The 31 Best Boutique Hotels with Entertainment in Iceland (2025)

In the enchanting landscapes of Iceland, where dramatic volcanoes meet stunning coastlines, and the ethereal Northern Lights dance across winter skies, visitors are captivated by a unique blend of natural beauty and vibrant culture. Reykjavik, the capital city, boasts an eclectic mix of modern architecture and historical charm, offering everything from innovative culinary scenes to rich artistic expressions. It’s within this captivating backdrop that Iceland's boutique hotel scene thrives, providing distinctive accommodations infused with local character and unparalleled service. The Magma Hotel, for instance, embraces its surroundings with sustainable design and stunning views of the Lava Fields, while Tindasel Lodge offers a serene retreat with a focus on personalized experiences nestled in the picturesque East Fjords. For those seeking a touch of luxury, Siglo Hotel by Keahotels combines coastal elegance with adventure, perfectly situated near idyllic harbors and charming fishing villages. Discover the allure of Iceland Boutique Hotels with Entertainment, and let these exceptional stays inspire your next getaway as you explore all that this remarkable destination has to offer.

List Of Best Boutique Hotels with Entertainment Iceland

boutique hotels in Iceland

Magma Hotel

Hotel
Tunga, 880 Kirkjubæjarklaustur, Iceland

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.

boutique hotels in Iceland

Tindasel Lodge

Hotel
Rangárvallavegur, 851 Hella, Iceland

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.

boutique hotels in Iceland

Siglo Hotel by Keahotels

Hotel
Snorragata 3, 580 Siglufjörður, Iceland

Nestled in the picturesque village of Siglufjörður, Siglo Hotel by Keahotels exudes an intimate charm that beckons couples and adventure seekers alike. With its elegant design and breathtaking views of the harbor, this boutique hotel serves as a luxurious haven where romance intertwines with the rugged beauty of Icelandic nature.

Romantic Retreat - Immerse yourself in the serene ambiance of the hotel, where each room boasts plush beds and cozy window seats, perfect for sipping coffee while gazing out over tranquil waters, creating a romantic escape that's entirely your own.

Wellness Oasis - Unwind in the soothing warmth of the infrared sauna before taking a blissful dip in the outdoor hot tub, where the crisp mountain air mingles with the gentle sounds of water—an idyllic setting to rejuvenate after a day of exploration.

Culinary Delights - Start your day with an inviting breakfast spread, featuring local delicacies that awaken the senses, all enjoyed while seated at sunlit tables overlooking stunning seascapes; the friendly staff is always eager to share recommendations or ensure your glass is never empty.

Guest Experiences - One guest described the enchanting feeling of coziness upon entering the common area, where a crackling fireplace invites couples to snuggle up with a book or engage in friendly chess matches, bringing a touch of homey charm to their getaway.

boutique hotels in Iceland

Basalt Hotel

Hotel
Iðunnarstaðir Lundarreykjadalur, 311 Borgarnes, Iceland

Nestled in the tranquil embrace of Iðunnarstaðir, Basalt Hotel offers a serene escape amid Iceland's breathtaking landscapes. Here, the modern luxury of chic accommodations intertwines effortlessly with the rugged beauty of nature, creating a romantic and intimate hideaway perfect for couples and adventurers alike.

Total Relaxation - Unwind in the rejuvenating hot tub under an expansive sky, where the stars twinkle like diamonds and the crisp air carries the soothing sounds of silence, interrupted only by soft whispers of the breeze.

Outstanding Location - Perched conveniently near Thingvellir National Park, this picturesque hotel serves as your gateway to explore the dramatic vistas and historic sites of Iceland, providing the ideal backdrop for adventures that awaken the spirit.

Boutique Style - With its modern design, every corner of Basalt Hotel whispers elegance and comfort—where plush beds invite you to relax and uniquely designed spaces are adorned with local artworks that capture the essence of Icelandic culture.

