Iceland · 9 Hotels Listed · Centre · Harpa · Bláa Lónið · Geysir
Reykjavik
Iceland's capital. Geothermal springs, Northern Lights, Blue Lagoon, and a refined Nordic luxury scene compressed into a small but extraordinary city.
Iceland's capital. Geothermal springs, Northern Lights, Blue Lagoon, and a refined Nordic luxury scene compressed into a small but extraordinary city.
The short answer
Reykjavik's luxury hotels split between heritage and harbour-front modernism. Hotel Borg, the country's first luxury hotel, has anchored Austurvöllur Square in Art Deco since 1930; the 253-room Reykjavik EDITION brought Marriott's design label to the Old Harbour in 2021. For geothermal wellness, The Retreat at Blue Lagoon reopened on 5 March 2026 after precautionary eruption closures.
Ranked by overall occasion score. Every hotel verified, priced, and reviewed for 2025, 2026.
"Opened 2021 on harbor, 253 rooms with full EDITION design standard."
"Open since 1930 on Austurvöllur Square, 99 rooms in Iceland's first luxury hotel."
"Across three restored buildings in central Reykjavik, 67 rooms."
"At Blue Lagoon, 62 suites with private lagoon access and lava rock spa."
Laugavegur 2 min on foot; Hallgrímskirkja 3 min; Tjörnin 4 min; Harpa 6 min; Old Harbour 10 min; Keflavík Airport 50 min by car
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Editorial review available on the hotel page.
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The Retreat at Blue Lagoon with private lagoon access is the wellness flagship. The Reykjavik EDITION is the urban alternative.
All Wellness Hotels →The Reykjavik EDITION is the polished modern anniversary choice. Hotel Borg 1930 Art Deco is the historic alternative.
All Anniversary Hotels →253 rooms opened 2021. Marriott EDITION's polished Reykjavik property, the most refined modern design luxury.
99 rooms in Iceland's first luxury hotel since 1930. Hotel Borg, Art Deco grandeur on Austurvöllur Square.
67 rooms across three restored buildings in central Reykjavik. Sandhotel, the boutique luxury alternative.
62 suites with private Blue Lagoon access. The Retreat, Iceland's most refined wellness luxury hotel.
September, March for Northern Lights. June, August for midnight sun.
Centre for Hotel Borg, Sandhotel. Harbor for EDITION. Blue Lagoon for The Retreat (45 minutes from city).
Top tier €400, €800.
Keflavík (KEF) airport. 45 minutes by Flybus to Reykjavik.
Book 2-3 months ahead. Northern Lights season fills earlier.
It depends on the stay you want. The Reykjavik EDITION, 253 rooms on the Old Harbour beside the Harpa concert hall, is the city's most complete modern design hotel and the choice for service and views. Hotel Borg, Art Deco since 1930, is the heritage answer in the heart of the centre.
Yes. The Blue Lagoon complex, including The Retreat hotel, reopened on 5 March 2026 and is operating on normal hours. The closures since late 2023 were precautionary measures tied to nearby eruptions, not damage; the protective barriers around the Svartsengi geothermal area held throughout.
Hotel Borg, which opened in 1930 as Iceland's first luxury hotel and still occupies its original Art Deco building on Austurvollur Square, opposite the parliament. Its 99 rooms keep period detailing, particularly in the foyer, making it the city's clearest piece of hotel heritage.
For the Northern Lights, come September through March, when the nights are long and dark. June to August brings the midnight sun and the mildest weather. Note that you usually leave the city centre and its light pollution to see the aurora clearly.
The top tier generally runs 400 to 800 euros a night. The Reykjavik EDITION starts around 500 euros, Hotel Borg from about 400, and The Retreat at Blue Lagoon, the most expensive, from roughly 800. Aurora season from autumn to early spring fills earliest and prices highest.
About 45 to 50 minutes by car or Flybus coach to central Reykjavik. The Blue Lagoon sits roughly halfway between the airport and the city, around 20 minutes from Keflavik, which makes The Retreat a practical first or last night.
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