preloadAurora Borealis - Lake Kleifarvatn - Iceland

Iceland is packed with stunning natural wonders, boasting dramatic landscapes of majestic waterfalls, steamy hot springs and icy glaciers. However, none of these compares to the otherworldly beauty of the Northern Lights, best seen from September to April. Iceland has a collection of hotels designed for Aurora Borealis viewing, letting you see one of the world’s most spectacular natural shows from an outdoor hot tub or on-site restaurant.

With over 400 million annual visitors to HotelsCombined, we’ve found the best hotels in Iceland to see the Northern Lights. Spend your days marvelling at black-sand beaches, bubbling geysers and ice caves, then recharge at one of these cosy hotels with outdoor hot tubs, luxurious day spas and spacious rooms with private balconies.

Top 5-Star Hotels

Luxury hotel like bedroom interior with large bed, seat, and terrace. expensive marble wall and large bathroom with glass wall. copy space render
Photo| Bedroom in a luxury hotel| GETTYIMAGES – EXPERIENCEINTERIORS

Diamond Suites Keflavik

Photo| Diamond Suites Keflavik| Provided by ICE PORTAL

A gorgeous 5-star hotel atop Hotel Keflavik, Diamond Suites Keflavik offers individually-decorated suites with unique character and themes. The Ruby Suite has a hand-carved headboard, whirlpool bathtub, flat-screen TV and iMac computer, while the opulent Diamond Suite features a spacious living and dining area, balcony and private Range Rover and driver.

You’re spoilt for choice in places to relax, starting with the elegant Diamond Lounge with its grand fireplace and local artwork. Next, step outside to discover a bubbling Jacuzzi enclosed by a glass house, perfect for star gazing.

Why You Should Stay Here

  • The Sapphire Suite’s private outdoor Jacuzzi where you can watch the Aurora Borealis.
  • Seafood, steaks and sky views at the glass-enclosed KEF Restaurant.
  • One kilometre from the Reykjanes Art Museum.

Star Rating: 5*
Price: USD 744 – USD 1,366
Guest Rating: 9.6
Address: Laugavegur 66-68, Midborg, Reykjavik, Iceland

Hotel Location

Top 4-Star Hotels

3d rendering interior and exterior design
Photo| Hotel bedroom| GETTYIMAGES – DIT26978

Alda Hotel Reykjavik

Photo| Alda Hotel Reykjavik| Provided by LEONARDO

Alda Hotel Reykjavik is located on Reykjavik’s main shopping street, Laugavegur. The boutique hotel offers 88 rooms in a variety of different configurations, including the Attic Room with Egyptian bed sheets, a flat-screen TV and shared balcony with city views. For vistas across the North Atlantic Ocean and mountains, stay in the Alda Attic.

Visit the concierge to book snowmobiling, whale watching or ice-caving excursions. If you time your visit right, you can join a private Northern Lights tour. Recharge with a visit to the fitness centre and dry sauna or head to the award-winning barber shop on site for a fresh cut.

Why You Should Stay Here

  • Grab and Go bags with a sandwich, Icelandic yoghurt and a muesli bar from the on-site Brass Restaurant.
  • Complimentary Android smartphones for all guests.
  • A 15-minute walk from Reykjavik’s popular shops, cafes and restaurants.

Star Rating: 4*
Price: USD 159 – USD 430
Guest Rating: 9.4
Address: Laugavegur 66-68, Midborg, Reykjavik, Iceland

Kvosin Downtown Hotel

Photo| Kvosin Downtown Hotel| Provided by BOOKING.COM

Located in the historic Kirkjuvoll building dating back to the 1900s, Kvosin Downtown Hotel sits next to the iconic Old Downtown Church. This intimate hotel has only 24 rooms, each one equipped with a spacious living area, cooking facilities and chic Scandinavian decor. Stay in the two-bedroom Valkyrie Suite for panoramic rooftop views of the city below.

Indulge in Icelandic favourites at the complimentary breakfast before walking to the city’s most iconic landmark, the Hallgrímskirkja cathedral. Sign up for glacier walks and Northern Lights tours, then kick back at the on-site Klaustur Bar, which offers a unique selection of wines, whiskeys and gins exclusive to Iceland.