Guest Experiences - One guest marvels at the delicious breakfast spread, where the scent of warm bread mingles with savory bacon, while another recalls the cozy charm of their room, complete with soft bathrobes awaiting them for a dip in the outdoor hot tub, which offered mesmerizing views of the surrounding mountains.

boutique hotels in Iceland

360 Hotel & Thermal Baths

Hotel
Mosató 3, 801 Selfoss, Iceland

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.

boutique hotels in Iceland

Torfhús Retreat

Hotel
Dalsholt, 801 Selfoss, Iceland

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.

boutique hotels in Iceland

Umi Hotel

Hotel
Leirnavegur, 861 Skogar, Iceland

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.

boutique hotels in Iceland

The Retreat at Blue Lagoon Iceland

Hotel
Norðurljósavegur 11, 240 Grindavík, Iceland

Nestled in the embrace of Iceland's awe-inspiring volcanic landscape, The Retreat at Blue Lagoon offers a sanctuary where luxury and nature harmoniously intertwine. Surrounded by the ethereal blue waters of geothermal lagoons, this elegant oasis invites couples, wellness seekers, and adventurers alike to indulge in an experience steeped in tranquility and refinement.

Spa Retreat - Step into a world of serene indulgence at the subterranean spa, where the soft murmurs of water complement the soothing scents of natural minerals, inviting you to unwind amidst expert massages and rejuvenating treatments that restore both body and soul.

Culinary Delights - Savor the flavors of Icelandic cuisine at our exquisite restaurant, where every dish is crafted with local ingredients. As you enjoy your meal, the warmth of freshly baked bread wafts through the air, mingling with the salt-kissed aroma of nearby sea views, creating an unforgettable dining experience.

Romantic Hideaway - Every room at The Retreat is a cocoon of relaxation, featuring plush textures and breathtaking views that invite you to linger. Enjoy intimate moments soaking in your private hot tub, as the soft glow of sunset reflects on the lagoon’s surface, painting a picturesque backdrop for romance.

Guest Experiences - From the moment you arrive, you're greeted by staff who remember your name and preferences, creating a sense of warmth that feels like home. Guests have marveled at the healing touch of the warm lagoon waters, with one noting how the mist carried the whisper of nature, wrapping them in a peaceful embrace throughout their stay.

boutique hotels in Iceland

Brimslóð Atelier Guesthouse

House
Brimslóð 10A, 540 Blönduós, Iceland

Nestled along the pristine shores of Blönduós, Brimslóð Atelier Guesthouse is a harmonious blend of chic design and intimate comfort, where each moment feels like an embrace from nature. With the gentle sound of waves lapping against the beach and breathtaking views that paint the sky at sunset, this guesthouse offers a romantic retreat away from the ordinary.

Romantic Break - Unwind in elegantly appointed rooms that invite heartfelt connections—each space adorned with thoughtful decor, enveloping you in warmth while creating the perfect backdrop for cherished moments together.

Total Relaxation - Indulge in rejuvenating experiences, from unwinding on the sun-drenched terrace to enjoying delicious, locally sourced meals prepared by talented chefs, all while surrounded by the tranquil sounds of nature.

Beach Life - Step outside into a serene paradise where soft sands meet the ocean’s embrace; enjoy leisurely strolls along the beach or cozy evenings by the outdoor fireplace as you watch the stars twinkle overhead.

Guest Experiences - In the common area, the aroma of freshly baked bread wafts through the air, mingling with laughter as guests gather at communal tables, sharing stories of their adventures while savoring a dinner that feels like a warm hug from the chef.

boutique hotels in Iceland

Hotel Flatey

Hotel
Flatey, 300 Flatey, Iceland

Nestled on the breathtaking Flatey Island, Hotel Flatey offers an exquisite sanctuary where modern elegance complements the raw beauty of Iceland's landscape. Here, the air is infused with the invigorating scent of the ocean and wildflowers, creating a serene backdrop for romantic getaways or adventurous escapes.

Total Relaxation - Unwind in our intimate shared lounge, where plush seating invites quiet conversations over the soft crackle of a nearby fire, while the sweeping views of the rugged coastline beckon you to breathe deeply and leave your worries behind.

Culinary Delights - Savor meals prepared with love in our stylish restaurant, where the aroma of fresh, local ingredients fills the air, and each bite transports you to the heart of Icelandic cuisine, punctuated by the laughter and warmth of our attentive staff.

Unique Experience - Stay in beautifully renovated rooms that echo traditional charm while offering modern comforts. Though cozy and intimate, these spaces reflect a unique character; sun-drenched mornings reveal stunning vistas that make the small size feel just right as you embrace the island's tranquil rhythm.

