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The 8 Most Unique Hotels in Iceland

By Milda March 3, 2020

Discover Iceland Lodgings That Will Redefine the Way You Think About Hotels

We’ve put our heads together to unveil the most unusual and unique hotels in Iceland. Whether you want to sleep under the glow of the Northern Lights, channel your inner Viking or curl up in a space pod, Iceland offers all kinds of wonderful lodgings. Make your hotel an adventure in and of itself!


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Here are Iceland’s 8 most unique hotels as personally selected by Totally Iceland:

1. Galaxy Pod Hostel: For Space Nerds

Galaxy Pod Hostel will make you feel like you’re on a space mission. Located in the heart of Reykjavik, the hostel offers space-themed, Japanese-style pods for a moderate price. The futuristic self-contained units will make every sci-fi lover smile. No wonder Star Wars fans have been flocking to the hostel recently as reported by Lonely Planet.

If you don’t want to wait for Elon Musk to take passengers to space in Space X, then this space pod hostel in Iceland is for you!

Each pod is equipped with Smart TV, air conditioning, charging stations, reading lights, mirrors, hangers and mood lighting. The hostel even features a virtual reality gaming room. If you don’t want to wait for Elon Musk to take passengers to space in Space X, then this space pod hostel in Iceland is for you!

2. Wilderness Center Iceland Hotel: For Nature Lovers

This lodging option is much more than just a place to hit the hay. Located in East Iceland at the edge of Northern Europe’s largest wilderness area, Wilderness Center of Iceland is a great destination for its back-to-nature experience and delicious local food.

Wilderness Center is run by filmmaker Denni and historian Arna. The husband and wife team offers guests accommodation experiences that are out of this world. The vintage decorated rooms look like exhibitions in a quaint museum.

Denni and his family make pancakes in the middle of the night before removing the roof for views of the Northern Lights.

In fact, the whole property was restored to look like an old Icelandic farmstead. Sheep and horses may cross your path. For those who seek adventure, the center offers activity tours like hiking and horse riding. After a day spent in the wilderness, guests can relax at Hot Spring Spa. 

For your enjoyment, there is a cozy barn where Denni and his family make pancakes in the middle of the night before removing the roof for views of the Northern Lights. What’s left to say? Wilderness Center has certainly set the bar high for future hoteliers.

3. Iceland’s Bubble Hotel: For Aurora Seekers

Have you ever dreamed of sleeping under the Northern Lights? Live out your childhood dreams at Bubble Hotel in Iceland, perhaps the best Northern Lights hotel in Iceland. This awesome lodging (nicknamed “the 5 million star hotel”) consists of five bubble rooms with see-through walls to provide guests an unobstructed view of the aurora and surrounding landscapes. 

Each inflatable dome features a noiseless ventilation system and stays warm throughout the winter. Recline and enjoy the great aurora from the comfort of your own bed. The prime viewing season is from mid-September to mid-April. If you're visiting Iceland in summer, the Bubble Hotel is perfect for watching the Midnight Sun and spotting local wildlife.

The exact location of your room is kept secret until you've confirmed your booking.

Find Iceland's Bubble Hotel in the countryside near the Golden Circle. However, the exact location of your room is kept secret until you've confirmed your booking.

4. Hotel Viking: For History Buffs

Go back in time to when powerful Vikings roamed the seas at the Viking Hotel in Iceland. This themed hotel is a true historical gem. The interior of the hotel features art and crafts from West Nordic countries including Iceland, Greenland and the Faroe Islands. 

When it comes to food, you can satisfy your belly in the wooden dining room decorated with 100-year-old  snuff and wine barrels. Enjoy traditional Icelandic meals served on old world trays. Guests can also book a Viking “kidnapping” and be brought to the cave where Viking employees serve meals and sing old songs.

The hotel is located in the harbor town of Hafnarfjörður, which hosts an annual Viking festival in the summer. Expect no shortage of Viking-style entertainment!

5. Kex Hostel: For Meeting New People

If you want to mingle with locals or make new pals, book yourself into Kex Hostel in downtown Reykjavik. This cool hostel is a hotspot for socializing. Kex is the Icelandic word for “biscuit” and a reference to the hostel’s former incarnation as a biscuit factory.

Warm and welcoming, Kex Hostel offers a variety of dorms and private rooms for couples and families. The hostel is furnished with recycled vintage things and found objects from various places. Grab a chair and let the conversation flow at the lively Sæmundur gastropub.

The hostel’s stylish lounge hosts concerts by local bands and was chosen as a venue by Iceland Airwaves, the world's northernmost music showcase. You’ll also find a heated outdoor patio, an old-school boxing gym and a hipster hair salon, Raxtur.

6. Hotel Djúpavík: For Art Lovers

Looking for unique art experiences? Discover Hotel Djúpavík, set on the most stunning bay in the Westfjords. Housed in an old herring factory, the hotel features a huge assortment of artwork and installations. 

But one element will make your stay even more intriguing —  the Factory Art Exhibition held annually each summer. Get acquainted with the latest works by renowned local and international artists.

The remote town of Djúpavík, where the hotel is located, is a place of pure relaxation. Djúpavík is one of the least populated areas in Iceland. The town’s unspoiled landscapes and brilliant sea views make it the most peaceful place imaginable.

It’s little wonder that Hotel Djúpavík attracts many artists who are inspired by the location. Back in 2006, Sigur Rós, the world-famous Icelandic band, held a memorable concert and shot a part of their documentary here.

A stay at Hotel Djúpavík will leave every visitor feeling calm and centered.

7. Panorama Glass Lodge: For Romantic Getaways

It doesn’t get much more intimate than this Scandinavian glass cabin igloo, which can accommodate two guests at a time. Panorama Glass Lodge is located in the serene Hvalfjörður Fjord directly by the sea, and is just a 30-minute drive from Reykjavik. The luxurious resort features seriously beautiful views of the Icelandic landscape and starry night sky.

Though the king-size bed is the center of attention, the igloo also offers a fully equipped kitchenette, a dining table with two chairs and a private bathroom. The property’s outdoor hot tub is the cherry on the top of your Arctic vacation. Settle down in the relaxing warmth of your private tub looking out over the sea.

The property’s outdoor hot tub is the cherry on the top of your Arctic vacation.

Without a doubt, Panorama Glass Lodge is one of the coolest hotels in Iceland and a true Instagram darling. The glass igloo inspires wanderlust with a single photograph and is perfect for honeymooners or anyone looking to unplug from modern life.

8. Ion Adventure Hotel: For Outdoorsy Travelers

Ion Adventure Hotel in Iceland is the greatest adventure you haven’t yet experienced. Located next to Thingvellir National Park (a UNESCO World Heritage Site), this boutique hotel provides easy access to Iceland’s top attractions.

Guests can ask for a wake-up call if the magical aurora appears in the middle of the night.

You can do the famous Golden Circle sightseeing route, hike up the dormant volcano Hengill, snorkel between two tectonic plates and visit the unique Nesjavellir Geothermal Power Plant  —  all just a stone’s throw away from the hotel.

The 45 rooms at the resort are designed by the Santa Monica-based design studio Minarc. Floor-to-ceiling windows overlook surreal lava fields. The interiors are furnished with sustainable materials and feature water-saving shower systems.

For your comfort, the hotel offers the Lava Spa and the Northern Lights Bar, perfect for watching the dancing lights. Even better? Guests can ask for a wake-up call if the magical aurora appears in the middle of the night.

What’s your favorite hotel in Iceland? Let us know in the comments!

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