the picturesque property, while evenings spent in the outdoor hot tub felt like stepping into a serene dream, enveloped by the crisp Icelandic air and the soft glow of twilight.

Nestled in the heart of Geysir, where the land breathes and the earth plays its symphony, Hotel Geysir offers an intimate escape for those seeking romance and adventure alike. With breathtaking views of the majestic mountains and the ethereal dance of the Northern Lights, this modern haven invites you to indulge in luxury while immersing yourself in Iceland's stunning natural landscape.

Outstanding Location - Just steps from the iconic Strokkur geyser, wake up each day with the thrill of nature's beauty at your fingertips, making it the perfect launchpad for exploring the Golden Circle's breathtaking sights.

Romantic Break - Every corner of Hotel Geysir exudes romance—from the cozy, elegantly designed rooms with soft linens and plush furnishings to the inviting warm glow of the dining area, where candlelight mingles with laughter over exquisite culinary delights.

Spa and Relaxation - Unwind in a serene atmosphere as you sip on mimosas during a lavish breakfast buffet, filled with local delicacies. Here, every meal is a celebration of flavors that tantalizes your taste buds and invigorates your senses.

Guest Experiences - A guest delightedly recounted finding themselves entranced by the enchanting aroma of freshly baked pastries wafting through the lobby, only to be surprised by staff who offered them complimentary desserts for a birthday celebration—a small gesture that transformed their stay into an unforgettable memory.

Nestled in the heart of Iceland's stunning landscapes, Seljalandsfoss Horizons is a serene escape where romance flourishes and nature breathes life into every moment. With sweeping mountain views and the melodious sound of cascading waterfalls, this luxurious retreat invites couples and adventurers alike to revel in the art of relaxation amidst an enchanting backdrop.

Romantic Break - Indulge in intimate moments as you cozy up on your private balcony, savoring a glass of wine under the vast Icelandic sky with the gentle hum of nature surrounding you. Soft linens and tasteful decor create a haven perfect for honeymoons and romantic getaways.

Total Relaxation - Step into a world where tranquility reigns, with each lodge thoughtfully designed to provide a peaceful respite. The soothing ambiance, highlighted by natural wood finishes and modern comforts, allows you to unwind completely, whether you're soaking in the local beauty or enjoying a leisurely breakfast delivered to your door.

Outstanding Location - Positioned just moments from the iconic Seljalandsfoss waterfall, adventure awaits right outside your door. Stroll along scenic hiking trails that wind through breathtaking vistas, where the crisp air invigorates your senses and the sights become cherished memories.

Guest Experiences - One guest described waking up to the aroma of freshly brewed coffee wafting through the cabin, the soft light illuminating the exquisite interior, while another mentioned how they felt cocooned in comfort during a fierce storm outside, warmed by their cozy surroundings.

Nestled at the foot of the majestic Eyjafjallajökull, Umi Hotel offers an unparalleled blend of modern luxury and Icelandic charm. Surrounded by sweeping fields and whispers of nature, the hotel's intimate atmosphere creates a serene escape for couples and adventurers alike, making each moment feel like a cherished memory waiting to unfold.

Romantic Retreat - With stylish Scandinavian decor and breathtaking views, each room becomes a cozy sanctuary where couples can unwind and connect, enjoying the perfect backdrop for starlit conversations over a warm cup of tea.

Culinary Delights - The on-site restaurant serves as a culinary haven, where guests savor thoughtfully crafted dishes with local ingredients, elevating dining into a memorable experience that lingers long after the last bite.

Nature's Playground - Just a short stroll from the black sands of the beach, guests are invited to explore picturesque landscapes and enjoy tranquil moments, often finding themselves alone with the soothing sounds of waves crashing against the shore.

Guest Experiences - One guest delighted in the unexpected joy of watching friendly horses just outside their window, while another remarked on the warmth of the staff, who treated their young child like family, infusing each interaction with genuine care and friendliness.