Guest Experiences - Imagine waking up to the gentle sounds of seabirds outside your window, then enjoying a delicious breakfast crafted from local delicacies, all while feeling the genuine hospitality from our team, especially Lilian, who makes every guest feel like a treasured friend.

boutique hotels in Iceland

Eyja Guldsmeden Hotel

Hotel
Brautarholt 10-14, 105 Reykjavík, Iceland

Nestled just moments from the vibrant heart of Reykjavík, Eyja Guldsmeden Hotel offers a serene retreat where chic design meets the charm of Icelandic hospitality. With its Balinese-inspired furnishings and breathtaking views of the Esja Mountain and city skyline, every corner of this boutique haven entices guests to unwind in style and comfort.

Chic Accommodations - Each room is a sanctuary adorned with 4-poster beds and organic toiletries, creating an atmosphere that whispers luxury while embracing eco-conscious values. Wake up to the gentle light filtering through large windows, inviting you to start your day immersed in beauty.

Culinary Delights - Indulge in a culinary journey at the on-site restaurant, where local flavors dance on your palate. The breakfast buffet, featuring fresh dairy and vegan delights, fills the air with tantalizing aromas that linger as you sip organic coffee in the cozy lounge.

Outstanding Location - With the bustling Laugavegur shopping street just a stroll away, the hotel serves as a perfect base for cultural explorers. Enjoy leisurely walks to nearby attractions, or embark on cycling adventures through the city and beyond, all while returning to your peaceful oasis.

Guest Experiences - As one guest marveled, they awoke to the enchanting spectacle of the aurora borealis visible from their room, a moment that felt like nature's own embrace. The welcoming staff, always ready to assist, created an ambiance so warm that even the soft leather of the lobby chairs seemed to invite lingering conversations over complimentary tea.

boutique hotels in Iceland

Hotel Kriunes

Hotel
Kriunesi Vatnsenda, Kópavogur, 203 Reykjavík, Iceland

Nestled on the tranquil shores of Lake Ellidavatn, Hotel Kriunes beckons with its luxurious yet intimate atmosphere, perfect for those seeking a romantic retreat or a restful escape. The serene landscape envelops you in nature's embrace, where each moment feels like a postcard from paradise as you watch the shimmering waters dance under the Icelandic sun.

Total Relaxation - Indulge in rejuvenating spa-like amenities, including a soothing sauna and inviting hot tub, where the gentle sound of nature enhances your serenity as you unwind after a day of exploration.

Romantic Break - Surprise your loved one with a lakeside experience that includes private views from your room and leisurely walks along picturesque trails, perfect for quiet conversations amidst the beauty of Iceland’s untouched landscapes.

Outstanding Location - With Heidmörk Natural Park just across the lake, adventure awaits at your doorstep—whether kayaking, cycling, or just soaking in the mesmerizing views that change with every hour of daylight.

Guest Experiences - As guests settle into their spacious rooms, many are taken by the aroma of fresh coffee wafting through the air during breakfast, accompanied by the soft crackling of the fireplace in the lounge—a comforting reminder of the warmth of home, even in the rugged beauty of Iceland.

boutique hotels in Iceland

Hotel Rangá

Hotel
Sudurlandsvegur, 851 Hella, Iceland

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.

boutique hotels in Iceland

Reykjavik Residence Apartment Hotel

Hotel
Vatnsstigur 2, 101 Reykjavík, Iceland

Nestled in the heart of Reykjavík, where the city’s vibrant pulse meets the serenity of home, the Reykjavík Residence Apartment Hotel invites you to indulge in a uniquely luxurious experience. Each self-catering apartment is thoughtfully designed with modern comforts and touches of romance, making it the perfect haven for couples and explorers alike as they embark on their Icelandic adventure.

Historic Charm - Set within beautifully preserved historic buildings, each apartment brims with character, offering glimpses into Reykjavík's rich past while providing contemporary amenities that blend seamlessly with the vintage allure.

Culinary Delights - Awake to the intoxicating aroma of freshly baked sourdough bread delivered to your door each morning—a delightful touch that enhances your stay, inviting leisurely breakfasts before venturing out to explore local culinary gems.

Prime Location - Positioned just steps away from the bustling Laugarvegur street, guests can quickly immerse themselves in Reykjavík's vibrant shopping scene, exquisite dining options, and lively nightlife, all easily accessible during a scenic stroll through the city's charming streets.

