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 Best South Iceland Boutique Hotels

 

1. Blue Hotel Fagrilundur – On The Golden Circle

9.2 Average Rating
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Blue Hotel Fagrilundur – On The Golden Circle is in Reykholt, 19 km from Geysir and 29 km from Gullfoss Waterfall. This 3-star hotel offers free WiFi and features 3-star accommodation.

The guest rooms in the boutique hotel are equipped with a flat-screen TV, a private bathroom with a shower, free toiletries and a hairdryer, and a fridge.

Blue Hotel Fagrilundur – On The Golden Circle provides a buffet or continental breakfast, a hot tub, and a terrace.

The nearest airport is Reykjavík Domestic Airport, 96 km from the hotel. Other nearby attractions include Thingvellir National Park (49 km away) and Ljosifoss (42 km away).

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2. Hotel Geysir

9.3 Average Rating
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Hotel Geysir is located in Geysir, 100 meters from the famous Geysir. It offers a range of facilities, including a garden, free private parking, a restaurant, a bar, and an ATM.

The boutique hotel provides 24-hour front desk service and airport transfers. Guests can also enjoy free Wi-Fi throughout the property and room service.

The rooms come with 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 Hotel Geysir.

In the area, guests can take part in activities such as hiking and cycling. Gullfoss Waterfall is 10 km away. The nearest airport is Reykjavík Domestic Airport, which is 115 km away.

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3. Paradise Cave Hostel & Guesthouse

9.3 Average Rating
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Paradise Cave Hostel & Guesthouse is located in Seljaland, 3.5 km from Seljalandsfoss. It offers accommodation with a garden, free private parking, a terrace, and a bar. It also provides a shared kitchen and luggage storage space.

The hostel has various rooms with a shared bathroom, shower, and hairdryer. Each room is equipped with free WiFi, bed linen, and towels.

A buffet breakfast is served at the property. Guests can enjoy activities such as hiking in and around Seljaland.

Skogafoss Waterfall is 27 km from the property, 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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Ásahraun Guesthouse is located in Selfoss, 35 km from Ljosifoss. It offers accommodation with free WiFi and a garden with a terrace. It also provides access to a hot tub.

The accommodation has a TV, private bathroom, shower, hot tub, and hairdryer. The kitchen has a fridge, oven, microwave, stovetop, toaster, coffee machine, and kettle.

The closest airport is Reykjavík Domestic Airport, which is 71 km away from the guesthouse.

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6. Hrifunes Nature Park

9.5 Average Rating
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Hrifunes Nature Park is located in Hrífunes, which is 47 km away from Fagrifoss. Guests staying at this holiday home can benefit from free WiFi, a garden, and access to a sauna and a hot tub.

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

For those interested, hiking can be enjoyed nearby.

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7. Vík Apartments

9.2 Average Rating
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Vík Apartments is located 300 m from Black Sand Beach. It offers a fitness center and accommodation with a balcony and free WiFi. Guests can enjoy a terrace, sea views, a seating area, a flat-screen TV, a fully equipped kitchen with a fridge and an oven, and a private bathroom with a shower and a hairdryer. A dishwasher and kettle are also available.

Surrounding the apartment, there are plenty of outdoor activities to explore. Skogafoss Waterfall is 34 km away, and the nearest airport is Vestmannaeyjar Airport, 90 km away.

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8. Umi Hotel

9.0 Average Rating
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Umi Hotel is located at the foot of the famous Eyjafjallajökull volcano in South Iceland. It offers a terrace with views of the sea and a lounge with views toward the volcano. Guests can enjoy the on-site restaurant.

The boutique hotel has a selection of rooms, each fitted with a flat-screen TV. Some rooms have a seating area, and all rooms have a kettle and a private bathroom with bathrobes and free toiletries. Free WiFi is available throughout the property.

Umi Hotel offers a 24-hour front desk and various activities like horse riding and fishing. Eyjafjallajökull Erupts exhibit is 3 km away, and Ring Road 1 is just 2 km away. Vik is 41 km away.

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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.

The boutique hotel is situated 2 km away 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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