Nestled in the heart of Hella, Iceland, Aurora Igloo South offers a serene escape where romance flourishes beneath a tapestry of sparkling stars. Each igloo is a cozy sanctuary, blending luxury with nature's marvels, creating an intimate atmosphere perfect for couples seeking adventure or relaxation amidst breathtaking landscapes.

Romantic Break - Indulge in enchanting nights under the ethereal glow of the Northern Lights, where your private igloo serves as both shelter and a front-row seat to one of nature's most spectacular shows.

Total Relaxation - Embrace complete tranquility in your igloo’s warm embrace, where plush bedding invites you to unwind after a day of exploration, complemented by complimentary hot drinks that wrap around you like a comforting hug on chilly evenings.

Secluded Setting - Set against the dramatic backdrop of Icelandic hills and mountains, each stay immerses you in nature's beauty, making it easy to forget the outside world as you breathe in the fresh, crisp air on quiet mornings.

Guest Experiences - As one guest noted, there’s nothing quite like sipping hot chocolate while wrapped in fluffy blankets, listening to the gentle rustle of the wind outside—a simple pleasure that turns moments into cherished memories.

Nestled alongside the crystal-clear waters of the Rangá salmon river, Hotel Rangá is a luxurious haven where romance and adventure intertwine. With its breathtaking views of Mount Hekla and the ethereal Northern Lights often illuminating the skies above, this modern retreat offers an intimate escape into Iceland's pristine wilderness.

Stargazing Paradise - At Hotel Rangá, the cosmos feels within reach with dedicated stargazing observatories that enhance your experience under the vast northern sky. Guests are treated to special wake-up calls when the auroras dance overhead, allowing for serene moments filled with wonder and awe.

Culinary Delights - Indulge in exceptional Nordic-inspired cuisine at the hotel’s restaurant, where each dish is crafted from fresh, local ingredients. Savor gourmet flavors while enjoying panoramic views of the Eyjafjallajökull volcano, creating a dining experience that is as visually stunning as it is delicious.

Relaxation Retreat - Rejuvenate in outdoor hot tubs surrounded by nature’s splendor, or sink into individually decorated rooms featuring spa baths and private balconies. The soothing sounds of the river and the crisp mountain air invite you to unwind amidst the tranquil landscape.

Guest Experiences - One guest cherished their arrival with complimentary drinks that sparked lively conversations with the friendly bartender, all while soaking in the stunning river view from their room. Another delighted in the aroma of freshly prepared breakfast wafting through the air, setting the perfect tone for each day spent in this enchanting locale.

Nestled in the serene landscapes of Holt, Iceland, Boutique Hotel Anna by EJ Hotels invites you to unwind in a world where modern chic meets natural beauty. With its intimate atmosphere and captivating mountain views, this cozy haven is perfect for couples seeking romance or solo travelers yearning for reflection amidst the stunning tranquility of the Icelandic countryside.

Romantic Escape - With its warm décor and inviting ambiance, each room at Boutique Hotel Anna provides a peaceful sanctuary, ideal for intimate evenings spent gazing out at breathtaking vistas over steaming cups of tea.

Culinary Delights - Savor exquisite dishes crafted from local ingredients in our on-site restaurant, where the mouthwatering aromas blend with the comfort of shared laughter, creating unforgettable memories around every table.

Outdoor Adventures - Step outside your door to embrace the allure of the surrounding landscape; the whispering winds and rustling leaves beckon you to explore hiking trails that reveal hidden waterfalls and charming local markets.

Guest Experiences - Imagine waking up to the crisp morning air, savoring a delicious breakfast prepared just for you, while the sounds of horses neighing nearby and the distant rush of a waterfall create a symphony that dances around your senses.

Nestled in the heart of Hveragerði, The Greenhouse Hotel is a sanctuary where modern design meets the lush landscapes of Iceland. With a vibrant atmosphere and chic decor, each corner invites guests to immerse themselves in comfort while savoring the unique experiences that await just beyond their door.

