The Best Hotels in Iceland, From Rural Lodges to Reykjavik Boutiques

"Upon entering Hotel Rangá in Iceland’s south, guests are greeted with Hrammur, a towering 10-feet-tall taxidermy polar bear who had the unfortunate fate of washing up onto Iceland’s shores on a piece of ice that floated over from Greenland. It sets the tone for your stay at this hotel, which straddles the line between luxury hunting lodge and adventurous country manor. This log-style cabin is a wonderful refuge in the middle of Iceland’s south coast; all you need do is turn your gaze inland to spy out the twin glaciers Eyjafjallajökull and Mýrdalsjökull and you’ll feel the pull of adventure coaxing you out the front door. After a day of exploring—perhaps snowmobiling on the glacier, or a private super jeep tour into the secretive Thórsmörk Nature Reserve—Hotel Rangá is warm, inviting, and convivial. Evoking the feeling of an Icelandic summer house, there’s a real homey feel to the rooms here, while shared spaces are adorned with local artworks and Icelandic quilts. A highlight are the seven high-end suites, each paying homage to one of the world’s seven continents from Africa to Antarctica. Of course, there’s the prerequisite hot tub for an evening soak, and an outstanding observatory, complete with a local astronomer and northern lights photographer to guide you through the skies and how best to capture the dancing aurora borealis." - James Taylor