Why You Should Stay Here

  • The Mint Lime, Strawberry and Cucumber gin and tonics served at Klaustur Bar.
  • The Social Suite’s kitchenette, Nespresso machine and private balcony.
  • Within a five-minute walk from the National Gallery of Iceland.

Star Rating: 4*
Price: USD 208 – USD 642
Guest Rating: 9.3
Address: Kirkjutorg 4, Midborg, Reykjavik, Iceland

CenterHotel Midgardur

Photo| CenterHotel Midgardur| Provided by BOOKING.COM

An oasis amid the bustling city centre, CenterHotel Midgardur boasts a modern U-shaped design. The Standard Double/Twin room features two single beds that can be made up as a king-size bed or two separate beds, a mini bar and flat-screen TV, while the Deluxe Double Twin also features stunning views over the mountains and sea from large windows.

The Lobby Lounge offers a cosy ambience, while the hotel’s secluded garden features an outdoor hot tub that’s a part of the Miogardur Spa. HotelsCombined visitors rave about the food at Jörgensen Kitchen & Bar, which specialises in traditional Icelandic cuisine with a modern twist and is also popular for its wine tasting.

Why You Should Stay Here

  • The spa’s indoor soaking pool, sauna and range of massages.
  • A Northern Lights wake-up call service.
  • A 24-hour front desk with concierge services that offer tour booking and restaurant assistance.

Star Rating: 4*
Price: USD 139 – USD 365
Guest Rating: 9.2
Address: Laugavegur 120, Hlidar, Reykjavik, Iceland

Hotel Ranga

Photo| Hotel Ranga| Provided by LEONARDO

Hotel Ranga is a posh hotel overlooking the East-Ranga, known for an ideal geographical location for Aurora Borealis viewing. All rooms at the hotel include bathrobes and slippers, mini bars and 24-hour room service, while the Deluxe features an indoor Jacuzzi and views of Mt. Hekla volcano and the Northern Lights.

Explore South Iceland’s Golden Circle and Glacier Lagoon, then retreat back to the hotel to soak in one of the three outdoor hot tubs or enjoy the seasonal gourmet menu at the riverside Ranga Restaurant. Visit the hotel’s on-site observatory, which includes high-quality telescopes to gaze into the clear sky.

Why You Should Stay Here

  • To explore the famous black beaches on the ATV Motorbike tour.
  • The 30 and 60-minute head, neck and shoulders massages available.
  • A five-minute drive from the history exhibits at Saga Centre.

Star Rating: 4*
Price: USD 374 – USD 729
Guest Rating: 9.1
Address: Sudurlandsvegur, Hella, Iceland

Hilton Reykjavik Nordica

Photo| Hotel Reykjavik Nordica| Provided by ICE PORTAL

Located in central Reykjavik, Hilton Reykjavik Nordica is a stylish hotel with 251 contemporary rooms. Visit the on-site restaurant, Vox, to indulge in Icelandic and Scandinavian cuisine from an open kitchen, or unwind with a trip to the spa, sauna and hot tubs. Business travellers will appreciate the modern business centre and 11 meeting rooms.

Relax in one of the bright and spacious rooms, which offer large windows, separate work areas and flat-screen TVs. The Executive rooms and suites include access to the Executive Lounge and its complimentary breakfast, while the elegant King Suites have impressive views of Reykjavik Bay and Mt Esja.

Why You Should Stay Here

Star Rating: 4*
Price: USD 162 – USD 427
Guest Rating: 8.9
Address: Sudurlandsbraut 2, Hlidar, Reykjavik, Iceland

Icelandair Hotel Reykjavik Marina

Photo| Icelandair Hotel Reykjavik Marina| Provided by BOOKING.COM

The rooms at Iceland Hotel Reykjavik Marina are decorated with contemporary Icelandic design, featuring maritime-inspired touches. All accommodations include flat-screen TVs, mini fridges and separate living areas, while the luxurious Marina Suite also boasts Reykjavik Harbour views and access to the hotel’s Social Hour with wine and light snacks.

Visit the industrial-style Slippbarinn restaurant to sample local flavours, then relax in the hotel’s inviting common areas or grab a drink at the bar. Slipp Cinema is the hotel’s 20-person screening room, while the Boiler Room has a climbing wall, yoga mats and treadmills.

Why You Should Stay Here

  • Spacious family suites with bunk beds.
  • Children movies shown during Brunch hours at Slippbarinn restaurant.
  • A 10-minute drive from the geothermal waters at Blue Lagoon.

