The 8 Best Boutique Family Hotels in West Iceland (2025)

Nestled between breathtaking volcanic landscapes and the serene beauty of the Atlantic coastline, West Iceland offers a unique tapestry of natural wonders, rich folklore, and vibrant culture. This enchanting region, where rugged mountains meet lush valleys, is a paradise for outdoor enthusiasts and those seeking a glimpse into Iceland's storied past. As you explore its stunning vistas, you'll discover a burgeoning collection of boutique hotels that perfectly complement the area's charm. With their emphasis on personalized service and authentic experiences, West Iceland’s boutique family hotels promise an unforgettable stay. At Drangar Country Guesthouse, guests are treated to panoramic views and a taste of local hospitality, making it an ideal retreat after a day of adventure. Meanwhile, Dalahyttur captivates with its cozy cabins nestled in tranquil surroundings, perfect for families looking to connect with nature. For a more contemporary feel, Basalt Hotel offers sleek design alongside proximity to geothermal hot springs, ensuring a luxurious escape. Embrace the allure of West Iceland as you browse our collection and start planning your adventure today!

List Of Best Boutique Family Hotels West Iceland

boutique hotels in West Iceland

Drangar Country Guesthouse

House
Snaefellsnesvegur Skógarströnd, 371 Drangar, Iceland

Nestled in the breathtaking landscapes of the Snæfellsnes Peninsula, Drangar Country Guesthouse invites you to experience a harmonious blend of modern comfort and natural beauty. With its warm ambiance and thoughtful design, this retreat offers an intimate escape where romance and adventure intertwine amid Iceland’s captivating scenery.

Total Relaxation - Indulge in serene moments as you unwind in cozy nooks adorned with soothing artworks, while the fresh scent of Icelandic moss wafts through open windows, inviting tranquility into your soul.

Country Escape - Embrace the unspoiled wilderness surrounding the guesthouse, where the gentle rustle of leaves and distant calls of birds create a backdrop for leisurely hikes along scenic trails that weave through stunning vistas.

Romantic Break - Set the stage for love in elegantly appointed rooms featuring plush furnishings and soft textiles, where the whispering winds outside create an enchanting soundtrack for intimate evenings spent together.

Guest Experiences - Upon arrival, guests are greeted not just by the promise of comfort but also by Knútur's infectious enthusiasm, sharing the aroma of freshly brewed coffee mingling with the crisp mountain air, setting a welcoming tone for all who enter.

boutique hotels in West Iceland

Dalahyttur

Cabin
Hlíð, 371 Hlíð í Hörðudal, Iceland

Nestled amidst the breathtaking landscapes of Hlíð í Hörðudal, Dalahyttur offers an intimate escape where luxury meets the rugged charm of Iceland's wild beauty. The air is crisp, and the magnificent mountain vistas provide a stunning backdrop for romantic evenings spent on your private terrace, immersed in the tranquility of nature.

Romantic Getaway - Each lodge at Dalahyttur is meticulously designed to create a warm, inviting atmosphere, featuring stylish furnishings that whisper luxury. Enjoy cozy nights under a blanket of stars or indulge in gourmet meals prepared by your passionate host, ensuring that every moment feels special.

Culinary Delights - Savor exquisite dishes crafted from local ingredients, where each bite tells a story of Icelandic tradition. From the unforgettable homemade waffles and lamb sausage at breakfast to a dinner of perfectly cooked fish, dining here is an experience that lingers long after the last plate is cleared.

Adventure Awaits - With hiking trails and cycling routes just moments away, Dalahyttur serves as a gateway to adventure. Explore the stunning surroundings during the day, then return to your haven for a well-deserved rest, lulled to sleep by the gentle sounds of nature.

Guest Experiences - Imagine waking up to the tantalizing aroma of fresh coffee drifting into your room, paired with the delightful presentation of breakfast that feels like an art form. Guests have marveled at how the soft glow of their cabin lights complements the mesmerizing dance of the Northern Lights outside—a magical sight that transforms each evening into an ethereal experience.

boutique hotels in West 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 West 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 West Iceland

Hótel Egilsen

Hotel
Adalgata 2, 340 Stykkishólmur, Iceland

Nestled within the charming historic walls of an 1860s building, Hótel Egilsen offers a sanctuary of elegance and warmth in Stykkishólmur. The gentle sound of waves lapping against the shore accompanies your stay, while stunning views of the Atlantic Ocean create a picturesque backdrop for memorable moments, whether you're enjoying a romantic getaway or embarking on an adventurous exploration of Iceland's natural wonders.

Historic Charm - Step into a world where time-honored architecture meets modern comforts, with cozy rooms featuring thoughtful details like iPod docking stations and plush bedding that beckons you to unwind after a day of local exploration.

Culinary Delights - Awaken your senses each morning with a breakfast spread featuring fresh, organic eggs, filling the air with a delightful aroma that complements the warmth of the chic lounge—a perfect place to savor your meal surrounded by the vibrant ambiance of fellow travelers.

Outstanding Location - With the Baldur Ferry Terminal just a short stroll away, you have unparalleled access to the breathtaking West Fjords and Flatey Island, ensuring that every adventure begins with convenience at your doorstep.

Guest Experiences - Guests are often greeted with heartfelt hospitality; one recent visitor recalled how Martha transformed their stay with personalized dinner recommendations and the intoxicating scent of freshly brewed coffee wafting through the cozy lounge, making it feel like home away from home.

boutique hotels in West Iceland

Dis Cottages

Cabin
Þórdísarstaðir, 350 Grundarfjordur, Iceland

Nestled in the serene embrace of Grundarfjordur, Dis Cottages offers an idyllic escape, where sweeping views of Kirkjufell unfold like a breathtaking painting. Each cottage serves as an intimate retreat, blending chic design with homey comforts, perfect for couples and adventurers seeking a touch of romance amidst Iceland's stunning landscapes.

