When planning your Iceland adventure, one of the most important decisions you’ll make is where to stay. Iceland’s dramatic landscapes and raw beauty demand a retreat that’s just as memorable and after personally staying at both the Reykjavik EDITION and the Retreat at the Blue Lagoon, I can confidently say they’re two of the best hotel experiences in the country.

The Reykjavik EDITION: Elevated City Energy

The Reykjavik EDITION is Iceland’s first true five-star hotel and it delivers!

From the moment you walk in, the space feels distinctly Scandinavian: all clean lines, warm textures, and that perfect balance of minimalism and comfort. It’s polished but never stuffy. Designed with intentional flow, the public areas naturally draw you in, leading to one of my favorite corners of the hotel—the Tölt Bar.

Tucked off the main lobby, Tölt feels like a secret you’re lucky to know. It’s intimate, moody, and styled like a chic speakeasy, ideal for a nightcap after a day of chasing waterfalls or walking Reykjavik’s colorful streets.

And after a few days of exploring Iceland’s wilder side, the hotel spa offers the kind of restorative calm your body craves. Think: tailored treatments, serene interiors, and just enough solitude to feel rebalanced before your next outing.

Between its thoughtful design, prime location, and intuitive service, the EDITION is a clear choice for travelers who want refined comfort while staying close to the city’s heart.

Retreat at the Blue Lagoon: Stillness, Designed

If the EDITION brings the energy of Reykjavik, the Retreat at the Blue Lagoon offers the exact opposite: pure serenity.

Staying here is an experience in itself. Unlike the public Blue Lagoon, the Retreat gives guests access to their own private lagoon which is completely separate and purposefully designed for quiet. Phones aren’t allowed in the water, which means you’re fully present. It’s a detail I loved. It’s rare to find places that help you disconnect, and even rarer to find them done so beautifully.

That said, they’ve thought of everything. Discreet staff are available to take a photo if you want a memory to take home, just another example of how this hotel anticipates needs without interrupting the peace.

A stay at the Retreat also includes the signature Ritual (a self-guided spa experience through mineral scrubs and steam), and dinner at Moss, their Michelin-starred restaurant, which is well worth planning your day around.

If you’re looking for a space to exhale, reset, and absorb the raw beauty of Iceland in a deeply sensory way, this is it.

Ready to Plan?

Whether you’re dreaming of an active itinerary with days spent hiking glaciers and exploring black sand beaches, or something slower and spa-soaked, where you stay in Iceland will shape the entire feel of your trip.

Curious what an Iceland itinerary can look like for you? View our sample itinerary here.

I help clients book both hotel-only stays and full-service, start-to-finish Iceland itineraries that layer in the best of what this magical destination offers—without the guesswork. You can start planning with me right here.