[2023 PICKS] The Best Boutique Hotels in South Iceland

The best boutique hotels in South Iceland place you in some of the most idyllic locations in this stunning region of the country.

South Iceland is a captivating travel destination that boasts a stunning landscape of glaciers, waterfalls, black sand beaches, and rugged coastline. Located just a short distance from the capital city of Reykjavik, South Iceland is a region that offers a perfect balance of adventure, relaxation, and cultural experiences.

Visitors can explore the iconic Golden Circle route, soak in hot springs, hike on glaciers, witness the majestic Northern Lights, and discover charming coastal towns.

We hand-picked top-rated boutique hotels in South Iceland to consider for your next getaway!

The 10 South Iceland Boutique Hotels – Best Places to Stay

1. Blue Hotel Fagrilundur – On The Golden Circle

9.2 Average Rating
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Blue Hotel Fagrilundur – On The Golden Circle is a 3-star boutique hotel in Reykholt, Iceland. It is 19 km from Geysir and 29 km from Gullfoss Waterfall. The hotel offers free WiFi and features 3-star accommodation. The guest rooms are equipped with a flat-screen TV, a private bathroom with a shower, free toiletries a hairdryer, and a fridge.

The hotel provides a buffet or continental breakfast, a hot tub, and a terrace. Nearby attractions include Thingvellir National Park (49 km away) and Ljosifoss (42 km away). The nearest airport is Reykjavík Domestic Airport, 96 km from the hotel.

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2. Hotel Geysir

9.3 Average Rating
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Located in the town of Geysir, Hotel Geysir is a boutique hotel that is just 100 meters away from the famous Geysir. It offers a range of facilities, such as a garden, free private parking, a restaurant, a bar, and an ATM. The hotel also provides 24-hour front desk service, airport transfers, free Wi-Fi throughout the property, and room service.

The rooms at Hotel Geysir have a flat-screen TV with satellite channels, a coffee machine, a bidet, free toiletries, a wardrobe, a private bathroom with a shower, and a hairdryer. Each room also features a safety deposit box and a mountain view. A buffet breakfast is served to guests at the hotel.

In the area, guests can enjoy activities such as hiking and cycling. Gullfoss Waterfall is 10 km away, and the nearest airport is Reykjavík Domestic Airport, which is 115 km away. Iceland boutique hotels don’t get much better than Hotel Geysir.

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3. Paradise Cave Hostel & Guesthouse

9.3 Average Rating
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Boutique hotels in Iceland are plentiful, and one of them is the Paradise Cave Hostel & Guesthouse. Located 3.5 km from the Seljalandsfoss, this hostel offers a range of accommodations with a garden, private parking, a terrace, and a bar. It also provides a shared kitchen and luggage storage space.

The Paradise Cave Hostel & Guesthouse rooms have a shared bathroom, shower, and hairdryer. They are also equipped with free WiFi, bed linen, and towels. A buffet breakfast is served at the property, and guests can enjoy hiking in and around Seljaland. Skogafoss Waterfall is 27 km away, and the nearest airport is Vestmannaeyjar Airport, 32 km away.

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4. Glamping & Camping

9.0 Average Rating
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Glamping & Camping is located in Vestmannaeyjar and offers stunning views of the mountains. Each unit has a seating area, while shared bathroom facilities are located in a building nearby. Guests can access a shared kitchen, laundry machine, and clothes dryer.

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5. Ásahraun Guesthouse

9.5 Average Rating
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Hotels in South Iceland offer visitors a range of options to choose from. Ásahraun Guesthouse is a great choice for those looking for a comfortable stay in the area. Located in Selfoss, it is just 35 km from Ljosifoss and 71 km from Reykjavík Domestic Airport.

The guesthouse provides a variety of amenities, including free WiFi, a garden with a terrace, and access to a hot tub. The accommodation includes a TV, private bathroom, shower, hot tub, and hairdryer. Guests can also use the kitchen equipped with a fridge, oven, microwave, stovetop, toaster, coffee machine, and kettle.

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6. Hrifunes Nature Park

9.5 Average Rating
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Hotels in South Iceland offer a variety of amenities for guests to enjoy. At Hrifunes Nature Park, located 47 kilometers from Fagrifoss, visitors can enjoy free WiFi, a garden, a sauna, and a hot tub.

The accommodation also features a terrace with mountain views, a seating area, a cable flat-screen TV, a fully equipped kitchen with a fridge and an oven, a private bathroom with a shower and a hairdryer, a dishwasher, a microwave, a stovetop, a coffee machine, and a kettle. Additionally, guests can enjoy a hot tub and a spa bath.

Hiking is also available nearby for those who wish to explore the area.

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7. Vík Apartments

9.2 Average Rating
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Hotels in South Iceland offer the perfect getaway for those looking to explore the natural beauty of the area. Vík Apartments is located just 300 meters from the stunning Black Sand Beach, and offers guests a fitness center and comfortable accommodation with a balcony and free WiFi. Guests can enjoy a terrace with sea views, a seating area, a flat-screen TV, a fully equipped kitchen with a fridge and oven, and a private bathroom with a shower and hairdryer. Additionally, a dishwasher and kettle are available.

The area surrounding Vík Apartments offers plenty of outdoor activities to explore, such as the Skogafoss Waterfall, located 34 kilometers away, and the nearest airport, Vestmannaeyjar Airport, 90 kilometers away.

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8. Umi Hotel

9.0 Average Rating
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Umi Hotel is a boutique hotel in South Iceland at the foot of the famous Eyjafjallajökull volcano. It offers guests a terrace with views of the sea and a lounge with views of the volcano. The hotel has a selection of rooms, each with a flat-screen TV, seating area, kettle, and private bathroom with bathrobes and free toiletries. Free WiFi is available throughout the property.

Umi Hotel also features a 24-hour front desk and offers various activities like horse riding and fishing. It is conveniently located near the Eyjafjallajökull Erupts exhibit (3 km away) and Ring Road 1 (2 km away). Vik is 41 km away. Guests can also enjoy the on-site restaurant. South Iceland hotels like Umi Hotel offer a unique experience for travelers.

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9. Brú Guesthouse

9.3 Average Rating
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Brú Guesthouse is located in Hvolsvöllur in South Iceland. It offers accommodation with free WiFi and free private parking. Each unit has a terrace with mountain views, a satellite flat-screen TV, a dining area, a well-fitted kitchenette, a private bathroom with a shower, a hairdryer, and bathrobes. It also has a fridge, a microwave, a stovetop, a coffee machine, and a kettle.

The lodge is 10 km from Seljalandsfoss and 38 km from Skogafoss Waterfall. The nearest airport is Vestmannaeyjar Airport, 35 km away.

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10. Ásólfsskáli Cottage

9.3 Average Rating
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Ásólfsskáli Cottage is located on a working cow farm in South Iceland. It offers picturesque views of Eyjafjöll Mountain and free WiFi. Each cottage has a hot tub, kitchenette, terrace with BBQ facilities, seating area, TV, and a private bathroom with a shower.

This boutique hotel in South Iceland is situated 2 km from Iceland’s Ring Road, and the nearest restaurant is 1 km away. Guests can explore the area with several marked hiking trails, and horseback riding can be arranged with the neighboring farm. The Seljalandsfoss Waterfall is 13.5 km from the farm, and the nearest grocery store is 34 km away in Hvolsvöllur village.

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