The best places to stay in Iceland

The epitome of Icelandic luxury less than an hour from Reykjavik is The Retreat at Blue Lagoon Iceland, a minimal property carved into the stark landscape of an 800-year-old lava field. Designed in slate and earthy tones with exposed lava walls throughout, The Retreat uses its surrounding habitat to stunning effect, hiding a mineral-rich geothermal lagoon beneath the rooms. As well as that, all the hotel’s electricity and heating being powered by geothermal sources and a sustainable ethos is delivered through eco-friendly spa products, a seasonal farm-to-table menu and ongoing community initiatives.

Once an 18th-century sheep farm and now a rustic yet luxurious resort in the remote Troll Peninsula valley, Deplar Farm is sure to make you feel at home. Guests sleep in cosy suites under a living grass roof, enjoying inclusive meals of locally-caught seafood and free adventure activities led by staff. Trekking, skiing, kayaking and horse-riding are all popular by day but come evening it’s the spa, games room and open fireplace that will widely appeal. The farm’s remote northern location also makes it prime for aurora hunting, especially in the hotel’s geothermal pool (heated to a toasty 37°C), for which you’ll want to don your swimmers and a woolly hat, buying a drink from the swim-up bar while you wait for peak darkness.

Next up is Torfhús Retreat situated on Iceland’s Golden Circle, the popular route that starts in Reykjavik and connects the three key attractions of Thingvellir National Park, Gulfoss Waterfall and the Great Geysir. Close to Selfoss, Torfhus Retreat itself comes with attractions of its own, including the Landjökull glacier, the Highlands and the South Shore. Those looking for Iceland Northern Lights hotel options should look no further that the hotel’s eco-luxury cabins, each fitted with their own geothermal open-air pool – the perfect aurora viewpoint. Inspired by Icelandic Viking architecture, Torfhús blends with its volcanic surroundings in local stone, reclaimed wood and living turf roofing, operating entirely on sustainable energy.

Another of the luxury hotels in Iceland for aurora viewing is Hotel Rangá based south between the villages of Hella and Hvolsvöllur. Most of Iceland’s luxury resorts lie up north except Hotel Rangá, which is the only 4-star resort in South Iceland, boasting sensational views over Eystri Rangá river, Mt. Hekla and various glaciers. Just an hour’s drive from Reykjavik – along beautiful coastal roads and through fields of wildflowers, the hotel is a great addition to any road trip, allowing guests to recharge in classic rooms with gourmet dining on site.

Combining the two Icelandic loves of geothermal spas and dark sky views, 360 Hotel & Thermal Baths is a stellar choice for travellers keen on staying cosy while stargazing even in the dead of winter. Based hilltop near Selfoss, 360 Hotel stands out from its competition thanks to its 200-acre grounds and proximity to the Golden Circle. The hotel’s underground geothermal pool, sauna and spa will soothe you come evening, but daytime adventures will have you hiking volcanos, ice climbing and dog sledding to your heart’s content. Besides main attractions, the ‘Earthquake Town’ of Hveragerði and Reykjadalur Hot Spring River can be found just 30 minutes away.

Over in Haukadalur Valley, Hotel Geysir warrants the name with its position just a stone’s throw from Geysir geothermal area, not far off the Golden Circle route in South Iceland. The hotel’s huge windows and balconies make for cinematic views, while on the rooftop terrace romantic meals take place with valley panoramas to die for. Fishing, hiking and glacier tours are top choices by day, but by night you’ll have easy access to hot springs, mud pits and geyser eruptions, all with the Northern Lights hovering overhead.

Defying assumptions Sand Hotel by Keahotels comes totally sand-free in Central Reykjavik. Don’t let the lack of beaches disappoint you however because Sand Hotel, in partnership with Sandholt Bakery, can provide something even sweeter. Swapping the city’s favoured industrial design for something a little more elegant, Sand Hotel ensures its rooms and its guests come kitted out in masculine chic fits, thanks to artwork by Birgir Andrésson and on-demand tailoring from Gudsteinn Eyjólfsson haberdashery, Iceland’s oldest. After nibbling on fresh cinnamon-spiced buns from your bedside, get out on main street to explore the culture capital.