Star Rating: 4*
Price: USD 158 – USD 535
Guest Rating: 8.9
Address: Mrargata 2 – 101, Vesturbaer, Reykjavik, Iceland

Hotel Borg by Keahotels

Photo| Hotel Borg by Keahotels| Provided by LEONARDO

The elegant Hotel Borg by Keahotels sits in the heart of Reykjavik overlooking the beautiful Austurvollur square. The 99 Art-Deco rooms feature custom-made furniture, flat-screen TVs, mini bars and coffeemakers. For heated floors, a multi-level living area and panoramic city views, upgrade to the Tower Suite.

When hunger strikes, head to the ground floor for antipasti, pasta, pizzas and desserts at Jamie’s Italian. The concierge can also help with restaurant reservations and guided tours, while the on-site spa has a hot tub, steam bath and sauna. Need to pick up souvenirs? Laugavegur shopping street is a 15-minute walk away.

Why You Should Stay Here

  • A Meat Plank with salami, pistachio mortadella, prosciutto and mozzarella at Jamie’s Italian.
  • The spa’s Aromatic Full Body Massage and Classic Deep Cleansing Facial.
  • Cosy Single and Double rooms to suit a variety of travellers.

Star Rating: 4*
Price: USD 184 – USD 313
Guest Rating: 8.4
Address: Posthusstraeti 11, Midborg, Reykjavik, Iceland

Hotel Location

Top 3-Star Hotels

Double bed in hotel room with warm light.
Photo| Hotel bedroom| GETTYIMAGES – CZHAN

Kriunes Hotel

Photo| Kriunes Hotel| Provided by BOOKING.COM

Overlooking the gorgeous Ellidavatn lake, Kriunes Hotel boasts inviting rooms with mountain and lake views, along with flat-screen TVs and high-speed Wi-Fi. Splurge on the spacious Master Suite with a separate living area or the romantic Honeymoon Suite with its four-poster bed. 

You don’t have to go far to find the Northern Lights, as the minimal city lights surrounding the hotel and complimentary wake-up call service give you the best chance of seeing them. The on-site Kria Restaurant and Bar is renowned for its home-grown vegetables and freshly-caught trout from the lake, while kids can enjoy complimentary ice cream if they finish their meal.

Why You Should Stay Here

  • The alluring hot tub and sauna.
  • Complimentary on-site parking and tea and coffee making facilities.
  • A 10-minute drive from one of the best golf courses in Iceland, GKG Golf.

Star Rating: 3*
Price: USD 116 – USD 226
Guest Rating: 9.1
Address: Vatnsenda, Kopavogur, Iceland

Hotel Budir

A two-hour drive from Reykjavik, Hotel Budir’s remote location makes it ideal for Northern Lights viewing. Each room offers a view of the magnificent landscape surrounding the hotel, including the Snaefellsjökull glacier and extensive lava field, while The Master Suite also includes a spacious living room.

Looking for adventure? Sign up for ice-climbing, cave exploring and horse riding. Afterwards, you can sip on a Northern Lights-themed cocktail at the Lounge and Bar, then indulge in fish and lamb dishes made from local produce at the gourmet on-site restaurant.

Why You Should Stay Here

  • The restaurant’s seafood and lamb are accompanied with wine selected by in-house sommeliers.
  • Stunning scenery with Snæfellsjökull glacier as a backdrop.
  • The bar’s selection of whisky, cognac and speciality liquors is one of the biggest in Iceland.

Star Rating: 3*
Price: USD 223 – USD 412
Guest Rating: 9
Address: IS-365 Snaefellsnes, Budir, Iceland

Northern Light Inn

Photo| Northern Light Inn| Provided by BOOKING.COM

A five-minute drive from the Blue Lagoon, Northern Light Inn is surrounded by moss-covered lava. You’ll find 42 rooms with warm Icelandic down comforters, eco geothermal hot water and high-speed Wi-Fi, while 10 Deluxe rooms also include an espresso machine, mini fridge and complimentary access to the Wellness Spa.

Warm up by the grand fireplace in the living room or enjoy a drink at the 24-hour Honesty Bar. Don’t forget to step out onto the Galaxy Tower Balcony for prime sky viewing. Experience zen in the Aurora Floating tanks or enjoy the sauna, then dine on freshly-caught fish at Max’s Restaurant.