Guest Experiences - As you unwind in your cozy space, take note of the gentle hum of the city outside—it's a soothing soundtrack to your urban retreat. Guests have remarked on how the well-equipped kitchens allow for spontaneous late-night gatherings, where laughter blends with the clinking of mugs filled with warm beverages, echoing the camaraderie shared among friends and family.

boutique hotels in Iceland

The Greenhouse Hotel

Hotel
6 Austurmörk, 810 Hveragerði, Iceland

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.

boutique hotels in Iceland

Kvosin Downtown Hotel

Hotel
Kirkjutorg 4, 101 Reykjavík, Iceland

Nestled in the heart of Reykjavík, Kvosin Downtown Hotel invites you to experience a captivating blend of modern luxury and rich history. With its charming façade dating back to 1900, this boutique haven is just steps from the iconic Reykjavík Cathedral and the Icelandic Parliament, offering a serene retreat amidst the vibrant pulse of the city.

Romantic Break - Imagine sipping Nespresso coffee on your private terrace, with the soft morning light illuminating views of the cathedral and parliament—a perfect prelude to a day of exploration or relaxation.

City Style - Surrounded by eclectic shops and delightful eateries, Kvosin Downtown places you at the center of Reykjavík's cultural tapestry, where you can indulge your senses in the sounds of laughter and clinking glasses as you stroll through nearby bustling markets.

Total Relaxation - Each room is a sanctuary of comfort, featuring spacious layouts and cozy seating areas—ideal for unwinding after a day of adventures while feeling the warm embrace of a home-away-from-home atmosphere.

Guest Experiences - As guests step into their rooms, they often remark on the delightful scents wafting from nearby cafés, blending seamlessly with the crisp Icelandic air, while the friendly staff shares insider tips with genuine enthusiasm, making every stay feel uniquely special.

boutique hotels in Iceland

Hotel Búdir

Hotel
Búdir, 356 Búðir, Iceland

Nestled in the enchanting landscape of Búðir, Iceland, Hotel Búdir offers a romantic escape where modern luxury meets the raw beauty of nature. Surrounded by the serene whispers of the ocean and the rugged allure of distant lava fields, each moment here feels like a cherished memory waiting to unfold. The hotel’s design harmonizes with its stunning surroundings, creating an intimate haven for couples and adventurers alike.

Outstanding Location - Perched at the edge of an inlet filled with playful ducks and geese, the hotel's breathtaking views invite exploration of nearby seaside walking trails, where the air is fresh and invigorating. Guests often find themselves lost in the vastness of the scenery, capturing unforgettable moments framed by the iconic Snæfellsjökull Volcano.

Culinary Delights - Savor the essence of Icelandic gastronomy in the cozy dining room, where expertly crafted seafood and tender lamb dishes are complemented by a thoughtfully curated wine selection. The aromas of fresh-cooked breakfasts linger warmly, enhancing the ambiance as guests share stories over morning coffee with sweeping views of glaciers and sea.

Total Relaxation - Unwind in the elegantly designed spaces that encourage calm and reflection, from the inviting lobby adorned with classic furnishings to private rooms offering tranquil views. Many guests find solace in curling up with a book in one of the numerous seating nooks, serenaded by the gentle sounds of nature just outside.

Guest Experiences - One couple recalled their wedding day amidst the hotel’s breathtaking backdrop, with the staff going above and beyond to create an unforgettable experience; they found joy in the little things, like the friendly bar area where laughter flowed as freely as the drinks, and the thrill of spotting the northern lights on a wild, windy night.

boutique hotels in Iceland

Sand Hotel by Keahotels

Hotel
Laugavegur 34, 101 Reykjavík, Iceland

Nestled along the vibrant Laugavegur shopping street, Sand Hotel by Keahotels is a chic sanctuary where modern elegance meets Icelandic charm. With its carefully curated decor and intimate atmosphere, this boutique hotel offers a serene escape for couples and adventurers alike, enveloped in the enchanting pulse of Reykjavík.

Outstanding Location - Just a leisurely stroll from iconic landmarks like Hallgrímskirkja Church and Harpa Concert Hall, guests are perfectly positioned to explore the city's rich cultural tapestry while indulging in local cuisine and charming shops right at their doorstep.

Romantic Break - Imagine sipping artisanal coffee on the sun-drenched terrace with panoramic city views, or relishing a candlelit dinner at the hotel's restaurant—where each dish evokes the flavors of Iceland, creating unforgettable moments for lovebirds.