Culinary Delight - Indulge in seven distinct dining options within the hotel’s lively food hall, ranging from fresh seafood to tantalizing tacos, where each bite resonates with local flavors, ensuring every meal is an adventure.

Eco-Conscious Chic - Experience the allure of sustainable luxury with locally crafted, recycled furnishings in spacious rooms, creating an inviting sanctuary that blends contemporary style with eco-friendly comforts.

Local Exploration - With geothermal wonders, hiking trails, and artisan shops right at your doorstep, The Greenhouse Hotel serves as the perfect base for those eager to explore the enchanting landscapes and vibrant culture of Iceland.

Guest Experiences - Imagine settling into your room, enveloped by the comforting scent of fresh linens, while glancing at the notice board filled with tips for local pizza spots and microbreweries—a delightful reminder that adventure awaits just outside. Guests rave about the northern lights WhatsApp group, bringing a touch of magic as they’re alerted to shimmering skies while cozied up in chic bedding.

Nestled in the serene countryside of Ketilsstadaskóli, Volcano Hotel is a romantic haven where modern luxury meets Icelandic charm. With majestic views of cascading waterfalls and the rugged coastline just minutes away, this boutique retreat invites you to disconnect from the world and reconnect with nature and your loved one in an intimate setting.

Total Relaxation - Unwind in spacious guest rooms that exude tranquility, complete with plush bedding and Netflix for cozy movie nights as you sip on complimentary tea and coffee, all while indulging in breathtaking views of the surrounding landscape.

Outstanding Location - Perfectly positioned for adventure seekers, the hotel is just a stone's throw from iconic natural wonders like the Dyrhólaey Peninsula and Reynisfjara Black Sand Beach, ensuring your days are filled with exploration amidst some of Iceland's most stunning scenery.

Romantic Break - Experience a truly romantic getaway as you enjoy candlelit dinners featuring local cuisine, surrounded by the soft glow of the northern lights dancing above—an enchanting backdrop to your Icelandic escape.

Guest Experiences - After a long journey through blizzard-like conditions, guests often mention how they felt enveloped in warmth upon arrival, greeted by welcoming staff who whipped up hearty breakfasts and ensured every detail of their stay was perfect, making it feel like a cherished sanctuary.

Nestled on the dramatic slopes of Mount Hengill, ION Adventure Hotel offers an exquisite blend of contemporary design and nature's raw beauty. With panoramic vistas of Lake Thingvallavatn and the rugged Icelandic landscape, this chic boutique hotel serves as a serene escape for those seeking romance, adventure, and rejuvenation in a breathtaking setting.

Total Relaxation - Indulge in a world of tranquility at our luxurious spa, where the scent of essential oils mingles with soothing sounds, inviting you to unwind completely. The outdoor hot pool beckons after a day of exploration, enveloped by stunning mountain views that shift with the light, creating an ethereal atmosphere.

Outstanding Location - Perched within the UNESCO-listed Thingvellir National Park, guests can immerse themselves in Iceland's otherworldly terrain just steps from their door. This secluded haven offers a front-row seat to the Northern Lights, painting the sky with surreal hues while the crisp air invigorates your senses.

Romantic Break - Every corner of ION Adventure Hotel whispers romance, whether it’s enjoying intimate dinners featuring Nordic specialties or cozying up by the fireplace with a fine wine. The soft glow of lanterns casts gentle shadows across the restaurant, enhancing the ambiance, making every moment feel like a cherished memory.

Guest Experiences - One guest recalled the thrill of being gently awakened by staff to catch a glimpse of the mesmerizing Northern Lights, their fingers tingling from the chill as they stepped outside, blankets wrapped tight. With each steam rising from the hot pool, they reveled in the magic of that moment, surrounded by the silent grandeur of nature.