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5 Boutique Hotels in Iceland (And 3 Unique Stays)

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Welcome to the land of fire and ice, where captivating landscapes meet unparalleled hospitality – the land of Iceland. Nestled within this country are boutique hotels that redefine the art of accommodation. In this blog post, we embark on a journey to explore 5 boutique hotels in Iceland, along with a few unique stays that will blow your mind. From the vibrant energy of Reykjavik to the tranquil shores of the countryside, these boutique hotels offer a blend of contemporary luxury and authentic Icelandic charm. Join me as I unveil the allure of boutique hotels that promise an unforgettable stay amidst Iceland’s natural wonders. As a bonus, I will throw in unique places to stay that will be hard to pass up, including some of the best hotels for northern lights in Iceland and the coolest hotels on the Golden Circle.

Disclaimer: Links may contain affiliate links. This means I may get a small commission from the sale at no cost to you.

Waterfall near Kirkjufell on Snaefellsnes Peninsula.

Boutique Hotels Reykjavik, Iceland

1) 101 Hotel, Reykjavik

Located in the heart of Iceland’s capital city, 101 Hotel is a stylish boutique hotel in Reykjavik known for its contemporary design and luxury amenities. This smaller hotel with just 38 rooms offers an intimate atmosphere and personalized service. The hotel’s chic interiors, modern art pieces, and a trendy bar make it a popular choice for travelers looking for a unique urban experience. If you’re wondering where you should stay that is close to the city center of Reykjavik, This is a great option.

Other sought after amenities include a restaurant/bar and gym. Another great perk about 101 Hotel, is they offer airport transfer for a surcharge and luggage storage if you arrive far beyond your check in time. This is a big perk for many travelers to Iceland as many flights come in early morning or late at night, so knowing your hotel will be able to help you get to Reykjavik, make travel less stressful.

This boutique hotel is located in the heart of Reykjavik, for those looking to be in the middle of all the action.

A map of Reykjavik, Iceland, showing where boutique 101 Hotel is in relation to the city center.
101 Hotel – Boutique Hotels Reykjavik Map

Here are some great (highly rated) tours out of Reykjavik. The food tour was great! Our guide was knowledgable and interesting. We got to taste samplings from 5 different locations.

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2) Ion Adventure Hotel, Thingvellir:

Situated near the famous Thingvellir National Park (on the Golden Circle), Ion Adventure Hotel offers a unique blend of luxury and rugged nature. The boutique hotel’s design is inspired by its surroundings, featuring a minimalist decor with large windows that provide breathtaking views of the rustic landscapes in Iceland. It’s a great choice for travelers looking to explore Iceland’s natural beauty while exploring the Golden Circle.

The northern lights make a beautiful backdrop for this country-side hotel.

Here is a map that shows Ion Adventure Hotel’s location amongst the Golden Circle sights. This is an excellent boutique hotel to take in all the Golden Circle has to offer in Iceland.

Map of the Golden Circle showing where Ion Adventure is located.
A map of Ion Adventure Hotel on the the Golden Circle, one of the coolest hotels in Iceland
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3) Hotel Budir, Snaefellsnes Peninsula

This quaint Icelandic boutique hotel is set against the gorgeous backdrop of the Snaefellsnes peninsula and the ocean. Hotel Budir has an amazingly cozy and rustic atmosphere. This makes it a popular destination for those seeking tranquility and breathtaking scenery. The hotel has an acclaimed restaurant that is known for its gourmet Nordic cuisine. The Snaefellsnes Peninsula was one of my favorite parts of our trip to Iceland.

This sea side boutique hotel in Iceland is another great country escape to capture northern lights in the winter months. A lovely breakfast is available for a surcharge. What a great way to start another day of adventuring in Iceland.

Here is a map of where Hotel Budir is in comparison to Reykjavik, Iceland.