Total Relaxation - Each room is a haven of comfort, adorned with soft textures and soothing colors, inviting you to unwind after a day of exploration. Enjoy the plush bathrobes that wrap you in warmth as you savor your morning tea, surrounded by elegant touches that enhance your stay.

Guest Experiences - One guest fondly recalled the delightful aroma wafting from the breakfast area—a medley of freshly baked bread and brewing coffee—that beckoned them each morning. The attentive staff, always ready with a smile, made arrangements seamlessly, instantly transforming any travel hiccup into a smooth experience.

boutique hotels in Iceland

ION City Hotel, Reykjavik, a Member of Design Hotels

Hotel
Laugarvegur 28, 101 Reykjavík, Iceland

Nestled in the vibrant heart of Reykjavík, ION City Hotel offers an exquisite blend of modern design and warm Icelandic hospitality. With its chic ambiance and stunning views of both the cityscape and distant sea, this boutique haven is the perfect retreat for romantic escapes and adventurous explorations alike.

Outstanding Location - Just a stone’s throw from Laugavegur’s lively shopping district, guests can effortlessly immerse themselves in Reykjavík's rich culture, wandering past eclectic shops, inviting cafés, and captivating street art that tell stories of the city's vibrant spirit.

Romantic Retreat - With thoughtfully designed rooms featuring plush furnishings and elegant touches, the hotel provides a serene atmosphere where couples can unwind together, perhaps enjoying a glass of wine as they gaze out at the twinkling city lights or the serene waves of the nearby sea.

Spa & Relaxation - Enhance your stay with rejuvenating wellness offerings, whether it’s a refreshing workout in the fitness center or a moment of tranquility in your room, where soft linens and calming hues invite you to relax after a day of exploration.

Guest Experiences - Guests have shared the delight of returning early from their adventures to find their room ready ahead of schedule, coupled with the gentle hum of the city below filtering through the window—an invitation to step back out and savor the local nightlife or simply indulge in the comfort of their stylish surroundings.

boutique hotels in Iceland

Canopy by Hilton Reykjavik City Centre

Hotel
Smidjustigur 4 , 101 Reykjavík, Iceland

Nestled in the heart of Reykjavík, Canopy by Hilton Reykjavik City Centre exudes a sophisticated charm that invites guests to unwind and immerse themselves in the vibrant culture surrounding them. With its chic minimalist design, this urban oasis is the perfect backdrop for romantic getaways or leisurely explorations, all while indulging in local gastronomy and the warmth of Icelandic hospitality.

Outstanding Location - Just steps away from bustling Laugavegur Shopping Street and the serene waterside of Tjörnin Lake, every corner of this hotel offers a chance to discover Reykjavík's unique allure, from cozy cafes to lively bars teeming with life.

Total Relaxation - After a day of adventure, retreat to your spacious room where the luxurious bed envelops you in comfort, and the air carries a hint of freshly brewed coffee, readying you for a restful night.

City Style - The hotel's stylish décor seamlessly blends contemporary aesthetics with traditional Icelandic touches, creating an inviting atmosphere that reflects the spirit of the city and enhances your overall experience.

Guest Experiences - As I walked into the hotel, the delightful aroma of freshly baked pastries wafted through the lobby, instantly making me feel at home. The staff greeted us with genuine smiles, and when I mentioned my love for the shower, they chuckled and assured me it was indeed one of their favorites too—eager to share a quiet moment of joy in this bustling haven.

boutique hotels in Iceland

Alda Hotel Reykjavík

Hotel
Laugavegur 66, 101 Reykjavík, Iceland

Nestled in the heart of Reykjavík along the vibrant Laugavegur shopping street, Alda Hotel is a chic sanctuary where modern elegance meets Icelandic warmth. With an inviting ambiance that whispers luxury, this hotel serves as an oasis for romantic getaways and cultural explorations alike, just a stone's throw from iconic sights like Hallgrimskirkja Church.

Outstanding Location - Step outside and immerse yourself in the lively pulse of Reykjavík, with the city's best boutiques and cafés mere minutes away, yet retreat to your room to savor a moment of peace away from the bustle.

Total Relaxation - Indulge in wellness with complimentary access to the hotel's sauna, gym, and outdoor hot tub, where the soothing warmth envelops you while breathtaking views of the city skyline or shimmering sea rejuvenate your spirit.

Romantic Break - Each thoughtfully designed room is imbued with a cozy charm, offering options like private balconies that beckon couples to bask in sunsets painted over the horizon, setting the stage for unforgettable moments.