Romantic Break - With private terraces overlooking the shimmering bay, each unit invites you to sip coffee under the vast Nordic sky while basking in the golden hues of dawn. The gentle sound of waves lapping against the shore adds to the dreamy atmosphere, setting the stage for unforgettable moments with your loved one.

Total Relaxation - Unwind in cozy lodgings thoughtfully equipped with everything needed for self-catering, allowing you to indulge in leisurely meals crafted from local ingredients. As evening falls, let the flickering warmth of the cabin envelop you, providing a comforting sanctuary after a day of exploration.

Outstanding Location - The breathtaking panorama of Kirkjufell serves as the backdrop to your stay, ensuring that every glance out the window reveals nature’s artistry. Watch as clouds drift lazily by, casting shadows over the landscape, or marvel at the dance of the Northern Lights painting the night sky—an ethereal spectacle not to be missed.

Guest Experiences - As guests settle into their cozy cottages, they often find themselves enchanted by the soft crackle of the heater warming the space, the rich aroma of fresh coffee brewing, and the mesmerizing view that seems to change with every passing moment—each snowfall transforming the landscape into a winter wonderland, inviting heartfelt conversations and connection.

boutique hotels in West 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 West Iceland

Vogur Country Lodge

Hotel
Fellsstrond, 371 Vogur, Iceland

Nestled in the serene embrace of Fellsstrond, Vogur Country Lodge is a romantic escape that invites you to unwind amidst spectacular views of Snæfellsnes Glacier and Breidafjördur Bay. This elegantly converted farmhouse, with its warm ambiance and intimate setting, offers an idyllic sanctuary for couples and adventurers alike, where every moment captures the essence of Iceland’s rugged beauty and cozy charm.

Culinary Delights - Savor the taste of traditional Icelandic cuisine, where each dish showcases regional specialties like tender lamb and succulent salmon, all crafted with love by the talented chef. The inviting aroma wafting from the kitchen blends effortlessly with the fresh sea breeze, making dining here an unforgettable sensory experience.

Total Relaxation - Immerse yourself in pure tranquility at the outdoor hot tub, where the gentle sound of bubbling water mingles with the tranquil Icelandic landscape. As evening falls, soak under the shimmering stars, feeling the warmth envelop you while the cool air invigorates your spirit.

Eco-Conscious Retreat - Discover a commitment to sustainability with local meat and dairy products available on-site, allowing you to indulge guilt-free. Embrace a lifestyle attuned to nature as you explore the picturesque surroundings on rented bikes, breathing in the clean, crisp air of untouched wilderness.

Guest Experiences - Many guests have described arriving weary from their long journey only to find an oasis of comfort awaiting them. From the cozy ambiance filled with the tantalizing scent of grilled delicacies to the friendly smiles of the staff who make you feel instantly at home, each moment is infused with genuine warmth that lingers long after your stay.

Best Boutique Family Hotels that guests love in West Iceland

boutique hotels in West Iceland
Iðunnarstaðir Lundarreykjadalur, 311 Borgarnes, Iceland
9.5
1134 reviews
From $247

Guest Review: Super nice surroundings. The staff were so friendly and recommended nice things to do for us. The rooms were clean and comfortable and we got nice bathrobes. Breakfast had eggs, bacon warm bread and all kinds of other things. Coffee was good. Over all we had a super good stay here ☺️

boutique hotels in West Iceland
Adalgata 2, 340 Stykkishólmur, Iceland
9.2
700 reviews
From $189

Guest Review: We had an amazing experience. Martha greeted us and we instantly felt welcomed. From the amazing service of describing the area and making dinner reservations for us, to the wonderful rooms, to the delicious breakfast, we could not ask for any more. THANK YOU!

boutique hotels in West Iceland
Þórdísarstaðir, 350 Grundarfjordur, Iceland
8.6
695 reviews
From $219

Guest Review: Amazing location overlooking Kirkjufell in Snaefellsness, with beautiful views. Well furnished, well appointed cabins. Very comfortable and with everything you need for your stay. Fantastic location to spend time in Snaefellsness. Would stay here again.

West Iceland Boutique Hotels on the Map

Frequently Asked Questions

For family-friendly stays in West Iceland, consider Drangar Country Guesthouse for its spacious rooms and outdoor activities, or Vogur Country Lodge which offers a tranquil setting and kid-friendly amenities. Both options provide comfort and engaging experiences for children while allowing parents to relax.

Yes, for a romantic getaway, Hotel Búdir boasts stunning views and charming decor, perfect for couples. Alternatively, Hótel Egilsen offers an intimate atmosphere with modern amenities, ensuring your stay is both cozy and memorable amidst the breathtaking landscapes of West Iceland.

If you're looking for great value, Dalahyttur provides comfortable accommodations with a rustic charm, while Dis Cottages offers unique, budget-friendly lodgings surrounded by nature. Both hotels ensure you experience the beauty of West Iceland without breaking the bank.

For spectacular views, Basalt Hotel is an excellent choice, featuring large windows that showcase the stunning Icelandic landscapes. Another great option is Hotel Flatey, located on a picturesque island, offering panoramic vistas and a serene environment ideal for relaxation.

For a touch of luxury in West Iceland, Hotel Búdir stands out with its elegant design and fine dining options. Additionally, Basalt Hotel combines sophistication with contemporary style, ensuring a lavish experience complete with stunning natural surroundings.