If you're wondering where to stay outside Reykjavik, consider Hotel Budir in Iceland.
A map of Hotel Budir – One of the coolest hotels in Iceland
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Búðakirkja – The Black Church of Budir is one of my favorite shots taken in Iceland

4) The Retreat at Blue Lagoon, Grindavik

Offering a luxurious spa experience, The Retreat at Blue Lagoon is located in a lava field near the iconic Blue Lagoon geothermal spa. This retreat-like hotel features a clean and modern design, with its own private lagoon section for guests. It’s an excellent boutique hotel choice for travelers who want the full experience of this unique geothermal attractions of Iceland.

The Retreat at the Blue Lagoon is one the best boutique hotels to chose from in Iceland.

Just think of waking up at this magical retreat and being steps away from this breathless lagoon.

The Retreat at the Blue Lagoon is one the best hotels outside of Reykjavik, Iceland.
The Retreat at The Blue Lagoon is a boutique hotel located just outside of Reykjavik in Iceland, one of the coolest hotels in Iceland
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Helpful hint for the lagoons of Iceland: Use a waterproof phone pouch to keep your phone dry, all while being able to capture precious moments soaking in the lagoon.

5) Eleven Deplar Farm, Troll Peninsula

If you’re traveling on the northern side of Iceland, Deplar Farm is a converted sheep farm turned into a luxury retreat. This boutique hotel is located on the rugged Troll Peninsula in Iceland. It offers a range of outdoor activities such as heli-skiing, horseback riding, and fishing. Deplar Farm has a small number of rooms so guests can enjoy a personalized stay in a breathtaking natural setting.

All around stunning views. Another great hotel to spot northern lights at in Iceland.

Northwest Iceland and the Troll Peninsula, where Eleven Deplar Farm is located, a boutique hotel in Iceland.
A map showing where Eleven Deplar Farm is located – one of the coolest hotels in Iceland.

The northern side of Iceland is the best place to go for whale watching. Whale watching is best during the months of April to September.

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Bonus: 3 Unique Stays in Iceland

People are drawn to Iceland for its rugged landscapes and rustic scenery. One way to make your stay as memorable as possible is to stay in some of Iceland’s most unique places. Here are 5 unique stays in Iceland to add onto some of Iceland’s best hotels.

Unique Hotel in Iceland #1: Hotel Ranga

Located between Selfoss and Vik, Hotel Rangá offers a luxury experience with its gourmet dining and incredible hospitality. If you’re looking for a place to stay while touring the south coast, this could be the perfect fit. Hotel Rangá is a great hotel to spot northern lights in Iceland. Read here why Hotel Rangá is a perfect pick for northern lights. One thing that stands out is, they do northern light wake up calls! Northern lights can happen at any point in the night. If you choose, staff will call you if they are spotted during the night. Now that is service!

The boutique style rooms at Hotel Ranga make this place a top retreat in Iceland.

A map showing Hotel Ranga location. Located on the South Coast route, outside of Reykjavik.

Unique Hotel in Iceland #2: Bubble Hotel – The 5 Million Star Hotel

Are you hoping to sleep under the stars? Catch a glimpse of the northern lights from the comfort of your bed? Sleeping in a bubble might be for you. Bubble Hotel is one of Iceland’s most unique stays. The company offers tours that include a full day adventure and a nights stay in a bubble, overlooking the stars.

These are a hot commodity, for obvious reasons, so be sure to book in advance. Especially as tourism picks up in the summer months.

A map showing Bubble Hotel in relation to Reykjavik, Iceland.

Unique Hotel in Iceland #3: Torfhus Retreat

Torfhus Retreat in Iceland is a unique accommodation nestled in the picturesque landscapes of the Golden Circle. It offers a cozy and traditional Icelandic experience with its turf houses, providing guests with a taste of local architecture and culture. The retreat is known for its serene surroundings, allowing visitors to immerse themselves in the tranquility of Iceland’s natural beauty.

After a full day of exploring, wind down with a gourmet meal and a soak in your own basalt stone hot pool. Located in the countryside, this is a great hotel for spotting northern lights. Guests can also take guided horseback tours on their beautiful Icelandic horses.

If you’re looking for a hotel along the Golden Circle, Torfhus Retreat is an excellent option

A map that shows Torfus Retreat in comparison to the Golden Circle and Reykjavik.
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