Why You Should Stay Here

  • A Tranquility Space at the on-site spa designed for mindful relaxation.
  • Complimentary teas, coffee and hot chocolate available throughout the day.
  • Located in Reykjanes UNESCO Global GeoPark with easy access to outdoor adventures.

Star Rating: 3*
Price: USD 200 – USD 414
Guest Rating: 9
Address: Blue Lagoon Road, Grindavik, Iceland

Reykjavik Lights by Keahotels

Photo| Reykjavik Lights by Keahotels| Provided by LEONARDO

Inspired by the Northern Lights, Reykjavik Lights by Keahotels is a concept design hotel in Scandinavian style with a reference to the ancient Icelandic calendar. There are 105 bright and airy rooms to choose from, all of which are equipped with flat-screen TVs, coffee and tea making facilities and writing desks.

For extra space and optimal Northern Lights views, stay in the Superior Room. Fill up at the daily breakfast buffet, then join one of the available day trips, which range from glacier walks and ice cave exploring to snorkelling in Silfra Fissure.

Why You Should Stay Here

Star Rating: 3*
Price: USD 130 – USD 476
Guest Rating: 8.8
Address: Sudurlandsbraut 12, Haaleiti og Bustadir, Reykjavik, Iceland

Icelandair Hotel Hamar

Nestled on the 18-hole Hamar golf course, Iceland Hotel Hamar allows you to enjoy the peace and quiet of Iceland’s countryside. Twin Guest Rooms offer flat-screen TVs and direct access to an outdoor patio, while Junior Suites offer mountain views and an Espresso coffee machine. The spacious Family Room’s extra sofa beds are ideal for families.

Play a round of golf in the midnight sun or use the hotel as a base for snowmobiling, hiking and whale watching, then enjoy Icelandic delicacies and Borgarfjordur fjord views at the on-site restaurant. Don’t forget to soak in one of the geothermal-heated outdoor hot tubs offering stunning views of the Northern Lights.

Why You Should Stay Here

  • A cosy bar serving Icelandic vodka and schnapps produced at a nearby distillery.
  • All rooms boast geothermal heating under tiled floors.
  • A five-minute drive from the town of Borgarnes.

Star Rating: 3*
Price: USD 129 – USD 168
Guest Rating: 8.4
Address: Golf Course, Borgarnes, Iceland

Hotel Sel Mývatn

Photo| Hotel Sel Mývatn| Provided by BOOKING.COM

Home to 58 beautifully-furnished rooms, Hotel Sen Mývatn is a great base for exploring the natural wonders of Mývatn, dubbed the “Northern Lights Capital of Iceland”. Every room includes tea and coffee making facilities, Wi-Fi and a TV, while some also have a desk.

Lace up your boots and explore the Skútustaðagígar pseudo-craters nearby or sign up for a tour of Lake Mývatn, before rejuvenating your muscles in the on-site sauna and hot tub. Enjoy the a la carte menu of soups, salads and sandwiches at the hotel’s on-site restaurant or visit the charming Cafe Sel nearby for smoked trout.

Why You Should Stay Here

  • A lobby bar with a laid-back atmosphere.
  • The Skútustaðagígar pseudo-crater views from the on-site restaurant.
  • Organised Jeep trips, Northern Lights viewing and snowmobile tours.

Star Rating: 3*
Price: USD 116 – USD 408
Guest Rating: 8.3
Address: Skútustaðir, Myvatn, Iceland

Hotel Location


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Experience Iceland’s Stunning Natural Wonders in Style

Seeing the ethereal and elusive Northern Lights in Iceland is a bucket-list experience best paired with days exploring volcanoes, glaciers and thermal pools. These luxe hotels let you watch the celestial dance across the Arctic sky while enjoying warmth and comfort. They also include on-site restaurants designed for Northern Lights viewing, pampering day spas with saunas and hot tubs and concierge services for restaurants reservations and day tours.

Which Iceland hotel is your favourite? Let us know in the comments below.

About the author

Charity De Souza Born and raised in Orlando, Florida, I have been travelling with my battered backpack full-time for over a decade. My favourite travel memories include skydiving in Switzerland, wine tasting in Portugal, road tripping through Iceland, snorkelling in Indonesia and watching a sunset in the Sahara Desert.

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