Guest Experiences - Guests often rave about the delightful breakfast spread, complete with a mix of warm and cold dishes; one visitor fondly recalls the scent of freshly baked pastries wafting through the air, perfectly paired with a charming touch: a takeaway breakfast bag for those early adventures beyond the hotel.

boutique hotels in Iceland

Hotel Reykjavík Centrum

Hotel
Adalstræti 16, 101 Reykjavík, Iceland

Nestled in the heart of Reykjavík, along the enchanting Adalstraeti street, Hotel Reykjavík Centrum invites you to step into a world where history and modernity intertwine effortlessly. Here, the whispers of Viking tales resonate beneath your feet, offering an intimate retreat that embodies both chic sophistication and cozy warmth, perfect for romance or adventure alike.

Historic Charm - Experience the allure of staying above the remnants of a Viking longhouse, as the on-site exhibition immerses you in the rich tapestry of Iceland's past, featuring artifacts like the country's oldest human remains dating back to 870 AD.

Chic Comfort - Each guest room is a sanctuary of modern elegance, where smooth wooden floors meet fresh bathrooms, creating a serene space to unwind after a day of exploring the vibrant city around you.

Outstanding Location - With the harbor and bustling restaurant district just blocks away, you can stroll through lively streets brimming with local markets and artistic charm, connecting easily to museums and tour operators awaiting your discovery.

Guest Experiences - As you sip your morning coffee, the aroma of freshly baked pastries wafts through Uppsalir café bar, while laughter from fellow guests adds a convivial touch. One guest fondly recalled how the heated bathroom floors became a little slice of luxury after chilly excursions.

boutique hotels in Iceland

Hotel Holt - The Art Hotel

Hotel
Bergstaðastræti 37, 101 Reykjavík, Iceland

Welcome to Hotel Holt - The Art Hotel, where the charm of Reykjavík's historic neighborhood embraces you in an intimate setting steeped in creativity and warmth. With each corner echoing the vibrant art scene of Iceland, this boutique retreat offers a luxurious sanctuary perfect for couples and cultural explorers alike, inviting you to immerse yourself in both the comforts of modernity and the whispers of history.

Artworks - Discover the largest privately owned art collection in Iceland, where each piece tells a story and adds depth to your experience, creating a gallery-like atmosphere throughout the hotel that sparks inspiration at every turn.

Romantic Break - Escape into a world of romance with our beautifully appointed rooms offering stunning views of the city, ideal for unwinding after a day of exploring or enjoying quiet moments together under soft, ambient lighting.

Outstanding location - Nestled in a tranquil yet vibrant neighborhood, Hotel Holt places you within easy reach of local markets, lively cafes, and iconic sights, making it the perfect base for guests eager to explore Reykjavík’s rich culture while enjoying restful nights away from the bustle.

Guest Experiences - As you step into the cozy bar area, the inviting aroma of freshly brewed coffee mingles with the laughter of guests sharing stories from their day. One guest remarked on the delight of discovering unique artworks displayed throughout the hallways, which made even waiting for the elevator feel like a mini-adventure through Icelandic artistry.

boutique hotels in Iceland

Reykjavik Marina - Berjaya Iceland Hotels

Hotel
Myrargata 2, Vesturbær, 101 Reykjavík, Iceland

Nestled in the vibrant and artistic 101 harbor district of Reykjavík, Reykjavik Marina - Berjaya Iceland Hotels invites you to immerse yourself in a unique blend of contemporary chic and local charm. Whether you're seeking a romantic getaway or an adventurous holiday, this boutique haven wraps you in warmth, with each room offering stunning views of either the bustling cityscape or the serene harbor.

Outstanding Location - Positioned just steps from the shimmering waters and lively atmosphere of the harbor, the hotel serves as your perfect launchpad for exploring Reykjavík's enchanting streets, eclectic boutiques, and local restaurants that are just a stone's throw away.

Chic & Quirky Atmosphere - With its inviting lobby featuring cozy nooks beside a crackling fireplace and quirky design elements, the hotel's interiors exude a sense of modern whimsy, making every corner a delight to discover, from the artful decor to the relaxing lounge areas filled with the aroma of freshly brewed coffee.

Culinary Delights - Start your day with an indulgent breakfast buffet that's more than just a meal; it’s an experience. With a vast selection of locally inspired dishes and fresh pastries that fill the air with sweet notes, you'll savor every moment as you plan your day's adventures.

Guest Experiences - Guests rave about the seamless blend of comfort and character here; one fondly remembered lounging in the vibrant bar area, where laughter mingled with the clinking of glasses, while another delighted in the surprise birthday celebration orchestrated by the incredibly attentive staff, making each moment feel special.

boutique hotels in Iceland

Center Hotels Laugavegur

Hotel
Laugavegur 95 - 99, 101 Reykjavík, Iceland

Nestled in the vibrant heart of Reykjavík, Center Hotels Laugavegur invites you to indulge in a world where contemporary elegance meets Icelandic charm. With a palpable sense of warmth and intimacy, this four-star sanctuary serves as the perfect backdrop for romantic getaways, cultural explorations, or rejuvenating escapes, leaving every guest enchanted by its cozy allure.

Outstanding Location - Step outside and find yourself at the crossroads of Reykjavík's bustling shopping scene and historic landmarks, with the Solfar Sun Voyager and Hallgrímskirkja Church just a leisurely stroll away, inviting endless discovery.

Romantic Break - Imagine sipping wine on your private balcony as the soft evening light casts a golden hue over the city streets below; an intimate ambiance perfect for couples seeking a tranquil refuge amidst Iceland’s stunning landscape.

Total Relaxation - Unwind after a day of adventures in beautifully designed rooms that offer a soothing atmosphere, complete with plush bedding and thoughtful amenities like complimentary teas and cozy sitting areas to relax or plan your next excursion.

Guest Experiences - Guests have shared delightful moments such as the comforting aroma of fresh coffee wafting through the lobby each morning, coupled with the genuine smiles from the friendly staff who often go the extra mile—like assisting with early check-ins and providing handy local tips that truly personalize your stay.

Other cool accommodation lists for Iceland:

Best Boutique Hotels with Entertainment that guests love in Iceland

boutique hotels in Iceland
Vatnsstigur 2, 101 Reykjavík, Iceland
9.3
3467 reviews
From $447

Guest Review: Really comfortable room with a little kitchenette right near the heart of Reykjavik. Walking distance to all major attractions and very close to transport as well. I will stay here again on my next visit!

boutique hotels in Iceland
Myrargata 2, Vesturbær, 101 Reykjavík, Iceland
8.6
3218 reviews
From $394

Guest Review: Great location in harbour area lots of restaurants and bakeries near by. Not to long of a walk to the bus stop 12 where tours pick you up. Staff were friendly. Rooms were clean.

boutique hotels in Iceland
Laugavegur 95 - 99, 101 Reykjavík, Iceland
8.6
2961 reviews
From $388

Guest Review: The breakfast was phenomenal. The location was very convenient to everything.

Iceland Boutique Hotels on the Map

Frequently Asked Questions

For breathtaking views, consider staying at Magma Hotel, known for its stunning landscapes, or Siglo Hotel by Keahotels, which overlooks the scenic harbor. Another great option is The Retreat at Blue Lagoon Iceland, where you can enjoy both luxury and mesmerizing vistas of the surrounding nature.

Absolutely! For a romantic getaway in Iceland, try Hotel Rangá, famous for its cozy atmosphere and hot tubs under the Northern Lights. Alternatively, Torfhús Retreat offers a unique experience with private cabins nearby stunning waterfalls, perfect for couples seeking intimacy and adventure.

If you're a foodie, check out Umi Hotel for its farm-to-table dining experience featuring fresh local ingredients. Eyja Guldsmeden Hotel also delights guests with organic dishes in a charming setting, making it an ideal choice for culinary enthusiasts visiting Iceland.

For top-tier luxury, The Retreat at Blue Lagoon Iceland combines opulence with geothermal spa experiences. Another excellent choice is 360 Hotel & Thermal Baths, providing upscale accommodations along with relaxing thermal baths, perfect for a lavish retreat in Iceland.

Families will love Reykjavik Residence Apartment Hotel, offering spacious apartments in a central location, ideal for exploring. Additionally, Brimslóð Atelier Guesthouse provides a welcoming atmosphere with easy access to outdoor activities, ensuring a fun-filled stay for all ages.

Yes! For travelers on a budget, Basalt Hotel offers stylish accommodations without breaking the bank. Additionally, Hotel Flatey provides affordable yet comfortable rooms, making it a great choice for those looking to explore beautiful Iceland without overspending.